Internal Control Of Accounts Payable Management On SAP System In S Company

From the reform and opening up to now, our socialist market economy has become more sophisticated, competition between enterprises also become intensified.With the drive of economic interests and the imperfect social credit system,enterprises are facing many risks and pitfalls in accounts payable. For enterprises,accounts payable management process is essential to the daily production activities,and as the main channel for cash flows, the management and control of business accounts payable is particularly important. Therefore, sound internal control helps accounts payable eliminate the risk of the cash payments, protect the integrity of corporate assets, maintain good business reputation, reduce procurement costs as well as enhance the anti-risk ability of enterprises, so that enterprises in a competitive market also have a place under the economic environment.This paper take S company as the research object, partly because S company is one of the companies that early use the SAP system in China. On the other hand, due to the special nature of S company business, accounts payable occupied a larger proportion of financial operations, so S company pay more attention to cope receivable management. Basing on the literature to sort and research, we introduce the related concepts. With theory and case study, through understanding and analysis the accounts payable processes, identify risk point and internal control point, and to consider all factors, analysis the reasons for the existence of the risk, and then in the company’s existing accounts payable processes of internal control combined with the five elements of internal control optimization proposal that based on enterprises information and internal control constraints of integration. At the same time, this study provides the reference of accounts payable internal control for other companies.Through the case study of the internal control of accounts payable based on SAP system in S company, there are some research results which are displayed below the content. First one is that payable lack of good internal control environment. The second is that accounts payable control risk assessment mechanism is not perfect. Thethird is that payables control activities have problems. Apart from those, poor accounts payable information communication. Last but not least, internal oversight payable imperfect. Combining with the accounts payable internal control problems of S company and its characteristics, we put forward the corresponding optimization measures. The measures include optimizing existing internal control environment,improving risk assessment mechanism, improving accounts payable process control activities, achieving effective communication with internal and external information transfer, strengthening internal oversight of accounts payable.