Category: P

A second ledger that is used to record details of purchases. The credits and debits are recorded here from the main ledger.this is a subsidiary ledger that is entirely seperate from the main ledger.

This is a policy that a company provides to its customers who wish to return an item previously purchased and then returned to the place of purchase. The item is returned as it was found to be damaged or be cause it was not opened as it was purchased in error.

The act by a person who buys goods and services from a trader or company. The goods and services can be for an individual or used by a company to complete an order or project.

The person who purchases products, goods and services after screening the products for their various qualities. They will contact suppliers and agrre on prices and quantites.

An alternate term for a long hedge. An option that is brought about to protect against a possible drop in interest rates. It is used in order to protect the yield on a fixed income security.

A place that small buyers can go to and get a better price by buying in bulk. The smaller buyers gather in this hub in order to get a better purchase price. It can be used for a spot purchase or continuing purchases.

This is the time between placing an order from a supplier and receiving the items from the supplier. It can include preparation of orders, packaging, freight to the buyer and gthe time taken to redy the purchased products for sale.

The individual person who is responsible for making all of the purchasing orders. This person will co-ordinate all aspects of purchasing from a number of suppliers. In a large company who uses a lot of suppliers the manager may just co-ordiante all purchases while other people do the ordering.

The ability of a person to purchase goods. Also known as buying power and relates to the amount of money available to purchase goods. The purchasing power related to exchange rate of foreign money.

A theory stating that purchase power is equal when countries can transport freely capital, goods, services, and labor. Barriers do exist so exchange rates must change longterm to reflect a countries assets.