Operations • Module glossary
This glossary explains common words and fields you’ll see when using Procurement in XFatora.
Also known as: Purchase
What it is: Approval workflow is the set of steps required before a request or order is confirmed.
When you use it: Use workflows to enforce spending rules and reduce unauthorized purchases.
Example: Requests above 10,000 SAR require manager + finance approval.
Common fields (and what they mean):
Related terms: Purchase Request, Audit Trail
What it is: Delivery terms define how and when goods are delivered (delivery location, responsibility, shipping method).
When you use it: Use delivery terms to avoid disputes and align expectations with suppliers.
Example: Supplier delivers to your main warehouse; you handle unloading.
Common fields (and what they mean):
Related terms: Logistics, Goods Receipt
What it is: Goods receipt confirms that ordered items were received and matches them to the purchase order.
When you use it: Use it to update inventory and to validate supplier invoices.
Example: You receive 90 out of 100 units and record a partial receipt.
Common fields (and what they mean):
Related terms: Inventory, Three-Way Match, Returns to Supplier
What it is: Lead time is how long it takes from ordering to receiving the goods.
When you use it: Use lead times to plan stock replenishment and avoid shortages.
Example: Your supplier’s lead time is 14 days, so you reorder earlier.
Common fields (and what they mean):
Related terms: Reorder Point, Inventory
What it is: PO status shows where an order is in the lifecycle: draft, approved, sent, received, closed.
When you use it: Use status to keep teams aligned on what’s pending and what has been delivered.
Example: A PO becomes “Partially Received” when only part of the shipment arrives.
Common fields (and what they mean):
Related terms: Purchase Order (PO), Goods Receipt
What it is: A preferred supplier is a vendor you trust for quality, price, or reliability.
When you use it: Use preferred suppliers to speed up ordering and reduce risk.
Example: You mark a supplier as preferred after consistent on-time deliveries.
Common fields (and what they mean):
Related terms: Supplier, Supplier Performance
What it is: Procurement reports summarize purchase spend, supplier usage, and approvals.
When you use it: Use reports to understand where money goes and improve purchasing decisions.
Example: You review spend by category to negotiate better rates.
Common fields (and what they mean):
Related terms: Spend Control, Supplier
What it is: Purchase categories group purchases into meaningful buckets (IT, office supplies, raw materials).
When you use it: Use categories for budgeting and better reporting.
Example: You categorize purchases so you can see how much you spend on logistics vs marketing.
Common fields (and what they mean):
Related terms: Budget, Procurement Report
What it is: A purchase order is the official document confirming your order with a supplier—items, quantities, prices, and delivery details.
When you use it: Use POs to prevent misunderstandings and to track procurement from order to receipt.
Example: You issue a PO for raw materials with delivery next Monday.
Common fields (and what they mean):
Related terms: Goods Receipt, Accounts Payable (AP), Inventory
What it is: A purchase request is an internal request to buy something, usually requiring approval before placing an order.
When you use it: Use purchase requests to control spending and keep department requests organized.
Example: IT submits a request to purchase new laptops, then Finance approves it.
Common fields (and what they mean):
Related terms: Approval Workflow, Purchase Order (PO)
What it is: A receiving checklist ensures received items are counted and inspected properly before acceptance.
When you use it: Use it to reduce disputes and detect problems early.
Example: Warehouse staff checks quantity, packaging condition, and serial numbers on arrival.
Common fields (and what they mean):
Related terms: Goods Receipt, Inventory
What it is: Returns to supplier is the process of sending back incorrect, damaged, or excess items.
When you use it: Use it to keep inventory accurate and to claim refunds or replacements.
Example: You return 10 damaged units and request replacement.
Common fields (and what they mean):
Related terms: Goods Receipt, Credit Note
What it is: An RFQ is a request sent to suppliers asking for pricing and availability before you choose a vendor.
When you use it: Use RFQs when you want competitive pricing or when buying high-value items.
Example: You send an RFQ to 3 suppliers for 1,000 units and compare quotes.
Common fields (and what they mean):
Related terms: Supplier Quote, Purchase Order (PO)
What it is: Spend control is the set of policies and approvals that keep purchasing within budget.
When you use it: Use it to prevent uncontrolled spending and to reduce procurement waste.
Example: Only department heads can approve purchases above a set limit.
Common fields (and what they mean):
Related terms: Approval Workflow, Budget
What it is: A supplier is a vendor you buy goods or services from (materials, products, contractors).
When you use it: Use supplier records to centralize contacts, payment terms, and purchase history.
Example: You add your packaging supplier with their contact person and payment terms.
Common fields (and what they mean):
Related terms: Purchase Order (PO), Accounts Payable (AP)
What it is: A supplier invoice is the bill from a supplier requesting payment for delivered goods/services.
When you use it: Use it to record payables and schedule payment.
Example: After receiving materials, you record the supplier invoice due in 30 days.
Common fields (and what they mean):
Related terms: Accounts Payable (AP), Three-Way Match
What it is: Supplier performance measures reliability—on-time delivery, quality, and pricing consistency.
When you use it: Use it to decide which suppliers to keep, renegotiate, or replace.
Example: A supplier’s on-time delivery drops to 60%, so you add a backup supplier.
Common fields (and what they mean):
Related terms: Preferred Supplier, Reporting
What it is: A supplier quote is the pricing offer received from a supplier in response to your request.
When you use it: Use quotes to compare price, lead time, and terms before issuing a purchase order.
Example: Supplier A is cheaper, Supplier B is faster—choose based on urgency and cost.
Common fields (and what they mean):
Related terms: RFQ (Request for Quotation), Purchase Order (PO)
What it is: Three-way matching compares the purchase order, goods receipt, and supplier invoice before payment.
When you use it: Use it to prevent overbilling and ensure you pay only for what you received.
Example: Supplier invoice is for 100 units, but receipt shows 90—payment is adjusted.
Common fields (and what they mean):
Related terms: Accounts Payable (AP), Goods Receipt
