Company Based On The Business Rules Provided

1440 WordsMar 7, 20166 Pages
Introduction The purpose of this report is to present the findings and recommendations that our team has discovered with regards to the A/P system and process of the company. We evaluated the company based on the business rules provided. Below are our team’s observations about the company’s payment and vendor management processes. Payment Management Standard Payment Procedure Most companies have detailed process maps for employees to use as a guide to successfully complete business activities. The Accounts Payable system is no different. For this client, in order for payments to be made, an order must be placed and an invoice received. While this process may seem like common sense, it’s important to test, and update it, when necessary. Since we were given the order date, invoice date, and payment date for each record, we were able to create new variables to measure the amount of time between each date. We created three different variables. The first, we named OTI (order to invoice), to measure the gap between order date and invoice date. The second was a DSO (days sales outstanding) variable to measure the gap between invoice date and payment date. We used the final variable to tell us whether the payment date occurred prior to the order date; we called this variable Prepaids. We created these variables in Excel by using simple subtraction formulas. The OTI variable was created by subtracting the invoice date from the order date. If this variable resulted in a negative
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