It’s mid-season and time to reintroduce the “MMQ” concept: during football season in the US, sports reporters, commentators, and fans wake up on Monday morning and start calling, posting, emailing, and voicing their opinions on all aspects of the games played the day before in an exercise that is called playing “Monday Morning Quarterback.” It is a great sports pastime and a huge cottage industry. The debates or conversations are often informative and interesting and they can sometimes get heated; but the best part is that anyone with an opinion can chime in.

In a similar vein, on many Mondays during football season, we will present a “Monday Morning Query” where we pose a question to our readership that has been gnawing at us or is something that we feel is worthy of reflection. Perhaps the debates or conversations will get heated; we hope they are informative and interesting. Most of all, if YOU have an opinion, please chime in.

MMQ: Should Procurement Own Accounts Payable?

The question is not one of convenience, necessarily, but one of process or value.

The Context

Whatever challenges a Chief Procurement Officer and the entire procurement department face within the enterprise, the sledding is that much tougher for accounts payable (“AP”).

First, there is no Chief Payables Officer – to take up the charge, begin a transformation effort, or drive Best-in-Class performance – nor will there ever be.

Second, accounts payable is the red-headed, step-child (i.e. not a favorite or high-profile group) of the finance department.

I have had novice procurement departments preen to me about their superiority over AP. “You may think we’re bad, but that is nothing compared to our accounts payable department. Chuckle, chuckle.” OK, you win – but what game do you think you are playing?

Yes, sourcing may be sexier and far more interesting than payables (truth be told, we find it more interesting to cover); but the accounts payable process is part of the procure-to-pay or (source-to-settle) process. And, it is an important part of the process at that (which is why we cover it).

Procurement departments in the middle of their own overhaul may not be ready or equipped to tackle AP; but CPOs, who have their houses largely in order, may be looking for a new challenge to tackle….. and, AP may fit the bill.

Is anyone in your enterprise looking at AP? Have you looked at AP recently? You may see the opportunity. You may find that the accounts payable department is worth owning.

Tagged in: ePayables, Monday Morning Query, P2P, Source-to-Settle