Reengineer the payables process: streamlining accounts payable can pay off in savings

Article Abstract:

The accounts payable (A P) process can be reengineered by streamlining all procedures to improve efficiency while cutting costs. This reengineering procedure can be accomplished in two phases. In the first phase, the traditional three-way A P match is reduced to a two-way match. Then, in the second phase, this two-way match is reduced further to a one-way match. To ensure that this changeover from three-way complexity to one-way simplicty is completed as efficiently as possible, certain measures should be taken to support the changeover. These include the strengthening of controls on the receiving end, the streamlining of the vendor payments system, the aligning of pricing to eliminate discrepancies and the development of an expert system to assist disbursement. Other measures that can facilitate the changeover are improving recordkeeping at the purchasing end and making price adjustments.

Finance, Accounts receivable

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Outsourcing the procurement-through-payables process

Article Abstract:

More and more companies are outsourcing their procurement-through-payables process. In fact, statistics show that the market for outsourcing services in general is growing at a rapid pace. Outsourcing has become the tool of choice for companies of all sizes wanting to reduce operating costs. Houston, TX-based glass products recycling firm Strategic Materials Inc, for instance, relied on an outsourcing arrangement to manage its procurement and payables functions. The company used SourceNet Solutions Inc's electronic data interchange system to control costs associated with order processing, order fulfillment and settlement and reporting. The outsourcing project paid off as Strategic Materials was able to reduce process costs, personnel costs and the overall cost of goods and services from improved supplier relationships.

Purchasing Management, Cost Control Techniques, Cost Accounting, Purchasing, Outsourcing, Cost control

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Automating accounts payable at AMSCO

Article Abstract:

The American Sterilizer Co computerized its accounts payable system to reduce the probability of errors of the manual system. The system, by matching and checking as it operates, has sped up the processing of vouchers and reduced the accounting department's operating costs. When planning the system, the department: defined accounts payable; defined the objectives of the conversion from a manual to an automated system; and specified the areas to implement controls for the purpose of enhancing accurate and timely reporting. The system simplified entries to the general ledger, established actual obligations and cash commitments, and simplified management reporting. The system offers the benefits of: reduced duplicate payments; enhanced cash control; and improved internal reporting.

Accounting and auditing, American Sterilizer Co.

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