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Operational Analysis Questionnaire Accounts Payable

Author: Creation Date: Last Updated: Version: Status: 11i.10

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1 1.1 1.1.1

General Overview Describe at high-level your Accounts Payable processes

1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8 1.2.9

Supplier Management Do you have single or multiple bill-to locations? What is the basis for your vendor category breakdown? Do you have a single consolidated vendor list? Do you have vendors listed in your files multiple times? How do you handle vendors with multiple addresses? Do you have preferred vendors? How do you identify them? How do you handle vendor numbering? Do you put employees as vendors? If not, how do you pay employee expenses? Do you have a standard naming convention for vendors when the name is like "John Smith"? Is it "Smith John" or "John Smith"? Do you have shared vendors between companies? How many? What type of vendor analysis do you perform? Are vendors categorized for reporting purposes? Are vendors categorized for financial tracking purposes? Is there a requirement to define vendor sites which can receive payments and sites which cannot receive payments? Who adds and maintains vendor in the system? How many active vendors are there? (Lets assume active is any vendor with at least one invoice in last 12 months.

1.2.10 1.2.11 1.2.12 1.2.13 1.2.14 1.2.15 1.2.16

1.3 1.3.1

Employees Is there a requirement to process employee expense reports?

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No. 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 1.3.9 1.3.10

Questions Is there a standard employee expense claim form? What is the current process to generate expense payments to employees? How frequently are employee expense claims processed? How many employee expense claims are processed? Are these expense claims assigned a special pay priority - high or low? (Before/after other vendor payments for example.) What is the current procedure for employee advances? How are these reconciled when the expense claim is submitted? Do your employees have company credit cards? How are company credit cards handled?

Answers

2 2.1 2.1.1 2.1.2

Invoice Processing Purchase Orders Do you wish to prevent purchase orders being sent to Vendors that are on hold in Accounts Payable? Are there non-payment vendor sites, not defined in Accounts Payable, that need to be defined for Purchasing to order goods/services? Are the non-payment vendor sites, not defined in Accounts Payable, that need to be defined for Purchasing, "RFQ Only" sites? Are there payment terms, not defined in Accounts Payable, that need to be defined for Purchasing to order goods/services? Will tax names and rates, defined in Accounts Payable have to be revised in any way?

2.1.3

2.1.4

2.1.5

2.2 2.2.1 2.2.2 2.2.3 2.2.4

Invoicing Do you require batch control to manage invoice entry? Who enters invoices and how often? Do you receive invoices at a central location? How do you physically store invoices once entered into the

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Questions computer?

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2.2.5 2.2.6 2.2.7

Are invoices billed to distinct companies, cost centers or other? How many invoices per period do you enter? Do you have security requirements on who can enter data (invoice processing, payment processing, and check processing)? How are invoices identified (numbered)? How many liability accounts do you use? Can you identify any frequently used expense distributions within your current system (for example, rent or telephone payments)? Do you have any recurring invoices?

2.2.8 2.2.9 2.2.10

2.2.11

2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8

Matching and Approval Do you match your AP invoice with the PO's? How do you match purchase order information to AP invoice information? How do you match vendor information to your fixed assets system when purchasing assets? Is there a requirement to match invoices to related purchase orders? Will some invoices never have purchase orders? Should invoices be matched completely, partially or both? Do you perform 2-, 3-, or 4-way matching of invoices? Do you currently have any tolerance levels for matching? (Price Tolerance, Quantity Ordered Tolerance, Quantity Received Tolerance, or Tax Tolerance?) Would you like to approve your invoices on-line, by batch or have both options? What is the internal approval process for an invoice in your organization at present? Are there situations where an invoice needs to be placed on hold and then manually released? Describe the approval process when invoices need to be

2.3.9 2.3.10 2.3.11 2.3.12

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Questions placed on hold and manually released?

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2.3.13

Where an invoice needs to be placed on hold and then manually released, can these invoices be "posted" to the General Ledger? Do you accrue your receipts to the General Ledger?

2.3.14

3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 3.1.10

Payment Processing Payment Processing What are the requirements for reporting tax payments? How do you record taxes within the GL? Is there a requirement to support multiple bank accounts? Is there a requirement to support foreign currency bank accounts? What disbursement (document) types are currently processed through these bank accounts? How are your current payment terms structured? Do you use percentage due or amount due? Are due dates calculated based on a specific day of the month or on a number of days from the payment terms date? Is there a provision for discounts within the current payment terms? How are discount dates calculated - based on a specific day of the month or on a number of days from the payment terms date? Is there a requirement to use multiple discount levels at present or in the future? How many different sites issue checks? How many checks do you write/produce per period? Is there a requirement to use computer generated checks? What is your policy to cancel checks? Is there a requirement to use Electronic Funds Transfers? Is there a requirement to use Wire Transfers? Is there a requirement to process Automatic Payments?

3.1.11 3.1.12 3.1.13 3.1.14 3.1.15 3.1.16 3.1.17 3.1.18

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No. 3.1.19 3.1.20 3.1.21 3.1.22 3.1.23 3.1.24 3.1.25 3.1.26 3.1.27 3.1.28 3.1.29 3.1.30 3.1.31 3.1.32 3.1.33 3.1.34 3.1.35 3.1.36 3.1.37 3.1.38 3.1.39 3.1.40 3.1.41 3.1.42

Questions Is there a requirement to process Manual Payments? If so, is a separate bank account used? Is there a requirement to process Partial Payments? Is there a requirement to process Pre-Payments? Is there a requirement to process Recurring Payments? Is there a requirement to process Quick Checks? Do you have a priority system for payments? Would you use a priority system for payments? What is your current payment cycle? (How often do you print checks?) If recurring payments are used, what is the normal period cycle for these payments? Are all invoices paid in local currency? Is/will there be a requirement to use multiple currencies? Do check payments have to be approved before they are run? Do you have a minimum or maximum payment amount per check? Do you have a minimum or maximum payment amount per run? What is the current check layout for computer generated checks? How many formats do you have? Do you print the check number on the check/remittance or is it pre-printed? Should a remittance advice note be produced, and when? How should an overflow situation be handled? Is there any special sequencing of checks when printing? Is there a dedicated printer for checks? What type of printer is used for checks? Where are the pre-printed checks stored? Is there a requirement to restrict the access to the check printing function? What are the policy/procedures for handling stop payments?

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No. 3.1.43 3.1.44

Questions What are the policy /procedures for handling void payments if they have been recorded? What are the policy /procedures for handling void payments if they have not been recorded?

Answers

3.2 3.2.1 3.2.2

Banks/Cash Management Who do you bank with. List all of your bank accounts and their purpose. Describe your cash management (bank reconciliation) process

4 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7

Period Processing Open/Close Periods How often do you "post" information to your General Ledger? Do you use Cash or Accrual Based Accounting? Do you post (or wish to post) in detail or in summary to the General Ledger? When do you start your AP close? Do you have any documentation on your AP close? Please provide. Do you allow posting invoices back to prior periods? If you have multiple organizations, do they all close at the same time or separately?

5 5.1 5.1.1 5.1.2 5.1.3 5.1.4

Reporting Reporting For the purpose of Invoice Aging Reports, what aging periods are currently in use? Is there a requirement to produce Key Indicators Reports to review productivity and pinpoint problem areas? Is there a need to define any additional aging periods? Please enclose a list of all reports used in the Accounts Payable area Please annotate the report list with each report's name/number, description, the type of users, frequency on which these reports are generated.

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6 6.1 6.1.1 6.1.2

Miscellaneous What else needs to be discussed? Other Applications used by AP. Expede Interface

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Issues and Action Items

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