One manager for both Cash AP 2298

  • HI,
    We are in Container finance business and our financials are in SAP.
    As part of SOX team we are to advise our CFO - Can the one person lead both AP and the treasury team? in other words Can both AP as well as the treasury team report into the same Manager ? Is there any issue /challenge from a SOX/controllership perspective.

    Your advise will be of great help.

  • In principle you could have one person lead both teams, provided that:

    • no individual has access to both processing invoices and paying them, including the team leader.
    • appropriate recs are perfromed independently of those doing the processing e.g. bank rec done outside of this team
    • appropriate review and approval of payment runs happens
    • additional review of ‘manual payments’ is required
    • segregated processing of purchase orders and goods receiving
      It may be the case that, especially for PO-type invoices, where you have a 3-way match enforced by the system (SAP does this) that payments are largely automated and that the control is enforced through invoices needing to be matched to a PO and goods received documentation. Here your main risks are either:
    • non-PO invoices i.e. for services, rent, etc where there would be no GRN
    • any overrides to the 3-way match (outside an appropriate tolerance)

  • Thanks a lot for you inputs, I will put these points in my meeting.
    Best Wishes,

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