| A | B |
|---|
| Purchase requisition | A written request that a specified item or items be ordered. |
| Purchase order | A written offer to a supplier to buy specified items. |
| Packing slip | A form that lists the items included in the shipment. |
| Processing stamp | A stamp placed on a creditor’s invoice that outlines the steps to be followed in processing the invoice for payment. |
| Purchases discount | The buyer’s cash discount for early payment of an invoice on account. |
| Discount period | The period of time within which an invoice must be paid if a discount is to be taken. |
| Purchases account | The account used to record the cost of merchandise purchased during a period. |
| Cost of merchandise | The actual cost to the business of the merchandise sold to customers. |
| Accounts payable subsidiary ledger | The amount of money owed |
| Tickler file | A file that contains a folder for each day of the month into which invoices are placed according to their due date. |
| Due date | The date by which an invoice must be paid. |
| Purchases return | The return of merchandise bought on account to the supplier for full credit. |
| Purchases allowance | A price reduction given when a business keeps unsatisfactory merchandise it has bought. |
| Debit memorandum | The form a business uses to notify its suppliers (creditors) of a return or to request an allowance. |
| Premium | the amount paid for insurance. |
| FOB destination | Shipping term specifying that the supplier pays the shipping cost to the buyer’s destination. |
| FOB shipping point | Shipping term specifying that the buyer pays the shipping charge from the supplier’s shipping point. |
| Bankcard fee | a fee charged for handling bankcard sales slips; usually based on the total amounts recorded on the sales slips processed. |
