Blog / AP Automation, Purchase-to-pay
Sales Compliance is Easy with AP Automation
In this blog series we show how Palette AP Automation makes a difference, role by role, to the people in an automotive manufacturing firm. It highlights how the technology can impact all of the people purchasing and invoice processing touches, empowering roles in the organization with transparency and accountability. In this article we explore sales compliance and approvals for the sales team.
Your role is to work closely with existing customers and break new ground. In the automotive industry, you must remain competitive. A new deal typically consists of at least 4 years of revenue based on the model of the automobile that the part is for, as well as residual sales for service parts.
The Big Three demand that your company reduces its costs over the term of the contract. This is called a Long Term Agreement (LTA). This means the manufacturer will find ways to reduce the cost to manufacture the part for each year of the LTA, reducing the cost of the part to the auto company.
As an example, your company wins the contract to produce a cowl panel for a new model vehicle. The first year it will sell the part to GM for $150 per part. The second year it will sell the same part for $135, and so on, for the term of the agreement.
The performance on delivering what the company has committed to in the LTA includes quality, deliveries, and other factors. The better the company performs, the more parts contracts it is awarded. So it’s important to keep your eye on these things to understand your company’s position with clients.
The one process that touches AP and finance is your expense reporting. You have to maintain a record of your expenses and what each expense relates to. The entire process is usually done in a spreadsheet.
You have no visibility as to where the report is once you deliver it to your manager. Did he turn it in? Is it under review? Has it been rejected? These are things that require you to start writing a chain of emails, starting with AP. Did they receive the expense report? If not, where was it last seen?
On your approvers end, they need to have the ability to look at past expense reports on occasion to ensure that the same expense hasn’t been used multiple times.
“It’s a relief to have corporate policies and procedures programmed in – because that means I’m following them!”
You can photograph or scan all of your receipts into the Palette workflow. You can import credit card transactions which assists AP with processing the credit card statement when it arrives.
All the roles involved in the transaction can see past reports along with approval and payment dates. Paperwork gets minimized. Expense types and GL codes are already programmed into the solution.