I'm trying to reduce the time I have to spend tracking down executives for approval on expenses that I am not aware of. I don't believe there should be a threshold for these costs. If we were to provide a PO requisition form and once the requisition form submitted to AP, we'd create an internal PO. Benefits: Up front know to anticipate the expense, know the G/L account, and reduce time getting chasing down approvals after the invoice arrives. Waiting for approvals is a distraction from completing the processing of AP. The PO would be closed out when the invoice comes in. It would be beneficial for expense accruals. Please note there is a system in place for COGS expenses for validation of cost but it cannot be used for anything that is considered non-billable. I realize this may not be standard practice, but I'm looking for support for my position and the best way to scope this out to the powers that be.
I want to deploy a PO process for internal expenses. My boss is reluctant indicating the company owners will not comply with the process.
Your benefits do not include any benefit to the executives, so your boss is wise to advise you not to get bothered about it.
Unless and until the execs see the WIFFM (what's in it for me?), they likely won't go along. So instead of pushing an efficiency play, what can you identify as valuable and appealing to the execs?
At the end of the day when it comes to business - money talks.
In order for internal systems to run smoothly and cost efficient, standardizing processes are the solution. Buying individual items, keeping track of the deliveries, matching them with corresponding invoices and retroactively obtaining approvals are all "processes" that can be reduced to an absolute minimum. And this, irrespective of the amount of money involved.
If we were talking about a manufacturing environment, this discussion would be mute. In factories, It is simple common sense, that the cheapest process is the one that can be eliminated. But when it comes to the office environment, managers are not handling processes. Their work is considered "intellectual creative activities" and therefore, they should not be bothers with routine tasks that could interfere with important mission.
Still wonder, why the backoffice in most companies is the "overhead department". A necessary costly burden, run by people who are too arrogant to even understand to dilemma.