Download e-book for kindle: Accounts payable : a guide to running an efficient by Mary S Schaeffer

By Mary S Schaeffer

ISBN-10: 047168404X

ISBN-13: 9780471684046

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Additional resources for Accounts payable : a guide to running an efficient department

Example text

This is where the problems multiply. Finding an available authorized signer can sometimes be a problem. It is not uncommon for checks to sit for days unsigned until someone has the time to review and sign them. Then the clerk who is responsible for the checks is called to retrieve them. In some organizations, two signatures are required. The process of finding a second authorized signer involves the same issues as with the first signer. The longer it takes to get signatures on the checks, the more likely it is that vendors will call looking for their payments.

2 Alternatives to the Three-Way Match evaluated receipt settlement (ERS), also known as paperless invoicing, invoiceless processing, and pay-on-receipt. ” In theory, this is true. It assumes, of course, that purchase orders (POs) are filled out completely and that terms of sale are included on the PO. For ERS to work, this is essential. (a) HOW ERS WORKS. The underlying principle behind ERS is simple. When a company receives something it ordered, it pays for it as agreed in advance with the seller.

Some take this a step further and don’t send copies of invoices for amounts less than $500. Another innovation is the move to an intranet/e-mail delivery of the notice, with image availability of the invoice via the intranet/e-mail platform. With this mechanism in place, no copies need to be sent; but if the recipient had any questions about the item, he or she can view an image of it on the company’s intranet. Not only does the policy allow accounts payable professionals to simplify and speed up the approval and payment process for small-dollar invoices, it frees the staff to spend a higher proportion of their time managing the payment of large-dollar invoices, which represent the bulk of spending.

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Accounts payable : a guide to running an efficient department by Mary S Schaeffer

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