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E payables

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E-payables framework:

- invoice receipt

- approval and inquiry

- validation

- settlement

Driving factors for focusing on electronic payments:

- need to reduce overall payment costs

- need for better cash management

- need to reduce risk of payment fraud

- need to reduce paper from A/P department

- need to ensure compliance with regulations

Best-in-class strategic actions:

- integrate payment solutions with existing A/P systems

- mandate suppliers to accept electronic payments

Main causes of improper payments:

- invoice / billing error

- vendor / supplier error

- duplicate invoice

- non-compliance with existing contracts or pricing

- non-compliance with company policies

Best-in-class technology capabilities:

- wire transfer

- automated clearing house

- commercial cards

- EDI / XML for remittance exchange

- EIPP

- spend analysis (to segment suppliers)

Benefits of electronic payments:

- drives cost savings

- accelerates transaction-processing

- removes paper from A/P department

- enables straight-through processing

- improves payment fraud control

Barriers to adopting electronic payments:

- suppliers not willing to

- lack of invoice-processing standardisation / automation

- lack of integration between electronic payment and A/P systems

- shortage of IT resources

- resistance to providing

To achieve best-in-class performance, companies must:

- standardise payment processes across the entire organisation

- institute a collaborative environment between the key units involved in payments and cash management

- leverage spend analysis solutions to segment the supplier base into appropriate electronic payment categories



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