Project Two: Accounts Payable Memo Southern New Hampshire University ACC 315 Accounting Information Systems 01:40:35 GMT -05:00 Analysis Posey’s Pet Emporium (P.P.E.) has a control process in place to ensure the accounts payable procedures adhere to standards set forth for the company....
Posey’s Pet Emporium (P.P.E.) has a control process in place to ensure the accounts
payable procedures adhere to standards set forth for the company. The payments must be
accompanied by the invoice and purchase order or check request. This guarantees payment for
the right order and for the record of the outside party to have records that their services provided
matches fees and other charges. The department utilizes a three-way match process for the
invoice, purchase order, and receiving document then approved by accounts payable. Even if
there is a check that needs to be disbursed from other departments, it will have to be approved by
the head of that department first before it is sent to accounts payable. If approved accounts
payable will review the supporting documents for disbursal. For third party vendors, payments
are made directly to them within thirty days of the invoice date to ensure it is handled timely. If a
vendor payment needs to be expedited the Accounts Payable team lead or Controller will
approve the necessary changes. P.P.E. also requires that all vendors complete a W-9 form
before adding to the vendor list. This measure verifies the identity of the individual or company
they will make payments to.
Inconsistences and Anomalies
Looking at the ledger I’ve noticed some inconsistencies. There was a credit of $400 on
08/15/2022 for invoice number 4328 but for Vendor D the same invoice credit was $4,000. On
8/17/2022 invoice number 4329 had a credit of $1,844.28 but in Vendor A recorded $1,804.28.
On 8/4/2022 invoice 4319 recorded in Vendor C is missing the payment in the Accounts Payable
ledger. It’s important that the P.P.E. have procedures in place to catch this. A suggestion would
be to use a discrepancy report. The discrepancy report identifies variances between the receiving
01:40:35 GMT -05:00
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