The accounts payable function goes well beyond invoice processing. They can, and should, have a prominent voice in the development and execution of an organization’s payment strategy. This includes leadership responsibilities critical to card program success, but first, to gain AP’s buy-in of cards, clear communication is necessary. Explain how purchasing cards and virtual cards will affect their job, and the related training they will receive. Solicit their feedback about how AP can best support these programs to help the organization reach its goals. Regardless of whether or not the overall ownership of a card program is assigned to AP, following are specific roles they could fulfill.
Leadership Role
Bringing internal stakeholders together to discuss card program goals, the benefits, purchase-to-pay (P2P) processes, etc.
Evaluating how the organization could improve process savings and increase the revenue share (rebate) earned from card usage
Identifying suppliers and/or expense types ideal to move to a card solution
Educating suppliers about the value of card acceptance
Delivering card program training to applicable staff
Tracking and reporting relevant program metrics to management
Operations Role
Helping to ensure card-accepting suppliers are not paid by AP via other method; for example, by updating the master vendor file (MVF) and/or related systems
Paying the card issuer on a schedule that is most advantageous to the organization
Booking rebates received and, if applicable, managing rebate accrual entries
Monitoring card usage; for p-cards, this could mean monitoring for compliance and, for virtual cards, it could mean proactively contacting suppliers before a card expires to help prevent declines
Making corrections to account/budget codes on p-card transactions as needed
What can your organization do to further enhance AP’s role with card programs, thereby increasing the chances of program success? See more about roles and responsibilities. Don’t forget about continuing education endeavors, too. Investing in AP’s professional development can increase employee retention, which ultimately lowers costs.
AP Appreciation
Some organizations do not give accounts payable the opportunity to shine or the recognition they deserve. This is why I’m happy to promote Accounts Payable Appreciation Week, May 15–19, 2023, sponsored by the Accounts Payable Association.
Say it louder: AP is valuable! (Photo by Alena Jarrett on Unsplash).
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About the Author
Blog post author Lynn Larson, CPCP, launched Recharged Education in 2014. With more than 20 years of commercial card experience, her mission is to make industry education readily accessible to all. Learn more…