Document Management: Streamlining The Accounts Payable Process Through Effective Document Management By Abraham J. Niedzwiecki, Cabinet NG
•Article: Streamlining The Accounts Payable Process Through Effective Document Management
Most manufacturers realize the benefits of applying good process automation, lean manufacturing, and performing Kaizen Events for their operations. The same principles, in fact, can be applied to perform firm-wide process improvements, starting with Accounts Payable (AP), where paper piles typically begin. Streamlining document processes can also improve other paper-based business processes including human resources, product support, sales, legal and other accounting functions (AR, financial statements, etc.) into efficient and controlled workflows throughout the organization.
Today's paper-based AP process for manufacturers
Walk into most accounting areas and chances are you will find stacks of PWIP
(paper-work in process). The AP process is notorious for generating fresh PWIP
stacks. The first stack is the ‘supporting' document stack. Items in this stack
include: requisitions, POs, Justifications and etc. This is a stack of documents
representing what has been or needs to be ordered.
The next stack is the ‘receiving' document stack. This stack is all those packing slips and other lists of items that have been received. As items from both stacks get matched with an invoice, a new ‘matched' stack emerges. Matched stacks are routed for approval and the invoice data is entered into the AP system. Matched stacks pending the next check run are placed in a holding area. Once the check run is complete, checks are matched to the invoice and are routed for signature. Then, a copy of the check is added to the stack and filed as a complete package by vendor. The actual process may vary by company, but the end result is the same: costly stacks of documents.
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Abraham J. Niedzwiecki is Vice President of Technology at Cabinet NG, Inc. Niedzwiecki has extensive product and implementation knowledge and currently oversees the
deployment, product architecture and support services at Cabinet NG. He first began his
career with the University of Alabama-Huntsville as a Research Associate for the Center
for Applied Optics. He later entered into a Field Engineering career working at Redstone
Arsenal in Huntsville. While at Redstone, he developed an interest in computer
technology and moved on to form his own company providing network and support
services.