My job is to pay the bills, but I paid them TWICE!!!

[FolderWife]

I just need to vent about a liiiiiiiittle problem that I'm having. I pay people twice sometimes, and my boss isn't too happy about it.

 

 

The first instance is this guy came in for his money up front to make some shirts. I THOUGHT he said he was taking half the money now, and half later. So I paid him $1000. Then, the boss laid a bill for the same people for the same amount of money on my desk, with her signature on it. I thought it was the second half.

 

So I paid them $1000 again!

 

So the guy thought we were idiots.

 

As far as I know, that's the first time I ever paid someone twice and didn't catch it. Yes, I've paid a couple of things twice. It's a little more complicated than me simply being an idiot though...

 

For instance, we will have someone's car in the shop, and so they rent a car from a rental company, and bring us the hand written bill from the rental company. The parts manager writes a Purchase Order for the bill, and sends it up to me. Then the rental company will mail a printed bill and the Service manager will write a purchase order for it and give it to me. For some dumb reason, the hand written invoice and the printed invoice have different invoice numbers...so one time, I paid the same bill twice. Once I realized how tricky the rental company's invoicing was, I started paying special attention. Now I don't pay them twice any more.

 

The problem was that I had two Purchase orders for Two bills by two different departments, and each bill had a different invoice number.

 

So it wasn't easy to catch.

 

But I caught it...after I paid it

 

Recently, a man who takes dents out of cars for our company came up to get a check for his work. I was on lunch, so the Office Manager hand wrote him a check. She then posted it in the system, and gave it to me to file.

 

Then, two weeks later, the Sales manager wrote a Purchase order for THE SAME BILL and laid it on my desk. So I input the bill in the system and paid it.

 

I swear two hours after I paid the bill out of the system, the girl who reconciles the checkbook caught that there were two checks written for the same thing.

 

I didn't catch it. But I did research it, and I found that I had just written a check for an invoic that had been paid by the Office Manager.

 

So, first I double pay a rental bill because it had two different invoice numbers, and was approved by two different departments. Then I misunderstand and pay someone for the same work TWICE...a whopping $1000. THEN someone else writes a check, but doesn't do it through the computer like they are SUPPOSED to, so I pay the same bill again!!!

 

Three strikes, you're out, right?

 

I just need a clue as to how to catch that I'm getting Purchase Orders, or Signatures, or what-the-heck-ever TWICE, and not pay the bills twice.

 

I'm sure that EVERY time I've paid something twice I've caught it, but now the owner is all concerned that there are people out there who are getting paid more than once for their services, and her company is losing money...

 

because of me

 

I could blame EVERYONE ELSE for these mistakes, because I am getting invoices approved by two different people. Most the time I catch it, but sometimes it's tricky, and I miss it... but it's MY JOB to pay the bills, and I can't be paying them TWICE!!!

 

The problem is, if I had any of these to do over again, I wouldn't do a single thing different I learned from paying the rental company twice, so now I watch them extra close. However, until I made the mistake, I never watched them like that...

 

So from NOW ON, I'll watch certain things, since I've already made the mistake, but how could I have avoided these mistakes in the first place? Is it ok to just LEARN from my mistake?

[MWC_LifeBeginsAt40]

I agree that you need a procedure change as there are too many hands in the same pot. I would suggest having a meeting with everyone who pays bills, distributes bills for payment, issues PO's, and anyone involved in the approval process.

 

Many accounting systems won't allow the payment of an invoice with the same number twice. Any of our outside work or purchases have to be pre-approved with a PO number. The invoices must have a PO number on them for cross reference.

 

Suggest sending out a letter to all of your suppliers with your "new policy", that being for them not to provide services or merchandise without a PO number from you. All of our vendors are aware that we use a PO system, so joe-employee can't go order a service or part without getting a quote and/or giving them a PO number first (we have our suppliers trained very well to ask for a PO number).

 

I'm not saying this will be easy, and these are just some suggestions, so just meet with everyone and do some brainstorming to start with.

[FolderWife]

That's a good idea Our Accounting system won't let us use the same invoice number twice. My OM paid the bill without using an invoice number.

 

As for the P.O.s, that usually does work. However, people will issue TWO P.O.s sometimes. *sigh*

[Mz. Pixie]

Monday,

 

Good rule of thumb- do not take blame for someone elses mistake. Your boss needs to put in place internal controls over the checks so that not just anyone can hand write a check.

 

Also, there needs to be something in the system that you can look back on. Does each person you pay have a vendor screen? If so before you enter those expenses, double check it against the vendor screen and make sure you haven't already paid it (or someone else hasn't).

 

It's good to learn from your mistakes!

[HokeyReligions]

That's what I've always used -- a vendor screen or vendor file so that I could track what service or goods were provided and whether they had received payment and when. If you don't know for sure, ask before you cut the check. Just like any relationship - you need good communication skills.

 

Use this as an opportunity to organize and improve their system and once you have it running smoothly, negotiate a raise and promotion!

 

Figure out what the problems are and then write down your suggestions for solutions and present them to the folks who make the decisions. Don't just give them the problem -- show your stuff and give them solutions too!

[faux]

It sounds like the system you have in place is very confusing. I agree with the previous advice of setting up a meeting. This is a problem which ends with you, but does not start with you; other people have to approve the pieces of paper that get sent to you. Maybe the system needs to be changed, or at least better explained. In any case, having a meeting to discuss the problems may yield solutions.

 

Good luck.

[greenhorn]

Ok my suggestion goes like this,

 

You raise a purchase order against some quotations, the vendor supplies the item, the item reaches your ware-house or inventory. The inventory manager checks the items, if they conform to the PO then it is marked on the invoice and sent to the Finance department for payment of invoice.

 

If you sell something then your inventory manager decreases its inventory by that amount and then invoice is sent to the finance department which then invoices to the customer.

 

Let's see the checks involved in this,

 

There will never be two purchase orders, as there is only one quotation that is finalised from the many quotations, there will be no two invoice sent for payment as it has to be approved by the inventory manager, who will approve the invoice only when he/she receives the goods.

 

I am sure if the organisation is the small then still there could be similar work flow.

 

This isn't a problem, when the supply chain of companies like Toyota can be taken care of then be assured that your problem will go with little planning, of if you want to hire one consultant then let me know

 

Will give you discount on it