--- title: "Payables Terminology" canonical: "https://kb.myframeworks.com.au/space/FRAM/28377474/Payables%20Terminology" format: markdown --- # Overview This page covers terminology used within Frameworks related to its Accounts Payable (AP) module. # ABA An electronic file generated by Frameworks that contains supplier payments and supplier account details which allows the file to be imported into the customer’s online banking system for the supplier to be paid via direct credit. --- # Accounts Payable The use of credit with importance placed on the payment of suppliers/creditors on time. Savings can be made by way of discounts received for prompt payment and buying in bulk, as well as the advantage gained by being recognised as a good paying customer. --- # Accounts Payable Control Account Records all liabilities owed, whether they are for trade or non-trade goods and services. The balance of this account is the difference between the liabilities incurred and those that have been paid. For reconciliation purposes this balance should be equal to the total of all creditors balances. --- # Back Order (B/O) A balance owed on a purchase order for items which have not yet been received from a supplier. --- # Batch Number A batch number is allocated to a selection of invoices processed at the same time. --- # Credit Note Issued by sellers when goods bought on credit by customers are returned by mutual agreement, or a price adjustment is necessary because of damage, overcharging, short delivery, etc. --- # Creditors/Suppliers Suppliers who negotiate trading terms with your company where you purchase items on credit. After the items are received into stock, your company is then obliged to pay for them within the Trading Terms that have been agreed. For example, 14 days from invoice or 30 days from statement. --- # Delivery Docket Contains all of the information found on an invoice usually without the unit and total price information. It is sent in duplicate with the goods to the purchaser, one copy of which is returned, signed by the purchaser, to the seller to acknowledge the receipt of the goods. --- # Diary Notes A narrative field in **Supplier Maintenance** and enquiry for the purposes of recording relevant comments about the account. This facility is particularly useful for recording debt collection activities, special circumstances justifying late payment, and/or promises of payment. --- # G.L.N. (Global Location Number) This can be used in any outgoing electronic trade document. --- # Group Discount Group discount available from the supplier if they are part of a buying group. For example, HBT, Plumbtec and so on. --- # GTIN (Global Trade Identification Number) A GTIN is a code that uniquely identifies a package variant of a product using a single code, which is typically displayed as a barcode for scanning purposes. A GTIN barcode represents a product, the unit of measure and the package quantity from that supplier. For example, a single code would represent a box of 20 hammers. Scanning that barcode from within selected programs would determine the product code, supplier, UOM and conversion factor of the scanned product. --- # Internal Sale A sale made by one branch to another or to an internal customer. This is sometimes referred to as a stock transfer. --- # Invoice A record of the details of goods sold on credit to individual purchasers, originated by the seller of the goods. --- # Invoice Approval An electronic signature that indicates that a supplier’s invoice and all accompanying documentation are correct. This essentially gives approval for a cheque to be drawn when the invoice time payment terms have been satisfied. --- # Mark Prefix Used to define a prefix code of up to three characters that is then used as the prefix code for Mark (container) numbers for importing if the **FeatureCNT** system flag is active. If this code is not used, then the mark number is prefixed with the default code of ‘MRK’ followed by the next available mark number. --- # Purchase Order The official order of an individual or organisation requesting that another organisation supplies specified goods or services. This is the basis of a contract. --- # Request for Credit Notification to a supplier that goods are being returned without having been receipted (that is, not accepted) due to being faulty or broken and so on, or for incorrect charge details. --- # Settlement Discount Applied when an account is paid and is conditional upon the buyer paying for goods within a prescribed time. If payment is late, the discount is not allowed. --- # Standard Cost For the current accounting period, stock issued is charged to the cost of goods sold at a standard rate, regardless of the purchase price. Any variance caused by a different purchase price would be charged to a variance account (purchase gains and losses) which is ultimately charged to profit and loss. This method is used mainly in manufacturing businesses where there is a mix of raw materials incorporated in the end product. --- # Statement Provides details in respect of unpaid amounts from the last period, purchases for this period, credit notes requested and payments made. --- # Stock Receipt The processing of a purchase order to notify the system of incoming goods which were ordered from a supplier on the specific purchase order. --- # Stock Return/Stock Reversal Notification to a supplier that goods are being returned for crediting after having been receipted. Reversal is the action taken to acknowledge the receipt of replacement goods. --- # Suppliers Other businesses that your company purchases stock or supplies from. Stock refers to products purchased for sale to your companies customers. Supplies refers to items used within your own company. For example, stationery items for the office. --- # Supplier Group A way to group suppliers paid using the same process (for example, every Monday) or that need to be reported together on a Creditors Trial Balance. --- # Supervisor Password A security feature that requires an authorising password from a suitably empowered senior employee before certain functions can be performed by a ‘restricted’ user. --- # Supplier Invoice Maintenance Facility for the processing and adjustment payment amounts of suppliers' invoices. --- # Trading Terms The standard terms and conditions that apply to the supply of any goods or services from a supplier. --- # Unit of Measure Classification of how a product is supplied and charged. For example, each, length, kg, m2 and so on. --- # Volume Break Quantity of a product beyond which the supplier offers an extra discount. For example, purchasing between 0 and 99 may attract a 5% discount whereas purchasing between 100 and 999 may attract a discount of 8%. --- # Volume Discount Quantity of a product beyond which a customer receives an extra discount.