We have one project on "manual payment optimization." Most of these payments are identified as statutory/regulatory payments, either posted as AP or as non-AP payments (directly through GL entries). Can you suggest best practices for manual payments?


We understand your question to be about payments for taxes and other government payments for which there is no invoice.

Often companies handle these by submitting an internal (in-house created) invoice form that includes the payee, delivery information, amount to be paid, G/L code and an authorized signature.

There are a few options for the payments, but our expert on this question recommends payment by either EFT (direct debit) or credit card by the tax or legal department. Tax department staff would go online to the appropriate government web site and authorize a direct debit (EFT) or a credit card payment. If credit card, the tax/legal department should review the statement. If EFT, the tax/legal department should send a screenshot of the payment confirmation number to accounts payable; AP would make a prepaid entry into the accounts payable system. They need the screenshot with confirmation in order to do the bank reconciliation.

So taking a state sales tax payment as an example:
• Tax department goes onto the state website.
• Fills out sales and use tax form on-line—the last section is a place to enter bank information for DD or CC (these data are memorized after the first setup).
• After the form is completed and "entered," a confirmation number and summary sheet is shown.
• Tax department prints this screen and sends to AP.
• AP makes pre-paid entry.

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