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Originally published in RECAP Studies Many people think accounts payable only pays bills. They cannot to even begin to comprehend the wide variety of tasks that accounts payable departments nationwide handle. This problem is exacerbated by the fact that not all A/P departments perform the same functions—with the single exception of invoice processing. At the recent Enhancing Accounts Payable Operations conference sponsored by RECAP, attendees completed a comprehensive questionnaire. One of the questions concerned the functions performed within the accounts payable department. The table at right shows the breakdown of what accounts payable departments are doing and the percentage of departments handling each task. Not only are the functions widely divergent, but accounts payable departments are assuming responsibilities that many would not have imagined. Many auditors recommend that certain functions often falling under the accounts payable umbrella should actually be performed elsewhere for control purposes; however, a large percentage of companies still delegate these tasks to the accounts payable department. Specifically, many feel that petty cash handling and bank reconciliations belong outside the accounts payable department for control and fraud-protection reasons. Still, as the RECAP results demonstrate, just under half the companies handle petty cash, and almost one-quarter have bank reconcilement in accounts payable. The low percentage for certain items does not necessarily mean that another department performs the function – the company may not handle these tasks at all. Two such examples are VAT refunds and Escheatment. Those looking to take on additional responsibilities might use the RECAP data to bolster their position when making the argument to management. For example, those looking to make EFT payments might note that in this study, 56% of the respondents placed that in accounts payable. (Of course, accounts payable managers trying to avoid taking on particular tasks might be better off hiding the table.)
Above all, the data shows that accounts payable professionals have taken on a wide variety of responsibilities, and the field will continue to grow if everyone steps up to the plate and assumes their rightful place. "RECAP Studies A/P Department Functions" ©1998 Institute of Management and Administration, Inc. For subscription information call (212) 244-0360 or send e-mail to SUBSERVE@IOMA.COM For more information
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