Glossary

ACI is analogous to FICO credit score. Just as a FICO score uses previous purchasing history to determine a person’s reliability in paying back a loan with interest, the ACI gives an employee a risk score from 0 to 100 based on his or her expense reporting behaviors and trends over time.

A part of the finance team whose functions include: keeping track of all payments and expenditures, including payroll, purchase orders, invoices, statements, etc. They also reconcile processed work by verifying entries and comparing system reports to balances and contracts.

The main point of contact for the payment of vendor invoices at an organization.

Acts to perpetually renew a contract if notice to terminate is not provided within a generally specific and relatively small window of time (for example, 30 days prior to the end of the term).

A department or process responsible for managing and processing a company's financial obligations to its suppliers and vendors.

The simulation of human intelligence in machines that are programmed to think and learn like humans. AI is used to automate and improve processes in finance operations.

An examination of accounts payable records and transactions to ensure accuracy, compliance with policies and regulations, and identify any errors or discrepancies.

The automation of finance decision making and processes using AI, which incorporates deep finance and business domain knowledge and operates without the need for human intervention.

A measurement system developed by AppZen to determine the level of autonomy achieved in finance operations, ranging from Level 0 (fully manual) to Level 5 (fully autonomous).

Someone who is responsible for managing finances, mitigating financial risks, keeping accurate records, and reporting.

Someone who oversees sourcing and contract negotiations at an enterprise.

Covers everything from keeping track of important meetings to following government industry regulations. If your business fails to keep up to date with the applicable laws and requirements, it may incur a variety of fines, from one-time fees to major penalties.

A field of AI that trains computers to interpret and understand the visual world, allowing it to identify and classify objects.

A legally-binding agreement which recognizes and governs the rights and duties of the agreeing parties.

Looks at an organization’s supplier agreements in real time to spot compliance issues and pricing discrepancies to better help procurement and compliance teams have stronger negotiations with their suppliers and enforce contract terms 24/7.

Deep learning is a subset of machine learning where artificial neural networks, algorithms inspired by the human brain, learn from large amounts of data. Similar to the way humans learn from experience, the deep learning algorithm performs a task repeatedly, making small changes with each repetition in order to improve the outcome. We refer to this as “deep learning” because the neural networks that enable this kind of learning can be numerous layers deep.

Direct Spend refers to purchases of goods and services that are directly incorporated into the manufacture of a product. Examples include raw materials, subcontracted manufacturing services, components, hardware, and goods for resale. These are usually procured via purchase orders and contracts. Direct spend is reflected in a company’s income statement under Cost of Goods Sold (COGS).

The process of manually inputting data into a system or database, often performed by finance staff in traditional workflow-driven finance operations.

An expense audit is the process of establishing the existence, validity, and accuracy of the evidence provided by employees to support their reimbursement claims for business expenses. This is done by assessing whether each employee transaction complies with internal company policies, government regulations, and reasonableness (i.e. not out of the ordinary course of business). Any out-of-policy or non-business related expenses claimed as a business expense should raise a flag for an expense auditor to review. This can lead to requests for further proof, such as manager approval records or merchant receipts. An expense auditor may deny a fraudulent, unreasonable, or non-compliant claim, leading to denial of the reimbursement.

Expense Automation Systems, also referred to as Expense Management Systems (EMS), are software programs deployed by enterprises that allow employees to request, approve, book, claim, and be reimbursed for business travel and entertainment expenses. Common EMS systems include Oracle, Emburse, and SAP Concur.

An expense report is a form used by employees to detail business expenditures they have incurred and for which they are requesting reimbursement. The employee typically provides or attaches information about the context and content of the expense, including the date, amount, merchant, beneficiary or attendees, any prior approval, supporting receipts, and invoices. This enables business managers and accountants to assess the existence, validity, and accuracy of the business expense claim and reimburse the employee. Finance managers can then record the reimbursed amounts as business expenses, which then affects their net income and tax exemptions.

An examination of expense reports to ensure compliance with company policies, identify fraudulent or wasteful expenses, and detect errors or inaccuracies.

A software system that integrates various functions and departments within an organization, including finance, accounting, human resources, and supply chain management.

The Foreign Corrupt Practices Act of 1977 (FCPA), which was designed to make it illegal for companies to influence foreign officials with personal payments.

Artificial intelligence specifically applied to finance processes, enabling automated decision-making and processing of financial transactions.

A general framework of mathematical models that allow computers to learn from previous experiences.

Refers to all budget spent through a managed contract with a supplier. This often includes all non-payroll money that a company’s management team has influence over in dictating which preferred vendors will be used and how exactly the money will be spent.

Charges that are outside of company policy and not eligible for reimbursement, such as flight upgrades or alcohol.

A technology that converts scanned images or printed text into machine-readable data, used to extract information from paper or PDF-based invoices and receipts.

The conditions under which a vendor completes a sale including, when payment is expected; any conditions on that payment; any discounts the buyer will receive; etc.

Someone who has been entrusted with a prominent public function.

The process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. This process seeks to ensure that the buyer receives goods, services, or works at the best possible price when aspects such as quality, quantity, time, and location are compared.

A commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.

Charges that are within a company’s T&E policy

The use of software robots or bots to automate repetitive tasks and processes, improving efficiency and reducing the need for human intervention.

Passed in 2002, this is a federal law that outlines financial and auditing regulations for publicly-held companies.

In the matching process performed for goods and services ordered through a purchase order that takes place during the online invoice approval process, invoices are matched to every term, document, digital log available and accessible.

One of the foundations of AI, which uses logic to reason from designed models.

A contract between a service provider (either internal or external) and the end user that defines the level of service expected from the service provider.

Its full name is actually The Physician Payments Sunshine Act (PPSA) and it was designed to boost transparency around the financial relationships between physicians, hospitals, and drug companies.

The examination of expenses and spending activities to identify potential savings opportunities, detect fraudulent or non-compliant spending, and ensure efficient use of resources.

Data that is, in very predictable, organized formats that can be captured accurately by legacy data management tools.

Travel and entertainment

The guidelines which outline what can and cannot be submitted for reimbursement.

Developed by Alan Turing in 1950, this refers to the ability of a machine to be indistinguishable from a human.

The automation of financial processes without the need for human interaction or intervention, accomplished through the use of AI and other advanced technologies.

Workflow is the steps on an expense report goes through from employee submission to payment.

A traditional approach to finance operations that relies on manual effort, sequential steps, and human decision-making, often involving the keying of information into structured forms and routing them for processing.

Data that does not have a predefined format or organization, making it challenging to capture and process using traditional data management tools. Examples include images, text in receipts, and PDF-based invoices.

Mistakes or inaccuracies made by humans in financial processes, which can lead to financial losses, inefficiencies, or non-compliance.

Documents sent by suppliers or vendors to request payment for goods or services provided to a company.