Sourcing and Procurement 
Glossary

Participative

To be involved and contribute to the task or project

Parts Number

A code assigned to a product to identify it as an article coding system.

Patented

The inventor has been legally granted exclusive rights to make or sell their idea or invention

Payment Terms

The what, how and when the buyer will pay for the products and services delivered by the supplier.

Payment terms Net 10

Payment is due ten days after invoice date.

Payment terms Net 60

Payment is due 60 days after invoice date.

Partnership

A legal form of a business that is owned by two or more individuals

Patent

Legally grants the inventor sole rights to make or sell their idea or invention

Pay for Performance Incentive

An incentive that is tied to specific performance requirements. The desired performance is typically stated in terms of a quantitative SLA. The incentive fee can be fixed or variable, but always corresponds to specific, agreed upon targets. Performance incentives can be an effective way to encourage performance provided that the incentive is worth more than the effort to achieve it.

Payment terms EOM

Payment is due by end of month.

Payment terms Net 30

Payment is due 30 days after invoice date. This is one of the most widely used payment term.

Payment terms Net 7

Payment is due seven days after invoice date.