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3–8 Fax Transmission of Accounts Payable Documents
The alternative approach is to enter receipts directly into the computer sys-
tem, rather than forwarding receiving documents to the accounting department
for manual matching to the supplier invoice. This approach has the advantage of
instant communication of receipts to the accounting staff, since an entry into the
accounting database at the receiving dock will be instantly transmitted to the
accounting staff. The accounting software can then compare received amounts to
the purchase order (which is usually entered into the computer already). All that
is left for the accounting staff to do at this point is to enter the purchase order
number listed on the supplier’s invoice into the computer to see what quantity has
been received and how much has not yet been paid. By taking this approach, the
bulk of the accounts payable matching process is eliminated.
Before implementing this best practice, there are a few issues to review. One
is that the receiving staff must be properly trained in how to enter receipts into the
computer. If they are not, receipts information will be inaccurate, probably result-
ing in the accounts payable staff going back to manual matching, since it is the
only way to ensure that invoices are accurately paid. Another issue is ensuring
that the existing accounting software allows the receiving personnel to enter
receipts information. This is a standard feature on most accounting software
packages. However, some software packages do not use the information once it is
entered, so it is important to see if the software will match receipts to purchase
orders, showing any variances that may arise. If these issues can be overcome,
then it is reasonable for companies of any size or complexity to implement the
direct entry of receiving information into the computer at the receiving dock.

Cost: Installation time:

3–8 FAX TRANSMISSION OF ACCOUNTS PAYABLE DOCUMENTS

A centralized accounts payable department may have some difficulty receiving
documents from outlying locations or suppliers in time to take early payment dis-
counts. For example, a supplier invoice may be sent to the wrong location, from
which it must be mailed to the accounts payable location, or a bill of lading must
be forwarded. In either case, the time delay involved may be so long that there is
no way to take an early payment discount.
The best way to avoid this problem is to find an alternative method for trans-
mitting documents (with all due respect to the Postal Service). Though one
approach is to enter all information directly into the accounting database from
any location (see the ‘‘Directly Enter Receipts into Computer” section earlier in
this chapter), many companies cannot afford an enterprisewide computer system
that makes such an approach feasible. A simpler approach is to fax all documents
to the accounts payable facility. To do so, there should be a separate fax machine
that only handles incoming accounts payable documents; by setting aside a
machine for this purpose, it guarantees that the fax machine will not be tied up by