Oracle Services Procurement Glossary

Advance: A financing payment usually released before any work/service has been performed.

Application for Payment: Term used in the construction industry for 'Payment Request'.

Contract Financing: Contract financing is typically used in Public Sector Contracts. Contract financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met, financing is given to aid in the completion of subsequent work.

Deliverable: A deliverable is the result of a task that is monitored for performance. Contractual deliverables are deliverables that a party is required to perform to fulfill the contract. The buyer enforces contractual deliverables often by making payments (milestone payments, performance based payments) dependent on the fulfillment of a deliverable.

Progress Payment Schedule: Represents a schedule of services and work with associated payments.

Progress Payments: Payments for progress made on a Progress Payment Schedule.

Pay Item

A pay item is a single item in the Schedule of Values which is allocated a value for a specific part of the work, which is used as the basis for submitting and reviewing progress payments.

Lump Sum pay items as the name suggest are based on a 'Lump Sum' amount allocated to a portion of work. Progress payments can be released for these pay items based on the level of completion.
Rate pay items are based on a 'Rate' of work completion. Payments for these can be claimed as units of work are completed.
Milestone pay items are based on a milestone in the contract or event that needs to be fully complete before the associated payment can be claimed by the contractor.

Payment Request: A payment request is a document send by the supplier to request for payment of financing payments, progress payment or retainage. This document is similar to a draft invoice, before the performance is certified. Certification is similar to confirming the receipt of the work. For taxation purposes this may not be considered an invoice (UK).

Progress Payment Rate: Used on Cost Reimbursement Contract. Represents the rate at which costs incurred by the Contractor are reimbursed.

Recoupment: Liquidation of previous financing payments from payments made for the delivery of services.

Recoupment Rate: Rate applied to Invoices which determines the fraction of the Invoice amount used towards recoupment of previous financing payments.

Retainage: A sum of money or percentage of money held back from supplier invoice payments pending completion of outstanding work.

Scope of Work / Statement of Work (SOW): An SOW is a document created by the requestor outlining the work that needs to be procured. Oracle Projects currently does not have a business object to represent a SOW. The Line structure of the PO / Contract are related to the SOW. The SOW defines the requirements as a free text document, while the contract line structure (and hierarchy) describe the requirements in form suitable for monitoring progress and releasing payments.