Business

Account Payable strategy

Historically the management of accounts payable by financial services organizations has been poor. As cash rich organizations the imperative for tight control on expenses that manufacturing companies apply was not regarded as important
This has lead to a number of common themes

• Inefficient multiple processes in multiple locations

• Multiple suppliers

• Loss of purchasing power such as discounts

• Bad publicity through slow payment of creditors

• Poor financial control

Recent competitive pressure on margins has forced many of these companies to reconsider the importance of having an efficient accounts payable function. Companies have considered improvements in the following areas:

 Cost

• Centralization initiatives

• Process improvements such as payment schedules

• Systems implementation and automation

• Outsourcing

• Offshore outsourcing

 Purchasing

• Rationalization of the supplier database

• Competitive tendering

 Financial Control

• Implementation of purchase orders and good received notes

• Reviews of authority limits

Wability Accounts Payable Experience

Wability has extensive experience of accounts payable including the following:

• Operational Management

• Rationalization of Operational Management

• Consolidation of multiple processing locations

• Purchasing process implementation

• Duplicate Payment recoveries

• Systems implementations

• Offshore outsourcing

System Implementation Services

Wability has extensive experience in package implementation. Our clients generally face:

• Multiple systems, platforms and interfaces

• A need to provide a single version of the truth

• The project work we generally undertake is:

• Process mapping of each of the existing operations and systems

• End to end design of a single new process

• Supplier rationalization strategy

• Data migration and conversion strategy

• Systems testing

• Implementation of the new systems

• Transition management of the new systems and processes

The Outsourcing Services

Wability has extensive experience in account payable offshore implementations We have advised clients on strategy for offshore outsourcing which includes:

• Location

• Vehicle (captive or third party)

• Supplier selection

• Process mapping of each of the existing operations and systems

• End to end design of the new processes

• Transition and cut over planning

• Training

• Implementation of the new processes

• Transition management of the new processes

Our Strategy and Approach To AP Implementation

The size and scope of an implementation strategy is determined by a number of factors such as:

1. Number of suppliers

2. Number of approvers

3. Company policies,

4. Rules concerning

5. Invoice content and approval processing,

6. Routing schemes, and

7. Current Accounts Payable & ERP interfacing.

Implementing Global Account Payable (Centralized or Decentralized) and Invoicing
Process requires effort from the Accounts Payable Department, the Technology department, and the implementation team. However, many tasks include participation from more than one group. Some of the main responsibilities are outlined below:

Account Payable Department main responsibilities

• Define Requirements for Online Invoice Form

• Define Edit/Validation, Matching, and Approval Routing Rules

• Provide Data necessary to enforces those Rules

• Provide Data for Approver Setup

• Provide Data for Vendor Analysis, Segmentation, and Setup

• Select Vendor Adoption Strategy

• Approve Vendor Communication Strategy

• Execute Acceptance Testing

• Participate in Training

Technology Department main responsibilities

• Assist Accounts Payable in providing necessary configuration Data

• Specify the invoice file format for your payables system

• Configure the payables system to import the invoice file

• Provide an invoice status file on a periodic basis

• Determine transmission method and encryption method of files

• Schedule the encryption and transmission of files

• Provide support during Acceptance Testing (if necessary)