Accounts
An internal control that sees the responsibility for a process
divided among different staff.
What is Separation of Duties?
The broad range of activities (including purchasing)
involved in obtaining goods or services.
What is Procurement?
Another term for a payment made to a vendor
by any means (cash, cheque, transfer, etc.)
What is Remittance?
The part of a cheque that remains in a cheque book
as a record of the details of the cheque.
What is a Cheque Stub?
Business to Business
The business environment in which
businesses interact with other businesses
ie: not retail.
What is B2B?
An account in the G/L that has a subsidiary ledger.
What is a Control Account?
A document that's not meant to be viewed by anyone outside the organization?
What is Internal Document?
Also known as the pay by date, an invoice's maturity date
is the date that marks the end of an invoice's credit period.
Invoices remaining unpaid after their maturity date
are considered past due.
What is the Invoice Maturity Date?
The policies and processes that help to
detect errors, reduce the risk of fraud,
and ensure the financial statements are accurate.
What is Internal Control?
A scannable technology that facilitates the
electronic processing of cheques.
What is MICR: Magnetic Ink Character Recognition?
The term we use at Student First to describe the
seller of goods and/or provider of services.
What is a Vendor?
A dated source document created by a vendor that itemizes the details of a purchase transaction?
What is Invoice?
A document prepared by a vendor (or their accounting system)
listing the outstanding items on a customer's account,
at a certain point in time.
What is a Vendor Statement?
A set of related accounts that provides additional
information about the balance in the A/P account, and whose
combined balances equal the balance in the A/P account.
What is A/P Subledger?
A measure of how long, on average,
it takes an organization to pay its vendors
What is DPO?
Solving an invoicing issue by
issuing a credit invoice to cancel the original invoice,
and a rebill (a new invoice) that's error-free.
What is Credit and Rebill?
The source document used by an organization to formally place an order with a vendor?
What is a Purchase Order?
An integral part of invoice processing that confirms a match among
the goods/services ordered
the goods/services received
the goods/services invoiced.
What is 3-Way Match?
A regularly scheduled issuing of payments.
What is Cheque Run?
The status of an invoice when it's past its maturity date.
What is Past Due?
The source document created by a vendor that accompanies a shipment and that details the contents of that shipment.
What is a Packing Slip?
An internal source document that sets out the details of a proposed purchase?
What is Purchase Requisition?
Also known as approval levels,
refers to the dollar amounts up to which different individuals
in an organization can authorize a purchase
What is Signing Authority?
A set of related accounts that provides additional
information about the balance in a G/L account, and whose
combined balances equal the balance in that G/L account
What is a Subsidiary Ledger or Subledger?
The A/P department is responsible for making payments, and payments represent the flow of cash out of the business.
What is Accounts Payable Fraud?