January 29th, 2012 kicked off our 4-part webinar with AP Now & Tomorrow’s Editorial Director & Publisher Mary Schaeffer. If you were unable to attend the webinar from yesterday here is what you missed.
- If you focus only the big picture, problems will occur. The control lies within the detail of processing invoices.
- When details are ignored:
- Duplicate payments are processed,
- Fraud is much easier to commit,
- Inaccurate accruals &
- Inaccurate financial/ accounting records.
How the invoicing process should work
- The Ideal World: part 1- Invoices are sent to accounts payable. Receipts are centralized in one place and approved promptly.
- The Ideal World: part 2- When the invoices have returned in AP. Three-way match is complete. Invoices are then scheduled for payment.
If there are discrepancies, they are resolved before payment is due Invoices are then scheduled for payment.
- The ideal World: part 3- Payment is made on due date. (Note: late payments create additional issues)
The reality: when the Invoices arrive
- Problems with invoice receipts:
- Ideally centralized- one location
- Invoice processing
- AP policies and procedures manual
What to do when these problems occur:
- Invoices without invoice numbers
- Invoices without a PO #
- Disputed Invoices
- When disputed invoices are ignored/ Reports
- Invoices arriving at the last minute
- No Backup?
- Duplicate invoices
To view the presentation from yesterday: Click Here.