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A manufacturing firm wants to automate its invoice payment system. Objectives state that the system should req

A manufacturing firm wants to automate its invoice payment system. Objectives state that the system should require considerably less time for review and authorization and the system should be capable of identifying errors that require follow up. Which of the following would BEST meet these objectives?

A. Establishing an inter-networked system of client servers with suppliers for increased efficiencies

B. Outsourcing the function to a firm specializing in automated payments and accounts receivable/invoice processing

C. Establishing an EDI system of electronic business documents and transactions with key suppliers, computer to computer, in a standard format

D. Reengineering the existing processing and redesigning the existing system

Explanation:

EDI is the best answer. Properly implemented (e.g., agreements with trading partner-s transaction standards, controls over network security mechanisms in conjunction with application controls), EDI is best suited to identify and follow up on errors more quickly, given reduced opportunities for review and authorization.


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