Matakuliah : F0204 / Sistem Akuntansi Tahun : 2007 The Accounts Payable / Cash Disbursement (AP/CD) Process Pertemuan 15 – 16 – 17

Process Definitions and Functions The accounts payable/cash disbursements (AP/CD) process is an interacting structure of people, equipment, methods, and controls that is designed to accomplish the following primary functions: Handle the repetitive work routines of the accounts payable department and the cashier Support the decision needs of those who manage the accounts payable department and cashier Assist in the preparation of internal and external reports Bina Nusantara

AP/CD Horizontal Perspective 1. Invoice Received from vendor Bina Nusantara

AP/CD Horizontal Perspective 2. Approved voucher sent to cashier Bina Nusantara

AP/CD Horizontal Perspective 3. Accounts payable notification sent to general ledger process Bina Nusantara

AP/CD Horizontal Perspective 4. Check sent from cashier to vendor Bina Nusantara

AP/CD Horizontal Perspective 5. Paid voucher returned to the AP department Bina Nusantara

AP/CD Horizontal Perspective 6. Notification of the cash disbursement sent from the cashier to the general ledger process Bina Nusantara

Vertical perspective-AP/CD Bina Nusantara

Purchase Returns and Allowances In some cases defective goods may be returned or an allowance made for non-conforming items This exception routine usually begins at the point of inspecting and counting the goods or at the point of validating vendor invoices Purchaser transmits a debit memo to the vendor requesting the account adjustment The vendor responds with a credit memo indicating the authorized account adjustment Bina Nusantara

Processing Non-Invoiced Disbursements In some cases disbursements are not invoiced, e.g., freight bills, rent, payroll, etc. The handling of non-invoiced disbursements depends on whether or not a voucher system is used A voucher system prepares a voucher for every expenditure from payroll to purchases of raw materials Bina Nusantara

Logical Data Descriptions for the AP/CD Process Accounts payable master data. This data store is a repository of all unpaid vendor invoices The data design should consider how the data will be processed when the cash manager is deciding what payments to make For example, the manager may want to merge vendor invoices so that the total amount due each vendor can be accumulated Alternatively, the manager might want to select specific invoices for payment Cash disbursements data. The purpose of this data is to show, in chronological sequence, the details of each cash payment made. Each record in this data normally shows the date the payment is recorded, vendor identification, disbursement voucher number (if a voucher process is used), vendor invoice number and gross invoice amount, cash discount taken on each invoice, net invoice amount, check amount, and check number. Bina Nusantara

Technology Trends and Developments The AP/CD process is the primary candidate for EDI in major organizations (as it is in the OE/S, B/AR/CR, and purchasing processes as well) Several major companies have implemented EDI systems into the AP/CD process, resulting in significant cost savings An increasing trend among some of these major companies is to require all vendors to use EDI in their transactions with the company If the vendor does not implement EDI technologies, the major companies simply find a new supplier In the last few years, several alternatives to EDI have been deployed These new technologies, based, for example, on XML or IP-based EDI (Internet EDI), have not replaced EDI Services provided by the value-added networks (VANs) and the high degree of EDI standardization make EDI attractive for fully digital B2B collaboration among trading partners for years to come Many organizations are using Web-based payment systems Bina Nusantara

AP/CD Process: Systems Flowchart Bina Nusantara

AP/CD Fraud AP fraud usually involve fictitious vendors and false invoices A dishonest employee who has access to the vendor file and authorizes payment May embezzle amounts refunded by vendors Human error is still a leading cause of loss CD fraud is less sophisticated Usually involves check fraud Check fraud takes many forms from stealing and passing stolen checks to changing amounts on legitimate checks or check forgery CD fraud is becoming easier and more common with computer duplication technology Bina Nusantara

Exposure to Loss and Destruction of Resources Although the subject of fraud and embezzlement is seductively interesting, resource losses due to unintentional mistakes and inadvertent errors are as costly as, or more costly than those caused by intentional acts of malfeasance Making payments for incorrect or larger amounts Paying the wrong vendor Paying the same invoice twice Bina Nusantara

AP/CD Control Matrix Bina Nusantara