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									                   AP Organization Chart
                                                      Senior Manager, Finance


                                                           Manager AP              Manager Payroll          Manager Accounting


                           AP Supervisor                                                         AP Supervisor

          Reporting Specialist                                                   Matching Specialist


Check Produciton           Media Control   Invoice Processing     Debit Balance Collection       Retail Matching      Vendor Correspondence
Department Highlights
   Our department was rated Excellent
    by IOMA based on their 2001
    benchmarking study measuring:
        1.   Cost
        2.   Productivity
        3.   Low error rate
   Our department was ranked in the top
    100 among the 900+ participants.
            Productivity Stats

During the average month, AP processes:
          40,000 AP vouchers

             20,000 checks



   Average time to process from opening
     the envelope to boxing the batch: 3
                     days
IT WASN’T ALWAYS
    LIKE THAT!
       Once upon a time . . .
   It took as much as two weeks to
    process a payable
   We had a backlog of problem invoices
    that could take multiple months to
    resolve.
   We lost discounts because we were
    missing account numbers, signatures,
    etc.
Once upon a time . . .
The AP clerk was a troubleshooter who
  spent the majority of his/her time:
     Coercing internal customers into

      complying with company policy
           Talking to collectors

        Begging vendors for W-9’s

  Chasing after packslips and approvals
How did we get from there to
here?

         THE FIRST STEP:

     We identified the problems
       in our current state.
How did we get from there to
here?

       THE SECOND STEP:

   We defined our desired state.
 To achieve our desired state,

1. We made sure our internal
   customer knew what to do.

  In cooperation with Purchasing, we
  designed an in-house training program
  to educate them.
We actually developed three
training programs in one
   A 2-hour, one-stop, “everything you
    ever needed to know” program included
    in our company’s roster of training
    classes
   A ½ -hour, “the most important things
    to know” orientation program
   A one-page, “here’s what you never
    want to do” memo
  To achieve our desired state,
1. We made sure our internal customer
   knew what to do.
2. We made them do it!

     You not only need to educate,
  but motivate. And if you have to . . .
                intimidate!
  Some people need to know . . .
Why the policy is good for everyone.
  Explain that compliant vouchers lead
  to more efficient processing which
  leads to:
 Discounts

 Better controls

 A more professional workplace

 Time to develop management tools
  Some people need to know . . .
Why not following the policy is bad for
  everyone. Explain that non-compliant
  vouchers take more time to process and
  erode controls, resulting in:
 Higher headcount, higher payroll costs

 Late charges and lost discounts

 Poor credit ratings

 Exposure to fraud and duplicate payments
   Some people need to know . . .
Why not following the policy will be bad for
  THEM!
 Over budget? Show them how much they paid in
  late fees, how much they lost in discounts.
 Conference them in on the next call from one of
  their unhappy vendors.
 Tell them the company may be sued, and WILL
  be audited.
 Talk to their manager. This is a performance
  issue.
The Results . . .
 No W-9? They don’t get a
 dime

Our associates are familiar with the W-9,
 know why it is needed, and work with
 us to get their new vendors properly set
 up in the AP system prior to doing
 business.
 You got it fast, but you’re out
 the cash!
Buying it now and applying for
 reimbursement later may seem like a
 real time-saver, but our associates
 aren’t fooled. They know that
 procuring their own purchases is a risky
 business that wastes THEIR time and
 THEIR money in the long run.
 If your money’s not seen,
 check in between.
Associates know that prompt payment
  depends on those “in between”
  themselves and AP. They follow up
  with managers to ensure their requests
  for reimbursement are properly
  approved, coded, and delivered to AP in
  a timely manner.
  What the heck is a manual
  check?
They don’t exist in our organization.
 Associates have realistic expectations of
 the time needed to process a payable,
 and they know what they can do to
 facilitate payment.
What do invoices and Bigfoot
have in common?
Both are mythical creatures that few can claim
  to have seen.

Invoices are the property of the AP department,
  period. Vendors mail them directly to AP
  where the majority are matched and paid
  with no need for intervention from
  operations. Cost center managers are
  provided with robust reporting that eliminates
  their need to ever see an invoice.
    A Final word:

   If at first you don’t succeed, train, train
    again.
   And even when you do succeed, train,
    train again!
Any Questions?

								
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