In exception management I shared a list of stages where an exception can be generated. Read about it at http://faoblog.com/processes-ap-exception-management-identification-stages/ if you missed it.
What are the types of exceptions at each stage?
Let us cover each of the stages where the exception was generated and then discuss the key steps for exception management.
- At the time of material dispatch / delivery by the vendor, including receipt by the client
- The typical exceptions at this stage are short / excess dispatch of material, material damaged in transit, material stolen in transit, material damaged on downloading, defective material / not as per specification, services not properly performed, outcome rejected by service receiver, delay in material delivery, sometimes early receipt of material also plays a part.
- At the time of submission of the documents or supporting with the claim (though not detected at this stage)
- Incorrect documents submitted, having a different quantity / rate / amount as compared to the delivered material, goods receipt note not attached, incorrect tax calculated, tax exemptions not accounted for, reduction for damaged / stolen material not adjusted, bill submitted in spite of rejection by receiver of services / material
I will continue on this in the next post as well.
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