Article Date Oct 1, 2019
Reason for sharing: “When it comes to Accounts Payable (AP), the spotlight is on ‘paying on time’. In fact, the most important (often neglected) responsibility of AP is ‘paying what should be paid’. Many companies rely on approvals (as easy as clicking a button) by so-and-so executives to gate keep invoice payments instead of the method of ‘3 point validation’ to be properly done before paying an invoice.”
‘3 point validation’ is a comprehensive check on each invoice as follows:
1) Is this a valid company expense?
2) Is the expense in alignment with the contracted price or fair market rate?
3) Is the goods or services completely delivered?
Depending on the nature of the business, millions of dollars can be saved if companies focus on AP automation solutions that can also simplify the ‘3 point validation’ process.