Managing payments: Reducing delays in vendor payment

• Main Author: Tejuco, Angel O.
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Accounts payable; Cash management; Electronic funds transfers; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/7036
• Institution: De La Salle University

This action research paper tackles the difficulties and challenges being encountered when paying invoices on time. The objective is to reduce the number of delayed payments by examining the process and determining the factors that affect the timing of payments. This paper describes how certain issues, such as the meticulous and time-consuming gathering of requirements to process the payments were addressed while applying the concepts and framework of action research. This paper applied two action research cycles of which every cycle discussed how methodologies of research cycles where used. In the first cycle, the identified issue was the timing of sending the payment clearance to approvers. The review of the payment clearance takes time and was thus affecting the timing of payment release. Payment clearance are being put on hold until the documentations needed by the approvers are fully provided. The methodology used in this research is the action research cycle using different tools such as the ORJI (observation, reaction, judgement and intervention). The method of inquiry used was Schein’s three types of inquiry and utilized Torbert’s four parts of speech. While applying the solution provided from the first cycle, we noticed a vital gap in the process and thus the need for second cycle. Invoices that were already reviewed and included in the payment clearance where susceptible to being paying twice. During the second cycle, first person inquiry used the tool Ladder of Inference to analyze my thinking process and how it affects the research. The application of these tools and techniques in doing the action research enabled me to understand better the thinking process which starts from within (first person), then to engaging others (second person) and reaching to other sources of information (third person).