Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
ASTM
The American Society for Testing and Materials, an organization that develops and publishes standard specifications on various products.
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Acceptance
The act of accepting by an authorized representative; an indication of a willingness to pay; the assumption of a legal obligation by a party to the terms and conditions of a contract; An agreement to be bound by the terms of an offer.
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Acceptance Test
A technical test performed at either the supplier's site, the buyer's site, or both, to audit whether the equipment bought by the buyer meets its functional and technical specifications.
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Acceptance sampling
A measure, using the number of defects detected, that determines whether a batch of manufactured products meets the standard required
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Accounts Payable (A/P)
1) A financial term referring to the amount of transactions which have been accrued but not paid to a vendor; 2) An accounting function.
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Abbreviations
Shortened forms of a set of words, consisting of initial letters pronounced separately, for example, invitation to tender (ITT)
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Acceptance Quality Limit (AQL)
In quality assessment, acceptance quality limit (previously referred to as acceptable quality level and also known as assured quality level), describes the maximum number of defects acceptable during the random sampling of an inspection.
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Acceptance criteria
Indicators or measures used to assess whether a product or service meets the standard required
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Accessorial Charges
Costs that carriers may charge in addition to standard transportation costs. This may include single shipment charges, additional fees for deliveries made away from a loading dock or central location, and notification, storage and redelivery charges.
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Accounts Receivable (A/R)
On a company's balance sheet, accounts receivable is the amount that customers owe to that company. Sometimes called trade receivables, they are classified as current assets assuming that they are due within one year.
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