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Late and Inaccurate Payments

  • Transactions are being entered manually in each company.
  • Inter-company transactions are being re-keyed into multiple company databases, and there are errors.
  • Transactions do not get recorded in all companies.
  • They get recorded incorrectly, resulting in difficulty reconciling the inter-company balances.
  • Payees could tamper with the checks and change the payment amounts.
  • Banks pay fraudulent checks.
  • AP and AR trial balances need to be manually reviewed to determine the net balance for entities that are both a customer and a vendor of your company.
  • Payments are made to vendors who are also customers but who actually owe your company money.
  • You have to enter in transactions to clear the AR or AP balance and then enter additional transactions in the opposite module.
  • Transactions could be entered incorrectly or missed, causing great difficulty in recovery of those transactions.
  • There are potentially over or underpayments to vendors.
  • AP aging is inaccurate due to vendor invoices with unusual terms or an extended payment schedule.
  • The process of recording vendor invoiced with an extended payment schedule manual.
  • It is necessary to enter multiple documents with multiple due dates to accurately reflect the extended payment schedule.
  • Entries are missed, causing payables to be inaccurate.
  • Potential payment errors affect your vendor relationships.
  • It takes a great deal of time to create custom reports or queries in order to research vendor invoices prior to including them in the check run.
  • Users cannot get at the information that is important to them without having the knowledge to build a report.

About the Author: AJ Amjad Khanmohamed

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