Objectives

Upon completion of this course, participants will be able to:

• Design and implement a streamlined and efficient end-to-end Accounts Payable workflow.
• Establish robust internal controls to prevent payment fraud and errors.
• Master the three-way and two-way matching process for invoice validation.
• Apply best practices in vendor master data management and maintenance.
• Optimize disbursement methods (e.g., ACH, virtual cards) to maximize efficiency and capture discounts.
• Identify and implement key performance indicators (KPIs) for AP function monitoring.
• Utilize technology like Optical Character Recognition (OCR) and robotic process automation (RPA) in AP.
• Ensure compliance with relevant tax regulations (e.g., VAT, 1099 reporting) related to payments.
• Conduct effective AP reconciliation and month-end close processes.
• Identify and recover overpayments or duplicate payments through proactive auditing.

Target Audience

• Accounts Payable Clerks, Specialists, and Managers
• Financial Accountants and Controllers
• Internal Auditors and Compliance Staff
• Procurement and Purchasing Professionals
• Finance professionals responsible for working capital management
• CFOs and Finance Directors overseeing the expenditure cycle
• System Implementers and Business Process Owners

• Case studies on AP fraud detection and internal control breakdowns
• Interactive workshops on designing AP workflow and control matrices
• Group activities simulating vendor master data setup and audit review
• Discussions on the selection and implementation of AP automation technologies
• Individual exercises on calculating AP performance KPIs and discount capture
• Scenario analysis for handling complex invoice exceptions and disputes

Unit 1: Foundations of the Accounts Payable Cycle

• Overview of the Procure-to-Pay (P2P) lifecycle
• Understanding the role of the AP function in working capital management
• Key documents: purchase orders, receiving reports, and invoices
• Implementing the three-way matching principle for invoice verification
• Handling exceptions and discrepancies in the matching process
• Best practices for efficient receipt and logging of invoices

• Establishing a secure and controlled vendor onboarding process
• Critical data elements for vendor setup (bank, tax ID, payment terms)
• Controls to prevent unauthorized vendor changes and master data fraud
• Periodic review and cleansing of the vendor master file
• Segregation of duties between vendor setup and payment processing
• Managing vendor risk and compliance screening

Unit 2: Internal Controls and Fraud Prevention

• Implementing segregation of duties across the AP function
• Authorization matrices for invoice approval and payment release
• Setting up effective system-based controls and payment blocks
• Controls around employee expense reporting and reimbursement
• Checklist for a successful AP month-end and year-end close
• Regular control self-assessment and monitoring

• Identifying common AP fraud schemes (e.g., ghost vendors, duplicate payments)
• Best practices for securing disbursement methods
• Using data analytics to detect anomalous transactions and fraud indicators
• Controls over paper checks, ACH, wire transfers, and virtual cards
• The importance of positive pay and other banking security services
• Fraud awareness training for AP and procurement staff

Unit 3: Technology and Process Optimization

• Implementing document management and Optical Character Recognition (OCR) technology
• Workflow automation for invoice routing and approval
• The role of Robotic Process Automation (RPA) in AP tasks
• Leveraging Enterprise Resource Planning (ERP) system capabilities for AP
• Evaluating and selecting AP automation software solutions
• Moving from paper-based to paperless AP processes

• Strategic use of payment terms to optimize cash flow
• Capturing early payment discounts effectively
• Comparing and selecting optimal payment methods (e.g., P-Cards, ACH, virtual cards)
• Forecasting cash outflows and integrating with treasury management
• Managing international payments and currency controls
• Compliance with escheatment/unclaimed property laws

Unit 4: Compliance and Performance Measurement

• Ensuring compliance with local and international VAT/GST rules
• Managing tax reporting requirements (e.g., 1099-MISC) for vendors
• Handling sales and use tax on purchases
• Regulatory requirements for record retention and document archival
• Compliance considerations for foreign vendor payments
• Auditing procedures for AP compliance and tax accuracy

• Key Performance Indicators (KPIs) for the AP function (e.g., cost per invoice)
• Measuring invoice processing cycle time and approval efficiency
• Benchmarking AP performance against industry best-in-class standards
• Analyzing and reporting on discount capture rates and payment term adherence
• Continuous improvement methodologies (e.g., Kaizen) for AP
• Reporting AP metrics to senior management and stakeholders