Procurement Glossary of Terms

Cost savings - spending less than previously spent or less than quoted options.

Cost avoidance - reduction or elimination of a new cost that would have otherwise occurred

eShipGlobal - Yale’s online shipping solution, eShipGlobal, allows you to create airbills and track shipments with FedEx, UPS and DHL through third-party services which significantly reduces invoice errors in addition to providing many other online features.

OK-to-Pay invoice – an invoice not associated with a purchase order. Typically amount is <= $2,000 or under and sent directly to department by vendor for payment approval. (see Purchasing Matrix)

Purchase Requisition – a departmental request for a standard purchase order when required by policy and procedure or vendor. Typically used for high-dollar, high-risk transactions over $2,000. Electronic purchase requisitions created in iProcurement are preferred.

Purchasing Card (“P-Card”) – a MasterCard issued by JPMorgan assigned to a person in a Yale department (Individual Card) for business purposes or in the name of the department (Department Card). Use when transactions are low-dollar, low-risk and a purchase order is not required. Often a preferred method of payment for Internet and point-of-sale purchases.

SciQuest - Yale’s online catalog and ordering solution. This electronic requisitioning tool helps you to quickly locate best pricing with our preferred suppliers, find an item available through the Yale stockrooms, compare products across suppliers and much more. SciQuest users create purchase requisitions that once approved, become purchase orders.

Self-Directed Workflow – departmental end user has the ability and authorization to procure goods and services for Yale business purposes without Procurement intervention.

Standard Purchase Order – order placed by Procurement at the request of department by purchase requisition because it is required by policy and procedure or vendor. Typically used for high-dollar, high-risk transactions over $2,000.

A 3-letter prefix to the PO number gives information about the order. The first letter gives the purchase order type (D = department contract, U = University-wide contract or Y = standard purchase order.) The second letter indicates if invoice approval is required (K = yes, departmental approval required or N = no.) The third letter shows the central office that issued the PO (P = Purchasing.) Ex. A YKP is a standard PO that requires departmental invoice approval.

VIP number – a ten-character alias for PTAEO charging instructions. VIP numbers are created in Oracle by departmental VIP Manager assigned this responsibility by a departmental business manager. VIP numbers are used exclusively when ordering through SciQuest or eShipGlobal.

Vendor- a supplier of goods and services that typically is incorporated, bills on an invoice and has multiple transactions with the University. (see Vendor Setup)