This program will develop your general financial knowledge and awareness and your specific accounts payable expertise by enabling you to:

• Appreciate the importance of the accounts payable function with regard to its links with the supply chain and cash flow
• Use the appropriate tools and techniques to evaluate suppliers and their financial and operational reliability
• Understand the integrated systems of purchase order processing, stock (inventory) control, purchase ledger, and cash payments, and their links with the general ledger
• Effectively manage cash and working capital to reduce costs and improve cash flow
• Consider the impact of risk and uncertainty on the business and its impact on accounts payable and cash flow.

By the end of this course, delegates will be able to:

• Work effectively with the fundamentals of accounts payable, financial accounting, and the supply chain
• Appreciate the processes and procedures involved in the evaluation of suppliers
• Understand and apply the fundamentals of accounts payable systems
• Review and comment on payment methods and cash management
• Analyze the need to incorporate risk and uncertainty into accounts payable analysis

This Course provides a user-friendly environment to develop the knowledge and techniques related to accounts payable, you may be pursuing and developing a career in accounting, purchasing, warehousing and distribution, or stock control, or you may already be employed as a supervisor, team leader, manager, senior manager and director, or vice-president in any of these functions within the business

By the end of this course, delegates will be able to:

• Work effectively with the fundamentals of accounts payable, financial accounting, and the supply chain
• Appreciate the processes and procedures involved in the evaluation of suppliers
• Understand and apply the fundamentals of accounts payable systems
• Review and comment on payment methods and cash management
• Analyze the need to incorporate risk and uncertainty into accounts payable analysis

Course Outline:

Accounts Payable, Financial Accounting and the Supply Chain

• The Accounting environment
• Accounting and financial information
• Accounting terminology
• Sources of finance
• The supply chain
• Financial position and financial performance
• The structure of the profit and loss account (Statement of Comprehensive Income)
• What does the Statement of Comprehensive Income tell us about a company?
• The structure of the balance sheet (Statement of Financial position)
• What does the Statement of Financial position tell us about a company?
• Cash flow and DCF
• Why is cash flow so important?
• The structure of the statement of cash flows
• Capital and revenue expenditure
• Capital expenditure and discounted cash flow

Evaluation of Suppliers

• Suppliers and trading terms
• Suppliers, products, and prices
• Supplier choice
• Terms of trading
• Supplier credit analysis
• Business ratio analysis
• Finding and using data and information
• Tools and techniques of financial analysis: ratios; trends; common size analysis
• The use of financial ratios: profitability ratios; efficiency ratios: liquidity ratios; investment ratios; financial ratios; the DuPont system
• The best performance measure cash or profit?
• Financial distress and the Altman’s Z score-type analyses
• Trend analysis
• Common size (or horizontal) trend analysis of financial statements
• Vertical trend analysis of financial statements
• Segmental analysis of financial statements
• Value added analysis of financial statement

Accounts Payable Systems

• Purchase Order Processing (POP)
• The acquisition payment process
• Purchase requisition
• Purchase authorization
• Purchase order
• Stock (inventory) control
• Goods received
• Returned goods
• Physical stock control
• Links with the general ledger
• Accounts payable
• Invoice registration
• Invoice matching
• Invoice payment
• AP links with the general ledger

Payment Methods and Cash Management

• Methods of Payment
• The payment process
• Traditional payment methods
• Electronic funds transfer
• International payments
• Working Capital and Cash Management
• Working capital and the working capital requirement
• Managing working capital
• Cash improvement techniques
• Cash management and the bank facility (line of credit)
• Leasing versus Borrowing to Buy
• Why lease?
• Operating leases
• Financial leases
• Lease evaluation

Risk and Uncertainty

• Risk Analysis
• Analyzing risk: expected values; value of perfect information
• Risk and uncertainty decision rules
• Scenario, sensitivity, and break-even analysis techniques
• Types of risk
• Risk Management
• Risk management principles
• Talking to your bankers about managing risk
• The analytical tools to manage risk
• How to minimize risk: insurance and hedging
• How to develop the tools for your company

CDGA attendance certificate will be issued to all attendees completing minimum of 75% of the total course duration.