Sourcing and Procurement Operations glossary
Learn about the terms and concepts used in Sourcing and Procurement Operations (SPO).
Glossary terms are grouped alphabetically.
A
activity stream
A chronological log of all events, changes, and communications within a procurement case or task. Displays field changes, comments, attachments, and email correspondence based on configured display settings.
approval
The process where an authorized reviewer (approver) reviews and either accepts or rejects a purchase requisition before it can proceed to fulfillment. Approvals are based on defined thresholds and authority levels.
approval duration
The time period (measured in hours) allocated for an approver to complete an approval request. Used to calculate approval due dates and track SLA compliance.
approval reassessment
The system feature that can resend approval requests when purchase requisition details change significantly. Can be configured to maintain control when requisition amounts or requirements are modified.
as soon as possible
A delivery date option for standard orders requiring immediate fulfillment without specifying an exact date.
auto-order threshold
A system setting that determines the maximum purchase requisition amount that can be automatically ordered without additional review. Requisitions at or below this threshold bypass final review.
award
The action of selecting a winning supplier after negotiation and quote evaluation. Awarding finalizes the supplier selection and initiates the purchase order creation workflow.
awaiting response
A sourcing status indicating the procurement team is waiting for supplier feedback, clarification, or documentation before proceeding with negotiation or decision phases.
B
blanket purchase order
A type of purchase order that spans a timeframe (days, weeks, months, quarters, or years) without specifying individual delivery dates or quantities upfront. Individual purchases are released against the blanket order as needs arise. Credits cannot be used with blanket orders.
bundle
A pre-configured group of multiple products and services sold as a single purchasable item with unified pricing. Bundles can contain individual products, services, or nested child bundles, and are treated as a single cart line item.
bundle pricing
The aggregated cost calculation for bundles that combines prices of all component items, applies a direct shipping amount (not percentage-based), and calculates tax on the aggregate total.
Business Rules
Automated system triggers that change status values or perform actions based on specific conditions being met (such as qualification completion or quote submission).
C
child case
A case that is linked to and is a part of a parent case, inheriting its context and contributing to its resolution or management.
cancel
The action to reject and terminate a procurement activity such as a purchase order, requisition, or procurement case. Cancellations create an audit trail recording the reason and user information.
Case Management
The system's framework for handling purchase modification and cancellation requests from shoppers. Cases track the lifecycle from creation through fulfillment and closure.
case resolution
The fulfiller's proposed solution or response to a procurement case request. Can be accepted by the requestor (moving case to resolved state) or rejected (returning case to open for further discussion).
category management
The procurement process of organizing and standardizing product and service categories for catalog management, spend analysis, and sourcing strategies.
checkout
The final step in the purchasing process where shoppers review their cart, specify delivery details, select payment method, and submit their purchase requisition.
child bundle
A nested bundle contained within a parent bundle. Child bundles can themselves contain products, services, or grand-child components.
Close Notes
Documentation field where fulfillers record their resolution details or comments explaining the confirmation decision for a procurement case.
contract
A formal agreement between the organization and a supplier defining terms, pricing, delivery conditions, and service levels for goods or services.
contract model
A template defining the structure and terms for new contracts. The system can be configured with a default contract model used when creating contracts without specific product category specifications.
cost center
A department, project, or organizational unit to which procurement costs are allocated for budget tracking and financial reporting purposes.
credit
Pre-allocated purchasing power or promotional funds available to shoppers for specific purchases. Credits can only be used with standard orders, not blanket purchase orders.
D
Delegate Shopper
A user role with permission to shop on behalf of other employees while maintaining their own shopping privileges.
delivery address
The physical location where ordered products should be shipped or services should be performed.
delivery address validation
The system check ensuring the delivery location is valid and meets business requirements (such as company facility addresses) before order submission.
delivery date
The requested or specified date when products should be delivered or services should be completed. For blanket orders, this is a timeframe rather than a specific date.
delivery location
The geographic or organizational destination for fulfillment of a purchase order or sourcing request.
E
email correspondence
Records of email communications related to a procurement case or request, visible in the activity stream based on configuration.
Employee Center
The ServiceNow employee-focused portal providing self-service access to procurement, HR, IT, and other workplace services.
ERP (Enterprise Resource Planning)
The backend financial system containing master data (legal entities, accounts, cost centers) that integrates with SPO for financial tracking and reporting.
estimated subtotal
The calculated price for a child bundle within a parent bundle, noting it is part of the parent's total and may vary based on delivery location.
estimated total
The calculated aggregate price for a bundle or purchase requisition, with a notation that the total might vary based on delivery location due to taxes and shipping variations.
F
final review
The approval process stage where designated approvers review requisitions before they can be ordered, based on configured amount thresholds.
fulfiller
A user assigned to handle and resolve a procurement case or task, responsible for reviewing requests and determining appropriate actions.
fulfillment
The process of delivering ordered products or providing ordered services to the requesting party, including receipt and acceptance.
G
gross amount
The total procurement cost before taxes and shipping deductions.
H
handling fee
An optional charge that can be added to individual purchase lines to cover administrative, packaging, or specialty processing costs.
hierarchical structure
The organizational arrangement of bundled items showing parent bundles containing child bundles which contain individual products and services.
L
line item
An individual product or service within a purchase requisition, purchase order, or invoice, each with its own quantity, price, and specifications.
M
multi-cost-center allocation
Payment method distribution across multiple cost centers, with portions of the total purchase allocated to different departmental or project budgets.
N
negotiation
Individual discussions with a supplier to track activities like pricing, product requests, or agreement terms.
sourcing event
A collective sourcing activity managing multi-supplier and multi-product negotiations, enabling streamlined tracking, supplier management, and decision-making.
Natural Language Understanding for SPO
AI models enhancing the Virtual Agent's ability to understand and respond to user queries naturally.
Now Assist for SPO
An application that uses generative AI to summarize procurement-related records and facilitate conversational procurement tasks.
NDA (Non-Disclosure Agreement)
A legal contract protecting confidential information shared during procurement activities.
O
order type
Classification of a purchase order as either "standard" (with specific delivery dates) or "blanket" (with timeframe-based delivery).
P
parent case
A case that contains multiple related child cases. This hierarchical case structure is useful for managing complex scenarios that involve multiple stages and processes.
playbooks for SPO
Pre-built workflows and templates for automating common procurement tasks.
procurement case
A record used to track and manage procurement-related queries or issues.
procurement task
A specific action or step that contributes to the completion of a procurement case.
purchase requisition
A request sent by a requester to procure specific goods or services, requiring approval.
performance analytics for SPO
Dashboards and metrics to evaluate spend, efficiency, and team performance in Sourcing and Procurement Operations.
Procurement Buyer Dashboard
A visualization tool showing individual buyer performance over a specified period.
Procurement Team Performance Dashboard
A dashboard that provides visual insights into team performance on procurement-related tasks.
Procurement Strategy & Ops Dashboard
A dashboard that shows the year-to-date total spend, spend categorization, total savings, negotiation outcomes, spend by category and supplier, and active blanket purchase orders.
purchase order
A binding contract between a buyer and supplier that outlines item details, quantities, prices, discounts, payment terms, delivery dates, and other conditions.
parent bundle
A bundle that contains other bundles (child bundles) or individual products and services as components.
punchout
An e-commerce integration mechanism allowing shoppers to access supplier catalogs directly within the procurement system and return with selected items.
purchase modification
A change request to an existing purchase order or requisition, handled through the case management system.
Q
qualification
The evaluation process determining which suppliers meet organizational requirements and are eligible for participation in sourcing activities.
Qualification Needed
A sourcing status indicating supplier qualification is required before negotiation can proceed.
Qualified
A sourcing status indicating suppliers have successfully completed qualification and are eligible for negotiation.
quote
A supplier's proposal including pricing, terms, delivery timeline, and other commercial details submitted during negotiations.
R
record summarization
A feature of Now Assist for SPO that provides a concise overview, actions completed, and next steps for procurement records.
related case
A case that is associated with another case due to shared characteristics, dependencies, or interactions.
receipt
Confirmation of physical delivery or service completion, including verification that ordered items match the purchase order specifications.
receipt integration
The process where the procurement system integrates with the receiving/logistics system to update purchase order statuses upon goods arrival and acceptance.
requestor
The employee who submitted a purchase request or who submitted a procurement case requesting modifications or cancellations.
Requires Decision
A sourcing status indicating quote evaluation is complete and awaiting supplier selection by the procurement specialist.
revision request
A request to modify an existing purchase requisition or order, which can be approved or rejected by procurement specialists.
RFP (Request for Proposal)
A formal procurement request seeking comprehensive proposals including pricing, capability demonstrations, and implementation details from potential suppliers.
RFQ (Request for Quote)
A procurement request sent to suppliers asking them to provide pricing and terms for specified goods or services.
S
Source-to-Pay Workspace
A workspace that centralizes the management of suppliers, from sourcing to payment, enhancing productivity and collaboration.
Shopping Hub
An e-commerce-style interface for employees to submit self-service requests for goods and services, integrated with the organization's procurement processes.
Sourcing and Purchasing Automation
A workflow and automation for sourcing requests, negotiations, and purchase requisitions.
Shopping Hub catalog
A curated list of goods and services available for employees to order through Shopping Hub.
Shopping Hub Mobile
A mobile application version of the Shopping Hub, integrated with the Now Mobile app.
sourcing request
A request that is created when an item that the shopper intends to buy needs to be sourced due to the lack of an active contractual price.
service receipt
Confirmation that a service has been completed and accepted, including verification against the service description in the purchase order.
shopper
An employee with authorization to request purchases through the Shopping Hub.
shopping cart
The temporary holding area where selected products and services are accumulated before checkout and submission.
sourcing
The process of identifying, evaluating, and selecting suppliers to fulfill organizational procurement needs.
spend management
The practice of analyzing, optimizing, and controlling procurement spending to achieve cost savings and compliance objectives.
standard order
A purchase order with a specific delivery date or ASAP delivery, supporting credit usage and immediate fulfillment requirements.
supplier
A vendor or service provider that supplies goods or services to the organization through procurement contracts and purchase orders.
supplier product
A specific product or service offering from a supplier that is available for purchase through the shopping catalog.
T
tax estimate
The calculated sales tax or value-added tax (VAT) applied to purchase orders based on delivery location and product type.
V
Virtual Agent
An AI-powered conversational chatbot that helps shoppers quickly find and purchase products from vendors via the Shopping Hub application, accessible through Employee Center.
validation
The system checks ensuring data meets required criteria before allowing progression to the next workflow stage.
validation rules
Business logic constraints (such as blanket order credit restrictions or bundle type delivery requirements) applied during checkout and order processing.
VAT (Value-Added Tax)
A consumption tax applied to goods and services in many regions, calculated during checkout based on delivery location.
W
Work Items
Automatically created tasks or cases displayed in process tracking views, representing actions requiring shopper or fulfiller attention.
Work Notes
Internal notes visible only to fulfillers for internal collaboration on procurement cases without notifying customers.
workflow
The defined sequence of statuses, conditions, and actions that a procurement request progresses through from creation to completion.