Accounts Payable
FOB shipping point
title passes to buyer when the goods are loaded at the seller's location
FOB destination
title passes to buyer when the goods arrive at the buyer's location
three-way match
the comparison and reconciling of a company's purchase order, the company's receiving ticket and the vendor's invoice to be certain that what was ordered is what was received and what is being billed.
vendor invoice
the invoice prepared by the supplier (and received by the buyer) for goods or services. The vendor invoice lists the items and the cost of each, the total amount due and the terms.
2/10, n/30
2% of the invoice amount (less any returns) can be deducted if the amount is remitted within 10 days of the invoice date.
purchase discount
a discount allowed by some companies if the customer remits the amount due within a stated period of time.
trade discount
a discount from catalog prices usually as a percentage that varies with volume.
purchase order
a document (multi-copy form, computer record) stating the quantity of goods purchased, price and other conditions.
receiving ticket
a document from a company's receiving department stating that goods have been received at the company.
EOM
end of month
net 30
invoice amount (less any returns) is payable within 30 days of the invoice date.