Glossary Archive | SAP Taulia https://taulia.com/glossary/ Working capital solutions Fri, 20 Mar 2026 16:24:18 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9.4 https://taulia.com/wp-content/uploads/2025/04/android-chrome-512x512-1-150x150.png Glossary Archive | SAP Taulia https://taulia.com/glossary/ 32 32 What is cash flow modeling? https://taulia.com/glossary/what-is-cash-flow-modeling/ Thu, 28 Aug 2025 07:30:19 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=7605 Cash flow modeling helps businesses project future cash flows. Learn how it works and why it’s important in our full guide to cash flow modeling.

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]]> Cash flow modeling helps businesses project future cash flows. Learn how it works and why it’s important in our full guide to cash flow modeling.

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]]> What is cash flow? https://taulia.com/glossary/what-is-cash-flow/ Tue, 06 Aug 2024 12:31:06 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=6076 Cash flow measures money entering and leaving a business. Learn everything you need to know about this important metric in our glossary post.

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]]> Cash flow measures money entering and leaving a business. Learn everything you need to know about this important metric in our glossary post.

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]]> What is a sustainable supply chain? https://taulia.com/glossary/what-is-a-sustainable-supply-chain/ Tue, 02 Jul 2024 05:37:27 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=6047 Read our full guide to sustainability in supply chain management, covering what a sustainable supply chain actually means and how it can benefit a business.

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]]> Read our full guide to sustainability in supply chain management, covering what a sustainable supply chain actually means and how it can benefit a business.

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]]> What is supply chain resilience? https://taulia.com/glossary/what-is-supply-chain-resilience/ Wed, 17 Apr 2024 12:44:14 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5959 Supply chain resilience is a supply chain’s ability to withstand and recover from disruption. Learn more in our full glossary post.

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]]> Supply chain resilience is a supply chain’s ability to withstand and recover from disruption. Learn more in our full glossary post.

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]]> What is accounts receivable automation? https://taulia.com/glossary/what-is-accounts-receivable-automation/ Fri, 01 Mar 2024 06:28:16 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5877 Accounts receivable automation (or AR automation) is the practice of automating parts of the accounts receivable process in a business. Learn more here.

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]]> Accounts receivable automation (or AR automation) is the practice of automating parts of the accounts receivable process in a business. Learn more here.

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]]> What is Flexible Funding? https://taulia.com/glossary/what-is-flexible-funding/ Fri, 05 Jan 2024 05:41:40 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5694 Flexible Funding is a feature for Taulia Payables that allows buyer organizations to use the right funding at the right time. It gives corporate treasurers options to meet their short-term cash flow needs without restricting the liquidity suppliers rely on.

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]]> Flexible Funding is a feature for Taulia Payables that allows buyer organizations to use the right funding at the right time. It gives corporate treasurers options to meet their short-term cash flow needs without restricting the liquidity suppliers rely on.

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]]> What is a working capital funding gap? https://taulia.com/glossary/what-is-a-working-capital-funding-gap/ Fri, 22 Dec 2023 09:35:48 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5651 A working capital funding gap is the difference between short term assets and short-term liabilities. Learn everything you need to know about funding gaps here.

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]]> A working capital funding gap is the difference between short term assets and short-term liabilities. Learn everything you need to know about funding gaps here.

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]]> What is invoice factoring? https://taulia.com/glossary/what-is-invoice-factoring/ Tue, 19 Dec 2023 13:21:14 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5636 The accounts receivable (AR) process is the series of actions businesses carry out to collect their accounts receivable. Learn more about it here.

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]]> The accounts receivable (AR) process is the series of actions businesses carry out to collect their accounts receivable. Learn more about it here.

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]]> What is the accounts receivable process/cycle? https://taulia.com/glossary/what-is-the-accounts-receivable-process-cycle/ Thu, 02 Nov 2023 10:36:43 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5418 The accounts receivable (AR) process is the series of actions businesses carry out to collect their accounts receivable. Learn more about it here.

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]]> The accounts receivable (AR) process is the series of actions businesses carry out to collect their accounts receivable. Learn more about it here.

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]]> What is accounts receivable factoring? https://taulia.com/glossary/what-is-accounts-receivable-factoring/ Thu, 02 Nov 2023 06:22:24 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5414 Accounts receivable factoring is a way for businesses to secure financing by selling their unpaid invoices for cash. Learn more in our glossary post.

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]]> Accounts receivable factoring is a way for businesses to secure financing by selling their unpaid invoices for cash. Learn more in our glossary post.

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]]> What is accounts receivable factoring? https://taulia.com/glossary/what-is-debt-financing/ Thu, 02 Nov 2023 06:13:28 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5413 Debt financing allows businesses to borrow money to fund their short-term needs. Get a full definition and explanation in our guide to debt finance.

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]]> Debt financing allows businesses to borrow money to fund their short-term needs. Get a full definition and explanation in our guide to debt finance.

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]]> What is working capital funding? https://taulia.com/glossary/what-is-working-capital-funding/ Wed, 16 Aug 2023 07:41:25 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5193 Working capital funding, also known as working capital financing, is a method of business financing. Learn more about the types of working capital funding here.

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]]> Working capital funding, also known as working capital financing, is a method of business financing. Learn more about the types of working capital funding here.

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]]> What is an integrated ERP system? https://taulia.com/glossary/what-is-an-integrated-erp-system/ Mon, 17 Jul 2023 12:46:49 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5154 Integrated ERP systems refers to the combination of an ERP with integrated modules that can help you manage diverse business processes from one platform.

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]]> Integrated ERP systems refers to the combination of an ERP with integrated modules that can help you manage diverse business processes from one platform.

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]]> What is a lean supply chain? https://taulia.com/glossary/what-is-a-lean-supply-chain/ Tue, 11 Jul 2023 07:43:54 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5141 Lean supply chains are designed to maximize efficiency. Learn all about the principles of lean supply chain management in our glossary entry.

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]]> Lean supply chains are designed to maximize efficiency. Learn all about the principles of lean supply chain management in our glossary entry.

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]]> What is supplier segmentation? https://taulia.com/glossary/what-is-supplier-segmentation/ Thu, 15 Jun 2023 05:51:39 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=5045 Learn everything you need to know about supplier segmentation, including what supplier segmentation model to use and how to tackle the process, in our guide.

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]]> Learn everything you need to know about supplier segmentation, including what supplier segmentation model to use and how to tackle the process, in our guide.

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]]> What is ESG? https://taulia.com/glossary/what-is-esg/ Wed, 17 May 2023 10:17:15 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=3457 What is ESG? ESG stands for environmental, social and governance. Together, these three principles form a framework that’s used to measure how sustainably, ethically, and responsibly an organization is acting. ESG is most often used to describe the efforts companies take to mitigate the potential negative outcomes of their operations. It also refers to a...

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]]> What is ESG? ESG stands for environmental, social and governance. Together, these three principles form a framework that’s used to measure how sustainably, ethically, and responsibly an organization is acting. ESG is most often used to describe the efforts companies take to mitigate the potential negative outcomes of their operations. It also refers to a...

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]]> What is supply chain management? https://taulia.com/glossary/what-is-supply-chain-management/ Wed, 22 Mar 2023 11:25:23 +0000 https://taulianewdev.wpengine.com/glossary/what-is-supply-chain-management/ Summary Supply chain management (SCM) is the process businesses use to oversee the flow of goods, data, and payments across the supply chain. It encompasses planning, sourcing, manufacturing, delivery, and returns, ensuring each stage aligns with broader objectives, such as cost efficiency, resilience, and customer satisfaction. Connected data, supplier collaboration, and end-to-end visibility are critical...

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]]> Summary Supply chain management (SCM) is the process businesses use to oversee the flow of goods, data, and payments across the supply chain. It encompasses planning, sourcing, manufacturing, delivery, and returns, ensuring each stage aligns with broader objectives, such as cost efficiency, resilience, and customer satisfaction. Connected data, supplier collaboration, and end-to-end visibility are critical...

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]]> What is supply chain optimization? https://taulia.com/glossary/what-is-supply-chain-optimization/ Mon, 06 Feb 2023 16:56:01 +0000 https://taulianewdev.wpengine.com/glossary/what-is-supply-chain-optimization/ Summary Supply chain optimization improves processes using data, analytics, and technology. It follows a three-phase approach—design, planning, and execution—to help businesses meet customer demand more efficiently and uncover growth opportunities. Key methods include increasing visibility, reviewing supplier relationships, applying supply chain finance solutions, and integrating automation. Effective optimization involves prioritizing strong lines of communication, centralizing...

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]]> Summary Supply chain optimization improves processes using data, analytics, and technology. It follows a three-phase approach—design, planning, and execution—to help businesses meet customer demand more efficiently and uncover growth opportunities. Key methods include increasing visibility, reviewing supplier relationships, applying supply chain finance solutions, and integrating automation. Effective optimization involves prioritizing strong lines of communication, centralizing...

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]]> What is accounts receivable? https://taulia.com/glossary/what-is-accounts-receivable/ Thu, 19 Jan 2023 09:48:58 +0000 https://taulianewdev.wpengine.com/glossary/what-is-accounts-receivable/ What is accounts receivable? Accounts receivable (AR) is the term used to describe money owed to a business by its customers for purchases made on credit. It’s listed as a current asset on the balance sheet, representing the total value of outstanding invoices for products or services sold but not yet paid for. Total accounts...

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]]> What is accounts receivable? Accounts receivable (AR) is the term used to describe money owed to a business by its customers for purchases made on credit. It’s listed as a current asset on the balance sheet, representing the total value of outstanding invoices for products or services sold but not yet paid for. Total accounts...

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]]> What is cash flow management? https://taulia.com/glossary/what-is-cash-flow-management/ Wed, 18 Jan 2023 15:55:52 +0000 https://taulianewdev.wpengine.com/glossary/what-is-cash-flow-management/ flow What is cash flow management? Cash flow management is the process of optimizing the flow of money in and out of a business to achieve a specific operational aim. Effective cash flow management enables businesses to use their working capital better and fuel growth or build resilience. It involves using several levers, including the...

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]]> flow What is cash flow management? Cash flow management is the process of optimizing the flow of money in and out of a business to achieve a specific operational aim. Effective cash flow management enables businesses to use their working capital better and fuel growth or build resilience. It involves using several levers, including the...

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]]> What is strategic sourcing? https://taulia.com/glossary/what-is-strategic-sourcing/ Wed, 14 Dec 2022 14:53:52 +0000 https://taulianewdev.wpengine.com/glossary/what-is-strategic-sourcing/ What is strategic sourcing? Strategic sourcing is the term used to describe a strategic approach to the sourcing process. It involves the same fundamental steps – research, analysis, negotiation, contracting, and onboarding of new suppliers to fulfill demand for goods or services – but is oriented to contribute to broader business objectives. It also often...

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]]> What is strategic sourcing? Strategic sourcing is the term used to describe a strategic approach to the sourcing process. It involves the same fundamental steps – research, analysis, negotiation, contracting, and onboarding of new suppliers to fulfill demand for goods or services – but is oriented to contribute to broader business objectives. It also often...

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]]> What is automated spend analysis? https://taulia.com/glossary/what-is-automated-spend-analysis/ Wed, 14 Dec 2022 14:21:08 +0000 https://taulianewdev.wpengine.com/glossary/what-is-automated-spend-analysis/ Summary Automated spend analysis is a digital process that captures, consolidates, and interprets spend data across an organization’s suppliers, categories, and business units. It works by automatically collecting data from purchase orders or invoices, creating a consistent data set, and generating simplified analysis and insights. Automating spend analysis with technology provides real-time spend visibility, better...

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]]> Summary Automated spend analysis is a digital process that captures, consolidates, and interprets spend data across an organization’s suppliers, categories, and business units. It works by automatically collecting data from purchase orders or invoices, creating a consistent data set, and generating simplified analysis and insights. Automating spend analysis with technology provides real-time spend visibility, better...

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]]> What is the new FASB accounting treatment for supply chain finance? https://taulia.com/glossary/fasb-accounting-treatment-for-supply-chain-finance/ Tue, 08 Nov 2022 10:50:31 +0000 https://taulianewdev.wpengine.com/glossary/fasb-accounting-treatment-for-supply-chain-finance/ What is the new FASB accounting treatment for supply chain finance? In September 2022, the Financial Accounting Standards Board (FASB) — the governing body for accounting standards in the United States — updated its standards to include a requirement for SCF disclosure on company financial statements. For most organizations, disclosure of an existing SCF program...

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]]> What is the new FASB accounting treatment for supply chain finance? In September 2022, the Financial Accounting Standards Board (FASB) — the governing body for accounting standards in the United States — updated its standards to include a requirement for SCF disclosure on company financial statements. For most organizations, disclosure of an existing SCF program...

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]]> What is spend visibility? https://taulia.com/glossary/what-is-spend-visibility/ Mon, 07 Nov 2022 12:57:17 +0000 https://taulianewdev.wpengine.com/glossary/what-is-spend-visibility/ Summary Spend visibility is the ability to track, analyze, and understand how capital is used across operations. It’s more than expense tracking; it provides strategic insight into what is purchased, who is making purchases, supplier performance, costs, and trends over time. Old-fashioned payment methods, manual processes, and a lack of a single source of truth...

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]]> Summary Spend visibility is the ability to track, analyze, and understand how capital is used across operations. It’s more than expense tracking; it provides strategic insight into what is purchased, who is making purchases, supplier performance, costs, and trends over time. Old-fashioned payment methods, manual processes, and a lack of a single source of truth...

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]]> What is 2/10 net 30? https://taulia.com/glossary/what-is-2-10-net-30/ Mon, 07 Nov 2022 12:47:05 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=513 What is 2/10 net 30? 2/10 net 30 is a trade credit often offered by suppliers to buyers. It represents an agreement that the buyer will receive a 2% discount on the net invoice amount if they pay within 10 days. Otherwise, the full invoice amount is due within 30 days. It’s one of the...

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]]> What is 2/10 net 30? 2/10 net 30 is a trade credit often offered by suppliers to buyers. It represents an agreement that the buyer will receive a 2% discount on the net invoice amount if they pay within 10 days. Otherwise, the full invoice amount is due within 30 days. It’s one of the...

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]]> What is working capital ratio? https://taulia.com/glossary/what-is-working-capital-ratio/ Wed, 05 Oct 2022 08:55:43 +0000 https://taulianewdev.wpengine.com/glossary/what-is-working-capital-ratio/ What is working capital ratio? Working capital ratio is a measurement that shows a business’s current assets as a proportion of its liabilities. It’s a metric that provides an overview of financial health and liquidity, indicating whether current liabilities can be paid by existing assets. In the case of working capital ratio, assets are typically...

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]]> What is working capital ratio? Working capital ratio is a measurement that shows a business’s current assets as a proportion of its liabilities. It’s a metric that provides an overview of financial health and liquidity, indicating whether current liabilities can be paid by existing assets. In the case of working capital ratio, assets are typically...

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]]> What is a virtual card? https://taulia.com/glossary/what-is-a-virtual-card/ Tue, 27 Sep 2022 10:13:21 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=570 What is a virtual card? A virtual card is a payment method that is virtual rather than physical. It functions similarly to a traditional credit card but takes the form of a single-use 16-digit number and three-digit CVV code generated online, instead of a plastic or metal card that is received through the post. Virtual...

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]]> What is a virtual card? A virtual card is a payment method that is virtual rather than physical. It functions similarly to a traditional credit card but takes the form of a single-use 16-digit number and three-digit CVV code generated online, instead of a plastic or metal card that is received through the post. Virtual...

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]]> What is e-procurement? https://taulia.com/glossary/what-is-e-procurement/ Wed, 14 Sep 2022 12:08:29 +0000 https://taulianewdev.wpengine.com/glossary/what-is-e-procurement/ Summary E-procurement, or electronic procurement, digitizes the traditional procurement process, automating buyer-supplier relationships and streamlining the purchase of goods and services. It replaces paper-based tasks with software that handles purchase requisitions, supplier selection, purchase orders, and invoicing digitally. E-procurement reduces labor-intensive work, centralizes workflows and processes, and improves purchasing efficiency. While it has its challenges,...

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]]> Summary E-procurement, or electronic procurement, digitizes the traditional procurement process, automating buyer-supplier relationships and streamlining the purchase of goods and services. It replaces paper-based tasks with software that handles purchase requisitions, supplier selection, purchase orders, and invoicing digitally. E-procurement reduces labor-intensive work, centralizes workflows and processes, and improves purchasing efficiency. While it has its challenges,...

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]]> What is source-to-pay? https://taulia.com/glossary/what-is-source-to-pay/ Wed, 14 Sep 2022 11:53:01 +0000 https://taulianewdev.wpengine.com/glossary/what-is-source-to-pay/ What is source-to-pay? Source-to-pay (or S2P) is the process that outlines how organizations fulfill their sourcing and procurement needs. It begins with the identification of demand for a product or service, encompasses steps including supplier selection, contract management, and requisition, and ends with a payment being made. It can be split into two composite sections:...

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]]> What is source-to-pay? Source-to-pay (or S2P) is the process that outlines how organizations fulfill their sourcing and procurement needs. It begins with the identification of demand for a product or service, encompasses steps including supplier selection, contract management, and requisition, and ends with a payment being made. It can be split into two composite sections:...

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]]> What is supplier relationship management? https://taulia.com/glossary/what-is-supplier-relationship-management/ Wed, 27 Jul 2022 08:52:47 +0000 https://taulianewdev.wpengine.com/glossary/what-is-supplier-relationship-management/ What is supplier relationship management? Supplier relationship management is the set of processes that organizations use to build, manage, and maintain relationships with their suppliers, or vendors. A supplier relationship management strategy is essential to ensure that relationships are built productively, with a view to increasing the overall effectiveness and resilience of the supply chain....

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]]> What is supplier relationship management? Supplier relationship management is the set of processes that organizations use to build, manage, and maintain relationships with their suppliers, or vendors. A supplier relationship management strategy is essential to ensure that relationships are built productively, with a view to increasing the overall effectiveness and resilience of the supply chain....

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]]> What is supplier information management? https://taulia.com/glossary/what-is-supplier-information-management/ Wed, 27 Jul 2022 08:44:41 +0000 https://taulianewdev.wpengine.com/glossary/what-is-supplier-information-management/ What is supplier information management? Supplier information management (SIM) refers to the set of processes or the system that organizations use to collect, store, access, and update important data about their suppliers. From contact details to contractual documentation, the data involved in supplier information management is essential in the broader process of vendor management. A...

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]]> What is supplier information management? Supplier information management (SIM) refers to the set of processes or the system that organizations use to collect, store, access, and update important data about their suppliers. From contact details to contractual documentation, the data involved in supplier information management is essential in the broader process of vendor management. A...

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]]> What is AP automation? https://taulia.com/glossary/what-is-ap-automation/ Wed, 27 Jul 2022 08:38:08 +0000 https://taulianewdev.wpengine.com/glossary/what-is-ap-automation/ Summary Accounts payable (AP) automation uses software to digitize and automate the AP process, including how vendor invoices are received, processed, and stored. It reduces manual and paper-based tasks by automating invoice capture, matching, approval routing, and digital archiving. AP automation offers time and cost savings, improves efficiency, increases data accuracy, and supports ESG improvements....

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]]> Summary Accounts payable (AP) automation uses software to digitize and automate the AP process, including how vendor invoices are received, processed, and stored. It reduces manual and paper-based tasks by automating invoice capture, matching, approval routing, and digital archiving. AP automation offers time and cost savings, improves efficiency, increases data accuracy, and supports ESG improvements....

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]]> What is accounts payable? https://taulia.com/glossary/what-is-accounts-payable/ Fri, 03 Sep 2021 04:15:38 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=13 What is accounts payable? Accounts payable (AP) represents the amount that a company owes to its creditors and suppliers (also referred to as a current liability account). Accounts payable is recorded on the balance sheet under current liabilities. When a business purchases goods or services from a supplier on credit, payment isn’t made straight away,...

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]]> What is accounts payable? Accounts payable (AP) represents the amount that a company owes to its creditors and suppliers (also referred to as a current liability account). Accounts payable is recorded on the balance sheet under current liabilities. When a business purchases goods or services from a supplier on credit, payment isn’t made straight away,...

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]]> What is accounts receivable (AR) financing? https://taulia.com/glossary/what-is-accounts-receivable-ar-financing/ Mon, 02 Aug 2021 10:51:48 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=515 What is accounts receivable (AR) financing? Accounts receivable or AR financing is a type of financing arrangement which is based on a company receiving financing capital in return for a chosen portion of its accounts receivable. An AR financing arrangement can be structured in several ways, including as an asset sale or a loan. Essentially,...

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]]> What is accounts receivable (AR) financing? Accounts receivable or AR financing is a type of financing arrangement which is based on a company receiving financing capital in return for a chosen portion of its accounts receivable. An AR financing arrangement can be structured in several ways, including as an asset sale or a loan. Essentially,...

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]]> What is the cash conversion cycle (CCC)? https://taulia.com/glossary/what-is-the-cash-conversion-cycle-ccc/ Fri, 02 Jul 2021 11:32:48 +0000 https://taulianewdev.wpengine.com/glossary/what-is-the-cash-conversion-cycle-ccc/ What is the cash conversion cycle (CCC)? The cash conversion cycle (CCC) – also known as the cash cycle – is a metric expressing how many days it takes a company to convert the cash it spends on inventory back into cash by selling its product. The shorter a company’s CCC, the less time it...

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]]> What is the cash conversion cycle (CCC)? The cash conversion cycle (CCC) – also known as the cash cycle – is a metric expressing how many days it takes a company to convert the cash it spends on inventory back into cash by selling its product. The shorter a company’s CCC, the less time it...

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]]> What is cash flow forecasting? https://taulia.com/glossary/what-is-cash-flow-forecasting/ Thu, 24 Jun 2021 04:16:20 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=1856 What is cash flow forecasting? Cash flow forecasting, also known as cash forecasting, estimates the expected flow of cash coming in and out of your business, across all areas, over a given period of time. A short-term cash forecast may cover the next 30 days and can be used to identify any funding needs or...

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]]> What is cash flow forecasting? Cash flow forecasting, also known as cash forecasting, estimates the expected flow of cash coming in and out of your business, across all areas, over a given period of time. A short-term cash forecast may cover the next 30 days and can be used to identify any funding needs or...

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]]> What is Days Inventory Outstanding? (DIO) https://taulia.com/glossary/what-is-days-inventory-outstanding/ Mon, 24 May 2021 02:32:03 +0000 https://taulianewdev.wpengine.com/glossary/what-is-days-inventory-outstanding/ What is Days Inventory Outstanding? (DIO) Days inventory outstanding (DIO) is a working capital management ratio that measures the average number of days that a company holds inventory for before turning it into sales. The lower the figure, the shorter the period that cash is tied up in inventory and the lower the risk that...

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]]> What is Days Inventory Outstanding? (DIO) Days inventory outstanding (DIO) is a working capital management ratio that measures the average number of days that a company holds inventory for before turning it into sales. The lower the figure, the shorter the period that cash is tied up in inventory and the lower the risk that...

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]]> What is Days Payable Outstanding? (DPO) https://taulia.com/glossary/what-is-days-payable-outstanding/ Sat, 01 May 2021 01:37:12 +0000 https://taulianewdev.wpengine.com/glossary/what-is-days-payable-outstanding/ What is Days Payable Outstanding? (DPO) Days payable outstanding (DPO) is a useful working capital ratio used in finance departments that measures how many days, on average, it takes a company to pay its suppliers. As such, DPO is an important consideration when it comes to managing a company’s accounts payable – in other words,...

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]]> What is Days Payable Outstanding? (DPO) Days payable outstanding (DPO) is a useful working capital ratio used in finance departments that measures how many days, on average, it takes a company to pay its suppliers. As such, DPO is an important consideration when it comes to managing a company’s accounts payable – in other words,...

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]]> What is Days Sales Outstanding? (DSO) https://taulia.com/glossary/what-is-days-sales-outstanding/ Sat, 24 Apr 2021 00:33:43 +0000 https://taulianewdev.wpengine.com/glossary/what-is-days-sales-outstanding/ What is Days Sales Outstanding? (DSO) Days sales outstanding (DSO) is a working capital ratio which measures the number of days that a company takes, on average, to collect its accounts receivable. The shorter the DSO, the faster the company collects payment from its customers – and the sooner it is able to make use...

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]]> What is Days Sales Outstanding? (DSO) Days sales outstanding (DSO) is a working capital ratio which measures the number of days that a company takes, on average, to collect its accounts receivable. The shorter the DSO, the faster the company collects payment from its customers – and the sooner it is able to make use...

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]]> What is dynamic discounting? https://taulia.com/glossary/what-is-dynamic-discounting/ Fri, 23 Apr 2021 04:17:45 +0000 https://taulianewdev.wpengine.com/glossary/what-is-dynamic-discounting/ What is dynamic discounting? Dynamic discounting is a solution that provides suppliers with the option of receiving early payment in exchange for a discount on their invoice. As a result, suppliers can typically access lower cost funding than they might otherwise receive, while harnessing working capital in order to invest in growth and innovation. Buyers, meanwhile,...

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]]> What is dynamic discounting? Dynamic discounting is a solution that provides suppliers with the option of receiving early payment in exchange for a discount on their invoice. As a result, suppliers can typically access lower cost funding than they might otherwise receive, while harnessing working capital in order to invest in growth and innovation. Buyers, meanwhile,...

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]]> What is an early payment discount? https://taulia.com/glossary/what-is-an-early-payment-discount/ Thu, 22 Apr 2021 13:09:06 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=1855 What is an early payment discount? An early payment discount is a form of trade finance, allowing buyers to pay a discounted amount to suppliers in exchange for settling invoices before their maturity date. Also known as a prompt payment discount or early settlement discount, it’s typically calculated as a percentage of the goods and...

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]]> What is an early payment discount? An early payment discount is a form of trade finance, allowing buyers to pay a discounted amount to suppliers in exchange for settling invoices before their maturity date. Also known as a prompt payment discount or early settlement discount, it’s typically calculated as a percentage of the goods and...

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]]> What is inventory management? https://taulia.com/glossary/what-is-inventory-management/ Thu, 22 Apr 2021 09:03:33 +0000 https://taulianewdev.wpengine.com/glossary/what-is-inventory-management/ Summary Inventory management encompasses sourcing, storing, and selling inventory, while tracking its movement through suppliers, production, sales, and stock on hand. Proper inventory management is essential for scaling sales, supporting consistent order fulfillment, and maintaining the right stock levels. It enables cost savings, improves supplier and business negotiations, reduces overselling risk, and enables data-driven decisions....

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]]> Summary Inventory management encompasses sourcing, storing, and selling inventory, while tracking its movement through suppliers, production, sales, and stock on hand. Proper inventory management is essential for scaling sales, supporting consistent order fulfillment, and maintaining the right stock levels. It enables cost savings, improves supplier and business negotiations, reduces overselling risk, and enables data-driven decisions....

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]]> What is invoice processing? https://taulia.com/glossary/what-is-invoice-processing/ Mon, 22 Mar 2021 10:21:29 +0000 https://taulianewdev.wpengine.com/glossary/what-is-invoice-processing/ What is invoice processing? Invoice processing is a business function that involves managing incoming invoices from initial receipt through to payment. It’s carried out by the accounts payable department and is a critical component of the procure-to-pay process as the final step of any procurement activity. The invoice processing cycle is made up of several composite...

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]]> What is invoice processing? Invoice processing is a business function that involves managing incoming invoices from initial receipt through to payment. It’s carried out by the accounts payable department and is a critical component of the procure-to-pay process as the final step of any procurement activity. The invoice processing cycle is made up of several composite...

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]]> What is inventory cycle time? https://taulia.com/glossary/what-is-inventory-cycle-time/ Mon, 22 Mar 2021 10:07:03 +0000 https://taulianewdev.wpengine.com/glossary/what-is-inventory-cycle-time/ What is inventory cycle time? Inventory cycle time is the amount of time it takes to produce and deliver an order from a customer, usually measured in days. It essentially measures the speed at which a company can complete the manufacturing or assembly process from start to end, turning raw materials or components into a...

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]]> What is inventory cycle time? Inventory cycle time is the amount of time it takes to produce and deliver an order from a customer, usually measured in days. It essentially measures the speed at which a company can complete the manufacturing or assembly process from start to end, turning raw materials or components into a...

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]]> What is procure-to-pay? (P2P) https://taulia.com/glossary/what-is-procure-to-pay/ Sun, 21 Feb 2021 06:00:17 +0000 https://taulianewdev.wpengine.com/glossary/what-is-procure-to-pay/ What is procure-to-pay? (P2P) Procure-to-pay is a term that encompasses the processes which take place when a company purchases, receives and pays for goods and services. The activities that make up the procure-to-pay process range from identifying the initial need for procurement of goods or services to the final steps of approving invoices and paying...

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]]> What is procure-to-pay? (P2P) Procure-to-pay is a term that encompasses the processes which take place when a company purchases, receives and pays for goods and services. The activities that make up the procure-to-pay process range from identifying the initial need for procurement of goods or services to the final steps of approving invoices and paying...

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]]> What Is The Procurement Life Cycle? https://taulia.com/glossary/what-is-the-procurement-life-cycle/ Wed, 20 May 2020 12:00:29 +0000 https://taulianewdev.wpengine.com/glossary/what-is-the-procurement-life-cycle/ What is the procurement life cycle? The procurement cycle is the process businesses use to find and obtain goods. It involves multiple steps, including identifying the need for a good or service, finding the right supplier, negotiating terms, creating a purchase order, and receiving the delivery. It’s also known as the procurement life cycle or,...

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]]> What is the procurement life cycle? The procurement cycle is the process businesses use to find and obtain goods. It involves multiple steps, including identifying the need for a good or service, finding the right supplier, negotiating terms, creating a purchase order, and receiving the delivery. It’s also known as the procurement life cycle or,...

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]]> What is receivables finance? https://taulia.com/glossary/what-is-receivables-finance/ Wed, 20 May 2020 06:13:41 +0000 https://taulianewdev.wpengine.com/glossary/what-is-receivables-finance/ What is receivables finance? Receivables finance, or receivables financing, is a trade finance method businesses can use to receive funding matching the amounts owed to it by its customers in outstanding invoices. These amounts are known as trade receivables or accounts receivable. By financing its receivables, a business can receive payments earlier, meaning it can...

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]]> What is receivables finance? Receivables finance, or receivables financing, is a trade finance method businesses can use to receive funding matching the amounts owed to it by its customers in outstanding invoices. These amounts are known as trade receivables or accounts receivable. By financing its receivables, a business can receive payments earlier, meaning it can...

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]]> What is reverse factoring? https://taulia.com/glossary/what-is-reverse-factoring/ Tue, 19 May 2020 05:14:54 +0000 https://taulianewdev.wpengine.com/glossary/what-is-reverse-factoring/ What is reverse factoring? Reverse factoring is a type of supplier finance solution that companies can use to offer early payments to their suppliers based on approved invoices. Suppliers participating in a reverse factoring program can request early payment on invoices from the bank or other finance provider, with the buyer sending payment to the...

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]]> What is reverse factoring? Reverse factoring is a type of supplier finance solution that companies can use to offer early payments to their suppliers based on approved invoices. Suppliers participating in a reverse factoring program can request early payment on invoices from the bank or other finance provider, with the buyer sending payment to the...

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]]> What is trade finance? https://taulia.com/glossary/what-is-trade-finance/ Mon, 18 May 2020 13:06:56 +0000 https://taulianewdev.wpengine.com/glossary/what-is-trade-finance/ What is trade finance? Trade finance is the term used to describe the tools, techniques, and instruments that facilitate trade and protect both buyers and sellers from trade-related risks. The purpose of trade finance is to make it easier for businesses to transact with each other. It also helps to reduce the risks involved in...

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]]> What is trade finance? Trade finance is the term used to describe the tools, techniques, and instruments that facilitate trade and protect both buyers and sellers from trade-related risks. The purpose of trade finance is to make it easier for businesses to transact with each other. It also helps to reduce the risks involved in...

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]]> What are trade receivables? https://taulia.com/glossary/what-are-trade-receivables/ Mon, 18 May 2020 12:15:57 +0000 https://taulianewdev.wpengine.com/?post_type=glossary&p=511 What are trade receivables? Trade receivables are defined as the funds owed to a business by its customers following the sale of goods and services on credit. Also known as accounts receivables, it is also classified as current assets on a company’s balance sheet. Most companies extend credit to customers for purchases, making trade receivables...

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]]> What are trade receivables? Trade receivables are defined as the funds owed to a business by its customers following the sale of goods and services on credit. Also known as accounts receivables, it is also classified as current assets on a company’s balance sheet. Most companies extend credit to customers for purchases, making trade receivables...

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]]> What is strategic procurement? https://taulia.com/glossary/what-is-strategic-procurement/ Mon, 18 May 2020 07:17:23 +0000 https://taulianewdev.wpengine.com/glossary/what-is-strategic-procurement/ What is strategic procurement? Strategic procurement, or procurement strategy, is the process businesses use to acquire goods or services of the right quality, at the right price, and in time to meet customer demand. It brings procurement activities in-line with a company’s broader objectives, while also reducing supply chain risk. Strategic procurement is a long-term, organization-wide...

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]]> What is strategic procurement? Strategic procurement, or procurement strategy, is the process businesses use to acquire goods or services of the right quality, at the right price, and in time to meet customer demand. It brings procurement activities in-line with a company’s broader objectives, while also reducing supply chain risk. Strategic procurement is a long-term, organization-wide...

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]]> What is supply chain finance? https://taulia.com/glossary/what-is-supply-chain-finance/ Mon, 18 May 2020 05:18:36 +0000 https://taulianewdev.wpengine.com/glossary/what-is-supply-chain-finance/ What is supply chain finance? Supply chain finance, also known as supplier finance or reverse factoring, is a financing solution in which suppliers can receive early payment on their invoices. Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimize their working capital. Unlike other receivables finance...

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]]> What is supply chain finance? Supply chain finance, also known as supplier finance or reverse factoring, is a financing solution in which suppliers can receive early payment on their invoices. Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimize their working capital. Unlike other receivables finance...

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]]> What is vendor management? https://taulia.com/glossary/what-is-vendor-management/ Sun, 17 May 2020 05:13:13 +0000 https://taulianewdev.wpengine.com/glossary/what-is-vendor-management/ What is vendor management? Vendor management is a term that describes the processes organizations use to manage their suppliers, who are also known as vendors. Vendor management includes activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks and ensuring service delivery. The vendors used by a company will vary considerably depending on...

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]]> What is vendor management? Vendor management is a term that describes the processes organizations use to manage their suppliers, who are also known as vendors. Vendor management includes activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks and ensuring service delivery. The vendors used by a company will vary considerably depending on...

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]]> What is working capital management? https://taulia.com/glossary/what-is-working-capital-management/ Sat, 01 Feb 2020 06:16:41 +0000 https://taulianewdev.wpengine.com/glossary/what-is-working-capital-management/ What is working capital management? Working capital management is a business process that helps companies make effective use of their current assets and optimize cash flow. It’s oriented around ensuring short-term financial obligations and expenses can be met, while also contributing towards longer-term business objectives. The goal of working capital management is to maximize operational...

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]]> What is working capital management? Working capital management is a business process that helps companies make effective use of their current assets and optimize cash flow. It’s oriented around ensuring short-term financial obligations and expenses can be met, while also contributing towards longer-term business objectives. The goal of working capital management is to maximize operational...

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