Accounts Payable Scenario in Business Process Outsourcing Industry

Topics: Accounts receivable, Receipt, Invoice Pages: 4 (735 words) Published: October 28, 2011
Accounts Payable in BPO

The workflow of A/P in BPO industry can be described as follows:

1. Receiving Scanned Invoices: The client company scans its vouchers and vendor’s invoices as and when they are received. 2. Preparing and updating Master database of vendors: A master database for vendors information is prepared which includes details of vendors, his address, tax code, etc. Additional notes relating to vendors are also entered. 3. Documents Review: The scanned documents are reviewed in terms of readability for significant figures viz. quantity, type, rate, amount, total, tax etc. If the scanned image is not readable, it is redirected to the client company for rescanning. 4. Resolve non-conforming issues (comparison with PO and GRN, if provided) by applying step 4. 5. Notifying the client of payments due before a reasonable period: The client is then notified about the payments to be due within short period. E.g. a client can be informed that certain bills of certain amounts are to be paid within this week. 6. The client finally approves payment of the said bill and also informs the reasons for which certain bills are to be withheld for payment. 7. Checks are processed for printing in our systems for payments approved. 8. Checks processed are finally sent to client for final printing and distribution.

SERVICES in addition to above

o Maintaining Master database of vendors.
o Rush Checks handling.
o Informing the client co. to avail discounts on early payments. o Preparation of monthly Vendors’ Accounts Statements
o Reconciliation of Vendors accounts with the statement provided by the vendors. o Double payments avoidance.
o Respond to vendor enquiries about payment status through email. o Vendor Performance Analysis.
o Handling Form 1099.
o MIS reports for analysis and decision-making (see reports)

▪ Definition
▪ Supporting Documents
▪ Payment process and...
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