CAPA (CNCF) key terms

A control that compares the purchase order, the receiving report, and the supplier invoice before payment is approved, confirming that what was ordered, received, and billed agree in quantity and price.

A control that compares only the purchase order and the supplier invoice, used where receiving data is not captured or where goods are services delivered without a formal receipt.

A document issued by a buyer authorizing a supplier to deliver specified goods or services at agreed prices and terms, forming the reference point for later matching and payment.

A long-term agreement setting prices and terms for repeated purchases over a period, against which individual releases or invoices are drawn down rather than issuing a new order each time.

An internal request asking for authorization to buy goods or services, which typically precedes a purchase order and documents the business need and budget approval.

A record confirming that ordered items were physically delivered and accepted, providing the quantity and date evidence used in matching and in recognizing the related liability.

A document prepared at the delivery point that lists what arrived, in what quantity, and its condition, often serving as the receiving evidence in a three-way match.

A discrepancy flagged when an invoice does not agree with the purchase order or receipt, such as a price variance or quantity difference, which must be resolved before payment.

A status that blocks an invoice from being scheduled for payment until a defined issue is cleared, such as a missing receipt, disputed amount, or unresolved supplier query.

The process of receiving supplier invoices and entering or extracting their data into the payables system, whether by manual keying, scanning, or automated recognition.

Technology that converts scanned or photographed invoice images into machine-readable text, reducing manual keying and enabling automated routing and matching.

A standard format for exchanging business documents such as purchase orders and invoices directly between computer systems, eliminating manual re-entry and reducing transcription errors.

The end-to-end sequence of business steps from identifying a need through requisition, purchasing, receiving, invoicing, and final payment to the supplier.

The date shown on a supplier invoice, used to calculate the due date under payment terms and to determine the accounting period in which the liability is recorded.

The agreed conditions governing when and how an invoice must be paid, including the credit period, early-payment discounts, and any settlement currency or method.

The calendar date by which payment must reach the supplier under the agreed terms, calculated from the invoice date or receipt date depending on the contract.

A reduction in the invoice amount offered by a supplier if the buyer pays before the standard due date, expressed as a percentage within a stated discount period.

An arrangement in which the buyer chooses to pay an approved invoice early in exchange for a discount whose rate varies with how many days before the due date payment is made.

A financing program, often bank-funded, that pays suppliers early based on the buyer's approved invoices and credit standing, while the buyer settles at the normal due date.

A scheduled batch process that selects due and approved invoices and generates the payments to suppliers, typically producing a payment file for the bank.

A notification sent to a supplier explaining which invoices a payment covers, the amount paid, discounts taken, and any deductions, so the supplier can apply cash correctly.

The mechanism used to settle a supplier liability, such as bank transfer, check, corporate card, or virtual card, each carrying different controls, timing, and cost.

A single-use or limited-value card number issued for a specific supplier payment, giving controlled settlement, reduced fraud exposure, and transaction data for reconciliation.

A document from a supplier that reduces the amount owed, often issued for returned goods, overbilling, or allowances, and applied against open invoices or future payments.

A document the buyer issues to reduce the amount payable to a supplier, for example to recover overpayments, charge penalties, or record returned goods.

An accounting entry recording an expense and liability in the period goods or services were received even though the supplier invoice has not yet arrived or been processed.

The rule determining which transactions belong to a given reporting period, requiring that receipts and invoices around period end are recorded in the correct period.

An internal control principle that separates incompatible tasks, such as approving a supplier, entering an invoice, and releasing payment, so no single person can complete a fraudulent transaction alone.

The central record of approved suppliers containing payment details, tax identifiers, and terms, which must be controlled to prevent duplicate records and payment diversion fraud.

The process of vetting and setting up a new supplier, including verifying legal identity, tax status, and bank details, before any purchase or payment is allowed.

A second submission of an invoice already recorded or paid, whether accidental or deliberate, which control reports and matching logic are designed to detect and block.

The difference between the price charged on an invoice and the price agreed on the purchase order or contract, which must be investigated and approved before payment.

A summary of unpaid supplier invoices grouped by how long they have been outstanding, used to manage cash, prioritize payments, and identify overdue or disputed items.

The process of comparing the buyer's recorded balance with the supplier's statement of account to identify missing invoices, unapplied credits, or disputed items.

Handling an invoice from capture to approved payment without manual intervention, achieved when data is clean and matches the purchase order and receipt automatically.

The review of purchasing data by category, supplier, and business unit to understand where money is spent and to support sourcing and contract decisions.

An invoice for goods or services bought without a prior purchase order, requiring alternative approval and review because it cannot be matched to an order.