In procurement, segregation of duties is crucial for ensuring accountability and preventing fraud. Have you ever considered who is responsible for validating non-negotiated prices in your organization?
Validating non-negotiated prices is a critical task in procurement. It ensures that all purchases are justified based on price, quality, and service. By implementing segregation of duties in this process, companies can add an extra layer of oversight, reducing the likelihood of errors or fraudulent activities.
Segregation of duties serves two key purposes: It ensures that there are oversight and review to catch errors. It helps to prevent fraud or theft because it requires two people to collude to hide a transaction.
At Easy4Pro, we can propose to you two solutions: there are two different validation flows possible.
Solution 1: Employee Clearance Levels
With Easy4Pro, each employee can be assigned a predefined expense limit. For any purchase that exceeds this limit, the employee must seek approval from a higher authority, ensuring a reliable validation process. This method is ideal for companies looking to control spending at an individual level.
Solution 2: Plant-Based Validation Levels
Easy4Pro also offers plant-based validation, where each organizational unit (such as a plant or department) has its own expense limit. For instance, any purchase above €150 may require validation from multiple levels, with each level assigned a different clearance amount. This approach is mobile-friendly and designed for emergencies, allowing users to escalate approvals when necessary.
Implementing segregation of duties in procurement is essential for businesses aiming to strengthen internal controls and prevent fraud. Easy4Pro’s customizable validation solutions offer practical ways to manage non-negotiated prices efficiently. For more information on how our solutions can support your company’s procurement processes, reach out to our team at info@easy4pro.com or visit www.easy4pro.com.
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