FAQ

Which are the basic documents within the Accounts Payable process?

Purchase Order, Proof of Delivery and Invoice.

Why the variable costs are better than fixed costs?

Variable costs have the attribute to automatically correct the expense flow to financial staments, which gives versatility, and predictability to management in the seasonality in the life of a business caused by growth, crisis or sales cycles.

Why Accounts Payable is considered as no strategic?

Because it is not part of the core of the business. However, the Accounts Payable function is a basic piece of the back-office operation of all businesses.

What does 2-way match and 3-way match mean?

The 2-way match means the verification of an invoice versus a Purchase Order. 3-way match additionally includes in the validation of an invoice its comparison against the Proof of Delivery.

Which are the indirect costs not visible in the Accounts Payable process?

These are all the ones different from the accounting analyst within the Finance department directly related to the Accounts Payable tasks.
Some examples of indirect costs are: Rent, depreciation of IT equipment, software costs, copier expenses, but more importantly and significantly is the time wasted by Buyers, Warehousing personnel, Managers and Directors in the resolution of an invoice exception.

Who are the players in the Accounts Payable process?

Everyone who directly or indirectly creates and/or approves and/or pays a Purchase Order and/or an invoice. Clear examples are: Buyers, Suppliers, Warehouse Supervisor, Treasurer, Accounting Analysts, Functional Managers, Directors, etc.