O'Reilly logo

Accounting Best Practices, Fifth Edition by Steven M. Bragg Englewood, Colorado

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

18–1. Accounts Payable Policies for Best Practices (Chapter 3)

  • Procurement cards shall be the preferred payment tool for purchases under $_____. This policy reduces the volume of transactions moving through the purchasing department, as well as the number of manager approvals and check signatures needed for payments.

    Impacted best practices:

    • Reduce required approvals

    • Use procurement cards

  • Purchase orders must be used to authorize all purchases exceeding $_____. This policy makes the purchasing department the primary control point over incurred expenses. Once a purchase order number is assigned, there is no longer a need for any additional downstream approvals over the payment process.

    Impacted best practices:

    • Pay based on receiving approval only

    • Reduce required approvals

    • Automate three-way matching

    • Substitute wire transfers for checks

    • Use signature stamp

    • Use blanket purchase orders

  • Supplier invoices received by electronic transmission shall be paid ___ days earlier than standard terms. Alternatively, Supplier invoices received by electronic transmission shall receive top processing priority. Either variation on this policy creates an incentive for suppliers to avoid remitting paper-based invoices, thereby allowing the payables staff to achieve a higher degree of automated payment processing. This policy can also apply to employee expense reports.

    Impacted best practices:

    • Receive billings through electronic data interchange

    • Request that suppliers enter invoices through a Web site

    • Automate expense ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required