9.6 - Process accounts payable and expense reimbursements
PCF ID: 10733 | Elements: 26 | Metrics Available: Y | Benchmarkable: 19
Definition
Handling bills and reimbursements to be made. Make payments for goods or services taken or used on behalf of the organization.
Overview
This process group covers process accounts payable and expense reimbursements within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.6.1 | Process accounts payable (AP) | 10756 | 11 | Y |
| 9.6.2 | Process expense reimbursements | 10757 | 5 | Y |
| 9.6.3 | Manage corporate credit cards | 20929 | 6 | N |
9.6.1 - Process accounts payable (AP)
PCF ID: 10756
Definition: Processing payments of operating expenses and other supplier charges. This includes the development of policies and procedures around processing of accounts payable and all operations. This process is often supported by key technology enablers.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.6.1.1 | Verify AP pay file with purchase order vendor master file | 10869 | 0 | Y |
| 9.6.1.2 | Maintain/Manage electronic commerce | 10870 | 0 | Y |
| 9.6.1.3 | Audit invoices and key data in AP system | 10871 | 0 | Y |
| 9.6.1.4 | Approve payments | 10872 | 0 | Y |
| 9.6.1.5 | Process financial accruals and reversals | 10873 | 0 | Y |
| 9.6.1.6 | Process payables taxes | 10874 | 0 | Y |
| 9.6.1.7 | Research/Resolve payable exceptions | 10875 | 0 | Y |
| 9.6.1.8 | Process payments | 10876 | 0 | Y |
| 9.6.1.9 | Respond to AP inquiries | 10877 | 0 | Y |
| 9.6.1.10 | Retain records | 10878 | 0 | Y |
| 9.6.1.11 | Adjust accounting records | 10879 | 0 | Y |
9.6.1.1 - Verify AP pay file with purchase order vendor master file
Definition: Matching records of bills to be paid with accounts. Check accounts payable entries with vendor's account for every payment made.
9.6.1.2 - Maintain/Manage electronic commerce
Definition: Tracking all online transactions.
9.6.1.3 - Audit invoices and key data in AP system
Definition: Monitoring and evaluating bills registered in accounts books. Check all invoices. Maintain records.
9.6.1.4 - Approve payments
Definition: Processing payments for products/services.
9.6.1.5 - Process financial accruals and reversals
Definition: Handling transactions for accruals and reversals. Record transactions in the books of accounts on an accrual basis (irrespective of the actual cash flow) and reversals basis (cancel out the adjusting entries) for balancing accounts.
9.6.1.6 - Process payables taxes
Definition: Filing the amount of taxes that a company owes as of the balance sheet date. Prepare tax returns, including the income tax filing for an individual or business entity from earnings.
9.6.1.7 - Research/Resolve payable exceptions
Definition: Resolving any atypical or inconsistent situation concerning payments to be made by the organization. Address any exceptional case of accounts payable on an ad hoc basis, by seeking counsel or carrying out any necessary research.
9.6.1.8 - Process payments
Definition: Making payments for products/services on due dates (payment cycle) decided by parties involved.
9.6.1.9 - Respond to AP inquiries
Definition: Clarifying or address queries relating to the particulars of AP such as date, discounts, amount, and installments. Coordinate with concerned parties about the fulfillment of bills payable.
9.6.1.10 - Retain records
Definition: Keeping bills of every transaction for future reference.
9.6.1.11 - Adjust accounting records
Definition: Rectifying for alterations occurred in accounts while recording.
9.6.2 - Process expense reimbursements
PCF ID: 10757
Definition: Processing reimbursements to employees for the expenses incurred during the course of business. Approve and process advancements and reimbursements for employee expenses on the organization's behalf. Capture and report relevant tax data and manage personal accounts.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.6.2.1 | Establish and communicate expense reimbursement policies and approval limits | 10880 | 0 | Y |
| 9.6.2.2 | Capture and report relevant tax data | 10881 | 0 | Y |
| 9.6.2.3 | Approve reimbursements and advances | 10882 | 0 | Y |
| 9.6.2.4 | Process reimbursements and advances | 10883 | 0 | Y |
| 9.6.2.5 | Manage personnel accounts | 10884 | 0 | Y |
9.6.2.1 - Establish and communicate expense reimbursement policies and approval limits
Definition: Explaining policies and procedures related to reimbursements requests by employees. Set policies regarding reimbursement process and amount limits etc. Inform employees.
9.6.2.2 - Capture and report relevant tax data
Definition: Collecting and reporting all pertinent information regarding the taxes paid by the organization's employees.
9.6.2.3 - Approve reimbursements and advances
Definition: Permitting expense reimbursement requests from employees.
9.6.2.4 - Process reimbursements and advances
Definition: Paying for expense reimbursement requests from employees. (Follow Approve reimbursements and advances [10882] according to policies and conditions.)
9.6.2.5 - Manage personnel accounts
Definition: Maintaining accounts of individuals who are connected with business.
9.6.3 - Manage corporate credit cards
PCF ID: 20929
Definition: Handling and authoring credit cards to business entities or for corporate purchases.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.6.3.1 | Establish corporate credit card policies and approval limits | 20930 | 0 | N |
| 9.6.3.2 | Process corporate credit card requests | 20931 | 0 | N |
| 9.6.3.3 | Order corporate credit cards | 20932 | 0 | N |
| 9.6.3.4 | Manage corporate credit card accounts | 20933 | 0 | N |
| 9.6.3.5 | Approve/Change credit limits | 20934 | 0 | N |
| 9.6.3.6 | Cancel/Deactivate credit card | 20935 | 0 | N |
9.6.3.1 - Establish corporate credit card policies and approval limits
Definition: Developing procedures for using company credit cards. Set or approve credit limits.
9.6.3.2 - Process corporate credit card requests
Definition: Handling applications credit card applications for business expenses.
9.6.3.3 - Order corporate credit cards
Definition: Obtaining credit cards for business-related expenses.
9.6.3.4 - Manage corporate credit card accounts
Definition: Handling credit card accounts of business customers.
9.6.3.5 - Approve/Change credit limits
Definition: Authorizing changes to the available credit advances.
9.6.3.6 - Cancel/Deactivate credit card
Definition: Blocking an existing credit card to disable all future transactions.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 26 elements
| ID | Name | Definition |
|---|---|---|
| 9.6 | Process accounts payable and expense reimbursements | Handling bills and reimbursements to be made. Make payments for goods or services taken or used on b... |
| 9.6.1 | Process accounts payable (AP) | Processing payments of operating expenses and other supplier charges. This includes the development ... |
| 9.6.1.1 | Verify AP pay file with purchase order v... | Matching records of bills to be paid with accounts. Check accounts payable entries with vendor's acc... |
| 9.6.1.2 | Maintain/Manage electronic commerce | Tracking all online transactions. |
| 9.6.1.3 | Audit invoices and key data in AP system | Monitoring and evaluating bills registered in accounts books. Check all invoices. Maintain records. |
| 9.6.1.4 | Approve payments | Processing payments for products/services. |
| 9.6.1.5 | Process financial accruals and reversals | Handling transactions for accruals and reversals. Record transactions in the books of accounts on an... |
| 9.6.1.6 | Process payables taxes | Filing the amount of taxes that a company owes as of the balance sheet date. Prepare tax returns, in... |
| 9.6.1.7 | Research/Resolve payable exceptions | Resolving any atypical or inconsistent situation concerning payments to be made by the organization.... |
| 9.6.1.8 | Process payments | Making payments for products/services on due dates (payment cycle) decided by parties involved. |
| 9.6.1.9 | Respond to AP inquiries | Clarifying or address queries relating to the particulars of AP such as date, discounts, amount, and... |
| 9.6.1.10 | Retain records | Keeping bills of every transaction for future reference. |
| 9.6.1.11 | Adjust accounting records | Rectifying for alterations occurred in accounts while recording. |
| 9.6.2 | Process expense reimbursements | Processing reimbursements to employees for the expenses incurred during the course of business. Appr... |
| 9.6.2.1 | Establish and communicate expense reimbu... | Explaining policies and procedures related to reimbursements requests by employees. Set policies reg... |
| 9.6.2.2 | Capture and report relevant tax data | Collecting and reporting all pertinent information regarding the taxes paid by the organization's em... |
| 9.6.2.3 | Approve reimbursements and advances | Permitting expense reimbursement requests from employees. |
| 9.6.2.4 | Process reimbursements and advances | Paying for expense reimbursement requests from employees. (Follow Approve reimbursements and advance... |
| 9.6.2.5 | Manage personnel accounts | Maintaining accounts of individuals who are connected with business. |
| 9.6.3 | Manage corporate credit cards | Handling and authoring credit cards to business entities or for corporate purchases. |
| 9.6.3.1 | Establish corporate credit card policies... | Developing procedures for using company credit cards. Set or approve credit limits. |
| 9.6.3.2 | Process corporate credit card requests | Handling applications credit card applications for business expenses. |
| 9.6.3.3 | Order corporate credit cards | Obtaining credit cards for business-related expenses. |
| 9.6.3.4 | Manage corporate credit card accounts | Handling credit card accounts of business customers. |
| 9.6.3.5 | Approve/Change credit limits | Authorizing changes to the available credit advances. |
| 9.6.3.6 | Cancel/Deactivate credit card | Blocking an existing credit card to disable all future transactions. |
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