Key terms and definitions

Understand the key terms used in Spend Insights and the concepts they represent

This page provides the definitions and relationships between the key terms and data concepts that Spend Insights uses to analyze your customers' spend. We recommend you review these before using the Spend Insights solution to ensure you're making the most of its capabilities.

CompanyCompany In Codat, a company represents your customer's business entity. Companies can have multiple connections to different data sources.

In Codat, each one of your small and medium-sized business (SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million.) customers is represented by a companyCompany In Codat, a company represents your customer's business entity. Companies can have multiple connections to different data sources.. The companyCompany In Codat, a company represents your customer's business entity. Companies can have multiple connections to different data sources. shares their financial data with us via a connection.

ConnectionConnection A link between a Codat company and a data source (like an accounting platform). Each connection represents authorized access to pull or push data from that platform.

When a companyCompany In Codat, a company represents your customer's business entity. Companies can have multiple connections to different data sources. agrees to share access to their financial data, we establish a linkLink The authorization flow that allows end users to connect their accounting, banking, or commerce platforms to your application via Codat. to their accounting software or ERP system to read and analyze the data. This linkLink The authorization flow that allows end users to connect their accounting, banking, or commerce platforms to your application via Codat. is called a connectionConnection A link between a Codat company and a data source (like an accounting platform). Each connection represents authorized access to pull or push data from that platform..

Data sourceData source An external platform (such as QuickBooks, Xero, or a bank) that Codat integrates with to pull or push financial data.

Codat calls the accounting software or ERP system that contains your customer's financial data a data sourceData source An external platform (such as QuickBooks, Xero, or a bank) that Codat integrates with to pull or push financial data.. Spend Insights reads the data from the data sourceData source An external platform (such as QuickBooks, Xero, or a bank) that Codat integrates with to pull or push financial data. to provide you with detailed and actionable supplier spend analysis. We use a connection to read that data.

Supplier

Also known as

Vendor, creditor, trade creditor

A supplier is a person or companyCompany In Codat, a company represents your customer's business entity. Companies can have multiple connections to different data sources. that provides goods or services to a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) in exchange for payment.

Bill

Also known as

Invoice, purchase invoice, vendor invoice, supplier invoice, bill payable

A bill is a document issued by a supplier to a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer), requesting payment for goods or services provided on credit. It contains the following details:

• Bill issue date as recorded in the accounting system
• Bill amount and currency
• Line items that describe what the bill is for

Payment

Also known as

Vendor payment, bill payment

A payment is a record of money transferred from a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) to a supplier in full or partial settlement of one or more bills. It is allocated against an accounts payable account.

Expense

Also known as

Direct cost, overhead, product costs, spend, spend transaction, payment

An expense is a record of money spent by a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) and paid immediately at the point of purchase, or a refund associated with such transaction.

Common examples include credit and debit card payments and online purchases. Unlike bills, expenses don't impact accounts payable.

Total spend

Also known as

Total expenditure, total expenses, total purchases

Total spend is the total amount of money paid by a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) to its suppliers over a given period. This includes bills paid through accounts payable and expenses paid immediately at the point of purchase.

Payment terms

Payment terms are the conditions agreed between a supplier and a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) that determine when a bill must be paid.

They are typically expressed as a number of days from the date of the bill.

Settlement period

The settlement period is the length of time between the issue of a bill by the supplier and its payment by the business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer).

Payment method

A payment method is the means by which a business (your SMBSMB The primary customer segment that Codat helps businesses serve, typically companies with annual revenues under $500 million. customer) pays money to a supplier, either to settle a bill or at the point of incurring an expense.