Thursday 15 March 2012

Large Company Invoices

Hi Platinum,

I would like to know, how are invoices filed in a large company?

Also, when it comes to paying off credit card liability for each period, who will decide how much is to be paid back to credit card company?

Thanks for your help.
Sammy

1 comment:

  1. Thanks for your question, Sammy.

    In large organisations, invoices are usually filed by batches. Different AP clerks will look after different letters. All invoices should be processed in FIFO order, unless it is really urgent. The processed invoices will be batched up and uploaded in the system. Each batch, say 100 invoices, will be assigned one batch no. That is the key for you to relocate the original tax invoice for later days.

    When the company is in the positive healthy cash position, credit card debt should be paid in full to avoid interest charges. Once all charges have been approved by the managers who supervise all card holders, payment should be transfered to the credit card company by accounts payable. It is like the invoice companies have to pay. But the Financial controller usually has the ultimate authority to approve the payment online.

    Florian

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