Get Accounts payable : a guide to running an efficient PDF

By Mary S Schaeffer

ISBN-10: 047168404X

ISBN-13: 9780471684046

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

Example text

1 Invoice Handling you can expect use of the cards to skyrocket. (See Chapter 24, “Purchasing Cards,” for more details on this subject. Evaluated receipt settlement (ERS), also called invoiceless processing, is a concept that a few companies swear by and the rest avoid like the plague. ERS requires partnering with your supplier and cooperation from both the purchasing and receiving departments. The concept is simple: Normally, accounts payable waits for an invoice, matches it to the purchase order and receiving document, and then processes the invoice for payment if everything is in order.

Ultimately, how you handle the process essentially boils down to whether you want to use a batch or alpha filing system. Some companies file invoices (with check copies attached) by vendor. This is a timely process that adds little value. Alternatively, if a good tracking system can be incorporated into the accounting system, backup is not filed alphabetically by vendor, but with the batch it was processed with. Then, should the backup be needed, a quick check of the system reveals where the information is filed.

A number of professionals indicated they do not pay such invoices, nor do they spin their wheels trying to determine who placed the order. When vendors call looking for such payment, they are simply told to contact the party who ordered the goods. This solution may not be acceptable in all organizations, but it makes life a little easier in those accounts payable departments where it is used. It should be noted, however, that the lack of the desired information on the invoice may not be the fault of the company employee.

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

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