We introduced you to the types of exceptions at two stages in the last post, https://faoblog.com/processes-ap-exception-management-types/
We continue with the list today, these may however be dependent on the process, procedure and authorizations deployed by the client or parent finance and accounting department:
- At the scan point of these documents for processing – this is one of the main areas where the exception can actually be caught
- This is the first stage where exceptions of few kinds can be caught. Some of these are, missing PO information, PO not attached, copy of material receipt not attached, copy of approvals not attached, incomplete set of documents received.
- This is generated since at this stage, normally the documents are “prepped”, that is, they are removed from envelops, arranged, checked for completeness, in some cased indexed as well. We have seen some clients do a blind scan only at this stage, since this is situated on-site, and bringing some intelligence / decision making here might involve extra costs.
- This is also the stage where some exceptions are actually generated. Like illegible scanning, mixed up documents – copies of documents of one vendor attached after another, improper prep done etc.
Exceptions are important, since in a back office / outsourcing engagement, the transition teams do a limited study on these, which leads to additional processing requirements at a later stage.
This will be continued in Saturday’s post.
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