What is standard industry practice for Accounts Payable doing re-classes after an invoice has been paid?


Q. (cont.)

I have worked in several different A/P departments and the overall practice was A/P would not be allowed to re-class post payment for SOX compliance only Accounting could make changes at the GL level. Please provide some thought on this process.


We polled our editorial panel to get their experiences dealing with the situation your describe. Here are their responses:

The Accounting folks processes the re-classes, not A/P in my organization.
Pam Buda M.B.A.
Accounts Payable Manager
St Luke’s University Health Network

Accounting is the only one who handles re-classes once an invoice is paid.
Michelle Beall
Payables and Corporate Operations Manager | Nexion Health Management, Inc.

The University of Maryland Medical System requires a journal entry to move the costs from one GL account to another once an invoice has been paid. The JE is initiated by the budget owner and directed to Decision Support (Budget). AP is out of the loop, even if a keying error resulted in the reclass.
Bethany M. Mezzadra, APM-D, APPM, MBA
Director of Disbursements
University of Maryland Medical System

Here at Cameron/Schlumberger, we really try to leave re-classes between the business and accounting where possible. On another front…In an outsourced AP environment…re-classes for purposes other than keying errors can be considered as “add-on” costs to the contract. Effective way of holding the business accountable for right time-first time posting.
Chris Dritsas
Accounts Payable Manager – NSAM Financial Hub
Cameron, a Schlumberger company

If we make a keying error within our team, WE process the re-class request. If this was an issue where the approver provided the wrong information or wants it corrected, then they go directly to our General Accounting team for the re-class.
Tracy L. Zurcher, Manager, A.P.M.
FedEx Services: Global Disbursements, CBS

Our A/P staff processes the re-class but someone else in Accounting will post the batches.
Pamela Thomas, APM
A/P Supervisor
Swift Energy Operating, LLC

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