Purchasing card best practices
How to boost your business customers
How can you take a strong P-Card program and make it even better? Check out these five “best practices” for ensuring the effectiveness of your P-Card scheme! How can you take a strong P-Card program and make it even better? Check out these five “best practices” for ensuring the effectiveness of your P-Card scheme!
Even before implementation, great research is needed to create a great P-Card program. Doing your homework ahead of time will result in a better overall experience. Consider how your P-Card program would work in conjunction with your current payment system. Consider the benefits and drawbacks of using P-Cards. Now is the time to decide what you want from your P-Card scheme. Create policies and procedures to assist you in achieving your objectives.
A test run is beneficial if you are implementing a completely new program or merely applying a new policy or process to an existing one. Before fully revising or introducing a P-Card program to your business, conduct a pilot program with a smaller group of people to see how well it works. Consider this your “beta” period, in which you can find issues and work out the “bugs” in your P-Card software until it’s completely integrated into your company’s expense program.
Best practices for accepting government purchase cards
This is an executive summary of the NAPCP’s “Purchasing Card Best Practices: The Key Elements of Building a World-Class Program,” which was recently revised. NAPCP members and free users can access the full report at www.napcp.org/BestPractices2015.
Employees who are responsible for making transactions or payments on behalf of their employer are given Purchasing Cards (P-Cards). P-Cards are accepted by suppliers, which use the existing credit card infrastructure to process payments. A supplier’s point-of-sale (POS) device captures transaction data and sends it through the card…
Are you in charge of processing Travel/Corporate Card transactions? Even if your policies and procedures manual is comprehensive, managing travelers who know how to use the system, cash, and receipts isn’t always simple. “We’re on to you,” our panelists claim. The top ten list below, written in the style of David Letterman, provides sound advice for…
Understanding the inherent benefit of switching business-to-business payments from conventional, paper-based approaches to electronic systems is the first step in building a business case for a Corporate Card program.
Purchasing card risk and fraud in the information age
5. Set card limits to prevent workers from spending more than they should. In your p-card scheme, you can also consider various degrees of restrictions (e.g., a lower amount for employees, a higher amount for department managers).
11. Enforce anti-misuse measures.
Clearly state what is wrong, and execute it consistently. Employees would be less likely to violate the rules if they see someone being punished for doing so.
Ensure that the team is transparent with cardholders and supervisors on the improvements that have been made and the new controls that have been implemented. The coronavirus pandemic’s timing, combined with more remote work, will help us understand why such precautions are being taken.
As your p-card program evolves, it can be helpful for your team to collect input from existing and new cardholders through a fast survey or brief meetings. Are there any regulations that are vague and can cause problems with compliance? Do they have any other best practices that might help your p-card scheme, maybe from their colleagues or other companies?
Learn how american express works with sap ariba solutions
A purchasing card implementation that involves onerous cardholder record keeping and poorly structured transaction review processes can tarnish the shiny silver bullet for reducing cost and complexity via a robust purchasing card (PCard) program. While the benefits of using purchasing cards are widely acknowledged, the best method for establishing a control environment that properly balances risk and enforcement costs is still up for discussion.
Creating successful audits and controls for purchasing card operation was the subject of a recent PeercastTM in the Corporate Card research sector, which featured a large manufacturing business with hundreds of operating locations throughout the United States and Canada.
Purchasing cards have been an important resource for minimizing cost and complexity at this business over the last decade due to the large number of locations. Currently, about 20% of the workforce has a passport, which can be used for all travel and expenditures, miscellaneous materials, convention and meeting expenses, training, and any unforeseen expenses. Purchases for manufacturing goods, tax-exempt purchases, gift cards or other cash equivalent items, and payments to individuals or unincorporated companies are all specifically forbidden.