Little is as frustrating as missing out on a prompt-pay discount your company was eligible for. Not only that, it can set A/P back light years in terms of being viewed as a cost center.

The kicker? Rarely is it A/P’s fault that a discount slipped through the cracks. Usually it’s the work of slow-moving approvers that robs you of cash that’s rightfully yours.

Get what’s yours

There are three ways to light a fire under those folks that are working for your peers:

1. Have the mountain come to Mohammed. Little chance invoices will get lost if they never leave A/P. Think about having approvers swing by once a week, every other day, etc. to approve purchases there.
2. Make discounts hard to miss. Approvers may not realize just what’s at stake. A $2 rubber stamp can change that. Some companies stamp “discount at stake” on invoices before they go out for approval. Hard to justify dragging your feet after that. Let’s them know you’re watching.
3. Teach an expensive lesson. If you’ve tried everything else and discounts are still slipping through the cracks, you could try a little pain in the pocketbook. You might charge back the department that missed the discount the amount you would have saved. Bet they won’t make that mistake the next time!

Because it’s considered the most productive day of the workweek, every Tuesday we’ll offer a strategy to make finance departments more efficient.

Tags: Accounts Payable, approvals, discounts, streamlining, vendors