STF-Ch08-Slides-Pres-Version

Ebpp outsourcing accounts receivable copyright 2011

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Unformatted text preview: ts Reserved 22 Credit and Collections Legislation Pricing and Interest Charge Restrictions ◦ Robinson-Patman Act (1936) Consumer Credit Legislation ◦ Mainly apply just to consumer transactions Uniform Commercial Code (UCC) Copyright 2011 - The Resource Alliance - All Rights Reserved 23 Elements of Basic Inventory Policy Inventory policy of most companies includes elements such as: ◦ Reasons for holding inventory ◦ Types of inventory held ◦ Levels of inventory ◦ ◦ Costs and benefits associated with holding inventory Financing of inventory Copyright 2011 - The Resource Alliance - All Rights Reserved 24 Key Inventory Factors Types of Inventory ◦ Raw Materials ◦ Work in Progress (WIP) ◦ Finished Goods ◦ Scraps or Obsolete Items ◦ Stores and Supplies Levels ◦ of Inventory Impact of excess inventory Copyright 2011 - The Resource Alliance - All Rights Reserved 25 Inventory Financing If not financed as part of general working capital requirements, alternatives may be tied directly to the amount of inventory Trade credit often finances a significant portion of inventory Collateralized loans (asset-based lending) Use of public or field warehouse to store inventory Copyright 2011 - The Resource Alliance - All Rights Reserved 26 Management of Accounts Payable ( A/P) A/P provides a major source of shortterm financing for many companies A/P manager’s primary responsibility is to verify incoming invoices and authorize payments – sometimes referred to as “vouchering” Three-way ◦ Match Approved Purchase Order Copyright Invoice Resource Alliance - All Rights Reserved 2011 - The Received ◦ 27 Management of Accounts Payable (A/P) A/P is a major source of s-t financing for many companies A/P manager’s primary responsibility is to verify incoming invoices and authorize payments – sometimes referred to as “vouchering” Three-way Treasury Match & A/P Coordination ◦ How & when invoices are paid ◦ Reconciliation of cleared (paid) items Copyright 2011 - The Resource Alliance - All Rights Reserved 28 Three-Way Match Approved Vendor List ?? Copyright 2011 - The Resource Alliance - All Rights Reserved Disbursement System Considerations Three Goals ◦ Information Access ◦ Fraud Prevention ◦ Relationship Maintenance with Payees Centralized vs. Decentralized Check Controls and Fraud Prevention Copyright 2011 - The Resource Alliance - All Rights Reserved 30 Accounts Payable Developments Integrated or Comprehensive Accounts Payable ◦ Outsourcing of A/P and disbursement functions Purchasing ◦ Cards Also known as procurement cards or pcards Copyright 2011 - The Resource Alliance - All Rights Reserved 31 Chapter 8: Wrap-up What did we learn in the lecture today? What topics do we want to learn more about? Copyright 2011 - The Resource Alliance - All Rights Reserved 32...
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