V. GLOSSARY of TERMS

Accounts Payable and Travel: This department processes payments for all transactions and produces the checks that are sent to all vendors. They also process travel expense vouchers, process payments for meeting registrations, issue travel advances, and maintain records of payments and vouchers.

Adjustment Vouchers: These voucher reports are computer-generated and used for the processing of credit memos, chargebacks and/or adjusted invoices.
Assumed Receipt Vouchers: These voucher reports are computer generated and used for the payment of invoices to external vendors when a Purchase Order has been established for non-equipment and purchases less than $10,000. Email notifications are being sent to the Requester/Designee when the vouchers are created and payments are made on the Scheduled Due Date.

Blanket Order: A purchase order from which goods and services are purchased over a given time period rather than in a single transaction. Some examples include a maintenance agreement for a photocopier, an order for a case of light bulbs to be delivered on the first of each month or an order to repair computer equipment as needed.

Buyer: Purchasing Agent who approves orders.

Capital Equipment and/or >$10,000 Voucher: These voucher reports are computer generated and used for the payment of invoices to external vendors when a Purchase Order has been established for equipment and high dollar purchases. Email notifications are being sent to the Requester/Designee when the vouchers are created and a copy of the voucher is mailed to the department. Payments are made when the completed Voucher Report is signed and returned to Accounts Payable.

Check: Written order a bank to pay money.

Confirming Order: Any order that has been placed with a vendor, but not yet completed by issuance of a Purchase Order, payment or other process. These orders are usually not mailed to prevent duplicate shipments.

Credit Memo: A listing of products or services sent to a purchaser itemizing prices and quantities being credited for returned products, overpricing, products received damaged, short shipments, duplicate billing, etc.

Credit/Statement (CR/ST) Team: Resolve billing disputes and problems between Departments and Vendors. Processes credits and adjustments when necessary.

DBA: Doing Business As. A formal notice that an individual, company or organization is conducting business under a different name.

Delinquent Voucher: These are Capital Equipment and/or >$10,000 Vouchers that remain unpaid after the Scheduled Pay Date.

Department: Division within a University college or unit.

EDI: Electronic Data Interchange, the computer-to-computer transmission of standardized business data.

Encumbrance: A University accounting method that reserves funds from a department's budget for an anticipated expenditure. Funds are encumbered when a purchase order is issued.

Expenditure: A University accounting method that identifies payments on a department’s budget.

Express Check: A check written for emergency purposes only.

FEIN: Federal Employer Identification Number.

Grant Accounting: The department that monitors compliance with regulations for funds received through the Federal and Non-Federal Grant processes.

Initiator: The person who initiates the form. Entering information into the e-Pro Application. After you complete the on-line form, you send the form along the predetermined electronic track (Workflow).

Invoice: A bill requesting payment and listing the products or services received by a purchaser, itemizing prices, quantities, and shipping charges. Provides vendor name and remit-to address.

ITS: Information Technology Services supplies departments with computer access, information and support to the University mainframe operations.

Low Dollar Transaction: Purchases of items costing less than $3000, that are not taggable equipment, by the processing of an on-line e-Voucher rather than a Purchase Order. Examples include magazine subscriptions, membership dues and fees. Purchasing Cards are also used for low-dollar transactions.

MFK: The Master File Key is a system of codifying accounting data such as funding, Federal and state classifications, use of funding, responsibility, etc. Fields for entering these codified data appear on most of the forms used in the purchasing and payment processes. Departments can customize certain areas of the MFK to further detail their income and expense reporting.

e-Voucher Transaction: Any purchasing transaction that is handled without the issuance of a Purchase Order. Often these payments are for low dollar transactions, fees, membership dues, or other intangible items.

e-Voucher: This on-line voucher form is originated by the ordering department and is used for non-purchase order payments of reimbursements to an individual, refund or overpayment. This form is also used when a vendor does not allow PCard charges, when no value is added by a Purchasing Agent and the total is less than $3000.

PO Report: A report of the information that is sent to the vendor.. Departments need to review for accuracy. Contact Buyer if any discrepancies occur.

Prepayment: A transaction in which payment is sent with the order. For orders less than $3000 the department must complete an on-line e-Voucher with price verification attached for Accounts Payable to generate a check.

Procurement Card: See Purchasing Card.

Purchase Order: This form is the official document authorizing the purchase of products and services.

Purchase Order Number: A 6 digit (Material Services, Hospital Pharmacy, IMU Bookstore) or 10 digit number that begins with a 4. This number is electronically assigned in Purchase Requisitions Application.

Purchase Requisitions or PReq: New electronic system to enter requisitions that go to outside vendors.

Purchasing Agent: Reviews high-dollar Requisitions ($3000 and over), determines if bids are required, and helps selects vendors. Revises Requisitions for appropriate language, adherence to the Commercial Code, University, State and Federal regulations. Creates and reviews RFQ’s as necessary; and negotiates contracts with vendors.

Purchasing Card: The University of Iowa Visa card. It is used for non-capital, low-dollar transactions under $3000 Also known as the Procurement Card.
Purchasing Department: This department approves Requisitions from all University departments, creates Purchase Orders, solicits bids, contracts for goods and services, maintains the Vendor Database.

Purchasing Team: Mail out Purchase Orders to the vendors and help answer questions about the Purchasing Process. Trains requesters and answers questions on less than $3000 orders.

Requester: The person or persons in each department who work directly with Purchasing and Accounts Payable to facilitate the procurement and payment process. They are assigned unique requester codes (Origin Codes). Requesters may be contacted by Purchasing, Accounts Payable, or the vendor if a question arises about an order.

Requester Code: This code is sometimes called origin. A 3-digit code assigned to a Requester. It is used to mail Purchase Order Voucher Reports to departments.

Requisition: This on-line system is used by the requesting department for ordering goods and services from external vendors. The Requisition generates a Purchase Order.

Requisition ID: A 10-digit number identifying your Requisition. The Purchase Requisition Application electronically assigns this number.

RFQ: Request for Quotation. The process by which The University solicits bids or offerings from vendors for goods and services as specified in the RFQ document. This document details the items needed and the conditions of the purchase.

RFP: Request for Proposal. A formal, written instrument used for awarding contracts to vendors based on factors in addition to price, including, but not limited to, assessment of the vendor’s capabilities, performance, support, service, maintenance, etc. The University uses a statistical assessment method based on these factors as the standard for awarding a contract.

SBA: Small Business Administration. The Federal agency which supports and promotes small businesses.

Ship-to Code: The code(s) assigned to a department that is included on each Requisition and which prints out a complete delivery address on the Purchase Order copy sent to the vendor.

Short Payment: Payment of an invoice deducting any inappropriate sales tax or freight charges.

Sole Source: There are many instances where specific goods and services can be obtained from only one vendor. A Purchasing Agent works with the requester to identify these instances, and together they document the reasons for utilizing this one vendor rather than requesting multiple vendors to bid through the RFQ process.

Sole Source Form: The form used to determine that the necessary criteria are met to obtain goods or services without using the RFQ process. This form is part of the PReqs system.

TSB: Targeted Small Business. Program was created to promote the growth, development and diversification of Iowa businesses owned and operated by minorities, women and persons with disabilities.

VAF: Vendor Application form

Vendor: A company or individual supplying goods or services.

Vendor Application form: The U of I Vendor Application form is used to obtain data from vendors about their businesses and used for information required by the Federal Government, such as Tax Identification Numbers. This form must be received from vendors before they can be added to the Vendor File.
Vendor Database: The database record of all U of I vendors and other payment recipients.

Vendor Database Team: Enters and maintains the database record of all U of I vendors and other payment recipients. Also known as the Vendor File Team or Vendor Team.

Vendor File: See Vendor Database

Voucher Number: Computer generated number assigned when the voucher is entered. Use this number to track the accounting information in General Ledger.

WFTx: Workflow transaction number that is assigned by Workflow for tracking purposes.

Workflow: Electronic signature system.

Return to Table of Contents