The purchasing department may fail to Inventory management and tracking

Failure to review the review the quantity of products which results

quantities of inventory. to overstatement or understatement of
inventory.
Continuously adjust the input data to
reflect actual conditions. (Start with
forecasts from estimates, historical data or
Inaccurate forecasting of supplies is when
Inaccurate forecasting of models and modify the sales forecast
the company underestimate or overestimate
supplies. figures when actual sales results become
the demand of stock.
available.);
or use historical data and do estimations
on supply productions.
Suppliers that happens to not meet the Communicate with supplier and/or
Delayed acceptance of delivery schedules can result in production Production monitoring and management
supplies. delays, inventory stockouts and customer
dissatisfaction. Supplier Contract*
The one who checks the Separation of duties
There might be a conflict on inventory
inventory is the same
control if the one who checks and delivers
person who provides
inventory were the same person.
supplies to the customer.
Inventory management and tracking
Delayed inventory count resulting to delay in
Delayed inventory count. Inventory Update
ordering new supplies and materials.
The incorrect inventory count may arise due Inventory management and tracking
Incorrect inventory count.
to merely counting the ending inventory.
Damaged inventory stock that cannot be Daily huddle and monitoring
Potential stock damages. used becomes waste and increases costs to
the business. *
Unauthorized access to Approval matrix
Google sheets which will Access control
Unauthorized access to Google sheets
affect the encoding of Access review control
which lead to unauthorized processing.
quantities and the
amount.
Misclassification or
Misclassification or failure to include
failure to identify all the
business expenses may result in the failure
expenses made during
to report a deductible expense.
the period.
Unauthorized access to google sheets may Approval matrix
Unauthorized access to
result to mismanagement for payment Access control
google sheets.
processing. Access review control
Unauthorized access to Unauthorized access to the company's Access control. Only the processor has
the company's mailbox mailbox by reason of unsecured access to company’s mailbox.
which causes spreadsheet software which causes Access review control
mismanagement. mismanagement.
Incorrect payment Review and approval
There are some instances that the company
processing as to amount, Bank File extracted uploaded to bank
may experience fraud caused by third
bank details and other portals
parties.
necessary information.
The one who processed The same person who processes and seeks Separation of duties
the payment of the approval for its payment may result to fraud.
invoice is the same
person who seek
approval for its payment.
Duplicate payment caused by flaws in a System detection of invoices
company's accounts payable processes that Review and approval
Duplicate payment
do not detect the presence of prior Bank reconciliation
payments.
Processer individually check invoices in AP
mailbox and match if it is uploaded in
Dataline. Once the invoice is processed,
the email is transferred to Subfolder –
Completed. Only those not yet uploaded
Not all invoices sent in Due to the demand of rejected invoice, some
and processed in Dataline and not yet will
mailbox will be of it cannot be processed on time which can
remain in the main Mailbox. But those
processed. result to the delay of claims.
partially processed has a flag for follow-up.
Hence, those item in main mailbox having
no red flag are not yet uploaded in
Dataline. (is this automated or manual, if
manual, is there other way to check)
Daily mailbox management and board
Late processing or Because of unregulated invoices that were
tracker
unprocessed invoices declined by the company, there instances
Weekly checking of and follow-up of
due to unmonitored that the progress of the invoice gets
rejected invoices
rejected invoices. interrupted and outdated.
QA audit
Invoice coding cheat sheet*
Inaccurate processing of The list of dismissed invoices may result to
TL review
rejected invoices. mistakes or errors in the overall processing.
QA audit
Erroneously deletion of invoices may occur Excalation matrix on over due invoices
Erroneously deletion of
when the management incorrectly deleted
invoices.
the rejected invoice.
Demographic information of customers such Checks and update customer master data
Not all invoices are as age, marital status, education may
updated about the change in the future compared by the time
customer's information the invoice was created. And because of
such as their these changes, the information in the invoice
demogaphic profile. becomes inaccurate if they are not updated
properly.
AP checklist of important info to check
Due to a significant amount of invoices Automated invoice coding cheat sheet
Inaccurate processing, received by a company, the invoice may not QA audit
coding` and allocation to be received by the proper approver and may The invoice undergoes approval matrix in
approver of invoices. cause errors in the codes during the Dataline
process.

Invalid invoices may result in prolonged and AP Checklist of valid invoices

Processing of invalid delayed payment processing which can QA audit
invoices. negatively impact the company's customer Approval matrix in Dataline
relationship.
Failure to read/receive The management might overlook the order
the order request. request received through e-mail.
 Errors from incorrect input of amount such Generates commitment report
as transposition errors can cause
overstatement or understatement of an item.
Incorrect invoice amount.
If a deductible amount isn't claimed as a
result of the entry error, an error like this can
be costly.
Incorrect granting of payment terms to the
Incorrect granting of
customers will cause trouble the company's
credit terms/discount.
accounting book.
Unable to collect the payment due to
Failure to collect the
customers' inaccurate detailed information
claims on receivables.
input for bank transfer.
When it comes to bank transfers, there are
Incorrect input of amount instances where the customer may have
through collection from entered the wrong details in the invoice. This
bank transfer. will prolong the process because it requires
an assessment before continuing.
The company might get exposed to non-
Failure to encash the
encashment of checks paid by the customer
check.
due to cancellation or dishonored checks.
Inaccurate amount received may lead to Quality control
Inaccurate amount and
overstatement/understatement of cash Serko claims processing
currency claimed.
recording.
Delayed payment by the customer resulting
from timing of the transfer, where the
Late payment received
transfer is being made, the currencies
from bank transfer.
involved, security checks, bank holidays,
and the reasons for the transaction.
Incorrect input of the Incorrect input of information in the check
amount and other happens when the customer erroneously
necessary information in write the amount or recipient's name in the
the check. check.
Failure to collect the
Failure to collect the claim through bank
claim through bank
transfer because of the delayed payment.
transfer on time.
Late or non-payment of Team huddle reminder
Payment that are overdue from the due date
due invoices or out of Segregation of duties
of the invoice may disrupt the payment
cycle payment by the
processing.
customer.
Ghost employees are either employees on Quality control
Ghost employee that paper only, are dead but kept on the payroll, Checks and updates employees master
may exist in the list of or they are real people who do not even data
payrolls. work at the business that is sending out
paychecks to them.