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35 Cards in this Set
- Front
- Back
ACCRUAL ACCOUNTING SYSTEM
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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.
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ALLOCATION METHOD
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Method used to determine the amount of the materials budget that can be spent on various materials.
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AUDIT
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A process used to verify the accuracy of the financial records.
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AVAILABLE BALANCE
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The portion of a budget neither expended nor reserved for a particular use. Also called the unencumbered balance.
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BILLING PRICE
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The cost of the book after it has been discounted or has had a surcharge added to the price; the invoice price.
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BOOKKEEPING
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The process of keeping the financial records of the library.
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CASH ACCOUNTING SYSTEM
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A system where the funding body takes back all unexpended funds at the end of the fiscal year. Encumbered funds are forfeited.
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COST PROJECTIONS
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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.
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CREDIT
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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.
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DEPOSIT ACCOUNT
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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.
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DISCOUNT
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Percentage deducted from the list or cover price of a book.
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DUAL PRICING
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One price for individual serial subscribers and a higher price for institutional subscribers.
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EOM DISCOUNT
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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.
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ELECTRONIC INVOICES
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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.
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ENCUMBER
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To set aside or commit money to pay for materials ordered
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ENCUMBRANCE
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Money that has been encumbered (or obligated).
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FISCAL YEAR
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Budgets are usually handled on a yearly basis. The year does not always follow the calendar year.
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FREIGHT PASS THROUGH
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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.
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FUND ACCOUNTING
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In terms of book acquisitions, the process whereby departmental or branch accounts within the library are charged for what they have purchased.
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INVOICE
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The vendor’s formal bill for materials supplied.
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LIQUIDATION
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The process of removing an encumbrance from a budget when payment for the anticipated expense is made.
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LIST PRICE
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The price that appears on the cover of the book; the publisher’s suggested retail price.
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MARK-UP
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Whatever percentage of price increase booksellers or wholesalers wish to add to their discounted price.
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MATERIALS BUDGET
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The amount of money that the library can spend on materials during the fiscal year.
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NET DISCOUNT
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No discount given. Usually these items are textbooks, STM titles, items of limited sales appeal.
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NET PRICE
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The price charged for an item, less discount.
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OVERHEAD
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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.
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PREPAYMENT
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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.
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PREPAYMENT CREDIT
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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.
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PURCHASE ORDER
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The library’s official order form for materials to be provided by the vendor.
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SERIALS PRICE INCREASE
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The amount or percentage that the price of a serial or category of serials has increased from one year or period to another.
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SHORT DISCOUNT
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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.
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SPLIT A CONTRACT
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To award segments of a contract to two or more vendors.
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TRADE DISCOUNT
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; most likely higher than discounts on most other categories of books. This is the discount given to items in high demand, or to fiction.
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UNENCUMBER
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The process of removing an encumbrance from a budget when payment for the anticipated expense is made.
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