Purchasing & Accounts Payable Glossary
There are currently 98 Glossaries in this directory
Accounts Payable (AP)
E-procurement or electronic procurement is using technology to automate the end-to-end procurement process for a company.
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Accounts Payable Aging Report
An accounts payable aging report is a valuable tool that provides a comprehensive overview of a company’s outstanding invoices and payment obligations.
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Accounts Payable Debit Or Credit
Accounts payable refers to the money a company owes to its suppliers for products and services received but not yet paid for. It represents a liability on the balance sheet, signaling that the business has an obligation to settle its debts.
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Accounts Payable Management
Accounts payable is a crucial part of your business process. It helps any business stay organized and efficient when paying for your vendors on time.
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Accounts Payable Turnover
Understanding Accounts Payable Turnover is crucial for several reasons. Firstly, it provides insights into a company’s payment practices and can reflect its financial health.
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Aging Report
The aging report is an essential part of the financial management system, providing valuable insights into the company's cash flow, credit management, and overall financial health.
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AP Automation
By using AP Automation, you can easily simplify tedious tasks within your organization, helping you save both time and money.
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APICS Certification
APICS, now known as the Association for Supply Chain Management (ASCM), provides industry-recognized certifications that validate an individual’s expertise in supply chain and operations management.
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Approval Hierarchy
Approval Hierarchy is a structured system that outlines who within an organization has the authority to approve certain actions, in this case, procurement decisions.
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Biopharmaceutical Procurement
Biopharmaceuticals, also known as biological drugs or biologics, are medical drugs produced using biotechnology.
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Biotech Outsourcing Strategies
Biotech outsourcing strategies can encompass a wide range of activities, from research and development (R&D) to manufacturing, clinical trials, regulatory compliance, and more.
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Biotech Supply Chain Management
Biotech supply chain management is a specialized field that focuses on the planning, coordination, and execution of all activities involved in the procurement, production, and distribution of biotechnological products.
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Blanket Order
Undoubtedly, your procurement department always looks for ways to streamline your purchasing processes, reduce costs, and improve efficiency. One tool that can help you achieve this goal is by using a Blanket Purchase Order (BPO).
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Budgetary Control
Budgetary control is a fundamental concept in financial management, particularly in the fields of procurement and accounts payable.
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Bulk Purchasing
Bulk purchasing is a procurement strategy that involves acquiring goods or services in large quantities.
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Cash Burn Rate
The cash burn rate is typically calculated on a monthly or quarterly basis. It is determined by subtracting the cash at the end of the period from the cash at the beginning of the period.
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Category Management
Category management is a key component of strategic sourcing and is often used in conjunction with other procurement strategies to maximize value and reduce costs.
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Centralized Procurement
Centralized procurement is the process of centrally managing the purchasing for distributed locations. In a centralized procurement model, there is one procurement team for all locations.
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Clinical Trial Procurement
Clinical trial procurement is a complex process that involves a range of challenges.
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Cold Chain Logistics
Cold chain logistics is a term that refers to a temperature-controlled supply chain. This process involves an uninterrupted series of refrigerated production, storage, and distribution activities, along with the associated equipment and logistics, which maintain a desired low-temperature range.
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Contract Manufacturing Organizations CMOs
Contract Manufacturing Organizations (CMOs) play a crucial role in the manufacturing industry, particularly in sectors such as pharmaceuticals, biotechnology, and electronics.
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Cooperative Purchasing
Cooperative purchasing can be defined as a procurement strategy in which multiple organizations join forces to leverage their collective buying power.
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Cost Avoidance
Cost Avoidance is a preventive measure that involves identifying potential costs that a business may incur in the future and taking steps to avoid them.
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Cost Savings
Cost savings refers to the amount a company saves due to higher efficiency or better purchasing costs. The finance team always measures cost savings as a reduction in the set budget. If the cost reduction doesn’t impact the budget, it can’t be considered cost savings.
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Direct Purchasing
Direct purchasing is a procurement strategy that involves an organization buying goods or services directly from the manufacturer or service provider.
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Direct Spend
Direct spend is a procurement term that refers to the costs associated with the production of goods and services.
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Distribution Management
Distribution management is a critical component of any organization focusing on the movement of goods from manufacturers to consumers.
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E-Invoicing
E-invoicing or electronic invoice is the process of digitizing the supplier invoicing process.
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E-Procurement
E-procurement or electronic procurement is using technology to automate the end-to-end procurement process for a company.
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Early Payment Discount
The concept of early payment discount is rooted in the principle of time value of money, which states that a dollar today is worth more than a dollar tomorrow.
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Ethical Purchasing
Ethical purchasing, also known as ethical sourcing or ethical procurement, is a significant aspect of corporate social responsibility (CSR).
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Expense Management
Expense management is a crucial part of your business. No doubt that managing your expenses can be a time-consuming and even complex task when done manually.
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FPDS
The FPDS is a comprehensive database maintained by the General Services Administration (GSA), an executive agency that captures all federal procurement activities.
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Global Sourcing
Global sourcing is a strategic procurement approach that involves seeking goods and services beyond one’s national borders.
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Global Supply Chain Management
Global supply chain management refers to the coordinated and efficient process of sourcing, producing, and delivering products and services across international borders.
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GMP Good Manufacturing Practice Compliance
Good Manufacturing Practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards.
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Green Procurement
Green procurement, also known as sustainable procurement, involves the integration of environmental considerations into the procurement process.
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Healthcare Supply Chain
The healthcare supply chain encompasses all the steps involved in providing patients with the necessary products and services they require for treatment.
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Indirect Procurement
Companies that manage Indirect procurement well save anywhere between 5-8% of their manual Spend.
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Indirect Purchasing
Indirect purchasing is a term used in the field of procurement and accounts payable process. It refers to the acquisition of goods and services that are not directly incorporated into a product being manufactured.
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Indirect Spend
Indirect Spend refers to the purchasing of goods and services that are not directly incorporated into a product being manufactured.
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Inventory Management
Inventory management is the process of ordering, tracking, and managing disbursements of the items for which a company manages stock.
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Invoice Processing
While managing invoices can quickly become overwhelming for your business due to numerous daily transactions, using the right tools and strategies can help your business streamline its invoice processing operation. Thus, helping you reduce the risk of errors and delays.
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Late Payment Fees
Late payment fees, also known as delinquency fees, are charges levied by a lender or service provider when a borrower or customer fails to pay a bill or loan installment on time.
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Lead Time Reduction
Lead time reduction refers to the strategies and practices implemented to decrease the total time taken from the initiation of a process to its completion.
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Logistics Management
Logistics management refers to the planning, implementation, and control of the flow and storage of goods, services, and related information.
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Material Procurement
Material procurement is the process of sourcing, purchasing, and managing raw materials or finished goods required for production or operations.
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Maverick Spend
Maverick Spend, also known as rogue or uncontrolled spend, is a term used in procurement to describe spending that happens outside of established procurement policies and procedures.
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MRO Procurement
MRO procurement refers to the acquisition of materials, spare parts, and services required for the maintenance and repair of machinery, equipment, and facilities.
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Notes Payable
Notes payable are written promissory notes to pay a specified amount of money at a future date. This formal agreement typically involves two parties: the lender and the borrower.
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Order Acknowledgment
An order acknowledgment is a confirmation by the vendor that they have received the buyer’s purchase order.
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Payment Terms
Having payment terms that work for your company and suppliers is essential to a successful procurement process. But how do you ensure that your payment terms are fair and effective? From setting goals with suppliers to using early payment options, there are many things to consider when setting procurement payment terms.
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Procure-To-Pay
Procure to pay is the end-to-end process a company follows to purchase, receive and pay the vendor for the products and services.
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Procurement Contract Management
Procurement Contract management involves several key elements, each of which plays a critical role in ensuring the effectiveness of the process. These elements include contract creation, negotiation, execution, compliance, amendment, audit, and renewal.
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Procurement Dashboard
A procurement dashboard offers several benefits for businesses. Firstly, it provides a clear and concise view of key procurement metrics, allowing businesses to quickly assess the performance of their procurement processes.
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Procurement Ethics
Procurement Ethics refers to the moral principles and standards that guide the behavior and decisions of those involved in the procurement process.
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Procurement Management
Procurement management involves the process of acquiring goods and services for an organization.
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Procurement Process
The procurement process is a critical business operation that involves the acquisition of goods and services from external sources.
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Procurement Specialist
The procurement specialist serves as the backbone of the purchasing process in an organization. Their role encompasses a variety of tasks that require a blend of strategic thinking and operational execution.
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Purchase Order Example
In this resource, let's dive deeper into how purchase order works, the correct formatting of purchase orders, and their benefits to your company. With this knowledge, we're confident you'll be on your way to easily mastering the art of ordering for your business!
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Purchase Order Number
A purchase order (PO) number is a unique identifier assigned to a purchase order document. This is used by businesses and vendors to track orders effectively. This ensures that all parties involved in a purchase are aware of the details of the transaction.
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Purchase Order Requisition
A purchase order requisition is a document an employee uses to request a purchase, product, or service.
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purchase order terms and conditions
Having purchase order terms and conditions can greatly impact the success rate of your transaction. Aside from that, it is legally binding as well. But, have you ever wondered what exactly purchase order terms and conditions are and why you should include them in your purchase order?
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Purchasing
Purchasing is the activity of procuring products or services by a buyer from a supplier. The simplest example of purchasing is the day-to-day purchasing done by a company. For example, you are purchasing a laptop from CDW or Amazon.com.
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Purchasing Automation
Understanding procurement and its related terms is essential for any business, regardless of its size. It can help in making informed decisions, reducing costs, improving efficiency, and ultimately, driving business growth.
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Purchasing Cycle
The purchasing cycle, also known as the procurement cycle, is a fundamental concept in the field of procurement and accounts payable.
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Purchasing Department
Your company’s purchasing department is one of the most important departments in your organization.It plays a vital role in ensuring the success of you and your finance team through sourcing and acquiring your required goods.
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Purchasing Management
Purchasing management, a critical component of supply chain management, refers to the process of sourcing, ordering, and overseeing the use of goods and services within an organization.
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Purchasing Manager
Purchasing managers in your company are responsible for finding and sourcing materials, supplies, equipment, and services at lowers costs without compromising quality or delivery times.
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Request For Quotation
A Request for Quotation or quote is the process of requesting a vendor to quote the price for a product or service that you are looking to purchase.
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Requisition Management
Requisition management, in simple terms, is the process of managing requests for the purchase of goods or services within an organization.
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Resilient Supply Chain
A resilient supply chain is characterized by its ability to adapt to unforeseen disruptions, whether they arise from natural disasters, geopolitical tensions, or economic shifts.
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Risk Management In Procurement
Risk management in procurement is a critical aspect of any business operation that involves the sourcing and purchasing of goods and services.
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Sourcing In Supply Chain
The role of sourcing extends beyond merely procuring materials; it is integral to forming a resilient and responsive supply chain. Strategic sourcing enables organizations to mitigate risks, enhance innovation, and respond rapidly to market changes.
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Sourcing Strategy
A sourcing strategy refers to a plan that formalizes the way information is gathered and used so that an organization can utilize its consolidated purchasing power to find the best possible values in the marketplace.
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Spend Management
Spending is a crucial factor that can affect the profit of your company. Although, there are still a few organizations that find themselves struggling in this area. We believe that is something you would not like for your business.
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Spend Under Management
Spend Under Management is a key performance indicator (KPI) for procurement. It provides a measure of how effectively a company is managing its spend.
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Spend Visibility
Spend visibility is the ability to track corporate spending in a detailed and categorized manner.
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Strategic Sourcing
Strategic sourcing is absolutely an invaluable tool used by companies to acquire resources in the most cost-effective and efficient manner. Using strategic sourcing paired with digital business networks, companies are able to create seamless experiences from start to finish of their business operations.
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Supplier Consolidation
Supplier consolidation, also known as vendor consolidation, is a procurement strategy where a company reduces its number of suppliers.
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Supplier Management
Supplier management, also known as supplier relationship management (SRM), is a comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services it uses.
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Supplier Performance Metrics
Supplier performance metrics are a set of quantitative and qualitative measures used to assess a supplier's performance.
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Supplier Risk
Supplier risk, also known as vendor risk or supply chain risk, refers to the potential negative impacts that can arise from a company's reliance on its suppliers.
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Supplier Statement Reconciliation
Supplier Statement Reconciliation is an essential process in the financial management of a business. It involves comparing a supplier’s statement of account to an organization’s internal records to identify any discrepancies and ensure that all transactions are accurate and complete.
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Supply Chain Analyst
A Supply Chain Analyst acts as a key facilitator in the logistics process, primarily focusing on the flow of goods and services from suppliers to customers.
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Supply Chain Analytics
Supply chain analytics involves the systematic collection and analysis of data across various stages of the modern supply chain.
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Supply Chain Certification
Supply chain management (SCM) encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.
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Supply Chain Finance
Supply chain finance, also known as supplier finance or reverse factoring, is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their suppliers to get paid early.
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Supply Chain Optimization
Supply chain optimization involves the integration of various processes, technologies, and strategies to enhance the overall performance of a supply chain.
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Supply Chain Planning
The role of supply chain planning is multifaceted, impacting various aspects of a business such as inventory management, production planning, and logistics.
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Supply Chain Strategy
A supply chain strategy is a structured plan that outlines how an organization will manage its supply chain operations to maximize efficiency and minimize costs while maintaining customer satisfaction.
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Tender Process
The tender process is a structured approach through which organizations, especially in the public sector, acquire goods and services.
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Three-Way Match
A three-way match is a process of matching three documents to ensure that you pay an invoice that matches what you ordered.
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Two-way Match
A two-way match is a process of matching the invoice with the purchase order to ensure the invoice is ready for payment.
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Vendor Credits
Vendor credits are an integral part of the accounts payable process. They help in maintaining accurate financial records and ensuring that the company's cash flow is managed efficiently.
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Vendor Evaluation
Vendor evaluation is a critical process in the procurement and accounts payable process. It involves assessing and monitoring the performance and quality of a vendor’s goods or services.
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Vendor Invoices
A vendor invoice is more than just a bill. It is a legal document that provides a detailed account of the transaction between the vendor and the buyer.
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Vendor Management
Vendor Management is an essential element in maintaining and growing customer loyalty while minimizing any risks and costs associated with managing vendors. Vendor Management also serves as an effective way to ensure that your business gets the best services while securing low costs and maintaining good relationships with your vendors.
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