ABAP

Advanced Business Application Programming/4, the Fourth generation of the programming language developed by SAP to develop application programs or change standard programs to the client needs

A/C

Account

Accounts Payable (AP)

Also called Shared Services Accounts Payable. A central department for all J&J affiliates where payments for invoices are processed.

Adj.

Adjustment

AP orders

Orders that are placed for suppliers who will pay via the AP Shared Services website

Ariba

The software company that produced the e-Procurement system.

Ariba Buyer

A system that streamlines numerous business processes including purchase requisitions, service requests and check requisitions to help manage business.

Ariba Enterprise Sourcing (AES)

Ariba Enterprise Sourcing, AES, is the e-RFX system of the Ariba suite that allows users to source goods or services. It interfaces with Ariba Buyer to create contracts from sourced events.

Ariba Supplier Network (ASN)

The platform used by Ariba Buyer to route purchase orders to suppliers.

GLID

General Ledger System Identification: one central repository which contains the supplier master data.

CIF (Catalogue Inter change Format

A file format, specific to Ariba, that defines each of the data elements that must be included in a catalogue that is available in Ariba.

Close Short

Indicate an order line level that no further receiving is expected/required.

Global Supplier Database (GSDB)

Global Supplier Data Base: one central repository which contains the supplier master data .

Contract request (CR)

A contract request (CR) is a request for the creation of a contract. The CR reflects general terms and conditions already agreed with the supplier, and defines pricing terms for the goods or services (catalog and non-catalog alike) to be included on the contract.

Contract requester

A user that creates and submits a contract request (CR) or contract sourcing request (CSR).

Contract sourcing request (CSR)

A contract sourcing request (CSR) is a request to source a set of goods or services and the subsequent creation of a contract. The needed information relating to the goods or services to be sourced and contracted are inputted into the CSR.

Credit note (CN)

Credit note and Credit memo have the same meaning: Issued by the supplier to J&J to record the reduction of a bill because of an allowance, return or cancellation. Opposite of an invoice

CL

Credit Ledger

DD

Direct Debit

Debit Note (DN)

A note indicating an amount owed by a person or company. For instance: if J&J gets a short delivery or goods are damaged or J&J no longer requires some part of the goods/service, J&J can issue a debit note to the supplier for the amount in 'dispute'

Default buyer

Approves and processes all non-catalog requests that are not covered by Ariba Commodity-Buyer conditions.

Delivery

Shipment of a good or supply of a service

Direct goods/services/

expenses

Any goods/services/expenses purchased/spent that are not part of J&J finished product bill of material (such as raw material, packaging, active substances, finished and semi-finished products – these items are typically purchased through ERP Systems)

Domestic payment

A payment made to a 3rd party supplier located in the same country as affiliate.

DUNS (Data Universal Numbering System)

A numbering system that assigns unique numbers for each corporation. If a corporation has affiliates or sub-companies, the corporation is assigned a “parent” number, and the affiliates are assigned “child” numbers.

EDI (Electronic Data Interchange)

A set of protocols used to allow companies to exchange data (purchase orders, invoices, etc.) by way of computer, rather than fax or telephone.

EFT

Electronic Funds Transfer

e-Form

A custom, approvable form, such as the Check Requisition Form, that J&J uses to leverage the existing Ariba structure such as workflow, approval rules, and the Ariba user interface.

EHS

Environment Health & Safety

e-Procurement

Electronic procurement is an online, web-based system which automates Client X's procurement process from start to finish.

Once an order is placed, purchasing, tracking, and accounts payable processes are automated and streamlined allowing for increased efficiency and lower supply costs.

e-RFX

E-RFX's are electronic documents developed in AES to source goods or services. E-RFX's can be electronic reverse auctions, RFP's (Request for Proposal), RFQ (Request for Quote), or RFI (Request for Information).

ERS

Evaluated Receipts Settlement, also known as self billing and Pay on receipt

ERP ( Enterprise Resource Planning)

A type of software application that supports business processes and automation for medium to large businesses, including personnel, financials, manufacturing, project management, payroll, and distribution.

FAQ

Frequently Asked Questions

FD

Finance Director

FI number

Identification number of e-Forms

GL

General Ledger – the ledger which holds all of the financial transactions for an entity. Note: this may include summary transactional data where balances are maintained elsewhere, e.g. AP sub-ledger. A general ledger provides the trial balance information, which is ultimately used to produce financial statements.

GR / IR

Goods Received / Invoice Received – GR/IR stands for the SAP terms given for the reconciliation balance sheet account against which the financial posting of the “goods receipt note” is posted against (as credit posting) and on which the financial posting of the “invoice receipt” is posted against (as debit posting). This balance sheet accounts is pulled up automatically by SAP when posting in the mm-module of SAP against a PO . As both postings are referenced towards a PO line number the amounts on this balance sheet account can be cleared in the financial system.

GRN

Goods Receipt Note

GTSC

Global Treasury Services Center ; Centralized center dealing with payments and other treasury activities for the global company, based in Krakau

GXRS

Global Expense Report System : System dealing with travel and other expenses for the global company

HCC

Health Care Compliance

Inv.

Invoice: The supplier charges J&J for goods and/or services. Suppliers generally send charges via paper documents, PCards or electronic invoices to Accounts Payable .

IVR

Interactive Voice Recognition :Automated telephone system which enables the calling customer to select the language for communication with Customer Service Clerk and will also capture all incoming calls

I/C

Inter Company : Invoice transactions between J&J companies

Legal entity (LE)

Legal J&J company for external fiscal reporting

Line item

A specific item on a requisition or purchase order. A line item is a single product from a vendor.

LOB

Line of business

Management Reporting Company (MRC)

Legal entities can be split into different MRCs with the purpose to control different business activities. Example: a J&J company is split into J&J Medical and J&J Consumer – these both units would separately report to Corporate and would be consolidated for local Statutory reporting purposes.

MD&D

Medical Devices and Diagnostics : group of different branches dealing with medical equipment and technical analysis

Mismatch

Situation occurs when the amount ordered and/or received does not match the amount invoiced by the supplier.

NCS

Networking & Computing Services, division of J&J

Order

An order is an electronic request sent to a supplier to purchase items.

Order types

Order types are : Purchasing Card-Order, Accounts Payable order, release order, receivable/non receivable order

OCR

Optical Character Recognition

Open PO

A Purchase Order (PO) can be in an open status because the delivery of goods or services was not yet done by the supplier (or not done completely so that some PO lines are not yet matched against a Goods Receipt Note).

Ordered (status)

The status assigned to items in a requisition that were approved and for which an order has been generated. The requested items remain in ordered status until the items are received or the requester cancels the order.

Ordering (Status)

When a document is in the Ordering state, a fully approved requisition is in the process of being converted to one or more Purchase Orders.

Parked

Invoice entered into SAP but unable to be posted

PO Change/Cancel

The process of making modifications or cancellations to an approved PO by means of adjusting the original requisition, submitting the changes or cancellations for approval and sending them to all external locations supplier, AP and the appropriate ERP systems.

PO number

A unique number assigned to each PO which signifies the order type and any special handling requirements.

PO Push

This is the term used for the nightly batch run between the e-Procurement system and the Materials Management system. Each order is recreated in the Materials Management system (MMS) to provide a basis for payment reconciliation.

Preferred Supplier

Identified by the purchasing organization as a supplier that either has a high volume of transactions, high volume of spend, or is strategically significant. Preferred suppliers are suppliers that J&J typically does business with on a daily to weekly basis. The ASN allows the supplier to automatically receive the purchase order based on their order delivery preference.

Preparer

The person responsible for completing a purchase requisition to initiate the procurement of the goods and/ or services identified by the requester.

Payment type

See payment methods in 3.8

Procure to Pay (P2P)

Process starting from procurement of goods/services until supplier's invoices is payed.

PO

Purchase Order: is another name for an order in the e-procurement system. A Purchase order is created after a requisition is fully approved and processed, and represents a commitment to a supplier to purchase goods and/or services.

PO Box

Post Office Box

Punch-out Catalogue

An external interactive website created and maintained by suppliers where users can purchase products. Users link to the website from Ariba, select items, and upon Checkout, the items are transferred to the Ariba requisition as line items.

Purchase order ( PO )

A purchase order is another name for an order in the e-Procurement system. A purchase order is created after a requisition is fully approved and processed.

Purchase Requisition (PR)

A request to purchase goods or services.

Purchasing Card (P-Card) Orders (PCO)

Orders to suppliers with whom Client X has a credit account.

Receipt

A confirmation entered into Ariba to confirm delivery of certain items ordered from a supplier.

Receivable

Any item(s) that require receiving.

Receivable flag

Determines whether or not a particular line item will require manual receiving in Ariba. This flag is set to either true or false.

Received (status)

All goods have been received from the original Requisition.

Receiver

It can be either central receiver or preparer

Receiving (status)

Creating a receipt in Ariba verifying that goods and services, ordered from the supplier, have been partially received by the requester. An order in the receiving state indicates that the entire order has not been received.

Reconciliation

Process of comparing 2 or more information sources and finding out the reason for the difference. (for example AP or payment balances between SSC and Affiliates)

Release order

Order that are filled against a specified/contracted amount.

Remittance Advice

This is a document which is sent by a customer to a supplier to inform him in advance that a payment will be issued (paid by / on behalf of / settlement of invoice number xxx / amount etc.)

Requester

The person who identifies a business need and defines the goods and/ or services required to meet it.

RFP

Request for Payment

Requisition

A formal request for purchasing goods and/or services. When you need to order goods and/or services you create a requisition in the e-Procurement system which then goes through the approval process. It remains internal to J&J and is never seen by the supplier; only the order is sent to the supplier.

Requisitioner

See Requester

Requisitioning

The process of raising purchase requisitions.

RFX process

Generic term to denote the sourcing process. “RFX” denotes the use of reverse auctions, RFP's (Request for Proposal), RFQ (Request for Quote), or RFI (Request for Information).

Role

A role is assigned to users in the e-Procurement system based on certain permissions. A user can have more than one role in the system, allowing them to perform a variety of tasks.

SAP

Systems, Applications & Products in Data Processing

Self-billing

Evaluated receipt settlement

Shipping

The process of delivering goods and/or services.

SDLC

System Development Life Cycle : Methodology that provides guidance, policies, and procedures for developing systems throughout their life cycle, including requirements, design, implementation, testing, deployment, operations, and maintenance.

SOX

Sarbanes-Oxley … Civil penalties added to disgorgement funds for the relief of victims. (Sarbanes-Oxley act, Section 308) [add. Information: www.sarbanes-oxley.com] …

STP

Straight Through Processing : preferred, low cost electronic payment route, requiring accurate payment data

PCard

Supplier Card

period

current period, period end, period close

Spot Buy Supplier

All suppliers not designated as Preferred. These suppliers typically have a low volume of transactions or spend. These suppliers will either receive their orders via an automated fax gateway or manually.

T&E

Travel and Expense

TPP

Third Party Payment

unmatched GRN

Goods Receipt Note which is not matched with original invoice/order

User

See End user

VAT

Value Added Tax : an indirect tax on consumption

VMF/VMP

Vendor Master File – Vendor Master Process: Establish one centralized and harmonized supplier database or file for all J&J legal entities, direct and indirect procurement in scope of AP2PLE. Information in VMF will include supplier's name, address, bank details , supplier number, contact person, etc.

vendor

Supplier

Vendor master process

Establish one centralized and harmonized supplier database for all J&J legal entities, direct and indirect procurement, in scope of AP2PLE.

WHT

Withholding Tax : a tax that is withheld from the generated income

WW ID

Worldwide ID ; unique id number for J&J employees

x-border

Cross-border :deliveries, payments, transactions across country

Borders

Vendor Ledger/Credit ledger

An AP Subledger listing unpayed/payed invoices