06 - 020 Glossary/Definitions
Purchasing Terms
| Term | Definition |
|---|---|
| Acknowledgement: | Supplier's acceptance of an order. |
| ARO: | After receipt of order. |
| B.P.O.: | Blanket Purchase Order. A purchase order permitting the buyer to place individual orders or releases to a particular supplier for goods/services for a specified period of time using the same purchase order number. |
| Back-up: | Documents necessary to support the request for purchase. Information often required includes pricing, justification for selection, technical specification, F.O.B. point and terms. |
| Bid: | A request for pricing and delivery for goods or services. |
| Bidder: | Supplier submitting a bid to sell. |
| Bill of Lading: | Shipper's form listing number of pieces shipped, weight and freight classification. Often used as a receiving document. |
| Bond: | A written and sealed financial guarantee of performance. |
| C.O.D.: | Cash on delivery. Indicates payment must be made for goods and transportation charges at the time of delivery. |
| Consultant: | Services rendered by recognized consulting firms or individuals with specific expertise not available in the University System. Consulting Services are distinguished from other professional services in that consultants advise action to be taken by the University System rather than performing the function themselves. |
| Common Carrier: | A firm whose business is the transportation of goods from seller to a point designated by the buyer. |
| Confirming Order: | Written purchase order formalizing a previous verbal agreement. |
| Contract: | Agreement by a supplier to sell goods and/or services under established conditions, terms, prices and/or discounts for a defined period of time. |
| F.O.B.: | Determines 1) the place where delivery is required; 2) where the title will pass; 3) whether the seller or the buyer is to pay the transportation charges. |
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F.O.B. Dest PP & Add:
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Title of ownership passes when goods are received at our dock (UNH). Shipping/freight charges are added upon invoicing.
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F.O.B. Dest PP & Allow:
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Title of ownership passes when goods are received at our dock (UNH). Shipping/freight charges are the responsibility of the seller.
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F.O.B. SP PP & Add:
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Title of ownership passes at the seller's dock. Shipping charges are prepaid by seller and added to invoice. Insurance liability is that of the buyer.
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F.O.B. SP PP & Allow:
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Title of ownership passes at seller's dock. Shipping charges are the responsibility of the seller. Insurance liability is that of the buyer.
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| Freight Claim: | Document submitted to a common carrier or supplier for damaged goods or a short shipment. |
| Freight Bill: | Invoice for the transportation charges of goods shipped or received. |
| Guarantee: | Manufacturer's or seller's pledge relative to the performance or serviceability of a good or service. |
| Inspection Report: | Report written by a freight carrier's inspector evaluating the extent and circumstances of damage. |
| Point of Delivery: | The geographic location that the buyer has specified to receive purchased merchandise. |
| Purchase Order (PO): | The official and binding document issued to the vendor authorizing the expenditure of USNH funds for goods and/or services. The purchase order creates an encumbrance that will help manage budget and facilitate vendor payment. By using the purchase order, everyone involved in the purchase process can track the order by referring to the same purchase order number as a standard reference. |
| Quotation: | A supplier's response to a request to bid stating the price, terms and conditions for which specified goods or services will be sold. |
| Service Provider: | Professional services performed for the University System by artisans, musicians, craftspersons, speakers, sports officials and professionals other than employees. |
| Shipper: | A person who consigns goods for transportation. |
| Shipping Point: | The geographic location where the merchandise is consigned to the carrier. |
| Short Shipment: | Items consigned to a carrier but not delivered. |
| Site Inspection: | A time and place where a supplier can view the conditions under which a service is to be performed. |
| Specification: | A detailed and exact statement of particulars, describing the goods or services required. |
| Supplier: | An individual or business supplying goods and/or services. |
| Surplus Property: | Item(s) declared of no further use to a department. Requires procedure of advertising the items for sale within the University System, to state agencies and the public. |
| Tailgate Delivery: | Seller is obligated to move the freight only as far as the tailgate of their truck. It is the Buyer's responsibility to unload the shipment from the truck when it arrives. |
| Terms: | A statement of a seller's payment requirements. Included would be cash discounts for prompt payment, if any, and the maximum time allowed for payment. |
| Title: | Indicates ownership. |
| Trace: | Request for information from the supplier or the carrier about an order which has not been received. |
| USNH: | UNH-Durham, UNH-Manchester, Keene State College, Plymouth State University, and Granite State College. |
| Way Bill: | A shipping document identifying shipper, date of shipment, carrier, number of parcels, weight, receiver and date received. |
The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.