Effectively Managing & Organizing Accounts Payable

Effectively Managing & Organizing Accounts Payable

OBJECTIVES

• Work effectively with the fundamentals of accounts payable, financial accounting, and the supply chain
• Appreciate the processes and procedures involved in the evaluation of suppliers
• Understand and apply the fundamentals of accounts payable systems
• Review and comment on payment methods and cash management
• Analyze the need to incorporate risk and uncertainty into accounts payable analysis

WHO SHOULD ATTEND?

• This program provides a user-friendly environment to develop the knowledge and techniques related to accounts payable
• You may be pursuing and developing a career in accounting, purchasing, warehousing and distribution, or stock control
• Or you may already be employed as a supervisor, team leader, manager, senior manager/director, or vice-president in any of these functions within the business
• The benefits of this program may be gained by anyone employed within these roles in any organization

COURSE OUTLINE

DAY 1 – Accounts payable, financial accounting and the supply chain

The Accounting environment

• Accounting and financial information
• Accounting terminology
• Sources of finance
• The supply chain
• Financial position and financial performance
• The structure of the profit and loss account (Statement of Comprehensive Income)
• What does the Statement of Comprehensive Income tell us about a company?
• The structure of the balance sheet (Statement of Financial position)
• What does the Statement of Financial position tell us about a company?
• Cash flow and DCF
• Why is cash flow so important?
• The structure of the statement of cash flows
• Capital and revenue expenditure
• Capital expenditure and discounted cash flow (DCF)

DAY 2 – Evaluation of suppliers Suppliers and trading terms

• Suppliers, products, and prices
• Supplier choice
• Terms of trading
• Supplier credit analysis
• Business ratio analysis
• Finding and using data and information
• Tools and techniques of financial analysis: ratios; trends; common size analysis
• The use of financial ratios: profitability ratios; efficiency ratios: liquidity ratios; investment ratios; financial ratios; the DuPont system
• The best performance measure – cash or profit?
• Financial distress and the Altman’s Z score-type analyses
• Trend analysis
• Common size (or horizontal) trend analysis of financial statements
• Vertical trend analysis of financial statements
• Segmental analysis of financial statements
• Value added analysis of financial statement

DAY 3 – Accounts payable systems Purchase Order Processing (POP)

• The acquisition/payment process
• Purchase requisition
• Purchase authorization
• Purchase order
• Stock (inventory) control
• Goods received
• Returned goods
• Physical stock control
• Links with the general ledger
• Accounts payable (AP)
• Invoice registration
• Invoice matching
• Invoice payment
• AP links with the general ledger (GL)

DAY 4 – Payment methods and cash management

Methods of Payment

• The payment process
• Traditional payment methods
• Electronic funds transfer (EFT)
• International payments

Working Capital and Cash Management

• Working capital and the working capital requirement
• Managing working capital
• Cash improvement techniques
• Cash management and the bank facility (line of credit)

Leasing versus Borrowing to Buy

• Why lease?
• Operating leases
• Financial leases
• Lease evaluation

DAY 5 – Risk and uncertainty

Risk Analysis

• Analyzing risk: expected values; value of perfect information (VOPI); standard deviation
• Risk and uncertainty decision rules
• Scenario, sensitivity, and break-even analysis techniques
• Types of risk

Risk Management

• Risk management principles
• Talking to your bankers about managing risk
• The analytical tools to manage risk
• How to develop the tools for your company
• How to minimize risk: insurance and hedging

Location: Guangzhou – Shanghai

Date:  22 – 26April 2024