INTERNAL CONTROL: Explore the Uncharted Waters of Contract Compliance for New Cost Savings;
PAPERLESS AP: How Circuit City Gets E-Invoices From Even the Smallest Vendors;
FORM 1099 PLANNING: Now Is the Time to Review Latest Rules
on Worker Status;
AUTOMATION: Lessons Learned From AT&T’s Switch to Paperless Invoice Processing;
AP Calendar;
News Briefs;
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Now that many AP departments have become more automated, there’s more time to focus on analytical tasks. One of the next big unexplored areas for cost-savings is contract compliance. AP professionals looking to expand their role within the organization should consider focusing on contract compliance—especially if no one else is. Close Snippit | Read Article
Electronic invoicing through the use of traditional EDI (Electronic Data Interchange) is well-suited to your large vendors—but what about all of your small and midsize vendors? It’s not easy for them to implement EDI because of the time and resources needed, so you’ll have a tough time convincing them to send you electronic invoices. But electronics retailer Circuit City uses a type of EDI that even mom-and-pop vendors can use—all they need is Internet access. At IOMA’s Paper-Free AP conference in Ft. Lauderdale, Fla., Marty Stewart, vendor relations-manager EDI at Circuit City, gave attendees the full story. Close Snippit | Read Article
As part of your effort to plan for Form 1099 filing, AP should be involved in checking on worker classification. That is, whether a worker is an employee (who gets a W-2) or an independent contractor (who gets a 1099). This issue is particularly important now because both the Internal Revenue Service and Congress have gotten into the act. The IRS has been working with the states to step up audits in this area. And Congress has proposed various pieces of legislation to stop "the egregious practice of misclassifying workers as independent contractors," said one member of the House. Penalties for misclassification can be severe. Close Snippit | Read Article
If you want to take the paper out of your invoice processing, take a step back and look to your overall procure-to-pay process. That’s what AT&T’s AP department did—and they converted almost all of their paper invoices to electronic form. Close Snippit | Read Article
HARSH PENALTY FOR T&E FRAUDSTER
You should have a policy in place that calls for the termination of employees who commit expense report fraud, according to the revised 2008 version of IOMA’s Complete Guide to AP Best Practices. This can be an effective deterrent. However, for the policy to have teeth, you have to follow through on it. Office supplies giant Staples did just that—as a new court case illustrates.
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FACING A MANDATE TO CUT OVERTIME IN AP
Problem: AP staffers had to work overtime regularly at a manufacturing firm (11 in the AP department). But then the controller told the AP manager that there was to be no more paid overtime starting in three months.
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2009
