Ch 13 Matching

Front 1

PownalCompany was sent an invoice for goods that were never received. The invoice waspaid in full.

Back 1

(Match invoice, PO, andreceipt)

Front 2

Dewey,Inc. has several vendors who do not send invoices in a timely manner. Terms forpayment are based on dates that goods are received, and discounts are beinglost due to the late receipt, entry, and payment of these invoices.

Back 2

(Tickler file of open POs and receivingreports)

Front 3

WashingtonCompany processes invoices in batches. The accounts payable program performs athree-way match of the invoice with the PO and receiving report. Those thatmatch are recorded on the accounts payable master data. Those that do not matchare printed on an exception and summary report. Some of these invoices arelegitimate but are never recorded.

Back 3

(Proceduresfor rejected inputs)

Front 4

BettySaunders, the cashier at Southwick Company, has been writing small checks toherself for many months. No one has noticed.

Back 4

(Reconcile bank account)

Front 5

Ona weekly basis, Pete, the cash disbursements clerk at Dalton Company, preparesa batch of payments, including some to himself, and sends the batch to thetreasurer for approval. Pete has worked out a deal with Sue, who works in thetreasurer's office, to approve these batches, and they split these fraudulentpayments.

Back 5

(Independent authorization tomake payment)

Front 6

Invoicesare received at Becket Company via an EDI feed over the Internet. Some of theseare fraudulent invoices from bogus vendors.

Back 6

(Compareinput data with master data, e.g. vendor master data)

Front 7

Vendorinvoices are sent to clerks in the AP department at Rochester, Inc., where theyare entered once each day to create a file of invoice data that is thenprocessed by the accounts payable program each evening. Several errors havebeen found in the invoice data.

Back 7

(Batchcontrol plans)

Front 8

Theaccounts payable program at Dallas Company compares incoming invoices to openPOs and receiving reports. The reject rate is very high, so Jane, the AP clerk,went into the program and changed the tolerance limits so that more invoiceswould pass the matching process and she would have fewer rejects to correct.

Back 8

(Program change controls)

Front 9

WebsterCompany ordered 15 widgets from Rosen, Inc. Only 12 widgets were received; theother three were on back order at Rosen. An invoice for 15 widgets was receivedat Webster, recorded, and eventually paid.

Back 9

(Matchinvoice, PO, and receipt)

Front 10

BobDaniels, a clerk in accounts payable at Amherst Company, has a cousin who ownsa small office supplies company. Bob's cousin periodically sends invoices toBob for office supplies that Amherst never ordered or received. Bob creates aone-time vendor record and records the invoice. Once recorded as a payable, theinvoice gets paid.

Back 10

(Access controlsoftware)

Front 11

Avendor invoice was posted to the wrong vendor record in the accounts payablemaster data because the data entry clerk transported digits in the vendor identificationnumber.

Back 11

(Check digit, a programmed edit)

Front 12

Severalscanned invoice documents were lost and did not get recorded.

Back 12

(Reconcile batch totals)

Front 13

Theamount of a cash disbursement was what the cash disbursements clerk hadauthorized prior to running the disbursement program.

Back 13

(Run-to-run totals)

Front 14

TheAP clerk prepares a list of proposed payments that is based on due dates andvendor payment terms. Many of these payments are not approved by the cashdisbursements clerk due to lack of funds.

Back 14

(Cashplanning report)

Front 15

Thevendor invoiced for goods that were never delivered. The invoice was paid inits full amount.

Back 15

(One-for-one checking ofthe receiving report and the invoice)

Front 16

Theunit prices the vendor charged were in excess of those that had beennegotiated. The invoice tendered by the vendor was paid.

Back 16

(One-for-one checking of the purchase order and the vendor invoice)

Front 17

Avendor submitted an invoice in duplicate. The invoice got paid twice.

Back 17

(Match invoice with PO)

Front 18

Becauseof several miscellaneous errors occurring over a number of years, the total ofthe outstanding vendor payable balances shows a large discrepancy from thebalance reflected in the general ledger.

Back 18

(Reconcilerun-to-run totals)

Front 19

Severalelectronic invoices were misrouted to an organization. The invoices werereceived, input, and paid, but the organization had never purchased anythingfrom the vendors that were paid.

Back 19

(Matchinvoice with PO and receiving report)

Front 20

Goodsreceipts from a certain vendor are always on time. However, the invoices fromthis vendor are often late or never received. As a result, the organization haslost significant amounts of money by failing to obtain cash discounts for promptpayment.

Back 20

(Tickler file of open purchaseorders and/or receiving reports)

Front 21

WashingtonCompany receives batches of vendor invoices once each day via an EDI feed froma VAN. Some of these invoices are from vendors that do not do business withWashington.

Back 21

(Compare input data withmaster data, e.g. vendor master data)

Front 22

ColchesterCorp. often loses discounts on payments to vendors because of cash flowproblems.

Back 22

(Cash planning report)

Front 23

Fred,the AP clerk at Dalton Company, has grown tired of resolving discrepanciesamong vendor invoices, POs, and receiving reports. To make his life easier andto reduce rejects, he changed the AP invoice program to allow large variances.

Back 23

(Program change controls)

Front 24

Twiceeach week, Sally, the AP clerk at Mystic Company, selects a batch of vendorinvoices and sends them to Gary, the clerk in cash disbursements. Occasionally,after Gary makes the electronic payments, it is discovered that not all thepayments were made or were made incorrectly.

Back 24

(Reconcile run-to-run totals)

Front 25

Conway,Inc. receives electronic invoices through a Web portal hosted by a third party.Some of these invoices are not correct. After investigation, it is discoveredthat the invoices were altered in transit from the vendor.

Back 25

(Digital signature)

Front 26

Vendorpayments are made on a weekly basis at Westfield Company. Gary, the cashier,looks over the invoices that he has received and makes payments as needed. Someof those payments are to bogus vendors who have not provided any goods orservices to Westfield.

Back 26

(Segregate dutiesbetween accounts payable and cashier)

Front 27

LudlowInc. ordered 30 circuit breakers from Burlington Electric. Only 25 breakerswere received; the other five were on back order at Burlington. An invoice for30 breakers was received at Ludlow, recorded, and eventually paid.

Back 27

(Match invoice, PO, and receiving report)

Front 28

GranbyCompany often does not receive invoices in a timely manner and cannot recordthem in time to take advantage of payment discounts.

Back 28

(Tickler file of open POs and receiving reports)

Front 29

Norma,the cashier at Scarsdale Company, has been writing checks to herself. Thisfraud has gone undetected for years.

Back 29

(Reconcilebank account)

Front 30

AtFarmington Company, all incoming invoices are matched against open POs andreceiving reports. When Janet, the purchasing manager, is performing thismatch, she sometimes can't find a PO and so she prepares a PO to cover theinvoice.

Back 30

(Segregate duties amongpurchasing, receiving, and accounts payable)