Strategic Guide to e-Procurement
Glossary
Auto-fax is a system whereby a fax is processed without using paper, eg, a PO is auto-faxed from the buyer’s computer system through the buyer’s fax machine and transmitted through the telecommunications network to the supplier’s fax machine.
Automated Approvals translates the organisation’s delegation and authority rules into an electronic hierarchy for use in approving orders.
Consolidated Electronic Invoicing refers to multiple orders across billing codes that are consolidated into one bill and sent to accounts payable.
CSV Comma Separated Values is a text file format where each line consists of multiple fields, separated by commas to delimit the data points.
E–marketplace is an online market where goods and services are bought and sold over the Internet. Typically e–marketplaces require membership or registration to participate.
E-procurement refers to the automation of any part of the procurement to payment process with electronic tools.
E–RFX refers to the issuing and collection of request for information (RFI), request for tender (RFT), request for proposal (RFP) or request for quote (RFQ) through an electronic medium. The buyer can limit, measure and rank which suppliers are best suited to provide the goods and services.
EDI (Electronic Data Interchange) is a form of electronic commerce that supports computer to computer communications. EDI systems provide high speed communication via transfer of files in a standard format between trading partners using secure electronic communication links.
EFT (Electronic Funds Transfer) is a method of payment where funds from an agencies’ bank account are directly deposited into the suppliers’ account for the payment of an invoice. EFT works by electronically transferring an amount into the designated supplier account instead of issuing and sending a paper cheque.
Electronic Auctions or reverse auctions utilise interactive software and network technology to allow suppliers to submit real-time bids on products and services.
Electronic Catalogue is a listing of a supplier’s product offerings that is accessible through the Internet. Electronic catalogues list the supplier’s merchandise, as it would be in a paper catalogue, on a website.
Electronic Invoicing or e-Invoicing is a broad term that is used to describe the act of electronically transmitting an invoice to suppliers. In the most advanced methods of electronic invoicing the supplier is enabled to receive and process the invoice using purely electronic processes.
Electronic Purchase Order or Electronic PO is a document that outlines the terms of an order, and outlines the terms and conditions of purchase to which both parties must adhere. Electronic POs can be generated in a transactional e-procurement system, or directly by an FMIS or ERP system from a requisition, and then sent electronically to a supplier for direct upload into their system.
EMS (Expense Management System) is used to manage data and transactions that occur through P–cards.
ERP (Enterprise Resource Planning) is a complex computer software system used to manage information required to run large organisations.
ERS (Evaluated Receipt Settlement) is used to pay suppliers without receipt of a vendor invoice. The amount invoiced for each transaction is based on the order price in the PO and the quantity as established in the FMIS/ERP system, combined with the goods receipt. The FMIS/ERP system also establishes tax information and terms of payment from the PO. This information allows the system to generate and pay an invoice, negating the need for a vendor invoice.
Extranet is a website that allows external parties access to an organisation’s intranet site for the purpose of information sharing or performing transactions.
FTE (Full Time Equivalent) is the equivalent of one full time employee.
FMIS (Financial Management Information System) is a complex computer software system used to manage and run financial activities within a large organisation.
P-card (Purchasing card) is a credit card used to facilitate the purchasing process for goods and services. P–cards can also be used for purchasing speciality programs including: travel and expense, fleet or combined programs under a one card program.
RCTI (Recipient Created Tax Invoice) is issued by the recipient of the supply rather than by the supplier. An RCTI must be issued in accordance with Australian Taxation Office conditions. An RCTI can be used on its own or in conjunction with ERS.
Recurring payments are used where an agency needs to make a specific number of payments for a fixed amount. Recurring payments are made by setting up an automatic payment against the supplier in the FMIS/ERP.
ROI (Return on Investment) is the dollar value measure of an agency’s ability to use its assets to generate additional value. ROI is calculated through calculating the ratio of costs to benefits of the project for a time period.
SKU (Stock Keeping Unit) is a unique item which is held in inventory usually with a specific number so it can be tracked, reordered, etc.
SPA (Single Point of Accountability)is a designated person responsible to implement a solution.
Supplier Portal is a secure, Internet site that is developed by the buying organisation to provide a comprehensive access point to supplier–related information. It may also be referred to as the buying organisation’s ‘Extranet’ site.
VMI (Vendor Managed Inventory) is a service whereby the supplier assumes responsibility for stocking and maintaining the buying organisation’s inventory levels of the supplied goods to agreed service levels. The vendor then issues a monthly consolidated invoice for all items used.
XML (Extensible Markup Language) is a standard way of formatting data files for interchange between organisations and users.
Contact for information on this page: ICT Procurement