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35 Cards in this Set

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  • Back
ACCRUAL ACCOUNTING SYSTEM
A system where unexpended encumbered funds carry forward into the next fiscal year. Encumbered funds are kept by the library to pay for ordered materials.
ALLOCATION METHOD
Method used to determine the amount of the materials budget that can be spent on various materials.
AUDIT
A process used to verify the accuracy of the financial records.
AVAILABLE BALANCE
The portion of a budget neither expended nor reserved for a particular use. Also called the unencumbered balance.
BILLING PRICE
The cost of the book after it has been discounted or has had a surcharge added to the price; the invoice price.
BOOKKEEPING
The process of keeping the financial records of the library.
CASH ACCOUNTING SYSTEM
A system where the funding body takes back all unexpended funds at the end of the fiscal year. Encumbered funds are forfeited.
COST PROJECTIONS
Forecasts, estimates, or best guesses made by vendors using information on current trends and gathered from publishers and other sources to determine the rate of inflation for various categories of materials.
CREDIT
A surplus assigned to a library’s account when a payment has been made and the item is not supplied, when an item is defective, or when a prepayment discount is given.
DEPOSIT ACCOUNT
A sum of money kept in an account with the publisher or vendor for the library. This practice may result in a larger discount or deposit credit to the library.
DISCOUNT
Percentage deducted from the list or cover price of a book.
DUAL PRICING
One price for individual serial subscribers and a higher price for institutional subscribers.
EOM DISCOUNT
End of the month discount. An incentive offered by vendors to get customers to pay bills early; usually 1 or 2 percent additional discount may be deducted by the customer if bill is paid by the end of the month.
ELECTRONIC INVOICES
Invoices processed on the library’s integrated library system. Vendor data used in the process can be received over the internet, on diskette, or over phone lines.
ENCUMBER
To set aside or commit money to pay for materials ordered
ENCUMBRANCE
Money that has been encumbered (or obligated).
FISCAL YEAR
Budgets are usually handled on a yearly basis. The year does not always follow the calendar year.
FREIGHT PASS THROUGH
Mechanism designed by publishers for retail booksellers; price charged to bookseller (or library) is usually fifty cents less than book cover price indicates, to cover shipping costs for bookseller/library.
FUND ACCOUNTING
In terms of book acquisitions, the process whereby departmental or branch accounts within the library are charged for what they have purchased.
INVOICE
The vendor’s formal bill for materials supplied.
LIQUIDATION
The process of removing an encumbrance from a budget when payment for the anticipated expense is made.
LIST PRICE
The price that appears on the cover of the book; the publisher’s suggested retail price.
MARK-UP
Whatever percentage of price increase booksellers or wholesalers wish to add to their discounted price.
MATERIALS BUDGET
The amount of money that the library can spend on materials during the fiscal year.
NET DISCOUNT
No discount given. Usually these items are textbooks, STM titles, items of limited sales appeal.
NET PRICE
The price charged for an item, less discount.
OVERHEAD
The fixed cost of running a business. All the general costs other than costs for materials and production: salaries and benefits, rent, office supplies, telephones, office equipment, and so on.
PREPAYMENT
A payment made for a specific books, serial, electronic resource, or other materials prior to its being supplied to the library. This practice is especially common for non-returnable or expensive materials.
PREPAYMENT CREDIT
A percentage of the total library expenditure prepaid to periodical vendors who offer libraries a prepayment discount for early payment of the annual renewal invoice.
PURCHASE ORDER
The library’s official order form for materials to be provided by the vendor.
SERIALS PRICE INCREASE
The amount or percentage that the price of a serial or category of serials has increased from one year or period to another.
SHORT DISCOUNT
Discount that is less than the standard trade discount. This discount is usually about 20%. Given for items that will have limited sales appeal, but have more potential than items given a net discount.
SPLIT A CONTRACT
To award segments of a contract to two or more vendors.
TRADE DISCOUNT
; most likely higher than discounts on most other categories of books. This is the discount given to items in high demand, or to fiction.
UNENCUMBER
The process of removing an encumbrance from a budget when payment for the anticipated expense is made.