Learn the jargon with our 500+ word glossary

Account-Based Marketing (ABM)

ABM (Account-Based Marketing) is a strategic B2B marketing approach that aligns sales and marketing teams to target high-value accounts with personalized campaigns.

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Account-Based Selling (ABS)

Account-Based Selling (ABS) is a strategic B2B sales approach that focuses on high-value accounts rather than individual leads. By leveraging AI-driven insights, personalized outreach, and CPQ automation, businesses can accelerate deal closures and drive long-term revenue growth.

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Accounts Receivable (AR) AI Agent

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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Accounts Receivable (AR) Invoice

An Accounts Receivable (AR) Invoice is a billing document sent to customers for goods or services rendered, ensuring timely payments and cash flow stability. It serves as a legal obligation and a key component of financial tracking.

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Accounts Receivable Collections

Accounts Receivable Collections refers to the process businesses use to recover outstanding payments from customers who purchase goods or services on credit. Effective AR collections ensure steady cash flow, minimize bad debt, and improve financial stability. This guide covers the AR collections process, strategies for efficiency, common challenges, and how automation enhances collections. Learn how ServicePath’s CPQ solution can help streamline AR management and optimize cash flow.

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Accounts Receivable Process

The accounts receivable process is the essential set of steps a business follows to track amounts owed by customers and manage collections through to payment. By moving through invoicing, tracking outstanding balances, aging analysis, and active collections, a well-managed AR process helps organizations prevent revenue leakage, reduce bad debt risk, and protect overall cash flow.

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Accrual Basis Accounting

Accrual basis accounting records revenues and expenses when they are earned or incurred, not when cash is exchanged—providing a more accurate financial picture essential for forecasting, compliance, and SaaS revenue management.

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Accrued Revenue

Accrued Revenue refers to revenue earned but not yet received, recorded as an asset on the balance sheet before cash payment. Common in SaaS, construction, and professional services, accrued revenue ensures accurate financial reporting and aligns with GAAP and IFRS standards.

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Ad-Hoc Documents

An ad-hoc document is a custom-generated, on-demand document tailored to specific business needs, such as sales quotes, contracts, and compliance reports. Unlike standardized templates, these documents provide agility, accuracy, and real-time customization.

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Adaptive Quoting

Adaptive Quoting leverages AI, automation, and real-time data to generate optimized quotes tailored to customer needs, pricing trends, and deal conditions. Unlike static pricing, it enables dynamic adjustments, accelerating sales cycles and maximizing profitability.

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Advance Billing

Advance billing is the practice of invoicing customers before services are delivered or products are provided. Common in subscription-based and professional service industries, advance billing supports cash flow predictability and reduces payment delays. It plays a critical role in SaaS, managed services, and CPQ processes where recurring revenue and project milestones require upfront payment agreements.

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Advanced Pricing Engine (APE)

The Advanced Pricing Engine (APE) in servicePath™ CPQ+ empowers businesses with AI-driven pricing optimization, real-time adjustments, and predictive analytics. Designed for complex pricing models, APE enhances quote accuracy, revenue forecasting, and deal modeling, ensuring dynamic and competitive pricing strategies.

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Agentic AI

Agentic AI is a form of artificial intelligence built around autonomous agents that can plan, act, and learn toward a goal with minimal human supervision—turning AI from a reactive assistant into a proactive coworker that executes real work across tools, systems, and workflows.

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Agentic commerce

Agentic commerce enables AI agents to independently execute sales and purchasing transactions, including configuring quotes, applying approved discounts, and initiating purchases. Unlike traditional recommendation engines, these agents take action within predefined rules. Discover how agentic commerce works, why governance matters, and how businesses can balance AI automation with pricing controls and human oversight.

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Agentic CPQ

Agentic CPQ uses AI agents to execute quoting tasks such as product configuration, pricing, approvals, and proposal drafting. Unlike AI-assisted CPQ, where sellers act on recommendations, agentic CPQ lets agents take defined actions within governed limits. Deterministic pricing, approval gates, least-privilege access, versioned quotes, and independent audit logs keep those actions controlled and reviewable.

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Agentic quote-to-revenue

Agentic quote-to-revenue extends AI-agent autonomy beyond a single quoting step, applying it across the entire revenue chain. Discover how deploying AI from deal configuration through billing accelerates cycle times while relying on deterministic pricing and human-in-the-loop checkpoints to manage risk.

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Agentic revenue

Agentic revenue refers to revenue generated through processes where AI agents actively participate in B2B transactions, negotiations, or fulfillment. Explore how companies are deploying agent-to-agent commerce, the difference between agentic transactions and standard revenue recognition, and why a deterministic pricing core is essential for closing the AI execution gap

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Agile Billing

Agile Billing is a flexible, automated billing approach that enables businesses to adapt pricing, subscriptions, and invoicing to customer usage and market demands. It supports dynamic pricing models, improves revenue recognition, and enhances scalability.

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Agile Sales

Agile Sales is a modern sales methodology that applies agile project management principles to the sales process, emphasizing flexibility, collaboration, and continuous improvement. It enables sales teams to adapt quickly to market changes, enhance customer interactions, and optimize sales strategies.

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AI Billing

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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AI Configuration

AI configuration is the use of machine learning and language models to suggest products, services, and subscriptions that fit a buyer’s needs within set configuration rules. Discover how combining AI recommendations with deterministic rules streamlines complex B2B quoting.

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AI depreciates, context appreciates

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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AI Financial Modeling

AI Financial Modeling leverages artificial intelligence and machine learning to automate, enhance, and scale traditional financial modeling processes—improving accuracy, risk analysis, and decision-making in real time.

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AI for Sales

AI for Sales leverages artificial intelligence to automate and optimize sales processes, improving efficiency, lead prioritization, customer engagement, and forecasting. AI-powered tools like chatbots, predictive analytics, and CPQ solutions enhance decision-making, increase conversion rates, and streamline workflows.

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AI Price Optimization

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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AI-native CPQ

AI-native CPQ is Configure-Price-Quote software built with artificial intelligence at its core—not bolted on—so sales teams get real-time guidance, precise pricing, and automated workflows that learn from every quote.

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AIDA Model

The AIDA Model is a proven marketing and sales framework that guides prospects through four key stages—Attention, Interest, Desire, and Action—to drive engagement and conversions.

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Air Gap

An air gap is a cybersecurity strategy that physically isolates a computer, network, or system from unsecured external networks—most commonly the internet—to prevent unauthorized access or data breaches. Air-gapped systems are essential in environments requiring maximum security, including defense, critical infrastructure, and regulated industries.

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Algorithmic Collusion

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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Algorithmic Pricing

Algorithmic pricing uses AI models to set or adjust prices dynamically. Discover how it differs from deterministic pricing, and why black-box pricing models can create compliance and auditability risks for B2B contracts.

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Alpha

In private equity, the term Alpha refers to the excess return on an investment beyond its benchmark, often driven by operational improvements rather than market trends.

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Amended Price

An amended price is a price that has been formally changed from what was originally agreed in a contract, replacing the original figure for billing going forward. Discover how an amended price differs from a discount, and why keeping amendments consistently synced across systems prevents costly revenue leakage.

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Amendment Fee

An amendment fee is a charge applied when a contract is formally changed after signature, offsetting the administrative cost of mid-term modifications. Discover how these fees differ from renewal fees, when they apply to out-of-cycle changes, and why consistent policy enforcement prevents customer friction.

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Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the predictable revenue a company expects to generate from active subscriptions over a 12-month period. It excludes one-time fees or variable charges and is a key metric for evaluating the health, growth, and valuation of SaaS businesses. ARR gives leaders a clear view into renewal performance, upsell momentum, and long-term revenue predictability.

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API-First

API-First is a development approach where application programming interfaces (APIs) are treated as first-class products. In the context of SaaS and CPQ, it means designing systems to be easily integrable from the ground up—enabling faster connections with CRMs, ERPs, billing systems, and custom workflows. API-First ensures scalability, flexibility, and a better developer experience across your tech stack.

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Approval Workflow

An approval workflow is an automated sequence that routes quotes, discounts, and contracts to the right approver based on predefined rules like deal size or risk. Discover how automated approval routing differs from a DOA matrix, eliminates manual bottlenecks, and accelerates quote-to-cash cycles with a clear, auditable path to sign-off.

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Approval Workflows

Automated, rule-driven processes that streamline your business operations by routing documents, proposals, and tasks through predetermined approval stages. This ensures that each critical decision is reviewed by the appropriate stakeholders, reducing delays, minimizing errors, and bolstering compliance—all key to accelerating your sales cycle and maintaining operational excellence.

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ASC 606

ASC 606 is the accounting standard that governs how companies recognize revenue from customer contracts. Introduced by the Financial Accounting Standards Board (FASB), ASC 606 creates a consistent framework for revenue recognition across industries, helping businesses improve financial transparency, compliance, and forecasting accuracy.

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At-Risk Customers

At-risk customers are individuals or businesses showing signs of disengagement, decreased usage, or potential churn. Identifying and proactively managing these customers with AI-driven insights, predictive analytics, and customer success strategies helps businesses reduce churn and maximize retention.

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Audit Readiness

Audit readiness is the state of having financial and contract records organized, accurate, and immediately accessible. Discover how maintaining a clean, tamper-evident contract trail eliminates the scramble of manual reconciliation, minimizes audit findings, and prevents systemic revenue leakage.

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Audit Trail

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

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Auto-Renewal

Auto-renewal is a contract clause that extends an agreement automatically at the end of its term, working by default without active action. Discover how notice deadlines control the renewal window and why tracking them accurately is critical for revenue continuity and customer retention.

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Automated Bundling

Automated Bundling refers to the use of rules-based logic within a CPQ system to automatically group compatible products, services, or features into predefined or dynamic packages. This streamlines complex configurations, reduces errors, and ensures sales teams present optimal solutions—tailored to customer needs, pricing structures, and business goals.

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Automated Discounts

Automated Discounts are dynamic pricing strategies where discounts are applied based on predefined rules, enhancing efficiency, reducing errors, and improving sales performance. These discounts can be based on customer segmentation, bulk purchases, promotional campaigns, or AI-driven pricing models.

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Autonomous Deal Desk

An autonomous deal desk is a review function where AI agents handle routine pricing exceptions and discount approvals within defined policy limits. Discover how this automated routing reduces approval bottlenecks on standard deals while preserving human oversight for genuine exceptions.

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Autonomous Sales Agents

AI depreciates, context appreciates” is the principle that AI models commoditise while proprietary business context compounds in value. Coined by Daniel Kube, CEO of servicePath™, it treats a model as a depreciating asset and governed commercial context, the pricing rules, product dependencies, customer terms, approval authority, and contract history that make a quote valid, as the appreciating one.

Read more
Average Order Value (AOV)

Average Order Value (AOV) measures the average amount spent per order, helping businesses optimize pricing, upselling, and bundling strategies to maximize revenue. By increasing AOV, companies can improve profitability without acquiring new customers.

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Average revenue per account

Average revenue per account (ARPA) divides total recurring revenue by the number of active accounts, providing a baseline measure of how much revenue each customer relationship generates. Discover how ARPA differs from average revenue per customer, what causes it to fluctuate, and why tracking it alongside account count reveals true revenue health.

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Average Revenue Per Customer

Average revenue per customer is total revenue divided by the number of active customers. Discover how tracking this metric by segment reveals whether your growth is driven by expanding existing accounts, landing bigger deals, or simply adding more logos at a flat rate.

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Average Selling Price

Average selling price (ASP) tracks the realized price a product or service actually sells for, not its stated list price. Discover why measuring the net effect of discounting reveals true pricing power, and how closing the gap between list price and ASP protects your operating margin.

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Average Selling Price (ASP)

Average Selling Price (ASP) refers to the average price at which a product or service is sold over a specific time period. In a B2B SaaS context, it helps track deal size trends, segment customer value, and guide pricing and packaging decisions. ASP is a key metric for evaluating sales performance, market positioning, and revenue strategy.

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Talk to a servicePath™ CPQ+ Expert

Discuss your requirements with a CPQ Architect to discover how servicePath™ CPQ+ can help transform your sales process. Our approach goes beyond just the servicePath™ CPQ+ platform, we focus on understanding your unique challenges and defining the right approach that will give your business the competitive edge it needs.