Payables Finance

Last modified on: 31/08/2022 22:19

is provided through a buyer-led program within which sellers in the buyer’s supply chain may access finance by means of receivables purchase. The technique provides a seller of goods or services with the option of receiving the discounted value of receivables (represented by outstanding invoices) prior to their actual due date and typically at a financing cost aligned with the credit risk of the buyer. The payable continues to be due by the buyer until its due date. Reverse Factoring is a synonym for Payables Finance or as it is sometimes called, Approved Payables Finance.

Payee and Payer

Last modified on: 31/08/2022 22:20

the payee is the receiver of funds due under an invoice and is usually the seller but may be a third party such as a finance provider that has purchased the receivable (factoring), or a related company acting as a cash manager. The Payer is usually the buyer.

Payment Initiation Service Provider (PISP)

Last modified on: 31/08/2022 22:20

A regulated entity that allows customers to initiate payments without the customer needing to directly access their bank account or use a debit or credit card. PSD2 allows PISPs authorised access to bank accounts through an API. Payment Initiation Services can be provided by existing retail banks, payment service providers or by third parties.

Payment Institution

Last modified on: 31/08/2022 22:20

The concept created by the enactment of the first Payment Services Directive. A payment institution can offer customers a range of payment-related services that are defined in the directive. Payment Institutions are regulated but not to the same degree as banks and credit institutions as there are limits on the services they can offer.

Payment instruction or order

Last modified on: 31/08/2022 22:22

is the set of instructions or an order addressed by a payer to a bank or payment service provider containing a request for a payment and related details. It will include the remittance information, which the payee should include in the payment.

Alternative Meanings:
  1. Payment instruction or order
    is the set of instructions or an order addressed by a payer to a bank or payment service provider containing a request for a payment and related details. It will include the remittance information, which the payee should include in the payment.

Payment Integration Services

Last modified on: 31/08/2022 22:21

A broad category, covering a wide range of opportunities to provide the closer integration of e-invoicing with payment flows, payment reconciliation, and transaction-based reporting and monitoring services.

Payment Services Directive (PSD 1)

Last modified on: 31/08/2022 22:24

is an EU Directive dealing with Payment Services. PSD1 (2007/64/EC) is designed to: help develop the Single Euro Payments Area (SEPA); set common standards for terms and conditions; regulate payment institutions (to encourage non-banks to enter the market); provide increased consumer protection and transparency; and establish maximum processing times for payments in euro and other EU currencies.

Payment Services Directive 2 (PSD2)

Last modified on: 31/08/2022 22:24

is an EU Directive (2015/2366/EU) which builds on the legislative framework established by PSD 1. It acknowledges the rise of payment-related ‘FinTech’ companies and aims to create a level playing field for all payment services providers while ensuring enhanced security and strong customer protection. In short, PSD2 enables bank customers, both consumers and businesses, to use third-party providers to manage their payments and finances. In using such third-party services, customer funds can still be safely held in a bank account. Banks are obliged to provide these third-party providers with access to their customers’ accounts through open APIs (application program interface). This will enable third-parties to build financial services on top of banks’ data and infrastructure.


Last modified on: 31/08/2022 22:24

Portable Document Format’  is a file format used to present documents in a manner independent of application software, hardware, and operating systems. Each PDF file encapsulates a complete description of a fixed-layout flat document, including the text, fonts, graphics, and other information needed to display it. In e-invoicing it is the principal method by which a human readable presentation of the invoice or another document is delivered. A PDF may be machine or humanly generated. PDF/A3 as a recent version is growing in use.


Last modified on: 31/08/2022 22:25

stands for Pan-European Public Procurement On-line and is a set of specifications and capabilities for the secure exchange of procurement and invoicing messages between public bodies (and others) and their suppliers through a network of access points (service providers). It is managed by the OpenPEPPOL Association.

PEPPOL Transport Infrastructure Agreements

Last modified on: 31/08/2022 22:25

are agreements between parties implementing the PEPPOL specifications for transporting messages between access point providers. The parties involved are PEPPOL Authorities, PEPPOL Access Point (AP), and PEPPOL Service Metadata Publisher (SMP) Providers.

Physical Supply Chain

Last modified on: 31/08/2022 22:25

is a term used to describe the totality of the organization, systems, people, activities, information, and resources involved in moving a product or service from supplier to a buyer.


Last modified on: 31/08/2022 22:25

is a public key infrastructure (PKI), which is a set of roles, policies, and procedures needed to create, manage, distribute, use, store, and revoke digital certificates and manage public-key encryption based on the use of public and private keys.

PO Flip

Last modified on: 31/08/2022 22:26

is the conversion of a Purchase Order into an invoice by a supplier using tools provided by a service provider or an application.

Portal (or Web portal)

Last modified on: 31/08/2022 22:26

is generally synonymous with ‘gateway’ and refers to a website that often serves as the single point of access for information, for example a website that users tend to visit as an anchor site for a specific purpose. There are general portals and specialized or niche portals. In e-invoicing, a portal is usually provided by an e-invoicing service provider to give suppliers access to a range of e-invoicing services including the ability to upload or prepare invoices for delivery to buyers, and to receive information and status messages and manage exceptions.

Pre-payment invoice

Last modified on: 31/08/2022 22:26

is an invoice used to request advance payments from customers in respect of a supply of goods and services. It specifies the amount to be prepaid on a sales order, which become deposits in advance of delivery. Prepayments are often calculated based on a percentage of the total order, or have a fixed amount.

Pro-forma invoice

Last modified on: 31/08/2022 22:26

is a preliminary draft of an invoice sent to buyers in advance of a shipment or delivery of goods or services. Typically, it gives a description of the items concerned and notes the amounts to be invoiced along with other related details. For some parties, it is used as a quotation or estimate.

Public Procurement

Last modified on: 31/08/2022 22:26

is the acquisition of works, supplies and services by public bodies or contracting entities. It ranges from the purchase of routine supplies or services to formal tendering and placing contracts for large infrastructural projects. Public procurement is subject to stringent rules on achieving value for money, the avoidance of waste and corruption, and open tendering and selection procedures.

Purchase card or Purchasing card (also P-Card)

Last modified on: 31/08/2022 22:27

is a form of charge card (usually a credit card) that allows goods and services to be procured by the employees of businesses and public bodies without using a traditional purchasing process. Invoicing is usually embedded in the process by using electronic statements containing all relevant transaction information. Purchase card schemes need to satisfy VAT regulations.

Purchase Order

Last modified on: 31/08/2022 22:27

A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a firm order and a contract binding on both parties. A purchase order sets out the description, quantities, price, discounts, payment terms, date of performance or shipment, and other associated terms and conditions for the delivery of goods or the rendering of a service, and identifies a specific seller. Also called an Order.

Purchase Order Finance

Last modified on: 31/08/2022 22:27

a loan provided by a finance provider to a seller of goods and/or services for the sourcing, manufacturing or conversion of raw materials or semi-finished goods into finished goods and/or services, to be delivered to a buyer, based on a purchase order received from that buyer.

Purchase-to-Pay or Procure-to-Pay

Last modified on: 31/08/2022 22:27

is the process and supporting systems that automate the purchase-to-payment chain of activities, connecting procurement and invoicing operations through an intertwined business flow that automates the process from identification of a need, planning and budgeting, through to procurement and payment.

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