Best Practices Error Prevention in Accounts Payable

Transcription

1 Best Practices Error Prevention in Accounts Payable Karl Andersson CEO and Founder direct: main: (x115) mobile:

2 Webcast Logistics Collapse or expand the main menu Full Screen or Reduced Screen Type your questions here

3 Agenda Technology Insight Background Best Practices Questions & Answers 5 min 40 min 5 min

4 About Technology Insight Founded in Do-It-Yourself with DataShark A/P secure, web-based P2P operational analysis solution developed specifically to empower A/P to drive: Business process Special projects Duplicate payment identification & recovery Risk management Recovery Audit Services Standalone OR Complementary to DataShark A/P Based on each customer s resource & needs

5 Best Practices Error Prevention in Accounts Payable

6 Approach Issues Best Practices Reporting

7 Leading Issues Lost profits occur for a variety of reasons. Today s changing business environment has introduced new causes. 1. Inconsistencies in invoice data entry a) Invoice # b) Invoice date c) Fx issues 2. Unclean Vendor Master File a) Duplicate vendors b) Mergers/Acquisitions c) Vendor Partners e.g. distributors

8 Leading Issues 3. Blanket POs 4. Use of temporary personnel a) High turnover b) Unfamiliar with your standards and tendency to apply standards from previous companies worked for 5. New system implementation or consolidation a) Invoice history not always moved to new system (majority) b) Systematic check not possible 6. Implement imaging a) Manual entry is still often used b) Mistaken characters

9 Leading Issues 7. Bypassing ERP controls a) Spreadsheet uploads b) 3 rd party feeds 8. Mergers & Acquisitions a) Confusing times for both the company & its suppliers b) Multiple invoices suppliers not sure who to invoice so send multiples c) Changing business processes d) New system implementation or consolidation 9. Transition to Shared Service or Outsourcing model a) Change in business process b) Change triggers duplicate payments 10. Increased Procurement Card usage a) Pay using Pcard & pay manual invoice b) Statements mistaken for invoice

10 Best Practices Invoice Standards Consistent data entry standards Central receiving of invoices Clean Vendor Master Consistent naming standards & conventions Inactivate old vendors Inactivate unused vendors Remove duplicate vendor master records Workflow Review Implement duplicate payment checks pre-erp

11 ERP Controls Implement hard stops (when possible) Implement duplicate payment checks for all feeds, i.e. spreadsheet upload, EDI, etc. Consistent Vendor Business Processes Use one type of process per vendor Manual invoice; automated invoice - P-card, EDI, etc.; PO/non-PO, etc. PO Management Minimize blanket orders Minimize After the Fact POs Minimize price changes Vendor Statement Review At a minimum - annually Best Practices

12 Best Practices Monthly Self Audit Select % of transactions and ensure they meet standards Drill Down to Root Cause Know why errors are occurring Categorize your errors Provides the ROI for projects to fix the issues Correction is prevention. Prevention reduces exposure. 3 rd Party Tools Duplicate Payment Identification Identify where your ERP duplicate payment controls are failing Recovery Audit Third party review for duplicate payments, overpayments, payments to wrong vendors, and other open credits

13 Technology Insight s Recovery Audit Services

14 TIC Recovery Audit Services Our Focus Duplicate payments, overpayments, payments to wrong vendors Statement Reviews other open credits Contract Compliance Differentiators Duplicate payment technology Intelligent Vendor Targeting Automation of the statement request process 100% transparency Comprehensive reporting Option for ongoing audit

15 Intelligent Vendor Targeting Perform analysis to identify specific suppliers to contact for Statement Reconciliation Identify vendors with duplicate payment issues Identify vendors with inconsistent business processes PO and Non-PO spend Identify vendors with heavy credit volume Identify vendors with significant transaction volume Identify vendors with sporadic credit transactions I.e. Vendor will consistently have 10 credits and month, but one month there was only 1 credit. Clean & analyze vendor master file Remove duplicate vendors Roll-up suppliers in common

16 Intelligent Vendor Targeting

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18 Questions Let s talk about your specific challenges Contact Details Rebecca S Rebecca Karl Andersson Snyder Director, Business CEO Development and Founder direct: main: (x103) (x115) mobile: kandersson@technology-insight.com rsnyder@technology-insight.com

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