Accounts Payable
Damaris Accounts Payable
This solution is based on Damaris RM.
In fact, Damaris RM is a multi-purpose software package you can configure for specific usage.
One of useful ones is Accounts Payable.
Client’s needs
Companies receive several invoices from their suppliers.
Large companies may receive goods or services even elsewhere, sometimes far from accounting department.
Accountant has to be sure that everything is correct with the invoice before paying it.
Supplier verification
One of modern hacking method consist to send non-sollicitated invoices to customers. If they don’t verify, they pay invoices to hackers.
So, when receiving an invoice accountant verifies if supplier is known in his ERP.
Proof of Delivery
The second verification is to ensure that the invoice’s articles already delivered or the service is provided. To do so, accountant asks people able to answer questions like:
- Are goods in conformity with the order? Size, Color, Quantity, Quality, etc.
- Is delivery done on time?
- No issues found in delivery?
For example, you ordered 10 PCs and received only 8.
If you receive an invoice for 10, you may wait 2 other PCs before paying it.
Price and Rebate
Then, accountant has to ensure if invoiced prices are in conformity with expected ones. In some organized companies buyers create an “Order” indicating buying conditions, quantity, price, rebate, delay, etc.
In other cases, this kind of document doesn’t exist. So accountant has to ask to the right person to validate information.
Budget Management
Even if all previous concerns are OK, companies need to be sure that money is spent right way. So, they allocate periodically budget for each department.
Accountant is in charge to verify if invoices follow this guideline.
In some cases, it is normal to spend more money, but managers have to validate these cases.
Here, accountant informs if invoice is out of budget and asks manager to validate.
Invoice Accounting
Each invoice has to be entered in Accounting package or ERP.
Accountant keys in data in the software package.
Payment
If all steps are OK, accountant pays the supplier.
One of most important concerns here is to be sure to pay right invoices, right price at right moment.
But, if you use too complicated validation system, you may loose good suppliers unhappy to be late paid.
Document Archiving
At the end of the process, companies must archive all incoming documents to be able to justify their actions for tax controls or for suppliers questions answering.
Damaris Accounts Payable Workflow description
Incoming Invoices Archiving
The first step, Damaris RM archives all incoming information and documents. In that way, you have a full tracking system on.
Even if a document is not the right one, you can justify it.
Depending on client’s organization, ou can add other document types like Orders, Proof of delivery, etc. to help decision makers in their job.
Data Extraction
From documents or by entering data you will add strategic information on each document:
- Supplier identification
- Document Date
- Document number
- Amount
- Sales Tax
- Buyer
- Etc.
Please consider that it is possible to deduct some information from others. For example, only IT manager buys from TechData. So, when supplier is “TechData”, then Buyer is IT Manager. More sophisticated cases could also be setup.
Notification
Depending on client’s organization, several notifications are sent to right people.
Each one accesses to hos own short list of invoices to be validated.
Decision making
Each user profile can use “Digital Stamps” to indicate his decision.
For example, a technical validator can use:
- Delivery OK
- Partial Delivery
- No Delivery
Finally, a manager can use other Stamps like:
- Payable
- Not payable
- Partial Payment (With an amount)
ERP Data Update
Accounting entry data comes from Damaris RM. So, accountants do not need to enter data from scratch manually.
In fact, this could be an option depending client’s organization. Some of them prefer continuing manual data entry.
Damaris Accounts Payable Advantages and Benefits
Archiving documents at processes beginning in a Digital Vault makes the system trackable.
Accounts asks sometimes strategic questions to buyers. They must be confident to the system without the ability to modify archived document.
Damaris RM provides built-in digital signature solution. So, each user can verify if he or she is the right decision maker for a payment.
Document Lifecycle Management permits to archive only needed time frame.
All users actions are logged. So, you can explain supplier’s questions about a given invoice.
Suppliers Portal
One of major features is Suppliers Portal.
On that online portal, suppliers can follow up their invoices’ lifecycle. This system provides more transparent working method.
Please note that supplier can also transmit his invoices by uploading them in the portal optimizing postage cost and delay.