How to Map Your Pain Point to the P2P Automation Solution

February 23, 2017 Chris Doxey

How to map your pain points to the P2P Automation Solution

In this blog, I’ll identify a specific automation solution and will link it to a list of pain points within the P2P process. The pain points listed will be largely addressed by the implementation of the suggested solution. Refer to my previous blog to determine how these ten automation solutions can help to mitigate risk throughout the P2P process.

Supplier Portals

Pain Points Addressed

  • The company may be exposed to significant fines, reputational damage and a potentially fraudulent vendor.
  • If master data is incorrect, resulting entries and related generated data will have to be corrected by the responsible individual in addition to the incorrect master data.
  • The quality of data entered into the ERP is critical to ensuring the integrity of information and the company’s ability to analyze business events.

E-Procurement

Pain Points Addressed

  • Lack of properly executed purchase orders could result in supply reliability issues, higher long-term pricing, strained vendor relations and major reconciliation issues in the clearing account.
  • Non-procurement generated contracts are executed without the required clauses or proper authority.
  • Invoices are not supported by a contract or are not paid consistent with the terms of the contract.

E - Invoicing

Pain Points Addressed

  • Invoices are not supported by a contract or are not paid consistent with the terms of the contract.
  • Improperly paid invoices could result in unnecessary financial exposure for the company or impact vendor relationships.
  • Invoices are processed late, fraudulently or without receipt verification.

PO to Invoice Conversion

Pain Points Addressed

  • With manual invoice processing, there can be keying errors, late payments and the risk of invoice payment diversion to an employee or phony supplier.
  • Improperly paid invoices could result in unnecessary financial exposure for the company or impact vendor relationships.

Document Management— Invoice Scan and Data Capture

Pain Points Addressed

  • Improper invoice data entry could result in negative cash flow for the company and impact vendor relationships.
  • With manual invoice processing there can be keying errors and late payments.

Automated Matching

Pain Points Addressed

  • Improperly matched invoices could result in unnecessary financial exposure for the company and impact vendor relationships.
  • Invoices are processed late, fraudulently or without receipt verification.

Automated Workflow Approvals

Pain Points Addressed

  • Improperly approved purchase orders and invoices could result in unnecessary financial exposure for the company and impact vendor relationships.
  • A manual approval process is a significant risk for intervention by fraudsters.
  • A manual approval process is difficult to update and control which increases the risk for the approval list to be inaccurate and out of date.

E-Payment

Pain Points Addressed

  • The cost of manual checks, check fraud attempts, and actual check fraud is “pain points” without an E-Payment process.
  • Manual checks can lead to reconciliation and escheatment issues.
  • Improper P-Card expenses could result in unnecessary financial or tax exposure for the company.
  • P-Card expenses are not for valid business purposes or not processed by local policies.

System Access Verification Tools

Pain Points Addressed

  • Improper system access and related controls may cause unapproved transactions and fraudulent transactions which violate Segregation of Duties (SoD) policies.
  • Systems access controls have not been identified for inclusion in the company systems security and control processes.

Accounts Payable Self-Audit Tools

Pain Points Addressed

  • Duplicate or erroneous payments are made to suppliers.
  • Discounts due to the company may not be taken.
  • Credit memos may not be properly managed or may be paid as invoices.
  • There may be a duplicate of effort for multiple self-assessments and internal controls programs within the accounts payable process.
  • Working capital and cash flow are at risk due to erroneous payments.
  • Potential process improvements are missed.

 

Go Far with the Right AP Tools

About the Author

Chris Doxey

Chris Doxey, CAPP, CCSA, CICA is an independent management consultant providing Internal Controls and Business Process Best Practice Solutions. She has extensive experience in procurement, accounts payable, internal auditing, internal controls, Sarbanes-Oxley compliance, payroll, logistics, financial systems strategy, and financial integration at Digital, Compaq, Hewlett Packard, MCI, APEX Analytix, and Business Strategy, Inc. She was recruited to assist MCI (formally WorldCom) recover from their internal control challenges. She has a bachelor's degree in English, a bachelor's in accounting, a master's in business administration, and a graduate certificate in project management. Chris has written numerous articles and published two handbooks: AP Leadership Skills and Implementing a Controls Self Assessment Program for Your Accounts Payable Department.

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