The accounts payable (AP) function has changed radically over the past decade—and this transformation continues. This week Ariba Knowledge Nugget provides industry "best practices" for the handling of your procurement processes surrounding AP, User Adoption and eProcurement Transformation.
Why should you care about best practices in AP? For the same reason legendary bank robber Willy Sutton targeted banks: It’s where the money is. As the department in charge of all disbursements (except payroll), AP is the gatekeeper of the organization’s funds. Without AP best practices, there’s a risk of "leakage" of those funds—through duplicate or erroneous payments, missed invoice discounts, late-payment penalties, misuse of funds, and outright fraud. This represents very hard dollars that come right out of the organization’s bottom line.
Plus, there is the productivity issue. Best practices help an organizations to be more efficient, allowing them to do more with less.