What is Property, Plant, and Equipment (PP&E)?
The Property, Plant, and Equipment (PP& E) is part of a company’s Balance Sheet representing long-term assets that are crucial for daily operation. PP& E includes a company’s property, machinery, office equipment, vehicles, furniture, and fixtures, less any depreciation or amortization.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "P"
- Paid in Capital
Paid in Capital represents funds raised by the business from equity (investors & owners), and not from revenue or ongoing operations. It is listed in the Equity Section of the Balance Sheet.
- Past Due Invoice
A past due invoice is where your customer has not paid your invoice according to the agreed upon credit terms. For example, if your selling terms are net 30 and on the 31st day, your customer has still not paid…
- Pay when Paid Clause
A Pay when Paid Clause in the vendor agreement requires payment to the subcontractor when the prime contractor gets paid by the project’s owner. A prime contractor's obligation to pay is triggered upon receipt of payment. However, what happens if…
- Peer Lending
Peer Lending, or Peer-to-Peer (P2P) Lending, is a practice of lending to individuals or businesses money through online services that match the borrowers with lenders.
- Perishable Agricultural Commodities Act (PACA)
The Perishable Agricultural Commodities Act (PACA) protects businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices and by helping companies resolve business disputes. The Agricultural Marketing Service (AMS) is responsible…
- Personal Guarantee
A Personal Guarantee is an agreement signifying an individual, organization or a company accepts responsibility for a 3rd party debt in the event the debtor fails to pay.
- Pre-Billing
Pre-Billing is submitting a request for payment before your product or services have been provided to your customer. If you are pre-billing this should be disclosed to the factoring company immediately.
- Prime Rate
The Prime Rate is the interest rate that commercial banks charge their most credit-worthy customers, which are typically corporations. On December 21,2015 it was 3.5% in the US.
- Principal and Interest (P&I)
The Principal and Interest (P&I) is combined which represents the total scheduled loan payment amount. Principal (P) is the amount of the original loan still owed to the financial institution along with the interest (I) that is being applied to…
- Process of Factoring
The Process of Factoring is: Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders) Receive a written proposal outlining the terms and rates from the Factoring company Sign the proposal…
- Production Finance
Work in Process or WIP Financing (not to be confused with work in progress, a term used in construction or the building trade) is the portion of your inventory that is being "worked". Because of its unsalable condition, most lenders…
- Proof of Delivery (POD)
Proof of Delivery (POD) is a receipt signed by the recipient of goods, confirming delivery of a shipment along with the proper quantity and quality. It will many times include a copy of the Bill of Lading.
- Purchase Order
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, quality, timeliness and agreed to price for products or services the seller will provide to the buyer. Sending a PO to a…
- Purchase Order Funding or PO Financing
Purchase Order Financing is a funding option for businesses that need cash to fill single or multiple customer orders. In many businesses, cash flow problems exist and there will be times when there are not enough monies available to cover…