Transcript Powerful P-card Productivity Practices

Powerful P-card
Productivity Practices
Session 11
About the Speaker
Larry Brang, APM
Director of Commercial Services – America’s
Merck & Company, Inc.
Larry holds the position of Director Commercial Services - America’s at
Merck & Company, Inc. In his role, Larry is responsible for the Charlotte
Commercial Services Team with responsibility for providing centralized
transactional processing services in the areas of Procure-to-Pay,
Record-to-Report, and the Billing and Accounts Receivable components
of Order-to-Cash. In addition to the Charlotte team, the Procure to Pay
team located in Mexico, also reports to Larry. Previously, Larry held key
management positions with Schering-Plough Financial Shared Services
Center and Pfizer.
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Learning Objectives
• How to select the right p-card type
• Various applications of p-cards
• Basic components of an effective p-card program
• Controls available with various types of p-cards
• Visibility to spend information from p-cards
• Managing enrollment
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Select the Right
P-card Type
• Individual p-card
• Ghosted/Supplier p-card
• e-Commerce p-card
• Single use p-card /p-card preloaded with $ limit
• Virtual card
• Accounts payable card
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Various Applications
of P-card
• Individual p-card
― Low-Dollar/High-Volume non-preferred supplier
• Ghosted/Supplier p-card
― Preferred Supplier contract to ensure compliance i.e. limo services,
equipment leases, etc.
• e-Commerce p-card
― High volume catalog purchases
― Eliminate invoice processing
• Single use p-card/p-card preloaded with $ limit
― Single high-dollar purchase or some specific project spend
• Virtual card
― Secure method of buyer initiated payments
• Accounts payable card
― Great change management tool to drive preferred method to p-card.
Used as a communication vehicle and identifying end users/suppliers
who should be using a p-card.
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Components of
P-card Program
• Policy clearly defining the appropriate uses of p-card
• Process owner for p-card program
• Supplier engagement
• User enrollment/effective training
• Receipt retention/reconciliation process
• Audit guidelines
• Electronic uploads direct to ledger
• Rebate from p-card supplier
• Reporting
• 1099/1042/sales and use tax requirements
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Controls available
with P-cards
• Supplier restriction – SIC code
• Commodity restriction – UNSPC code
• Transaction limits—individual and aggregate—limit exposure
• Account coding – defaulting by attribute
• Automated methods to identify potential sales/use tax exposure
• Card $ limit
• Spend visibility and ability to analyze spending for trends,
exceptions, etc.
• Cardholder accountability
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Visibility to P-card Spend
• P-card supplier reporting tools
• Data capture:
― Level 1: Purchase header related
― Level 2: Merchant and tax related/diversity data
― Level 3: Purchase line Item related
• Supplier aggregation/other reporting –
diversity compliance
• Tax compliance
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P-card Enrollment
• P-card provider enrollment process and electronic
workflow routing and approval
• Enrollment form to include necessary data
requirements, such as:
― Transaction limits
― Supplier/Commodity limitations
― Accounting codes to default with criteria
― Card type
― Policy attestation
― Required training
― Approvals: program manager, expense center manager and
procurement manager over commodity area.
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Questions
To ask a question, please press *1
on your phone or submit your question
using the chat function within the
Webinar interface.
If you have further questions,
please e-mail them to
[email protected]
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Thank You!
For further information on this topic, contact
The Accounts Payable Network
2100 RiverEdge Parkway, Suite 380
Atlanta, GA 30328
Contact: [email protected]
866-827-6389
770-984-1184
www.TAPN.com