Herb Cannon

Here is an idea that will help you to save some time in processing your accounts payable.

Typically when an invoice is input it into our accounting system, the first thing we do is to look up the vendor number. We refer to an alphabetic listing of vendors that references their numeric or alpha numeric vendor number. We then write this number on the invoice or voucher before entering into the Accounting system.

I personally like to use a a numbering system that saves the step of looking up the vendor number.

Here is how you can do it too.

1) All Vendor Numbers are the first 3 letters of the company name + the last 3 digits of their street address. For example:

AEC Management Solutions Inc. 183 Higgins Road

The Vendor Number is AEC183

This information is right on their invoice. It saves us the trouble of looking it up. If you are not the one doing the accounts payable processing, it may not sound like much of a time saver - but just ask your AP clerk. It will save them hours of useless work every month.

I personally like to use a a numbering system that saves the step of looking up the vendor number. -- Herb Cannon

2) The vendor number is always 6 digits and I add "Zeros" as needed to the beginning of the street address. For example:

AEC Managing Partner, Inc. 23 Higgins Road

The vendor number is AEC023

3) Employees are always the first 3 letters of their last name + the first 3 letters of their first name. For example:

Herbert M. Cannon

The vendor number is CANHER

4) Handle exceptions on an exception basis. For example, many companies have corprorate American Express cards that are paid directly by the employee. Since each card has the same mailing address, I use something like AMEX01, AMEX02 and so on.

Give this system a try and let me know what you think.

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