Articles by Nancy Phillippi, Custom Information Services
August 31, 2009
Cutting Expenses, Cutting Overhead and Cutting
Checks; Centralized Accounts Payable
With the advent of superb accounting software such
as
Dynamics GP,
Controllers and CFOs have become more technically
savvy. They have learned that software can
be configured to perform many functions to save time
and money. One of the ways to save time and money
is to centralize accounts payable functions when
feasible. Centralized accounts payable is a
great way to reduce the resources needed to perform
a necessary business function. Here are a couple
of scenarios when centralized accounts payable would
be a good fit.
-
Branch location must keep purchasing and
receiving capabilities for inventory control,
but does not need to enter the vendor voucher
and cut the check. This could be a
manufacturing site or distribution location or
both.
-
Financial type institution that primarily
functions with accounts payable and general
ledger. Typically these organizations are
located in one office building and have multiple
companies they are running within their
accounting software.
In either of these scenarios Microsoft Dynamics GP
can address the centralization of accounts
payable.
Let’s look at the first scenario. I would recommend
that the branch location use the purchasing and
purchasing Receipt functionality within Dynamics
GP. The vendor would be instructed to send all
vouchers to the home office. Home office would then
match the vendor invoice to the receipt; update
costs if need be and cut the check for the purchase
order. The branch office could even send out one
check per voucher or run all the checks that need to
be paid for this vendor across branches and send out
one check. It is also very feasible that the
branch location could enter their vendor invoices
and then home office just cuts the checks. Either
way, you would have taken the security risk
associated with running checks at many branch
locations out of the equation and you will save
money by not having to have check stock and perhaps
MICR toner at numerous sites.
The
Mekorma MICR
program along with a good HP or Troy printer is what
we recommend to all of our customers that want added
check security and use blank check stock. It also
allows you to have numerous bank accounts but one
check stock since the MICR toner prints the account
number on the check for you.
The second scenario can often have a more complex
processing environment. Perhaps this company has
multiple companies running. Usually this type of company
will need to run check batches daily and one or
multiple main cash account/check book id. The use
of Mekorma’s MICR program allows you to use the
inherent voucher selection payment options in
Dynamics GP with a twist; assign vouchers and / or
vendors to specific checkbooks then automatically
pay out of assigned checking account. I could also
easily have multiple checkbooks setup with many
different banks including EFT remittances.
Mekorma MICR also allows for signature thresholds
that are dependent upon the checkbook id. You
could have different rules if needed for each
checkbook id if needed.
The point is that no matter what processing
requirements for accounts payable, I am confident
that we have a way to streamline this process for
you, reduce your fraud risks, and save money in the
long run.
If you care to comment on the information above or
have any questions please feel free to contact me at
817-640-0016 x 109 or by emailing me at nphillippi@customis.com.
Custom Information Services is a
Dynamics reseller in
Dallas, Fort Worth Texas.
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