Is there a document around best practice of not having your employee reimbursements within your AP module?


Our trainer and practitioner expert, Judy Bicking, says:


While I don't know of formal documentation, a VMF best practice is to not have employees in the AP system to prevent fraud.  For T&E, the best practice would be to pay through a system separate from AP or via payroll.

The theory is, if the employee is in the VMF, they could create and possibly pass erroneous invoices through and get paid. If they don't get in the VMF in the first place, they can't fraudulently pay themselves through AP.

Some companies implement a policy that they will not purchase anything from an employee who has a side business in order to keep them out of the VMF.  For example, an employee who does calligraphy ... rather than pay them as a supplier, they hire someone else to do that side work who is not an employee.

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