Accounts Payable is rising to the challenge to align with the Premier’s Digital by Default declaration, progressing a number of projects as part of its paperless strategy.
The Paperless Payments initiative is well underway to migrate vendors who currently receive cheque payments to Electronic Funds Transfer (EFT) and electronic remittances.
Of the 2.4 million invoices processed on behalf of client agencies each year, approximately 88% were paid by EFT at the start of the initiative. Shared Services SA has been working to transition the remaining 12%, which are paid by cheque and comprise a mixture of payees, including suppliers, employees (seeking reimbursements) and scheme specific payment recipients (e.g. members of the public receiving concessions).
Significant consultation has occurred with client agencies to better understand these unique processes and more than 4,500 vendors have been approached by Accounts Payable to obtain their bank account and email address details.
A key focus of this engagement has been to highlight that payment via EFT is a faster more economical payment option that benefits both vendors and the South Australian Government.
Through the above process, the latest figures indicate that 94% of all payment are now being made via EFT and this is expected to increase further over the next few months.
Similarly, Shared Services SA has commenced a paperless inputs project, to migrate the receipt of invoices and payment request vouchers from physical to electronic methods by 30 April 2017.
On average, Accounts Payable receives 6,500 invoices and payment requests per day. Of these, 75% already arrive electronically, predominantly by email, while the remaining 25% arrive in physical form.
Shared Services SA is contacting suppliers who currently post invoices and monthly statements to identify alternate electronic methods to forward invoices and payment requests to Shared Services SA.
These paperless initiatives will help to continue to improve the SA Government’s accounts payment performance, which as at December 2016 was 96.62% of invoices paid within 30 days or less.
Further information on these initiatives is available from www.sharedservices.sa.gov.au/ap-paperless-payments.