Accounts Payable Backlog Invoices Pending for

Validation

Submitted to

Mr. Christer A. Lopez

Submitted by:

Baliwag, Aljienar J.

Magadia, Ryan M.

Mendoza, Lizza R.
 Accounts Payable Backlog Invoices Pending for Validation

I. Introduction

Accounts Payable (AP) Analysts administer outgoing bills/invoices and accounts on

behalf of their organization. These measures might include utility payments,

merchandise or product accounts, employee expense reports and reimbursement.

Some of the other particular responsibilities associated with the job included: most

employers’ needs accounts payable clerks to have received at least one senior high

school diploma or its knowledge. While some employers provide entry-level positions

that do not need prior experience or education, they nearly usually present preference

to prospects with some years of accounting-related experience or some formal training.

For the reason, would be accounts payable analysts frequently seeks degree’s degree

in business, finance or payroll system.

II. Analysis

There are two types of invoices being processed in AP. One of which are the critical

invoices included on manual posting, such as utility, employee reimbursements and

other events. Another type are the semi-auto vouch invoices that are being received by

the warehouse and needs validation before payment be processed. Currently, manual

invoices are being addressed and posted in time and encounters minimal issues that

are easily resolved and executed. On the other hand, semi-auto vouch invoices are

having bulk of backlogs that are not able to be validated in time that causes adjustment

on WD’s
books by the end of the month. Since the un-validated invoices are being paid without

AP’s checking, adjustments for over payment and under payment is rampant. These

affects the performance of the company as a whole and reliability is also at risk. AP

consists of the following analysts, 105 – Analyst I who are the entry levels, 106 –

Analyst II, considered as senior analyst, 107 - Team Lead, who provides direct

supervision on the process. Both 105 and 106 Analysts are being given the same tasks.

III. Objective

The objective of this study is to identify the problems and solutions that can be

implemented in order to improve the efficiency of invoice processing in Western Digital’s

Accounts Payable systems and minimize backlogs of non-verified invoices that needs

validation prior to payment processing.

IV. TOWS

Threats Opportunities
-audit findings -performance

-customer complaints -process flows

-reliability -distribution of tasks

-volume
TOWS

Weaknesses Strengths
-manpower -routine-based process

-monitoring -longer payment terms

-evaluation

V. Alternative Courses of Action

 ACA I. To identify and implement proper distribution of tasks to maximize

the headcount.

ACA II. Allotting extended hours to address minimization of backlogs until

the number decreases.

ACA III. Evaluate individual performance to justify if additional headcount

is needed.

VI. Recommendation

ACA I. To identify and implement proper distribution of tasks to maximize

the headcount.

VII. Conclusion

Proper distribution of task will ensure that the work is being done correctly

and timely. It is important to note that there are many different ways to handle a

payment account and each method has its own set of requirements. The critical

invoices should be given to senior analyst, since, aside from the fact that they are

being paid higher than the entry level and they have stayed in the company

longer than 105 analysts, they can be more responsible and cautious in handling

manual invoices. While non-critical invoices or semi-auto vouch invoices should

be given to the entry levels because these invoices doesn’t require detailed
attention compare to manual invoices, but more on volume and mere validation

or checking for accurateness.