Aufinia

#AUDITDATALEADERS

In China you don't need to record the third party, just put the bank out against a cost account

 

Why have we got all this bank out to cost?

 

It’s normal, in China, you don’t have to put the third party.

 

Yeah, but how do you know who you are paying?

 

Well, there’s a payment log in SAP? I guess someone could check that.

 

But how do you know what your supplier and customer balances are?

 

Why do we need to know that?

 

Ok, but how do you know you aren’t paying the invoices too early?

 

Our suppliers are actually usually quite happy when we pay them early, so yeah, that’s something we are proud of here in the China office.

 

Ok, but how do you know you aren’t paying a supplier too much or two times the invoice?

 

We keep a track of it in Excel, do you want to see it?

 

Why not just track it in SAP?

 

The last boss said it’s not a good idea to track it in SAP directly in case the auditors noticed something.

 

Noticed what?

 

Ermm, not sure… he didn’t say

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