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Glossary

a

  • ABI Score

    ABI 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 ABI gives an employee a risk score from 0 to 100 based on his or her expense reporting behaviors and trends over time.

  • Accounts payable (AP)

    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.

  • Accounts Payable (AP) Manager

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

  • Artificial Intelligence (AI)

    Refers to the ability of a machine to understand and deal with situations in the way a human would.

  • Audit Workbench

    The section within the AppZen platform where expense reports are displayed.

  • Auto-Renewal

    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).

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  • Chief Financial Officer (CFO)

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

  • Chief Procurement Officer (CPO)

    Someone who oversees sourcing and contract negotiations at an enterprise.

  • Compliance

    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.

  • Computer vision

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

  • Contract

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

  • Contract Audit

    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.

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  • Deep Learning

    Solving complex problems based on training data. In theory, a machine could watch a cooking show and learn to cook, or watch a mechanic and learn to build a car.

  • Direct Spend

    Refers to purchases of goods and services that are directly incorporated into a product being manufactured (examples include raw materials, subcontracted manufacturing services, components, hardware, etc.)

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  • Expense Audit

    Solving complex problems based on training data. In theory, a machine could watch a cooking show and learn to cook, or watch a mechanic and learn to build a car.

  • Expense automation systems

    Refers to purchases of goods and services that are directly incorporated into a product being manufactured (examples include raw materials, subcontracted manufacturing services, components, hardware, etc.)

  • Expense Report

    Refers to purchases of goods and services that are directly incorporated into a product being manufactured (examples include raw materials, subcontracted manufacturing services, components, hardware, etc.)

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  • FCPA

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

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  • High-risk items

    Contracts, invoices, and expenses that require auditor or manager attention for manual approval.

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  • Indirect Spend

    Refers to purchases of goods and services that are not directly incorporated into a product being manufactured (examples include computers, safety goggles, printed forms, office supplies, janitorial services, equipment, furniture, etc.)

  • Invoice

    A commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.

  • Invoice Audit

    Invoice Audit looks at an organization’s incoming supplier invoices in real-time to spot compliance issues, incorrect rates, and potential fraud by reading all invoices in real-time prior to supplier payment.

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  • Line-Item

    An item on an expense report or invoice.

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  • Machine learning

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

  • Managed Spend

    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.

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  • Natural language processing (NLP)

    A field of AI that’s focused on understanding text.

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  • Out-of-policy spend

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

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  • Payment terms (Net 30, Net 60, Net 90)

    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.

  • Politically-exposed people

    Someone who has been entrusted with a prominent public function.

  • Procurement

    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.

  • Purchase Order (P.O.)

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

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  • Reimbursable Expense

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

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  • Sarbanes-Oxley (SOX)

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

  • Star matching

    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.

  • Semantic Analysis

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

  • SLA (Service Level Agreement)

    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.

  • Sunshine Act

    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.

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  • T&E

    Travel and entertainment

  • T&E Policy

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

  • The Turing Test

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

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  • Workflow

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

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