Technical words used in the Procure-to-Pay (P2P)

1. Procurement: The process of acquiring goods and services.

2. Purchase Order (PO): A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

3. Invoice: A document requesting payment for goods or services rendered.

4. Vendor Management: The practice of managing and optimizing relationships with suppliers.

5. Goods Receipt (GR): Confirmation of receipt of goods, triggering the next steps in the payment process.

6. Three-Way Match: Verifying that the purchase order, goods receipt, and invoice match before processing payment.

7. Requisition: A formal request for the purchase of goods or services.

8. Catalog Management: The process of creating and maintaining catalogs of products available for purchase.

9. Sourcing: Identifying and selecting suppliers to fulfill organizational needs.

10. RFQ (Request for Quotation): A document used to request quotes from potential suppliers.

11. BOM (Bill of Materials): A comprehensive list of materials, components, and sub-assemblies required to manufacture a product.

12. EDI (Electronic Data Interchange): The electronic exchange of business documents between companies.

13. AP Automation: The use of technology to streamline and automate the accounts payable process.

14. E-Procurement: The use of electronic systems to manage the procurement process.

15. Credit Memo: A document issued by a seller to reduce the amount owed by a buyer.

16. Payment Terms: The agreed-upon terms for payment between the buyer and the seller.

17. Vendor Performance Metrics: Measurements used to evaluate the effectiveness and efficiency of a vendor.

18. Compliance Management: Ensuring that procurement processes adhere to legal and regulatory requirements.

19. PO Flip: Converting a purchase requisition directly into a purchase order.

20. Accruals: Recording expenses incurred but not yet paid.

21. Early Payment Discounts: Discounts offered by suppliers for early payment of invoices.

22. VMI (Vendor Managed Inventory): Inventory management system where the supplier monitors and replenishes stock.

23. Strategic Sourcing: A structured approach to optimizing an organization's purchasing activities.

24. Landed Cost: The total cost of a product, including purchase price, shipping, and customs.

25. P-Card (Procurement Card): A corporate credit card specifically used for procurement purposes.

26. RFX (Request for X): A generic term for various types of requests, such as RFI (Request for Information) or RFP (Request for

Proposal).

27. Quality Assurance: Ensuring that purchased goods or services meet specified standards.

28. Variance Analysis: Analyzing differences between expected and actual costs or performance.

29. Cost-Benefit Analysis: Evaluating the potential benefits of an action against its costs.

30. Spend Analysis: Analyzing the organization's spending patterns to identify cost-saving opportunities.

31. Commodity Management: Managing the sourcing and procurement of specific commodities.

32. Catalog PunchOut: Allowing users to access external supplier catalogs directly from the procurement system.

33. Reverse Auction: A type of auction where sellers compete to obtain business from the buyer.

34. Master Service Agreement (MSA): A contract outlining terms and conditions between a buyer and a service provider.

35. Category Management: Managing procurement based on product or service categories.

36. Supplier Onboarding: The process of integrating new suppliers into the procurement system.

37. Just-In-Time (JIT) Procurement: Acquiring goods and services exactly when needed, minimizing inventory costs.

38. Cross-Docking: Directly transferring goods from inbound to outbound transportation without storage.

39. Audit Trail: A record of sequential activities or events, useful for tracking changes and ensuring accountability.

40. Sustainability in Procurement: Integrating environmental and social considerations into procurement processes.

41. Outsourcing: Contracting out specific business functions to external providers.

42. Service Level Agreement (SLA): A contract specifying the level of service expected from a supplier.

43. Blockchain in Procurement: Using blockchain technology to enhance transparency and traceability in procurement processes.

44. Incoterms: International commercial terms that define the responsibilities of buyers and sellers in global trade.

45. Rogue Spending: Unauthorized or uncontrolled spending outside established procurement processes.

46. Demand Planning: Forecasting future demand for goods or services.

47. Total Cost of Ownership (TCO): Evaluating the complete costs associated with a product or service over its lifecycle.

48. Category Strategy: Developing plans for managing specific procurement categories.

49. Supplier Diversity: Promoting the inclusion of diverse suppliers in the procurement process.

50. Benchmarking: Comparing an organization's processes and performance metrics with industry standards or best practices.

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