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AP Supervisor and Invoice Entry

Tammy Corley's Profile

Should this practice be allowed? I say absolutely not. The processor and Supervisor hats cannot be worn by the same person.

Answers

Anonymous
(Client Services Finance manager, North Americ) |

My AP Supervisor/Manager reports directly into me (Client Services Accounting director) - in emergency situations, I will allow them to enter invoices with the stipulation that any payment selections which are ran for the invoices she entered must be reviewed and signed off by myself prior to processing the payment.

Tammy Corley
Title: AP Supervisor
Company: Weir SPM
(AP Supervisor, Weir SPM ) |

Here is my dilemma: I am the supervisor and we had a team member involuntarily taken and moved to AR leaving us sorely short handed. I was forced to take over my own set of vendors (all vendors with names starting with "L" through "R". So, how do I supervise as well as be a full time processor?

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Your concern (as per your response) is more of WORK LOAD than conflict of interest. I DISAGREE with your view that an AP Supervisor canNOT or should NOT ("absolutely not") process AP and at the same time "supervise". Your responsibility as a Supervisor is not only limited to "checking" but to make sure that all AP is processed (accurately) As long as there are other "checks and balances" along the process (i.e. Accounting Manager, Controller, CFO), this is can/will work. The previous comment about caveats in processing will also work. Each company has to decide on how stringent their checks and balances should be. Work load concerns are directly tied to efficiency and overall AP process.

Also, it depends (a bit) if the personnel change is temporary or permanent.

Topic Expert
Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

I agree with Emerson. Your core question is one of workload, not conflict of interest, and there is no conflict of interest.

The only hats that should not be worn by the same person are authorizing transactions, recording entries, moving cash around with respect to those entries...and being the final authority on checking your own work.

In most environments it's a plus to jump in when the company has a great need because it shows that you're a team player.

If you're in an environment in which you feel continually taken for granted and that is the reason for your resistance, then worry less about your workload and start looking for a different position...or negotiate a better relationship with the people who matter to you in your current position.

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