Glossary

Procure-to-pay (P2P), also known as purchase-to-pay, is the second half of the source-to-pay (S2P) cycle that deals with the operational aspects of acquiring and paying for goods and services. 

A P&L, also known as a profit and loss statement or income statement, is a financial document that summarizes a company's revenue and expenses over a specific period, typically a month, quarter, or year. It shows how effectively a business is converting its sales into profits.

Prorated billing is a fee structure that charges customers based on a percentage of usage rather than a flat fee for a given pay period. This is most common in subscription billing models and promotes flexibility, fairness and transparency for users.

A purchase order (PO) workflow is a defined process that governs the creation, approval, and fulfillment of purchase orders within an organization.

Purchase requisitions are internal documents used by employees to gain approval for buying goods and services. The speed and accuracy with which businesses can manage purchase requisitions directly affect the overall efficiency of their supply chain and production.

Quote-to-Cash (Q2C), also sometimes referred to as Quote-to-Order-to-Cash (QTC), is the entire business process encompassing all the activities involved in generating a sale from the initial quote to receiving payment.

Recurring billing is a billing model in which customers are charged automatically and regularly at predefined intervals for ongoing products or services they receive from a business.

Retention rate is a metric that measures how many customers (or users) continue to use a product or service over a specific period of time.

Return on equity (ROE) is an ROI metric that shows how a business’s net income compares to its shareholder equity.

Revenue leakage refers to the unintentional loss of revenue that a business earns but fails to collect.