How to Get A Handle on Vendors in Accounts Payable

Do you work with payables? Do you think the only important records are the invoice and the check?  I’m here to tell you that knowing and managing your vendor records can greatly improve your efficiency and help you keep costs down for your organization.  Don’t believe me?  Well, consider payment discounts for starters.

Are you taking full advantage of your vendors’ prompt payment discounts?  You know, when you can take a small percentage as a discount if you pay well in advance of the due date.  More than 2% of  organizations report that with the economic downturn, they have effectively negotiated favorable terms and prompt payment discounts from their vendors.  Unfortunately,  organizations find they are unable to actually process invoices within the designated time to qualify for negotiated discounts. Or they are unable to prioritize invoice processing to ensure those with favorable terms are processed first. How about you?  Are you paying your bills quickly to receive those discounts?

Prompt payment discounts are just one feature on a vendor record within Accounts Payable that you can leverage to reduce costs.  You can use the Terms field on the vendor record to track the discount, and then each invoice entered for the vendor will include the potential discount by default.  When check run time comes around, you can tell Accounts Payable to include any invoices for payment that can take advantage of a prompt payment discount.  While some discounts may not amount to much more than a dollar, over time, the savings across many invoices and multiple vendors can add up. Of course, the discount is only applied if you pay promptly.

So, you might be wondering, “How can I find out about additional vendor features that can improve my efficiency and help reduce costs?”  Managing Vendor Records in The Financial Edge is your ticket to transforming your accounts payable vendor management.  This two-hour instructor-led online class is full of demonstrations and hands-on practice working with the vendor record.  Expect to learn about improved processing of payables as well as critical user options, and AP business rules. Ready to sign up?  Search Training Central using the keyword VendorRec, or view the upcoming sessions and select one that best fits your schedule.