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9.other departments will be the only ones to reap the benefits.

Chart 12

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8.  other payment methods are more suitable.

Chart 11

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7. switching is complicated and not worth my time.

Chart 10

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6 .we place our orders through a more convenient purchasing system with BANFs.
Chart 9

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5.  they are not a secure payment method.

Chart 9

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4. my staff members can pay with their personal credit cards and be reimbursed via their travel expense reports
Chart 8

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3. surely they are accepted by only a few merchants
Chart 7

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2.introducing them is time consuming and we seldom buy online or purchase any C- class parts
Chart 6

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1. we use our department head's personal credit card.
Charts 4 – 5

Managing corporate credit cards can cause additional problems. Online sites operated by traditional banks tend not to be user friendly and cannot be integrated into accounting software. Many processes, such as adjusting the limit on a business credit card, are lengthy and inflexible.

Internet procurement has become more complex. In addition to credit card data, you have to enter a TAN, a one -time password and/or other information.

3D Secure is waived for single - use AirPlus Virtual Cards and is minimal for multi-useAirPlus Virtual Cards .

Even team members who only want to order a mouse have to get authorization, find the corporate credit card, and ensure that the sales receipt is available for filing at the end of the month.

Goods that are delivered are posted as incoming goods. Typically, the posting is the prerequisite for downstream processing in Financial Accounting. If incoming goods are not posted manually, they are posted automatically so the invoice can be processed and settled.

Automated receipt of goods

The purchase of goods or services needed quickly and directly.

Ad-hoc purchase

amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

Accounts Payable (AP)

the balance of money due to a firm for goods or services delivered but not yet paid for by customers.

Accounts Receivable (AR)

(from German Banf for Bedarfsanforderung) A purchase requisition is a requisition submitted to Purchasing for procuring specific amounts of materials or services for a specific date. Purchase requisitions result from the need for goods or services.

Banfing

Suppliers whose products and data are provided in catalog systems.

Catalog suppliers

Software for providing supplier catalogs to Purchasing.

Catalog system

Consumables are products with a low monetary value that need to be sourced repeatedly to satisfy recurring demand. They include conventional office supplies as well as light bulbs, hygiene products, coffee pods and many other items. The classification into A-, B- , or C-class parts often is done by the company itself.

C- class parts, or consumables

One benefit of procuring goods and services centrally is that cluster purchases can help companies reduce costs. Typically, qualified members of the Purchasing team negotiate outline agreements and leverage cost advantages by ordering large volumes. Reducing costs does not necessarily mean looking for the lowest purchase prices; the elements comprised in the purchase price are more important. A higher purchase price may include the cost of the goods and also warranty services, maintenance, packaging and/or delivery.

Central procurement

Average number of days that receivables are outstanding.

DSO (Days Sales Outstanding)

DPO indicates the promptness of payment to suppliers by the firm. Credit suppliers are often cheaper than bank loans and sometimes it can be better to pay suppliers quicker in order to get early payment discounts.

DPO (Days Payables Outstanding)

The most common and most secure format for the direct exchange of order and invoice data.

EDI

Software used for organizing data concerning creditors, accounts receivable, the company, etc. (e.g., SAP).

Enterprise Resource Planning (ERP)

Electronic ordering system.

E-procurement

Service provider that offers external catalog and supplier management

E-procurement platform

Umbrella term for the procurement of products and services via digital networks and/or platforms. Integrated systems and tools help purchasers carry out operational and tactical tasks (e.g., catalog procurement, auctions, RfPs ,etc.). Some tools also support the achievement of strategic goals.

Electronic procurement

A process made up of partial processes that follow a time and logical order and are required to meet a customer’s concrete need.

End-to-end

An “intelligent scanning system” that reads out data from documents and is adaptive, that is, it can store and read diverse formats.

A section of the Procure -to-Pay process that includes the purchase requisition, order confirmation, recording of goods received, and also invoice entry, verification and authorization.

Procure-to-Invoice (P2I)

No purchase order, no payment.

No PO, No Pay

OCR scanning

General differentiation is made between

Operational procurement

The goal of the procurement process is to ensure the demand-based and economical supply of goods.

Procurement

Late scanning Purchase invoices are processed manually and scanned for archiving purposes.

Early scanning Purchase invoices are scanned upon receipt and the extracted data is imported into the financial accounting system for processing.

Corporate debit card used by purchasers (and other authorized persons) to order goods and services directly and self-responsibly from predefined suppliers. Orders are authorized by a third party such as Lufthansa AirPlus VISA, orDresdner Bank.

Purchasing card

A company staff member who requires a product or service.

Requisitioner

A way of reading out data by scanning paper or PDF files. Typically, an adaptive software is used to facilitate recognition of a variety of document layouts.

Optical Character Recognition (OCR) scanning

External or internal service provider that processes documents and/or invoices, often located abroad to reduce costs.

Shared Service Center

The active review of procurement expenses for the purpose of reducing costs, increasing efficiency, and improving relationships with suppliers. In Purchasing, spend analysis means the systematic collection, cleaning, classification, and analysis of expense-related data using special software or through spend -cube projects.

Spend analysis

Supplier Relationship Management.

SRM

Strategic procurement

WCM (Working Capital Management)

Electronic invoice format made up of a PDF file and an attached dataset, typically in XML

ZUGFeRD

Transportation and fleet management Utilities (gas, electricity, water)

HR (recruiting, training, professional development)

IT (hardware, software)

Maintenance, Repair, and Operations (MRO)

Travel services

Consulting services

Marketing services (media purchases, agencies, etc.)

Indirect procurement entails fewer administrative steps. Purchasers in indirect procurement buy goods and services that are not directly linked to the production of products (also referred to as non-production materials). The goal is to keep operations running and expanding. Examples of indirect expense categories:

In procurement management, the unauthorized ordering of materials or services by any department and bypassing Purchasing, that is, outside of standardized procurement channels. Reasons include staff members’ ignorance of existing procurement processes and/or of supplier outline agreements.

Maverick buying

One time suppliers created in the system to guarantee correct posting but not used after the first order has been placed.

Longtail

Typically, I2P begins with the receipt of an invoice and involves diverse steps including review, authorization, and payment.

Invoice-to-pay (I2P)

Electronic ordering system.

E-procurement

Umbrella term for the procurement of products and services via digital networks and/or platforms. Integrated systems and tools help purchasers carry out operational and tactical tasks (e.g., catalog procurement, auctions, RfPs, etc.). Some tools also support the achievement of strategic goals.

Electronic procurement

Service provider that offers external catalog and supplier management.

E-procurement platform

Having procurement carried out in a decentralized manner by the persons responsible in the respective departments makes it possible to respond flexibly to time pressure and contingencies. Goods reach departments more quickly and bargains are used more frequently. Reporting lines are short because no purchase requisitions need to be submitted to Purchasing.

Indirect procurement