All 21 Payment Runs questions
More in Payment Runs
What controls should surround a payment run to prevent errors and fraud? 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? What is a virtual card and why do companies use it for payments? How are payment holds and blocks managed within the run process? How do payment runs support cash flow and working capital management? What is positive pay and how does it prevent payment fraud? How are cross-border/foreign-currency payments handled in a payment run? How do you reconcile a payment run to the bank and the ledger?
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Accounts Payable & Receivable › Payment Runs

How does a purchasing card (P-card) program change AP payment processing?

Intermediate

Answer

P-cards let employees buy low-value items directly, replacing many small invoices and payments with a consolidated card statement AP reconciles and pays once. It slashes transaction volume and cost per transaction and can earn rebates, but needs spend limits, merchant controls, receipt capture, and review to prevent misuse.
Real-world example Moving thousands of small purchases onto P-cards cuts invoice volume sharply and earns a year-end rebate.

Common follow-ups: What controls do P-cards require? | How do P-cards reduce cost per transaction?

Vendor Management Reconciliations Payment Runs
All 21 Payment Runs questions