13 - Accounts Payable Department (1)

School: Louisiana State University - Course: ACCT 3122 - Subject: Accounting

Accounts Payable Department

The Accounts Payable Department • The accounts payable department is responsible for accurately tracking what's owed to suppliers, ensuring payments are properly approved and processing payments. • The accounts payable department's responsibilities include: • Ensuring good relationships with suppliers to avoid inventory shortages by ensuring that suppliers are paid on time to gain favorable payment terms and discounts. • Avoid cash shortages and optimize working capital. • Prevent losses due to fraud and mistakes

Payment Fraud is a Big Problem for Organizations

Payment Fraud Business Email Compromise (BEC) • Business email compromise (BEC) is the most common method used to commit payments fraud. • Scam artists use emails to dupe accounting departments into transferring funds to illegitimate accounts. • Fraudsters spoof URLs and send emails pretending to be vendors or company senior management requesting either a change in bank account information or a transfer of funds to a fraudulent account. • This fraud grew during the pandemic because • With employees working from their homes, the ability to verify an email with a colleague was more challenging. • Also, there was a shift from a paper-based/in- person process to electronic methods for check printing and approvals