AFP Publications

Pocket Essentials: Credit, Collections, Concentration and Disbursement Members: $15.50 Non-Members: $20.50 Format: Book

Summary

Credit and accounts receivable management, collections, cash concentration and disbursements are four processes that are inextricably linked. This primer explains how one process feeds the other as the organization aims to maintain liquidity and optimize cash resources.

Excerpt

Accounts Payable and Disbursements Process

Objective: Disburse available funds mobilized in the Cash Concentration Process to vendors, suppliers, employees and other payees in a timely and costeffective manner.

Key considerations in the management of the Accounts Payable and Disbursements Process include such factors as:

• Configuration of the disbursement system in light of the company’s need for centralization vs. decentralization of payments.
• Determining the amount of net liquidity available for investing, or the financing required after considering the accounts payable and other obligations which must be released from the disbursement system.
• Managing disbursement float without disrupting trade and commercial relationships.
• Using risk management and fraud prevention techniques to protect and safeguard the company.
• Using innovative disbursement products and methods, such as imaging and Web-based invoice presentment and payment platforms.

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