Payment cards, such as procurement cards (P-cards) or corporate credit cards, have significantly reduced the number of small dollar invoices processed by accounts payable departments. Byconsolidating small, recurring, or low-value purchases onto a single card statement, organizations can avoid processing individual invoices for each transaction, streamlining AP workflows and reducing administrative costs.
The web source from Corcentric states: “Payment cards, like P-cards, significantly reduce the number of small dollar invoices by consolidating multiple purchases into a single statement, minimizing AP processing efforts.” This directly supports Option D. The other options are less relevant:
Petty cash (A)is used for small cash transactions but does not reduce invoice volume, as it typically bypasses invoicing.
Evaluated receipt settlement (B)eliminates invoices for specific purchases but is not primarily focused on small dollar transactions.
Electronic data interchange (C)automates invoice data exchange but does not inherently reduce the number of invoices.
The IOFM APS Certification Program covers “Payments,” including the role of payment cards in optimizing AP processes. The curriculum’s focus on “peer-tested best practices for each phase of the payment process” aligns with the use of payment cards to reduce small dollar invoice processing.
[References:, IOFM Accounts Payable Specialist (APS) Certification Program, covering Payments, Corcentric: “Payment cards, like P-cards, significantly reduce the number of small dollar invoices by consolidating multiple purchases”, ]
