Glossary

Configure, price, quote, or CPQ, is the process and software used to select valid product combinations, apply pricing rules and produce an accurate sales quotation. It is most useful when products, discounts, approvals or customer terms are too complex to manage reliably in a spreadsheet.

Quote-to-cash is the end-to-end process from preparing a customer quotation through order confirmation, fulfilment, invoicing, payment collection and reconciliation.

Procurement identifies purchasing needs, finds and evaluates suppliers, agrees commercial terms, authorizes purchases and monitors supplier performance. It is broader than placing orders.

A purchase order is a document a buyer sends to a supplier to confirm the goods or services it wants to purchase and the agreed quantities, prices, delivery details and terms.

Source-to-pay is the end-to-end procurement process from analysing demand and selecting suppliers through contracting, purchasing, receiving, invoicing and payment.

Procure-to-pay is the operational process from an approved purchasing need through purchase order, receipt, invoice validation and supplier payment.

Supplier relationship management is the structured practice of segmenting suppliers, monitoring performance, managing risk and improving collaboration over time.

Vendor management is the process of onboarding, maintaining, evaluating and governing external suppliers and service providers throughout the relationship.

Accounts payable is the amount a business owes suppliers for goods or services received but not yet paid. The AP function validates invoices, manages approvals and due dates, executes payments and resolves exceptions.

A multi-currency account lets a business manage more than one supported currency through a single provider or banking relationship. Features and account structure vary by provider and jurisdiction.

A payment rejection occurs when an instruction is not accepted for processing or is stopped before completion. Validation, account, compliance or routing issues can cause it.

Payment cancellation means stopping an instruction before it reaches a point at which it can no longer be revoked. Whether cancellation is possible depends on timing and route rules.

A payment exception is a condition that prevents a payment from following its normal straight-through process and requires review or correction.

The ordering financial institution initiates a wire transfer after receiving the payer or originator's instruction.

A correspondent account is an account one financial institution maintains with another to support payments and related banking services.

Base currency is the first currency in an exchange-rate pair and the unit against which the second currency is quoted.

Quote currency is the second currency in a currency pair. The exchange rate states how much quote currency equals one unit of the base currency.

A payment fee is a charge for initiating, processing, routing, converting or receiving a payment. The fee alone does not show the transaction's complete cost.

A local payment is sent and received through a domestic payment system in the relevant market. Required details, cut-offs and settlement rules depend on that system.

Correspondent banking is an arrangement in which one financial institution provides payment or other banking services to another.

Know Your Customer, or KYC, refers to customer identification and verification controls. Business onboarding also requires checks on the company, authorized people and beneficial owners.

Maker-checker control separates payment preparation from payment approval so one person cannot complete both steps alone.

An ACH credit is a US account transfer pushed by the payer through the Automated Clearing House network, often for payroll or supplier payments. Processing speed and availability depend on the bank and submission window.

An ACH debit is a US account transfer collected by the payee under an authorization from the payer. Businesses use it for recurring bills and collections, with return rights and timing governed by ACH rules and the provider.

Same Day ACH is an ACH processing option that uses designated same-day windows for eligible US credits and debits. It is faster than standard ACH but is not a continuous instant-payment service.

A direct debit lets a payee collect money from a payer's account under an agreed mandate. It is useful for recurring collections, while authorization, notice, return and cancellation rules depend on the scheme.

A batch payment groups multiple approved transfers into one file or submission for processing. Payroll and supplier runs use batches to improve control, but each entry still needs validation and reconciliation.

An ABA routing number is a nine-digit identifier used to direct eligible US payments to a financial institution. It should be verified with the beneficiary's bank details because different routing numbers may apply to ACH and wire services.

A sort code is a six-digit identifier used with an account number to route UK domestic payments to a bank and branch. Correct formatting does not by itself confirm that the account belongs to the intended recipient.

A BSB number identifies an Australian financial institution and branch for domestic account payments. It is used with the recipient's account number and should be checked through an approved beneficiary record.

Payment-versus-payment settlement links the two payment legs of a foreign-exchange transaction so one currency transfers if, and only if, the other currency transfers. The design reduces principal risk between counterparties.

CLS settlement is a payment-versus-payment service used by participating institutions to settle eligible foreign-exchange obligations. A business may benefit indirectly through its bank without being a direct CLS participant.

Transaction monitoring reviews payment and account activity for patterns or events that may require investigation. A flag is a prompt for risk-based review, not automatic proof of wrongdoing.

A beneficial owner, often called an ultimate beneficial owner or UBO, is the natural person who ultimately owns or controls a legal entity or on whose behalf activity is conducted. The test depends on applicable law and the institution's due-diligence rules.