Accounts Payable in the Age of Online Self-Service
15 September, 2017
Introduction Accounts payable provides a critical service to organizations. It is one of the few departments that touches every department within a company as well as external parties, and has a direct impact on the reputation of the organization. Accounts payable is unique in that multiple customers rely on outputs from its processes. Two critical customers of AP are internal clients and vendors. In some AP organizations internal customers are treated as fellow employees and not customers, and vendors as suppliers and not strategic business partners. But, an AP best practice is to treat those customers that AP serves as just that — customers — because doing so provides the benefits of increased control that comes with better relationships and reputation. This survey reveals challenges, best practices, processes and tips for improved customer experiences. [button size='' style='' text='CLICK HERE TO VIEW SURVEY' icon='' icon_color='' link='https://foetc.com/wp-content/uploads/2017/09/2017-AP_Customer_Service_Survey_Results.pdf' target='_blank' color='' hover_color='' border_color='' hover_border_color='' background_color='' hover_background_color='' font_style='' font_weight='' text_align='' margin=''] ...
Every day accounts payable works with many different departments, companies, organizations and people within and outside the organization. They include employees, purchasing, suppliers and regulatory agencies. This makes accounts payable unique in the sense that its “customers” are not those that buy their company’s products or services, but individuals and organizations that have an interest in some input, status or output of the AP process. [button size='' style='' text='CLICK HERE TO VIEW WHITE PAPER' icon='' icon_color='' link='https://foetc.com/wp-content/uploads/2017/09/06_2017_How_Supplier_Self-Service_Reduces-Cost__Enhances_AP.pdf' target='_blank' color='' hover_color='' border_color='' hover_border_color='' background_color='' hover_background_color='' font_style='' font_weight='' text_align='' margin=''] ...
The arrival of the digital age, epitomized by the Internet and mobile culture, has driven customer service to a preeminent position. Add the commoditization of products, services, and disruption to old business models, and customer service has become a critical differentiator providing a competitive edge to companies that execute it well. One outstanding performer in the business-to-consumer sector has raised focus on the customer to towering heights. [button size='' style='' text='CLICK HERE TO VIEW WHITE PAPER' icon='' icon_color='' link='https://foetc.com/wp-content/uploads/2017/09/04_2017_AP_CustServiceandVendorRelationsintheAgeofSelf_Service.pdf' target='_blank' color='' hover_color='' border_color='' hover_border_color='' background_color='' hover_background_color='' font_style='' font_weight='' text_align='' margin=''] ...
Accounts payable works every day with many different departments and people, both within and outside the organization, including employees, purchasing, vendors and regulatory agencies. Accounts payable is unique in the sense that its “customers” are not those companies that buy their company’s products or services, but individuals and organizations that have an interest in some aspect of the AP process. [button size='' style='' text='CLICK HERE TO VIEW WHITE PAPER' icon='' icon_color='' link='https://foetc.com/wp-content/uploads/2017/09/02_2015_Vendor_Self_Service_Portal.pdf' target='_blank' color='' hover_color='' border_color='' hover_border_color='' background_color='' hover_background_color='' font_style='' font_weight='' text_align='' margin=''] ...
Introduction Accounts payable provides a critical service to organizations. It is one of the few departments that touches every department within a company as well as external parties, and has a direct impact on the reputation of the organization. Accounts payable is unique in that multiple customers rely on outputs from its processes. Two critical customers of AP are internal clients and vendors. In some AP organizations internal customers are treated as fellow employees and not customers, and vendors as suppliers and not strategic business partners. But, an AP best practice is to treat those customers that AP serves as just that — customers — because doing so provides the benefits of increased control that comes with better relationships and reputation. This survey reveals challenges, best practices, processes and tips for improved customer experiences. [button size='' style='' text='CLICK HERE TO VIEW SURVEY' icon='' icon_color='' link='https://foetc.com/wp-content/uploads/2017/09/AP_Customer_Service_Survey_Results.pdf' target='_blank' color='' hover_color='' border_color='' hover_border_color='' background_color='' hover_background_color='' font_style='' font_weight='' text_align='' margin=''] ...
Errors in vendor information increase both cost and risk. True Story How many times have you received a donation request for a worthy cause or the needy? In most cases the donation seeker is a legitimate organization, but fraud is not uncommon. In one actual instance, many companies received a letter, purporting to be from the Red Cross, requesting a donation due to natural disasters that had left the organization unable to provide support and rescue. In many companies this request was approved by an in-house manager, a general ledger code was provided and a donation check was issued and mailed. As it turned out, hundreds of thousands of dollars from well-intentioned companies went to a doctor who had set up post office boxes all over the country to commit this fraud. It took the FBI a long time to catch up with him because he would close the post office boxes in 30 days and move elsewhere. How did so many companies manage to fall for this fraud? [unordered_list style="circle"] Error number 1: No one questioned the validity of the request from what appeared to be the Red Cross; Error number 2: The address was never verified. [/unordered_list] Checking the U.S. Postal Service address verification database or...
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals, threats to national security, foreign policy or the economy of the United States. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope and involve close cooperation with allied governments. Sanctioned organizations, companies and individuals are listed on the Specially Designated Nationals and Blocked Persons (SDN) list and many other lists. Often companies and non-profit organizations are not aware that they are breaking laws by doing business with people or organizations on these lists and don’t check their vendors against them. As a result, many companies and non-profits, large and small, are fined for inadvertently transacting business with U.S. sanctioned organizations. Companies slapped with steep fines — many in the hundreds of thousands of dollars and even multi-million-dollar range — usually had no idea that their supplier was on one of these lists. According to the Treasury Department’s website, in 2017 OFAC levied $2 million in fines against ExxonMobil Corporation for violations of § 589.201 of the Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589 (Ukraine-Related Sanctions Regulations). According...
The time to start thinking about compliance with federal regulations, such as Information Reporting (1099s) and checking vendors against databases, such as the Office of Foreign Assets Control (OFAC), Specially Designated Nationals (SDN) and other sanctions lists, is before the vendor has provided a product or service, not once the invoice has been received and is being paid by accounts payable. In reality, how many organizations verify that an organization is not on sanctions lists before purchasing a product or service from them? How many companies consistently require a signed W-8 or W-9 before doing business with a vendor? In many cases the onboarding of a new vendor begins when an invoice is delivered to accounts payable. Most companies have a policy that they will not pay an invoice without a W-8 or W-9 on file because they know how much easier it is to get these documents when withholding payment than it is after payment is made. But, at this point the product has been purchased or the service provided. According to the OFAC site, its regulation states that if a person or entity is on the OFAC list, U.S. organizations or persons may not do business with that company. It does...
InvoiceInfo invited readers to share their thoughts on who should be responsible for onboarding new vendors and ensuring compliance with federal and state regulations. Following are some suggestions received: “I believe onboarding should be done at the purchasing level. The purchasing party always knows ahead what contracts are coming down the pipe. They know prior to even an invitation to bid goes out. I have been trying to get our purchasing department to have vendors sign a new W-9 at the time the contract is awarded, as part of their contract package they must review and sign — PRIOR to work commencing — I haven’t been that successful, but some buyers remember to do so.” —Jane Swanson, Orange County Transportation Authority “Our process is a centralized vendor master with a dedicated staff member having ownership. This works extremely well for us as that person has the responsibility for onboarding and is accountable for accurately maintaining the database. They take pride in making sure all documents are correct and good. We have a Vendor onboarding packet that is sent to all new vendors with a note stating they will not be paid until they complete and return the documents. Our packet includes a W-9,...