All 21 Payment Runs questions
More in Payment Runs
What is the difference between a manual payment and a scheduled payment run? What is a payment file and how is it sent to the bank securely? How are invoices selected and prioritized in a payment run? How does an early-payment discount decision get evaluated? What is a payment proposal (pre-run) and how is it reviewed? How are supplier credits and deductions applied within a payment run? What is the difference between ACH, wire, and check payments in terms of risk and cost? How does a purchasing card (P-card) program change AP payment processing? What is a virtual card and why do companies use it for payments? How are payment holds and blocks managed within the run process?
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Accounts Payable & Receivable › Payment Runs

What controls should surround a payment run to prevent errors and fraud?

Intermediate

Answer

Controls include segregation of duties (preparer vs approver/releaser), dual authorization of the payment file, review of a pre-run proposal/exception report, positive pay with the bank, limits and duplicate checks, secure transmission of the bank file, and reconciliation of the run total to postings. These prevent unauthorized, duplicate, or altered payments.
Real-world example The payment file requires two authorizers to release, and positive pay lets the bank reject any check not on the issued list.

Common follow-ups: What is positive pay? | Why review the payment proposal before release?

Invoice Processing Reconciliations Payment Runs
All 21 Payment Runs questions