Software helps to automate internal processes for cards
By Staff -- Purchasing, 11/18/1999
After developing and implementing a purchasing card program in 1995, the Idaho National Engineering & Environmental Laboratory (INEEL) ran up against some challenges. "We needed to ensure the integrity and long-term viability of our purchasing card program," says Jodi Maheras, director of procurement."Previously, it took two months or more for card transactions to become visible in the general ledger," says Maheras. "This is because statements arrived every 30 days and reconciliation took another 30 days. Departments found this unsatisfactory because it was too difficult for them to keep track of their expenses."
INEEL's nearly 500 cardholders make approximately 1,700 purchases, totaling $700,000 each month. These purchases are less than $4,500 each, and are funded from a variety of sources. Therefore, expenses need to be allocated among multiple funding centers. "With fewer procurement personnel, and an increase in the number of small-dollar purchases, Credit Card Solutions Inc.'s (CCSi) P-Card Solution helped us get the job done," says Lindsi Shippen, purchasing card administrator. Here's what the software helps INEEL accomplish:
- Makes card transactions more visible to cardholders, managers, accounting, auditing, etc.
- Creates a robust interface with the financial system, accommodating more than 30,000 charge numbers annually and allowing expenses to be allocated to various funding sources.
- Gives cardholders capability to find suppliers online and track purchases more effectively.
- Provides more robust reporting and management tools for the program administrator.
The P-Card Solution helps cardholders at INEEL save time, paper, and hassle. Features they most value include capability to search for supplier information and to fill in details about a purchase when convenient and capability to have unique log number assigned to a purchase by the P-Card Solution. This log number can later be used by INEEL's central receiving department to look up the appropriate internal address for delivery. Receiving personnel also save time because of this functionality.
At INEEL, cardholders receive an electronic statement of transactions once a month. After reconciliation is complete, they electronically forward their data onto their approving official. The approver, after reviewing the transactions, continues the process by electronically sending the data to the general ledger. No rekeying is necessary, nor are "exception" reports generated when the data is fed into the GL, since all charge numbers are validated at the time they are entered.
"P-card Solution software moves us toward the cutting edge of technology and customer service, empowering our people to run their projects and budgets successfully," says Shippen.
CCSi also is in the process of helping INEEL make a different type of transaction flow efficiently throughout the company. The decision to hire CCSi for this task, instead of creating an in-house solution, was made in large part because of CCSi's history of delivering on time and on budget, the company's consistency in providing an excellent product, and its knowledgeable and insightful staff.
Purchasing Card Solution helps INEEL automate all internal processes--from ordering new cards, to placing orders, to receipt of goods, to uploading reconciled statement information into the financial system. Automating these internal processes helped increase visibility and added robust reporting capabilities for all users (cardholders, managers, auditors). In addition, having up-to-date information about the amount that would be costed allowed for quicker payment and enabled ineel to take advantage of prompt payment discounts from the bank.
Now, cardholders can efficiently track purchases and easily access information about prior purchases. Charge numbers are validated at the time they are input, increasing accuracy of information being uploaded into the general ledger. The transactions can be electronically forwarded to each cardholder's approving official for online review prior to sending the data to the GL. Increased audit and surveillance capabilities with the P-Card Solution allow the program administrator to keep a close eye--in real time--on all purchases made throughout the company. No longer is a paper statement with more than 2,000 line items manually audited each month. Instead, ad hoc reports are easily generated to closely watch potential trouble spots without having to review each transaction.
In addition, "increased visibility provided by The P-Card Solution also allows us to watch for repeat buys happening throughout the company, giving procurement the information it needs to evaluate the most effective acquisition methods for each type of purchase," says Maheras.
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