Vendor Management
Proper Vendor Inactivation
In order to determine the vendors that made invoice payments in 2015 (hence, they do not have a year of no payment history), our team used the FILTER tool in Excel in order to isolate vendors that had orders after November 18th, 2014. Once those vendors were isolated, we used the CONCATENATE tool to set up the STATA function “drop if Vendor_name”. Once this function was entered into STATA, the program dropped vendors that did have a year of payment history. This let us with a worksheet of vendors’ orders that have been paid over a year and since had no payment history. We used the “conditional formating” function in order to isolate and remove the duplicate vendor entries.
Our team found 393
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Additionally, when the addresses of the employees were compared to the vendor payment historical list, we found six instances where payments have been issued to addresses of employees, as mentioned above in the section titled “Vendor Approval”.
Multiple Active Vendors
Due to business growth and expansion, vendors may have multiple active vendor records, but they should have unique vendor numbers and remitting addresses. To examine if the vendor master file followed this business rule, we ran some tests in Excel. We used the concatenation, sort & filter, and conditional formatting functions to identify the duplicates and then reviewed each vendor.
The total number of active vendors is 3,697. We found 434 duplicates active vendor name out of 779 instances of multiple active vendors with unique vendor numbers and remitting addresses. There are 345 unique vendors that have multiple active vendor records where there mailing address is different. Please find the table below for some instances that the vendors have multiple active vendor records with different mailing addresses.
Vendors and Tax I.D.
Different vendor entities should have different Tax IDs and vendors with multiple vendor records should have the same Tax ID. In order to test if the client’s vendor master file followed these guidelines, we used the same method. First, we analyzed the Vendor Master file using ACL and
Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.
CalendarLookup – this relationship is defined by the link between a set of dates, and the subsequent client order at the company.
There are several red flags in the invoices. There are several invoice numbers that are repeated and have an A at the end of the repeated invoice.
First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.
Another recommendation is to eliminate the batch process so that payments can get to the suppliers at a faster rate and decrease the number of supplier complaints, summarized on Table 7 (Page 7). This will eliminate the muda of the extra time needed to un-batch the invoices so that information can be relayed to suppliers quicker.
How long has the vendor been providing these services? Ask for references that are at least 5 years old and ensure that these references are current clients. This will help to ensure that you are dealing with a company that not only knows how to obtain clients but also knows what it takes to maintain clients.
3. A. enters the name of the vendor if the name is on the vendor list
I need clarification on PO 129159. The PO was issued to Vendor 4018, Elite Comfort Solutions, LLC, with a remit to address of P. O. Box 73949, Newnan, GA 30271. The invoice on this order was issued by Elite Foam, Inc., with a different remit to address of P. O. Box 300072, Duluth, GA 30096-0030. I don’t have sufficient information to know the relationship between the two company to determine if these companies are the same or should be separate vendors in our system. Form the W9 information, Elite Comfort Solutions is a single member LLC, and Elite Foam is a Corporate.
Target is basically asking its vendors to do for them what they are not doing for others. Target is trying to cut corners, labor, and sweat by placing the work on the vendors. I see this being a good thing or a bad thing for the vendors. This could be good for vendors because it will bring in more revenue for them. It will also motivate competitors to demand special products as well.
Today a mishap transpired with an order that appeared to be incomplete. Although, this had not been caught until the entire order was on the truck. All the contents were cleared to find the two missing boxes, which caused three extra hours of unnecessary work. However, this occurrence rarely happens and can be avoided in the future by double checking orders to their invoices.
d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)
Under 15 U.S.C. § 1681k(a) which outfits a purchaser report for work purposes and which for that reason orders
Commands: I did a count command on the Shipping document number column, and the sales invoice number column, and both columns contained 383 records. I also visually skimmed the columns to make sure there were no blank cells. I then performed a duplicates command on both columns to make sure there were no duplicates, and each sales invoice had a unique shipping document number.
Lastly, despite the quick admission of new vendors, the bargaining power of software vendors remains the biggest concern for any type of business; this is due to the high switching cost associated with data migration and training.
The sharing of the information can be accomplished through the issuance of Request for Information (RFI), Sources Sought Notices and clearly written RFPs. Buyers should also pay particular attention to the feedback given by the supplier in the supplier’s section. Buyers should be very specific in the description of their needs both technical and managerial in the RFP. This will serve to further reinforce and clarify their resource needs to the suppliers. Because a supplier’s qualifications are critical to the success of the work being performed on any contract, suppliers should be vetted through a process that is thorough and comprehensive. According to Porter-Roth (2002), typical information a supplier should provide includes; “a brief history of the supplier’s firm, the suppliers installation and maintenance offerings and capabilities, the relationship between the supplier and each manufacturer and how long this relationship has been in existence, evidence that the supplier has the necessary technical skills, technical staff, and financial resources to perform the contract, a list of currently installed systems, and names of customers with similar configurations….and who can provide references” for the