Glossary

Plain definitions of the contract, AP and freight terms that decide whether an invoice can be checked.

16 pages

• Contract Labor and Staffing Audit | DefinitionContract labor and staffing audit: definition, what errors it catches, and how ValueXPA's fixed-scope Margin Drift Diagnostic finds recoverable spend.
• Equipment Rental Audit: Definition and How It WorksAn equipment rental audit checks rented-equipment invoices against the rental agreement's rate, term, and fees to identify margin drift and recoverable spend.
• Freight and 3PL Audit: Definition and MeaningFreight and 3PL audit definition: how it finds rate, accessorial, and surcharge errors against contract terms in freight invoices for manufacturers.
• Fuel Surcharge Definition | ValueXPA GlossaryFuel surcharge definition: what it is, how carriers calculate it, and how a stale index rate becomes hidden margin drift on freight invoices.
• Index Escalation ClauseAn index escalation clause ties contract pricing to a published index. Learn how it works, where it hides margin drift, and how to audit it correctly.
• IT and Professional Services Audit: DefinitionIT and professional services audit: definition, scope, and process for validating vendor invoices against contract terms at $100M+ manufacturers.
• MRO and Class C Consumables AuditAn MRO and Class C consumables audit checks shop supply invoices against contract price lists to find margin drift in high-volume, low-value SKUs.
• Packaging and Corrugate Audit: DefinitionPackaging and corrugate audit definition: what it reviews, why packaging invoices drift from contract terms, and when manufacturers should run one.
• Rebate Clause: Definition and How It WorksA rebate clause sets the conditions under which a vendor returns part of your spend as a credit. Learn how it is triggered and where drift hides.
• Shift and Overtime Premium Misuse | GlossaryShift and overtime premium misuse is a contract labor drift type: a vendor bills a shift or overtime multiplier the labor contract does not authorize.
• Waste and Environmental Services Audit DefinedA waste and environmental services audit checks vendor invoices for hauling, disposal and compliance fees against contract terms to find margin drift.
• What Is a Maintenance and Repair Audit?A maintenance and repair audit checks MRO and repair invoices against vendor contracts and rate cards to find billing errors and recoverable overcharges.
• What Is a Minimum Volume Commitment (MVC)?A minimum volume commitment is a contract clause setting a purchase floor; missing the floor or misapplied thresholds are a recurring source of margin drift.
• What Is a Price File? Definition for AP TeamsA price file is the vendor-maintained record of contracted prices used to check invoices for accuracy. Learn what it is and why it drifts from invoices.
• What Is a Rate Card? DefinitionA rate card is the vendor's contracted price list for services, covering unit prices, tiers, and surcharges. It is the baseline every invoice should match.
• What Is a Statement of Work? DefinitionA statement of work sets a contract's scope, deliverables, and price terms. See what it covers and why AP teams check invoices against it for drift.