ACH PAYMENTS

All vendor payments over $25,000 must be paid by ACH payment. If you are dealing with a vendor who will require a $25,000 or greater payment and is not already set up as an ACH vendor, the following forms must be sent to the vendor:

DISTRIBUTION

Copies of invoice/vouchers are no longer distributed to the departments. All vendor invoices must be approved by the department before Accounting can process payment. If a department has processed a goods receipt on a purchase order, no further approval is necessary for Accounting to proceed with vendor payment.

Warrants are mailed directly to vendors by the State of Nebraska, Department of Administrative Services. The State has implemented a Single Warrant Writer system which prints, folds and seals the warrant and prepares it for mailing, all in one operation.

Vendors no longer receive a copy of the invoice/voucher with the warrant, but see the vendor invoice number(s) or other information needed to identify the payment on the new warrant stub. There may be situations where a department or vendor needs to arrange for pick up or other special handling of a warrant instead of having it mailed by DAS. In these cases, the invoice must be clearly marked with any special handling instructions.

There are no changes to the distribution of payments related to the Visiting Personnel & Miscellaneous invoice (speakers, honorariums, etc.) or the Warrant Request invoice (refunds of revenue). These warrants are printed on the new form but will still be forwarded to the originating department.

INVOICE & VOUCHER PROCESS

he Invoice/Voucher is a computer generated form produced from the accounts payable system. It is the official University of Nebraska cover form used to submit non-payroll vendor and other bills to the State for check writing. The original Vendor Invoices, Visiting Personnel forms, Employee Expense Reimbursements forms and other documents are all attached to this form.

PAYMENT FOR GOODS AND SERVICES

When a vendor sends a bill for goods or services provided, departments have one of four ways to request payment. These are:

• Parked Invoice - Department enters the invoice into SAP, writes the SAP document number in red in the top right corner of the original bill and forwards it to Accounting for processing.
• Direct Pay - Department sends the original bill with an authorized department signature and the cost center to charge to Accounting for processing.
• Framework (an open-ended or blanket purchase order) - Department sends the original bill with the framework number written on it, an authorized department signature and the cost center to charge (if necessary) to Accounting for processing.
• Purchase Order - Department sends the original bill with the purchase order number written on it and either a goods receipt number (for online SAP users) or an authorized department signature to Accounting for processing.

When paperwork is received in Accounts Payable, it is audited, entered into SAP and sent to the state for a check (warrant) to be cut using the Invoice/Voucher process. The Department of Administrative Services (DAS) sends the warrant directly to the vendor unless the department requests otherwise.

ACCOUNTS PAYBLE MANAGEMENT

Accounts payable outsourcing of automation tasks to Heka helps clients enjoy a number of benefits that work to their ultimate advantage.

• High accuracy
• Superior quality
• Low cost of operation
• Real-time tracking and reporting
• Reduced annual accounts payable ledger costs
• Centralized control over payables across the enterprise, despite of the actual physical location
• Error-free accounts payable process
• Support by accounts payable specialist at no extended cost

Accounts Payable Process

Outsourcing accounting services offer a number of benefits that improve profitability, enhance sustainability, and add to the market advantage. However, careful selection of service provider is critical to make the outsourcing objectives work and high quality of services is maintained throughout. Accounts payable management solutions by Heka support services takes care of all client concerns on cost and quality. Our accounts payable process includes the following steps and quality check assuring the best possible product delivery.

ACCOUNT RECONCILEMENT SERVICES

Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as Positive pay.

FIXED ASSETS INTERVIEW QUESTIONS

1) Define what is meant by the terms "Capital"and "revenue"items in connection with fixes assets?

2) How to change assets class in fixed assets module in SAP? I made a wrong entry regarding the asset class?

3) What is the difference between different depreciation methods?

4) What is various means of calculating depreciation?

5) What experience have you had in fixed assets accounting?

6) After run depreciation i have forget calculate depreciation of one asset then how to calculate depreciation of that asset?

FIXED ASSETS

A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time.

Fixed assets are sometimes collectively referred to as "plant".

LAW OF VARIABLE PROPORTIONS

Thye producvtion function shows thje maximum quantity of the output that can be produced per unit time for each set of alternative inputs, given the best available production technology avialble. In the short run at least one of factor of production remains fixed. Fir instance , in the case of an agriculture production function, various alternative commodidties of labour or capital per unit of time may be used in realtion a fixed amount of land. The total product curve increases rate first until the point inflection, after which it starts incresing at a decreasing rate, reches its maximum and then starts decling. The average product labour is then obtailed from toal product divided by the number of units of labour / Capital used. The marginal product of labour represents the change in TP per unit change in the quantity of labour capital used.

The shapes of curve determines the shape of the AP and MP curves. The APl at anypoint on the TPl curve is given by trhe slope of the straight line from the origin to that point on the TP curve. The AP curve usually first rises , reaches a maximum , and then falls, but remains positive as long as the TP is positive. The MPl is equal to the slop of the TP curve, reflecting the change in output due to a unit change in inout betweem the two points. The MP curve is also rise first, reches a maximum and then delines. The MP becomes zero when the TP is maximum. This is the law od dimnishing returns.

If labour is factor input considered , the relationship between the APL and MPL curves can be used to define the three stages of production. Stage I starts from the point where the APl is maximum tot he point where the APL maximum tot he point where the MPL is zero.

DEMAND ANALYSIS AND FORECASTING

Demand is crucial fr the survival of any business enterprises. A firm's own profit and or sales depend mainly upon the demand for its product. A management's decision on production, advertising, cist collenction, pricing inventory holdings, etc.all requires an anlysis of demand. Demand anlysis attempts to identify and measure the factors that determine sales, on the basis of which alternative methods of manuplating or managing demand can be worked out. Demand forcating attempts to estimate the expecterd future demand for a product, which helps to plan production better. In this context, it is important to understand the types and determinants of demand and their relative importance Demand is broadly classified is :

• Demand for consumersgoods and producers goods.
• Demand for perishable and durable goods.
• Derived and automomous demands.
• Firm and industry demands, and
• Demand by total market and by market segments.

THEORY OF DEMAND

The theory and anlysis of demand provides several useful insights for business decision making. Demand for a commodity is defined as the quanity a consumer is willing to purchase at the prevalling price, given sufficient purchasibng power or income for that purpose. As against the demand of an individual consumer or house hold, the manager of a firm may consider the market demand which is the aggeregation of demand levels of all the consumers at a given price.

CASH TO CURRENT ASSET RATIO

Effeicient management of the inflow and outflow of cash palys a curial role in the overall performence of a business. Cash is the most liquid form od\f assets which safeguards the security intrest of a business. Cash including bank balance plays a vital role in the total networking capital. The ratio of cash to working capital significance the proportion of cash to the total net working capital and can be calculated by dividing the cash including bank balance by the working capital.

Cash to Working Capital Ratio = Cash / Working Capital

Cash is not an end in itself, it is a means to achieve the end. Therefore, only a required amount of cash is necessary to meet day to day operations. a higer proportion of cash may lead to shrinkage of profits due to idleness of resources of a firm.

CURRENT RATIO

The mosrt widely used measure of liquid position of an enterprise is the current ratio. The ratio os the firm's current assets to current liabilities. It is calculatd by dividing current assets by current liabilities:

Current ratio = Current assets / Current Liabilities

The current assets of a firm represent those assets which can be in the ordinary couse of business, converted in to cash wiht in a short period of time, normally mot exceeding one year and include cash and bank balance, marketable securitties, debtors net of provision for bad and doubtful debts, bills receivable and pre-paid expences.

The current liabilities defines as liabilities which are short-term maturing oboligations to be meet, as originally contemplated, wiht in a year, consist of treade creditors, bills payable , bank credit, provison for taxation, dividends payable and outstyanding expences.

Current assets shouid be twice of the current liabilites. If the current assets are two times of the current liabilities, there will be do no adverse effect on business operations when the payment of current liabilitie is made. If the ratio is less than 2, difficultly may be experienced in the payment of current liabilitiew and day to day operations of the business may suffer.

If the ratio is higer than 2, it is vety comfortable for the creditors but, for the concern, it indicates idle funds and lack of enthusiasm for work.

CAPITAL STRUCTURE OR LEVERAGE RATIOS

Finaincial strength the soundness of the financial resources of an organisations to perform its operations in the long run. The parties associated with the organisation are intrested in knowing the financial strenth of the organisations. Financial strength is directly associated with the operational ability of the organisations and its efficient management of resources. The financial strength analysis can be made with the help of the following ratios :

• Debt - Equity Ratio
• Capital Gearing Ratio
• Financial Leverage
• Proprietery Ratio and
• Intrest Coverage

CASH FLOW ANALYSIS

While funds flow anlysis studies the reasons for the changes in working capital by anlysing the souces and application of funds, cash flow analysis paya attentions to changes in cash position that has taken place between two accounting periods. These reasons are not available in the traditional a statement known as a cash flow statement. A cash flow statewment summarises the change in cash position os the concern. Transaction which increase the cash position of the concern are labelled as "inflows" of cash and those which decreases the cash position as " out flows " of cash.

FUNDS FLOW ANALYSIS

The purpose of this analysis is to go beyond an behind the information contained in the financial statements. Income statement tells the quantum or profit earned or loss suffered for a particular accounting year. Balance sheet gives the assets and liabilities position as on a particular date. But im an accounting year a number of financial transactions take a place which have a bearing on the performence of the concdrn but which are not revealed by the financial statements. For E.g: A concern collect finance throug various sources and uses them for various purposes. But these details couid not be known from the financila traditional statements.

Funds flow analysis gives an opening in this respect. All the more, funds flow analysis gives an opening in this respect. If there is an increase on working capital what resulted in the increase and if there is a decrease in working capital what caused the decreases, etc. will be made available through funds flow analysis.

RATIO ANALYSIS

Of all the tools of finanacial anlysis available with a financial anlyst the most important and the most widely used is ratio analysis. Simply started ratio anlysis is an analysis of financial statements done with the help of ratios. A ratio expresses the relationship that exists between two numbers and in financial statement anlysis a ratio shows the relationship between two interrelated accounting figures.

The accounting figures may be taken from the balance shhet and the resulting ratio is called a balance shhet ratio. But if both the figures are taken from profit and loss account ratio. Composite ratio is that which is calculated by taking one figure from profit and loss account and the other figure from balance sheet. A detailed discucssion on ratio analysis is made in the pages to come.

ACCOUNTS PAYABLES OUTSOURCING

Most financial organizations spenda large part of their financial budget on processing Accounts Payables. This is due to the largeky manual effort required to enter invoices in to the accounting system and, if applicable, match those invoices to purchase orders and receipts.

While AccountsPayable is critical to ensure that authorised invoices are paid accurately, it is often not managed to world-class standards due to the time and expences required to implement best practices.

ISs your organizations untilizing Accounts Payable best practices to stay in control? If you can answer YES to the following questions, you are :

• We know how many invoices we receive on a monthly basis ?
• We have definesd and well-docimented business rules for matching invoice to PO's and receipts and approval levels that are followed explicitily by managers and Accounts Payable staff ?
• We catch all duplicates invoices and have very small tolerance for invoices that do not match the PO or receipt ?
• We know the number and dollar value of outourcing invoices (liabilities) befor they are approved ot matched ?
• We know how many of our invoives do not match the PO or receipt and why ?
• We know which of our managers have invoices in their inboxes waiting for approval and their dollar value ?
• We have images of all invoices and can look them up on the web to reduce the volume of phone calls to our staff ?
• Let our vendors llok up invoice informations and payment status on the web to reduce the volume of phone calls to our staff ?

LARGE RETAILER

One of the Largest retailer in its industry, with stores dispersed around the southwest, was facing growth challenges as it continued the consolidation of its industry. The client had plans to add over 150 stores with in 5 years, yet suffered from a lack of accurate and timely financial and operational information due to poor processes and systems. Management recognized that a better information was needed to understand where its strategies were working or not working.

Most importantly, the client was spending valuable management its time handling back office issues and personnel instead of accounting outsourcing and manage its back office. New process were we developed in all areas including daily cash and accounts payable accounting. Comprensive business rules were developed to handle all ecpections and IQ Back office's proprietry and imaging solution was employed to rapidly resove issues with store managers and head quarters.

IQ back office is also implementing a management dashboard and data warehouse to allow to client management to understand what is happening with their business in real-time along every dimension of the business. The client was able to eliminate their accounting department and has saved significantly in its back office costs. Most importantly, client management can now focus on its business, armed with meaningful financial and operationa informations to ensure they make the right decision to grow quickly and profitably.