Purchasing & Inventory Glossary of Terms
Account
In Purchasing & Inventory, an account is usually the same as an account in an
organization’s Accounts Payable (AP) and General Ledger (GL) software. The
AP and GL software records the costs of purchases and internal transactions.
organization’s Accounts Payable (AP) and General Ledger (GL) software. The
AP and GL software records the costs of purchases and internal transactions.
Active is one of the statuses that Purchasing & Inventory uses for products, projects, recipes, and other things. If the status is Active, the item can be used in Purchasing & Inventory. See also inactive.
Address Book
The Address Book is a list of shipping addresses and billing addresses at a property. The addresses are printed on purchase orders. Some properties use the same address for shipping and for billing. Other properties use different addresses for shipping and for billing.
Ad hoc product
An ad hoc product is a product that is created at the time that it is used in a purchase requisition or a purchase order. Usually, an adhoc product is created for a one-time use.
Bid
A bid is an alternative name for a vendor quotation.
Budget Code
A budget code is a user-defined code that is used in Checkbook Maintenance.
Catch Weight
The catch weight is the average weight of a variable-weight product. For some products that are purchased by weight, the weight of each item can be different when the product is shipped. For example, pieces of meat have different weights.
A category is a group of similar outlets, products, recipes, or projects. Categories are used as selection criteria for reports. A category has one or more category segments, one or more category classifications, and one or more sub categories.
A category classification is the type of data to which a category is applicable. Purchasing & Inventory has the following five category classifications: Outlet, Product, Project, Recipe, System.
category segment
A category segment is the part of a property to which a category is applicable. A category segment can have more than one category. Typically, Purchasing & Inventory has category segments such as Food & Beverage, Housekeeping, and Engineering.
Multi-property only. Cluster Purchasing is a business unit that deals with purchasing for other properties in a multi-property organization. See also Enterprise.
To close a purchase order means to stop more receivings from occurring on the purchase order.
contract
A contract is a method to control the price that an organization pays for products.
- For each product from each vendor, for a particular time, only one contract is possible
- When Purchasing & Inventory compares prices for purchase requisitions and for purchase orders, a contract has priority over vendor quotations
A division is a group of outlets. An outlet can be in only one division. Divisions are used in Checkbook Maintenance to specify a budget.
Multi-property only. Enterprise is a business unit that deals with things such as reporting and brand recipes. Purchasing functions are not available at Enterprise. Multi-property organizations can have different structures. Enterprise is always at a higher level than Cluster Purchasing, which is at a higher level than properties.
fiscal calendar
For a specified year, the fiscal calendar specifies the accounting periods for a property.
For each order guide, a guide sequence is the sequence in which products on inventory sheets and on pick lists are printed. Products can be grouped by category or by location.
- By category. The products are ordered by category, from low to high. For each category, products are ordered alphabetically
- By location. For each location, the sequence on inventory sheets and on pick lists is the same as the guide sequence. A guide sequence can be changed to be the same as the physical sequence of products at a location
Inactive is one of the statuses that Purchasing & Inventory uses for products, projects, recipes, and other things. If the status is Inactive, the item cannot be used in transactions. See also Active.
An ingredient is a product or a recipe.
In Purchasing & Inventory, inventory has two meanings:
- An inventory is the all products (all the stock) at an outlet
- An inventory is a list of products at each outlet. The inventory contains the quantity of each product. The products are grouped by category or by location
See also inventory cycle, inventory sheet.
An inventory cycle is list of outlets at which inventory is counted. Typically, a property has more than one inventory cycle. For example, some properties have inventory cycles for monthly counts of inventory and for year-end counts of inventory. Before inventory is counted, the outlets on an inventory cycle are printed on inventory sheets.
An inventory sheet is a piece of paper that employees use to count products. Employees count each type of product, and write the number on the inventory sheets. See also inventory, inventory cycle.
An inventory unit is the unit in which a product is recorded in the inventory. Examples of inventory units are cans, cases, ounces, and kilograms. See also retail unit.
A location is a part of an outlet in which products are stored. Examples:
- A storeroom has many aisles. Each aisle is a location
- A bar has many coolers and a freezer. Each cooler is a location, and the freezer is a location
market segment
Cluster Purchasing only. A market segments is a way to specify which vendors operate with which properties.
A multiple receiving is a receiving that occurs in parts. A multiple receiving lets a purchase order stay open after only part of the products on the purchase order are received. For example, a purchase order is for 100 wine glasses. On Friday, 50 wine glasses are received. On the following Wednesday, the remaining 50 wine glasses are received.
An order guide is list of all the products that are available at an outlet. Dependent on an outlet’s setup, the guide sequence specifies whether products are grouped by category or by location. When an outlet is created, Purchasing & Inventory automatically creates an empty order guide for that outlet.
An outlet is a cost center. Frequently, an outlet is a physical part of a property such as a restaurant, a bar, a storeroom, or an operational department. See also division, location, Storeroom Outlet.
An outlet requisition is a requisition to move products or recipes from one outlet to a different outlet. See also pick list, purchase requisition.
An outlet template is a template that is used to create outlet requisitions. Each outlet template has a list of products that are frequently on the outlet requisition. Therefore, the outlet requisition can be created quickly. See also purchase template.
perpetual inventory
In business and in manufacturing, perpetual inventory is an inventory system that constantly updates the numbers of products when products are used or sold. In Purchasing & Inventory, perpetual inventory is an outlet setting. If an outlet uses perpetual inventory, then the inventory is accurate at all times.
A pick list is a list of products that are on an outlet requisition. For each product, the pick list has inventory information and space to write the quantity that is supplied.
product quote
A product quote is an alternative name for a vendor quotation.
In Purchasing & Inventory, a project is a list of products and information about a real-world project. For example, a hotel renovation project has products that are used in the renovation. Things such as costs, contingencies, and lead times are recorded in Purchasing & Inventory.
A property is a hotel or resort that operates as an independent business unit. See also Cluster Purchasing.
Multi-property only. To pull data is to copy data from Cluster Purchasing to a property. The following types of data can be pulled: accounts, categories, products, recipes, units, and vendors. See also push.
punchout
A punchout is a connection to a vendor’s online store. A punchout lets users purchase products directly from a vendor’s online store. With a punchout, users can track inventory and manage approvals at the same time that they purchase products.
A purchase requisition is a request for products to be brought into a property. Frequently, a route is used to send a purchase requisition to different users in a property for approval. After final approval, a purchase requisition can be made into a purchase order. See also outlet requisition, purchase template.
A purchase template is a template that is used to create a purchase requisition. Each purchase template has a list of products that frequently are on the purchase requisition. Therefore, the purchase requisition can be created quickly. See also outlet template.
purge (verb)
To purge a purchase order or a reorder is to delete the data from Purchasing & Inventory. See also close.
Multi-property only. To push data is to send data from Cluster Purchasing to one or more properties. The following types of data can be pushed: accounts, categories, products, recipes, units, and vendors. See also pull.
quotation file
A quotation file is a file that contains a vendor quotation. A quotation file has one of the following file name extensions: .csv, .txt, .xls. A vendor sends a quotation file to an organization as an email attachment.
A rate is an additional cost for a product (the additional cost is applied to a product in a rate schedule). Examples of rates are sales taxes (VAT), freight charges, liquor taxes, and credit card fees.
A rate schedule is an additional cost that is added to the basic cost of a product. A rate schedule is a group of one or more rates. Different organizations use rate schedules in different ways. Examples:
- Some organizations use a rate schedule only for sales taxes (VAT)
- Some organizations use a rate schedule for sales taxes (VAT), freight charges, and credit card fees
In Purchasing & Inventory, receiving has three meanings:
- A receiving is a product that is received at a property
- A receiving is the act of receiving a product at a property
- In the phrase ‘post a receiving’, a receiving is the details of the products that are received
See also multiple receiving, receiving order.
A receiving order is the part of Purchasing & Inventory in which the quantities and prices of receivings are recorded and posted.
A recipe is a food item that has a list of ingredients, a method of preparation, nutrition information, and cost information. A recipe can be sold in outlets and requisitioned from preparing outlets.
release (verb)
To release means to confirm that a purchase requisition or an outlet requisition is correct and to send the requisition to the next stage in a process.
A retail unit is the unit in which a product is sold. For a product, the retail unit can be different from the inventory unit. For example, water is inventoried in a case, but sold as a bottle.
return order
A return order is a purchase order that is created for products that are returned to a vendor. Because a return to a vendor decreases the inventory, a return order contains negative quantities.
revenue potential
Revenue potential is the estimated revenue for a product or a recipe that is sold at an outlet.
route (verb)
To route means to send a purchase requisition, an outlet requisition, or a recipe to users for review and approval.
route
A route is list of users who review and approve purchase requisitions, outlet requisitions, and recipes. In each route, a particular user has one of three roles (Review, Approve, and Final Approve). A user can have different roles in different routes.
route list
A route list is a pre-defined route.
standing order
A standing order is an outlet template or a purchase template that specifies the default quantities for products. When an outlet requisition or a purchase requisition is created from the standing order, the quantities can be changed.
The Storeroom Outlet is the outlet at which products are usually stored. In Purchasing & Inventory, a property has one Storeroom Outlet. At a property that has many storerooms, each storeroom is a location in the Storeroom Outlet.
A sub category is a subdivision of a category. For example, a property has a category named Dairy. The Dairy category has sub categories such as Butter, Cheese, Milk, and Yogurt.
sub product
A sub product is a product that is related to a different product. Typically, a sub product is a returnable container.
A template is a list of products and other information that is used to quickly create an outlet requisition, a purchase requisition, or a project. See also outlet template, purchase template.
user group
A user group is a set of things that users can do. A user group specifies the menus and the related access rights that are available to a user in that group. For example, a user group Recipe Creation lets chefs use the Recipe menu, but not the Purchasing, Accounting, or Property menus. Each user must be in one or more user groups.
vendor interface
A vendor interface is a method for connecting directly to a vendor’s computer system. In Purchasing & Inventory, vendor interfaces for EDI, order transmission, quotation, and invoicing are possible.
A vendor quotation is a quotation from a vendor for one or more products. A vendor quotation has a start date and an expiry date.
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