Glossary

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

48 pages

• Accessorial Charge Creep: DefinitionAccessorial charge creep is the gradual expansion of carrier add-on fees past their contracted trigger condition. What it is and how to catch it.
• Accessorial Charge: Definition and GlossaryGlossary definition of accessorial charge: what it is, why it drifts from contract terms, and how AP teams catch it. Part of the ValueXPA margin drift library.
• Benchmark ClauseA benchmark clause ties vendor pricing to an external reference like a market index or peer survey. Here's how it works and where drift hides.
• Billed Scope Beyond Contract: DefinitionBilled scope beyond contract is when an invoice charges for work, resources, or items outside the agreed statement of work or rate card. Read the full guide.
• Blanket Purchase OrderA blanket purchase order is a standing agreement fixing vendor pricing and terms for repeat orders. Here is how it works and where it drifts.
• Calibration and Safety Compliance AuditA calibration and safety compliance audit checks vendor invoices for calibration and safety services against contract terms, certificates and schedules.
• Contract Addendum: Definition and AP RiskA contract addendum amends a vendor agreement's terms. Learn what it changes, why it causes margin drift, and how to track it against invoices.
• 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.
• Duplicate PaymentDuplicate payment is a second disbursement made against a vendor invoice already paid in full. Learn how it happens, why AP controls miss it, and how it's.
• 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.
• Escalation CapAn escalation cap limits how much an index-linked contract rate can rise per period. Learn how it works and where invoices drift past it. Read the full guide.
• Evergreen ClauseAn evergreen clause is a contract term that auto-renews an agreement unless one side cancels by a deadline. Definition, risk, and how to review one.
• Facilities and Janitorial AuditFacilities and janitorial audit defined: what it covers, how billing drift enters cleaning and facilities services contracts, and how it fits an AP recovery.
• Firm Fixed PriceFirm fixed price is a contract type that sets one price regardless of the vendor's actual cost. See how it changes what an invoice audit checks.
• 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.
• Index Escalation MisappliedIndex escalation misapplied means a vendor's price increase no longer matches the index clause it cites. Learn how to catch it on invoices. Read the full guide.
• IT and Professional Services Audit: DefinitionIT and professional services audit: definition, scope, and process for validating vendor invoices against contract terms at $100M+ manufacturers.
• Liquidated DamagesLiquidated damages defined: a pre-agreed contract penalty for late or nonconforming vendor performance, and how it differs from an invoice error.
• Master Service Agreement: Definition and RoleGlossary definition of Master Service Agreement, its role in margin drift and how vendor contracts are structured for services procurement. Read the full guide.
• Minimum Commitment Shortfall, DefinedDefinition of minimum commitment shortfall, the gap between a minimum volume commitment and actual purchases, and how it turns into unclaimed contract value.
• Missed Credit MemoMissed credit memo: a vendor credit issued but never applied against an invoice, leaving cash owed to the buyer sitting unrecovered. Read the full guide.
• 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.
• Not-to-Exceed Cap: Definition and How It FailsNot-to-exceed cap is the contractual ceiling on vendor billing. See what it covers, why standard AP matching misses overruns, and how to track it.
• Not-to-exceed overrunA not-to-exceed overrun is an invoice or billing total that exceeds a contract's NTE cap and gets paid without the cap being enforced. Read the full guide.
• 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.
• Price File GovernancePrice file governance is the discipline of keeping vendor price files synced to contract terms. See what breaks it and how to control it. Read the full guide.
• Purchase OrderA purchase order is a buyer's document authorizing a purchase at a set price and quantity. See how it relates to rate cards and invoice matching.
• 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.
• Rebate GapRebate gap is the difference between rebates a vendor contract entitles you to and rebates actually credited. Definition, causes, and detection.
• Release OrderA release order is a call against a standing agreement, not a new contract. See how it should price, and where drift creeps into it. Read the full guide.
• RetainageRetainage is a portion of a contract payment a customer withholds from a vendor's invoice until a project or milestone is confirmed complete, then pays out.
• Service Level Agreement: Definition | ValueXPAGlossary definition of service level agreement covering scope, tie to margin drift, and how SLA terms get audited against invoices. Read the full guide.
• 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.
• Surcharge scheduleA surcharge schedule lists the add-on fees a vendor can charge beyond the base rate, each tied to a trigger condition the invoice must satisfy.
• Telecom and Connectivity Audit: DefinitionGlossary definition of telecom and connectivity audit, covering scope, contract terms checked, and how it fits within a broader margin drift diagnostic.
• Termination for ConvenienceTermination for convenience lets either party end a service contract without cause. Learn how notice periods and wind-down billing create invoice exposure.
• Tiered PricingTiered pricing sets different unit rates at different purchase volumes. Learn how the tiers are defined, applied, and where they slip on an invoice.
• Utilities and Energy AuditUtilities and energy audit definition: reviewing electricity, gas, water, and waste utility billing against tariffs, contracts, and meter data for errors.
• Volume tierA volume tier is a pricing structure where a vendor's unit rate changes once purchase quantity crosses a contracted threshold, up or down. Read the full guide.
• Volume Tier MisapplicationVolume tier misapplication is when a vendor bills at a lower discount tier than the volume purchased actually earned. Here's how it happens and how it's caught.
• 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.