Sometimes a vendor’s account settlement can be an issue. The company may have a good procedure within the receiving section ensuring that the quantity and the quality of the goods received are correct. However, in the case of the test basis applied, the person performing the receiving function may not detect the defective materials until they are issued and found at the production lines. In this case, a claim from the vendor has to be made. The accounts payable accountant is involved in this transaction. The management will want to know the progress of this situation, and consider necessary actions to prevent future problems.

Make Suggestions for Improvement

Businesses have to move very fast to respond to the unexpected rapid changes of today. Every department has to constantly think about how to increase its efficiency to meet challenging targets. That includes the accounting department. All functions must work as one. It is wasteful to the company when we cannot progress in the same direction. Most business transactions from other departments relate to accounting work. For example:

• Production – The production output is used for cost transfer to finished goods, and for ending inventory balance confirmation.

• Purchasing – The purchase order form is matched with the invoice from the supplier to ensure the accuracy of the purchasing transaction.

• Sales and Marketing – The sales margin is measured and checked for any mistake in price set-up or standard cost entry.

• Engineering – An engineer who needs additional budget items would like advice from the accounting department on getting approval.

• Quality – The result of bad quality raw material means higher production costs from scrap expenses. The rejected incoming materials may lead to credit note preparations by the accountant.