Question

In: Economics

Evaluate the reasons why the economic growth of Nigeria vs. the Democratic Republic of the Congo (Civility vs. Chaos) varied.

Would it be appropriate for the user entering vendor invoices to reconcile one or both of the two general ledger accounts In SAP?

Solutions

Expert Solution

In any particular firm, vendor payments make for a significant cash outflow. Account payable (AP) administrators usually reconcile vendor statements for the sake of efficiency. Even though this activity might be time-consuming and laborious, it has several advantages and is sometimes ignored. Every operational function, including vendor reconciliations, must be efficiently executed and leveraged to guarantee optimal business performance. When entering vendor invoices in SAP, the user can reconcile one or both of the general ledger accounts. Any delay in invoice processing might cause future supply to be disrupted and settlement discounts to be lost (Renouf, 2016). As a result, if any identification of vendor invoices can't be found, organizations must ask the vendor to resend the papers, which causes payments to be delayed. Similarly, if invoices for erroneous suppliers are entered into the accounting system, your company will pay the wrong vendor.

When the proper vendor inquires, the organization may also pay this vendor, resulting in a duplication of payment and accounting mistakes. By comparing invoices to vendor statements, such duplicate payments may be prevented. Duplicates can be recognized even if vendor reconciliation is only done after payment. As a result, you will s well as claims and returns that have not been credited (Chadha, 2020). Recognizibe's ability to take the required actions to correct the errors. Vendor reconciliation in SAP allows you to discover discounts that have yet to be passed on by the vendor, ang such papers decrease the amount of money your company has to spend on a provider. Such deductions should be posted as soon as feasible to maximize cash flow. A timely vendor reconciliation report indicates that the organization is entitled to money back.

 References

Renouf, H. (2016). Contracts and invoices: Some business basics. Child Care5(10). https://doi.org/10.12968/chca.2008.5.10.37397

Chadha, A. (2020). Why and How to perform Vendor Reconciliation? | TRC Consulting. Trcconsulting.org. Retrieved 7 September 2021, from https://www.trcconsulting.org/blog/why-and-how-to-perform-vendor-reconciliation.

 

 


Account payable (AP) administrators usually reconcile vendor statements for the sake of efficiency. 

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