CAPA (CNCF) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Three-way match

A control comparing purchase order, goods receipt, and supplier invoice on quantity, price, and terms before the invoice is approved for payment.

Two-way match

A comparison of purchase order and invoice only, used when no goods receipt is recorded, commonly for services and utilities.

Invoice tolerance

The permitted variance between ordered and invoiced amounts; differences within tolerance auto-approve while larger differences route to exception review.

Debit memo

A buyer-issued document that reduces the amount payable to a supplier, often for returns, shortages, or price corrections.

Credit memo

A supplier-issued document that reduces the buyer's outstanding balance, applied against open invoices during cash application.

Discount terms 2/10 net 30

A 2 percent reduction if the invoice is paid within 10 days; otherwise the full amount is due within 30 days of the invoice date.

Cost of forgoing discount

Annualized rate of skipping an early payment discount, computed as discount divided by net amount times 365 over the days difference.

Duplicate invoice detection

Matching supplier identifier, invoice number, invoice date, and amount against open and paid items to prevent paying the same bill twice.

Segregation of duties

Separating invoice entry, payment approval, and bank reconciliation so no single person can initiate and conceal a fraudulent payment.

Accrued liability

An amount recorded at period end for goods or services received but not yet invoiced, reversed when the supplier invoice posts.

AP control account reconciliation

A close procedure proving the general ledger accounts payable balance equals the sum of open supplier balances in the subledger.

Vendor statement reconciliation

Comparing the supplier's reported balance to the AP subledger and investigating unmatched invoices, credits, or payments.

Positive pay

A bank control matching the company's issued payment file to items presented for clearing, returning unmatched items for review.

Escheatment

The legal transfer of stale uncashed checks and dormant credit balances to the state after the required dormancy period expires.

Days payable outstanding

A metric computed as average accounts payable divided by cost of goods sold, multiplied by the number of days in the period.

First-pass match rate

The percentage of invoices that match purchase order and receipt without exception, indicating master data and process quality.

Unapplied cash

A payment received that cannot yet be matched to open invoices, requiring investigation and clearing during reconciliation.

GR/IR clearing account

A suspense account holding the difference between goods received and invoices received, expected to net near zero at period close.

Purchase requisition

An internal request to buy goods or services that must be approved before a purchase order is issued to a supplier.

Purchase order

A binding document issued to a supplier specifying items, quantities, prices, delivery terms, and payment terms for a purchase.

Goods receipt

A record of what was delivered and its condition, used as the quantity evidence in three-way matching and accrual timing.

Procure-to-pay cycle

The end-to-end sequence from requisition through purchase order, receipt, invoice, matching, payment, and reconciliation.

Evaluated receipt settlement

A process that pays suppliers directly from receipt records without an invoice, requiring reliable pricing and receipt data.

Blanket purchase order

A long-term agreement fixing prices and terms, released against by individual orders rather than renegotiated each purchase.

Consignment inventory

Goods held at the buyer's site but owned by the supplier until consumed, so no payable arises at delivery.

Maverick spend

Purchasing outside approved contracts or channels, which raises cost and weakens controls over pricing and terms.

Vendor master data

The authoritative supplier record containing tax identifiers, bank details, and terms, controlled to prevent duplication and fraud.

Invoice redirection fraud

A scheme changing supplier bank details to divert payments, countered by independent callback verification to a known contact.

Straight-through processing

Automatic invoice posting and payment without manual intervention, enabled by clean master data and tight match tolerances.

Dynamic discounting

A buyer-funded early payment program offering suppliers a negotiated discount rate that yields a return on surplus cash.

Supply chain finance

A bank-funded program letting suppliers receive early payment at a rate based on the buyer's stronger credit rating.

Supplier scorecard

A periodic rating of supplier performance covering on-time delivery, invoice accuracy, quality rejections, and responsiveness.