Glossary

Days Inventory Outstanding (DIO) is a working capital management metric that measures the average number of days a company holds onto its inventory before selling it. In other words, it tells you how long it typically takes for your inventory to be converted into cash through sales.

Days Payable Outstanding (DPO) is a financial metric that measures the average number of days a company takes to settle its bills with suppliers or creditors for purchases made on credit. In simpler terms, it tells you how long, on average, a company takes to pay off its outstanding accounts payable (AP).

Days Sales Outstanding (DSO) is a financial metric used to measure the average number of days it takes a company to collect cash from its customers after a sale is made on credit. In simpler terms, it tells you how long, on average, it takes for your company to convert credit sales into actual cash.

Debit memo, also referred to as debit note, is a formal document issued by a seller (or service provider) to a customer increasing the customer's outstanding balance.

Deferred revenue is a payment that is made in advance of the completion of a contract. It is not considered “earned” and is recorded as a liability on the books until the terms of the contract are fulfilled. Accrued revenue is the opposite of deferred revenue, whereby revenue has been earned and recognized but not yet received.

Document management refers to the process of organizing, storing, managing, and tracking documents and information within an organization in a systematic and efficient manner.

An e-invoice is created, sent, received, and processed electronically, often through standardized formats like XML or EDI (Electronic Data Interchange).

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a financial metric used to assess a company's profitability from its core operations.

ERP stands for Enterprise Resource Planning. It's a type of software system that businesses use to manage and integrate essential parts of their operations. An ERP system functions as a central hub for data and processes, aiming to streamline information flow, improve efficiency, and provide a unified view of core business activities.

Enterprise resource platform (ERP) integration is the process of connecting all your business systems to your ERP. This can be as simple as configuring data systems and payment gateways to interact efficiently with your ERP or may involve using specialized software to extend their native capabilities and optimize data streams.