P-cards pack purchasing power
When your staff needs ink for the office printers, how do they get it? If your organization is like a growing number of companies, you’re using purchasing cards, or p-cards, to streamline the process.
Manufacturers that traditionally have generated purchase orders, collected invoices and cut checks for small-ticket expenditures are turning to p-cards to reduce the costs associated with their routine buying processes. Automating small purchases (often no more than $2,500) allows you to control spending without relying on cumbersome paper-based procedures.
P-cards function like credit cards, but with significantly greater control and accounting capabilities. Available from several providers, including major credit card companies, p-card systems can be integrated into your e-procurement or ERP systems to fully automate the procurement-to-payment process.
You can tailor your card to your company’s specifications. For example, you can control the number of transactions allowed in a designated time period, the number and names of users, total spending (by the month or the day), and even the suppliers from whom p-card purchases are permissible.
You also can structure the card system to automatically report Level III, line-item detail on every transaction. In addition to recording the date, total amount and supplier for each transaction, the card can capture the number and description of every item that’s purchased, as well as freight charges, the merchant’s ZIP code and other relevant data.
As you do with any new technology, you need to be careful in implementing p-cards. Review available plans to see whether they can accommodate your requirements and can be integrated into your existing systems.
In addition, don’t forget to ask about the information security each provider offers to protect transactions. Also, establish training and monitoring protocols to ensure those who use the system do so effectively and honestly.
For more information about our services to inventory based businesses,
Contact: Mark Walker, Partner, Director of Inventory Based Businesses Practice at 817.882.7724.
The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.