1. Vendors
1.1. How many vendors are there in total?
1.2. Is the same vendor listed in your files multiple times?
1.3. Do legal entities share vendors? If not, is there a reason why they can not?
1.4. Do you record multiple addresses for each vendor?
1.5. Do you keep track of vendor contacts?
1.6. What information do you record for vendors:
1.6.1. Basic information (name, address, number, payment terms, type)?
1.6.2. Other - what information do you record that might be considered out of the ordinary?
1.6.3. What vendor information gets defaulted to purchase orders (POs) and / or invoices?
1.7. Do you record tax types charged by vendors?
1.7.1. sales tax?
1.7.2. VAT (Value Added Tax)?
1.7.3. GST (Goods and Services Tax)?
1.7.4. other?
1.8. What other tax information do you record for vendors:
1.8.1. 1099 (U.S. tax information)?
1.8.2. tax exempt numbers?
1.8.3. other?
1.9. Do you categorize vendors into types or groups?
1.10. Do you manually assign a number to your vendors or are numbers defaulted by the system? If manual, what numbering scheme do you use?
1.11. Do you enter employees as vendors in order to pay employee expenses? If so, what information do you record:
1.11.1. department?
1.11.2. location?
1.11.3. other?
1.12. Do you assign the same accounting distributions on the majority of invoices for the same vendor?
2. Invoicing
2.1. Describe your invoice entry process.
2.1.1. Who enters invoices and how many are entered on average per day, week or month?
2.1.2. Are invoices received at a central location?
2.1.3. How are invoices approved? Are there levels of approval?
2.1.4. What is the cycle time for the process (i.e., enter, confirm, approve, pay)?
2.2. Do you enter invoices by batches? If yes, why (e.g., control total purposes)?
2.3. Do you use multiple currencies for invoice entry?
2.4. What type of invoices do you use? How many of each type do you enter per period?
2.4.1. regular,
2.4.2. recurring,
2.4.3. prepayments,
2.4.4. credit memos,
2.4.5. debit memos,
2.4.6. expense reports,
2.4.7. employee advances.
2.5. Matching requirements, which do you use:
2.5.1. two way matching (to PO price and quantity)?
2.5.2. three way matching (to PO and to receiving)?
2.5.3. four way matching (to PO, receiving and inspection)?
2.5.4. what tolerances are allowed for variance between invoice, purchase order, receipt and tax information during invoice matching?
2.6. What information do you record for invoices? Do you record any information that may be considered out of the ordinary (such as payment authorization numbers)?
2.7. Discuss default information provided on invoices based on vendor.
2.8. Do you enter financial coding from different legal entities (companies) to distribution lines on the same invoice? Do you require automatic generation of intercompany entries to the general ledger?
2.9. Are invoices billed to distinct companies or cost centers?
2.10. Describe the types of invoices that are placed on hold and the mechanism used to release holds.
2.11. What type of taxes do you record on invoices?
2.12. Describe the payment terms you use:
2.12.1. immediate?
2.12.2. 30 days?
2.12.3. 1/10 net 30?
2.12.4. proxima (terms which specify payment on a certain day of the month)?
2.12.5. other?
2.13. How do you check for duplicate invoice entry?
3. Bank/Cash Accounts
3.1. How many bank accounts do you have?
3.2. Do multiple companies share bank accounts?
3.3. How many general ledger cash accounts do you use per company?
3.4. Do you use more than one liability account on a single invoice?
4. Payment Process
4.1. How often do you run checks?
4.2. How many checks are generated in each run on average?
4.3. Do you pay all invoices due or do you prioritize payments - how?
4.4. How are payments scheduled?
4.5. How are invoices selected for payment?
4.6. Do you prioritize payments - how?
4.7. Do you make partial payments?
4.8. What payment methods do you use?
4.8.1. checks?
4.8.2. wire transfers?
4.8.3. electronic file transfers (EFTs)?
4.8.4. other?
4.9. Do you require manual check generation outside the normal check run cycle (for example, emergency payments)?
4.10. What type of printers are used to print checks - impact or laser?
4.10.1. If impact printers are used, have you considered using laser printers?
4.10.2. Does the check stock include MICR numbers? Signature?
4.11. How are checks sorted:
4.11.1. payment amount?
4.11.2. vendor number?
4.11.3. vendor name?
4.11.4. other?
4.12. Do you have low and high limits on check amounts?
4.13. When you void a payment, do you want to have the option to void or reinstate the invoice? What is your policy for check cancellation?
4.14. Do you always take discount? Is this done on a vendor by vendor basis?
5. Check Reconciliation
5.1. How is check reconciliation performed - do you receive a tape from the bank to facilitate automatic reconciliation?
5.2. Do you send a tape to the bank as part of the reconciliation process?
6. Posting / Closing
6.1. Describe your current closing schedule for accounts payable.
6.1.1. Is there anything special done at month end?
6.1.2. Do you need to enter invoices for more than one period at a time?
6.2. At what frequency do you post from the accounts payable subledger to the general ledger?
6.3. Do you post to the general ledger at the detail or summary level?
7. Inquiries
7.1. What types of on-line inquiries are required?
7.1.1. display all invoices related to a vendor name / number?
7.1.2. display all invoices related to a payment number?
7.1.3. display all invoices related to a purchase order?
7.1.4. other?
8. Reports
8.1. What standard reports do you use:
8.1.1. check register?
8.1.2. invoice register (new, open)?
8.1.3. outstanding check register?
8.1.4. void check register?
8.1.5. cash requirements?
8.1.6. vendor master?
8.1.7. aging reports?
8.1.8. other?
8.2. Are there any special reporting requirements?
9. Interfaces
9.1. What internal systems are interfaced with accounts payable:
9.1.1. purchasing?
9.1.2. payroll?
9.1.3. fixed assets?
9.1.4. general ledger?
9.1.5. human resources?
9.1.6. other?
9.2. Are there interfaces with any external systems?
9.2.1. EDI?
9.2.2. 1099 (U.S. tax information)?
9.2.3. banks (reconciliation)?
9.2.4. other?
10. Security
10.1. Describe duty separation requirements.
10.2. Are there any restrictions on invoice entry by company or cost center?
11. Other
11.1. Which accounting method do you use - cash or accrual basis accounting?
11.2. At what point do you identify a purchased item as a fixed asset - at requisitioning, purchasing, invoicing, receipt, payment or other?
11.3. List up to five best features of the current system.
11.4. List up to five deficiencies of the current system.
11.5. Are they any other special requirements that have not been discussed?
12. Volumes
12.1. How many vendor records are there in total?
12.2. How many unique vendors are there?
12.3. How many vendor records are added per period?
12.4. How often are vendor records purged and how many records are purged at a time? What is the purge criteria?
12.5. How many sites enter invoices?
12.6. How many invoices are entered per day, week, period?
12.7. How many expense reports are entered per week?
12.8. How often are checks generated?
12.9. How many checks are generated per day, week, period?
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