Standard operating procedure for purchase invoice processing at Company X
Uusitalo, Elisa (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024052113814
https://urn.fi/URN:NBN:fi:amk-2024052113814
Tiivistelmä
This product type thesis was commissioned by a Finnish technology company, which also served as the author's employer at the time. The project originated from the author's realization of the challenges associated with the value added tax (VAT) treatment of international purchases within the company's Accounts Payable department. The primary objective for the thesis project was to create a Standard Operating Procedure (SOP) to standardize the handling of purchase invoices and support daily work related to international VAT issues.
The thesis's knowledge foundation relied on a theoretical framework encompassing financial accounting, the purchase-to-pay process, VAT treatment in both domestic and international contexts, and the characteristics of standard operating procedures, all from the perspective of accounts payable. The functional aspects of the thesis included process mapping, data collection, and the development of the SOP, using literature review, digital tools, qualitative interviews, and process analysis as key methodologies.
The output of the project was an SOP tailored for the Accounts Payable department, covering the whole accounts payable process. It also included a section for VAT treatment guiding on accurate selection on all cases relevant to the commissioning company. The SOP was also recognized as applicable for training new employees and benefiting other finance and procurement personnel. The SOP aimed at enhancing procedural consistency, reducing errors, and improving compliance with VAT regulations across international transactions.
The project resulted in an SOP that met the needs of the commissioning company. Although not all anticipated benefits had materialized by the end of the thesis project, one of its merits was the identification and immediate correction of erroneous entries previously made in accounts payable. This project not only immediately benefited Company X by improving the clarity and compliance of procedures, but it also promoted the author's professional development by enhancing her expertise in handling international purchase invoices and related processes.
The thesis's knowledge foundation relied on a theoretical framework encompassing financial accounting, the purchase-to-pay process, VAT treatment in both domestic and international contexts, and the characteristics of standard operating procedures, all from the perspective of accounts payable. The functional aspects of the thesis included process mapping, data collection, and the development of the SOP, using literature review, digital tools, qualitative interviews, and process analysis as key methodologies.
The output of the project was an SOP tailored for the Accounts Payable department, covering the whole accounts payable process. It also included a section for VAT treatment guiding on accurate selection on all cases relevant to the commissioning company. The SOP was also recognized as applicable for training new employees and benefiting other finance and procurement personnel. The SOP aimed at enhancing procedural consistency, reducing errors, and improving compliance with VAT regulations across international transactions.
The project resulted in an SOP that met the needs of the commissioning company. Although not all anticipated benefits had materialized by the end of the thesis project, one of its merits was the identification and immediate correction of erroneous entries previously made in accounts payable. This project not only immediately benefited Company X by improving the clarity and compliance of procedures, but it also promoted the author's professional development by enhancing her expertise in handling international purchase invoices and related processes.