Page 33 - Accounting Best Practices

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Accounts Payable Best Practices
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Exhibit 3.2 The Process Flow for Payment Based on Receiving Approval

• Pay without a supplier invoice. One of the key aspects of the reengineered
process is paying based on the information in the purchase order, rather than
the information in the supplier’s invoice. To do so, one must have a database
of all the tax rates that every supplier would charge, so that the company’s
computer system can automatically include these taxes in the invoice pay-
ments. Also, there will sometimes be discrepancies between the purchase
order prices and quantities paid, versus those expected by suppliers, so an
accounts payable staff must be kept on hand to correspond with suppliers to
reconcile these issues.