GuillermoRosés srlu
Finance & Accounting (F&A) Business Process Outsourcing (BPO)
Back-Office Outsourcing
|
Purchase orders |
□ Simplify the
processes for
vendor invoice
entry and
payment
processing
□ Purchase Orders
Purchase orders are intended to clearly explain what is going to be ordered,
when payments will be due, and how much it will goods and services cost.
It gives the parent company an active role to participate in the
decision-making process of the Subsidiary, which
avoids unexpected facts on the P&L account.
G
roups
do not wait until
the P&L account is ready, to
be aware on
how subsidiaries are being managed. Decisions are be shared b
y the group management at a much earlier stage:
just before incurring costs.
|
Subsidiary |
Parent Company |
Back-Office |
Vendor |
|
1 Emails a Purchase Request (PR) |
1 Emails approval to Back-Office or Emails disapproval to the Subsidiary |
1 Issues a Purchase Order number (PO No.)
|
|
|
2 Waits for the PO No.(email) |
2 Emails the PO No. to the Subsidiary |
||
|
3 Orders the service/ purchase of goods |
1 Issues the invoice according to the PO.
|
||
|
4 Sends invoices to Back-Office
|
3 Invoices are matched with their corresponding POs (approved limits) |
||
|
4 Contacts vendors for missing data/discrepancies |
|||
| 5 Enter remittance payment phase
|
Group keeps control
□ Primary function
□ Make informed purchasing decisions.
□ Strengthen management transparency and
give support to local management decisions.
□ Ensure greater internal control.
|
□ About POs & internal control |
□ Segregation of duties is essential
to effective internal control.
□ It is a deterrent to fraud.
□ Key functions that must be adequately separated.
□ To ensure proper separation of duties, persons should never approve a transaction for which they
are the payee.
□ Business
Benefits
□ Provides evidence of effective controls
□ Provides internal
control over
expenses, payables, disbursements
and vendors
performance