Additional Charges -
Buyers may incur changes for items that will not physically be received at the
buyer’s receiving dock. Examples include freight, tax, tooling, programming, and
other miscellaneous charges.
Bank - An EDI capable
financial service provider without VAN capabilities.
Bar Code Serial Number
- A bar code serial number is a number
contained on a label in a shipment that is used to identify the received
product. This number is often transferred within a Advance Ship Notice /
Manifest transaction set.
- The process where payment is accompanied by its associated detail.
Credit - The
deduction of a payment made by a debtor from an amount due. In an accounting
ledger, an entry on the right side of an account.
Debit - An item of
debt as recorded on an account. In an accounting ledger, an entry on the
left side of an account; the process where the payee retrieves payment in a
mutually agreed upon process.
EIA Bar Code Standard 556-A
- The Electronics Industry Association (EIA)
bar code standard is EIA 556-A. The intent of this standard is to facilitate
automation within shipping, distribution, transportation and receiving
operations using bar code technology. This label should be affixed to outer
shipping containers, boxes, cartons, pallets, cases, barrels, etc. This standard
is primarily intended for use by trading partners in manufacturing,
distribution, industrial and other non-retail commercial applications. Complete
description and usage of this Standard is included in the EIA-556A Standard.
Evaluated Receipts Settlement (ERS)
- A process for authorizing payment for goods
based on actual receipts with purchase order data, when price has already been
negotiated. The basic premise behind ERS is that all of the information in the
invoice is already transmitted in the shipping documentation. Therefore, the
invoice is eliminated and the shipping documentation is used to pay the vendor.
Non-Recurring Engineering (NRE)
- Non-reoccurring engineering charges are charges associated with tooling and
design of product.
Pay-on-Use is a process where payment is initiated by product consumption, i.e.,
consignment stock based on withdrawal of product from inventory. This process is
popular with many European companies.
Payee - The party
that receives payment.
Payer - The party
that initiates payment.
Payment Obligation Identifier (POID)
- A unique identifier associated with the
product delivery is the Payment Obligation Identifier (POID). This unique
identifier is used throughout the process, particularly on the remittance
advice. POID is normally generated by the seller and is associated with the
shipment information. In some cases the POID is generated by the buyer or a
third party, but this practice is not an electronic industry standard. The POID
must be available at the time of shipment, be associated with the shipping
documents, and take precedence over all other unique identifiers associated with
the shipment. The buyer and seller must understand the importance of the POID in
maintaining order management, accounts payable, and accounts receivable systems.
There must be a one-for-one relationship between the POID and the accounts
receivable entry. This facilitates the account reconciliation process when the
payment occurs. However, there can be multiple POIDs referenced in one payment.
The details must be identified in the remittance advice. The POID becomes the
payment reference number and must be maintained in both buyer and sellers’
systems to ensure proper payment reconciliation.
Bar Code Serial Number
Bill of Lading
Shipment Identification Designator (SID)
Other industries may use different identifiers.
Shipment Identification Number
- The Shipment Identification Number (SID)
identifies a specific Shipment Notice/Manifest transaction set and is identified
in Beginning Shipment Notice/Manifest segment in the data element BSN02. The
Ship Notice Number and the SID Number are often used interchangeably.
Service Provider - A party other than the principals that takes on one or
more of the obligations of the principals in a transaction.
- Example: In financial
business processes, a trusted partner, but not a financial institution,
contracted to manipulate financial data. Examples: outsourced
payables/receivables company, accounting firms, or
- The process where payment is delivered separately from its associated detail.
Value Added Bank (VAB)
- An EDI-capable financial service provider
with VAN capabilities.