RedTeam 2. Vendor Audit Flashcards
Vendor Audit: Issue Subcontracts
Because of the increased level of risk, it is essential to manage and monitor subcontracts closely. Using a custom commitment form generated directly from the application, henceforth referred to as a Buyout Commitment, you can ensure that the most important and minute details of the subcontract are addressed.
Vendor Audit: Issue Subcontracts: BUYOUT COMMITMENT
Buyout Commitments should be created after a Request for Quote (RFQ) has been created and sent out via RedTeam. When the RFQs are returned, they can be uploaded to RedTeam so you and your Team can compare and select the best quote. From there you want a Purchase order when buying materials and other custom Buyout Commitments when buying labor (hiring a subcontractor).
Vendor Audit: Issue Subcontracts: APPROVE INVOICES
By creating Invoices from information stored in RedTeam for the original Buyout Commitment, you can ensure the most accurate information which can be easily verified between the two records and also sets up a process of approval. By requiring levels of authorization before a payment can be made, risk of overpayment or non-approved payments is greatly minimized.
Invoices are created and approved in RedTeam when the Invoice is received from the subcontractor (Vendor) for payment.
Vendor Audit: Issue Subcontracts: MAKE PAYMENTS
Thanks to RedTeam’s efficient system of approvals for Vendor Invoices, you can be confident once you make the final payment to a Vendor. RedTeam includes a feature in the Accounting section for these payments, called Vendor Checks. At this point, you are creating a record for the check issued to a Vendor for a materials and/or services purchase which was originally created as a Buyout Commitment, invoiced by the material provider or subcontractor, and then the Invoice approved in RedTeam for payment. This is the final step of purchasing materials and/or services through RedTeam.
