What is a P-Card? For those wondering what the title refers to, a “p-card” is an employee credit card issued by their employer that can be used to make transactions without prior clearance. According to the National Association of Purchasing Card Professionals, the average transaction charge per purchase is between $50 and $200, independent of the total price of the purchase.
Purchase card management system
Your staff is free to utilize company credit or purchase cards when making transactions.
- Increases in the minimum and maximum amounts that can be spent per day, month, and year.
- Improved supplier relationships due to no late payments.
- Audit trail with timestamps.
- Cardholder profiles to spot illegal purchases.
- Reduced out-of-pocket costs.
- Using PCard, companies can:
- Coordinate cardholder limits with their bank.
- Process bank transfers for employee purchases.
- Reconcile statements.
- Enter PCard expenses in General Ledger and Accounts Payable systems.
- Monitor purchase and supplier performance.
- Check cardholder purchases.
- Track favorite merchant use.
To get the most out of Purchase Card Management, you need to have a firm grip on its adaptability and how your input influences subsequent processes like automatic statement reconciliation.
JD Edwards proposes statement processing and voucher generation. If you process and reconcile your statements regularly, you may rest assured that you are only paying for your purchase card transactions and not paying any interest or fees to your bank. Making PCard vouchers also leaves a paper trail linking the PCard and AP systems.
For optimal use of Purchase Card Management, JD Edwards suggests the following procedure - Manage merchant and cardholder updates.
- Get bank purchase card communications.
- Send by card data to PCard.
- Update G/L PCard account allotment.
- Approve JD Edwards’s transactions.
- Enter purchase card expenses in the general ledger.
- Receive bank statements.
- Process PCard statements.
- Reconcile credit card statements.
- Create and post bank vouchers.
- Review merchant behavior online.
- Delete transactions, statements, and communications.
Other JD Edwards World Systems Integrations
In addition to the other products offered by JD Edwards World, the PCard system is compatible with:
Bookkeeping Record
Journal entries are created from PCard purchases to keep track of the costs incurred.
Payable Accounts
When you receive a statement from your PCard provider (bank or financial institution), you can use that information to print vouchers and send payment.
Procurement
By including a blanket purchase order number in the Merchant Information or putting it on the PCard transaction, out-of-stock orders can be processed through the PCard system. To properly perform a purchase order, you must use Voucher Logging to create vouchers.
Inventory
Through the use of an item number on the PCard transaction, stock can be added to the Inventory system.
Equitable Assets
During a PCard transaction, you may choose to identify the asset by its unique identifier. Fixed Assets records can be updated with new Asset IDs when F0911 records are created from journal entries.
Handling of Form 1099
The A/P Ledger Method or the General Ledger Method can be used to process 1099s.
Management of Permissions
The PCard system can have additional approval requirements put up through the usage of the Approvals Management tool.
Process Decisions to Make First
Before installing the PCard system, you should familiarize yourself with its features so that you can make educated choices about how you’ll put it to use. In a similar vein, you must select which supplementary PCard processes to implement.
The Monitoring of Shopkeepers
System constants include tracking purchases from certain merchants (or suppliers). Once activated, the track merchant’s constant lets you create statistics and analyze merchant activities online, which could help you negotiate a deeper discount on staff purchases.
Currency Option Activation
Using the currency option in Purchase Card Constants, you may monitor your employees’ spending both at home and overseas. The PCard currency option is available regardless of whether or not you have enabled multicurrency on your system.
Statement Processing and Balance Checking
Reconciling charge card transactions with statements requires processing statements. Reconciling your transactions with your statement helps guarantee that you are only charged for purchases that you have authorized and that your statement is an accurate reflection of the transactions you have processed.
Dealing with Vouchers
Whether or not statement processing and reconciliation are conducted, the PCard system can still create vouchers. Statement numbers and dates can be used to generate vouchers for those who process statements. Vouchers paid for using PCards provide a paper trail that may be traced back to the original PCard purchases.
You can rest assured that you will only be charged for the items you approve of thanks to the steps taken in the reconciliation process, which ensures that your statement perfectly reflects the transactions you have handled.
The First Step towards Victory Is Recognizing Its Value
75% of US companies have migrated at least some of their traditional business-to-business (B2B) payments to buying cards and other electronic payments since the late 1980s (e-payments).
The p-cards in payments strategy
A company’s management must determine what issues p-cards can address and how those issues relate to the company’s overall priorities. P-cards have come a long way from their humble beginnings as a tool for low-stakes purchases. Ghost cards (accounts granted to particular vendors), declining balance cards and accounts payable automation solutions are all commonplace in today’s business world (ePayables). A purchasing card might not be the ideal option for some types of purchases.
Case building
Any business can investigate p-card opportunities by reviewing payment data such as dollar amounts, payment volumes, suppliers, and accounting/budget codes. Look into these aspects:
• How often do amounts of $1,000, $2,500, and $5,000 account for a majority of a payment? They warrant a p-card.
• What P2P methods and costs are used?
• How many unique vendors are included in the big picture?
• How much money could be saved if x% of all transactions were to be conducted using a p-card?
Next, you’ll want to compile your findings into a business case to present to decision-makers as a well-organized proposal explaining why this project is necessary.
• Describes card industry best practices.
• Compares p-card against alternative payments.
• Linking the p-card business case to the organization’s overarching goals and guiding principles.
• Estimates benefits and savings.
• Describes obstacles, dangers, and controls.
• Identifies needed staffing, technology, and expenses.
• Recommends.
Globalizing P-card
The expansion of P-Card programs worldwide. There are a lot of factors to think about when firms and governments discuss globalization.
With the help of P-card technology and reporting tools, businesses may locate and explore strategic sourcing possibilities, narrowing their purchasing base to just include card-accepting merchants.
There are benefits for vendors who accept p-cards that more than makeup for the fees.
• With no need to create invoices, send them out, deposit payments, or collect, you can save a lot of money.
• E-deposits.
• Improved cash flow from faster payments.
• There was a rise in earnings because many businesses now utilize p-cards exclusively.
Satisfied customers.
Potential A/R personnel reductions and the possibility to shift staff to value-added activities.
- Suppliers must re-engineer A/R processes to maximize card acceptance benefits, like corporations and governments.
- Understanding p-card procedure and opportunities.
- Choosing a B2B-savvy acquiring partner.
- Implementing processes and tech.
- Working with customers to build ordering processes and accompanying paperwork.
Tech/reporting requirements
Although American businesses want their corporate ID card programs to have the same global features as their domestic ones, this is not always possible. With the standard billing file (SBF) that the p-card issuer sends over to the company or government agency, basic accounting and reporting processes can be used to query transaction data and gain crucial insight into spending patterns and program outcomes. Effective program management must be conducted on a local level. In some countries, such as the United States, businesses must first set up their interfaces in the financial system/general ledger.
Organizations should establish their expectations in advance, particularly if global reporting is necessary, due to the fact that technology has progressed faster in some countries than others.
Pros and Cons of P-Cards
| Pros | Cons |
|---|---|
| Information. The data gathered from P-Cards can be used to investigate potential cases of fraud or misuse, track the spending of individual departments, and negotiate better deals with suppliers. | False use. The P-Card can be used for both commercial and personal purposes and is just as convenient and alluring for the latter. It’s possible that some of this is the result of careless or inadvertent use on account of users’ inexperience with the system. In other cases, workers commit fraud on purpose to get an unfair advantage. |
| Convenience. Employees appreciate P-Cards for company spending. Personal money or get paid for work expenses. Using a card is fast and uncomplicated. | Policymaking. Without carefully thought-out policies, a P-Card system would be useless. Policies should be reviewed on a regular basis to determine which ones are effective, which ones should be scrapped, and what else needs to be added. Creating and assessing policies is critical yet time-consuming. |
| Efficiency. P-Cards streamline transactions. Shorter buying cycles. Payments clear faster and are more predictable. | Training. Much of the P-Card abuse described above might be eliminated with proper training, but this takes both time and skill. Without it, drug abuse can worsen. To avoid adding more work for already overburdened management, some companies may choose not to train or retrain cardholders. |
| Rebates. Many P-Card schemes and vendors provide points and cash back to save your company money. | Reviews. The solution becomes a problem again. If monitoring and evaluation are not performed, control and information are meaningless. Reviewing a large card program requires a lot of manual work, especially if thousands of transactions are being processed every month. You may not have the resources to conduct a review due to its time and manpower requirements. |
Summary
Buying cards allow workers to make in-office purchases without involving the accounts payable or purchasing departments. They are also known as procurement cards, and they enable workers to acquire what they need rapidly and efficiently while simultaneously recording all of the most crucial facts of the transaction as they go along.
Frequently Ask Questions
Some questions are related to the keyword" What is P card?" as below:
1. How can I revoke my credit card?
Send an email to the purchasing card administrator requesting the cancellation of the account. Return the card to the warehouse at 103 Park Avenue, where the purchasing department is located.
2. A Pcard can be transferred to another employee, right?
Cards cannot be given to another person. It’s time to get rid of the P-card and get a new one for the new cardholder.
3. When my request for a Purchasing Card is denied, what factors are considered?
Credit card payments will be declined if:
- The cardholder’s daily or monthly transaction limit has been reached.
- The cardholder tries to use the card for a supplier category that has been prohibited.
- The cardholder neglected to use the toll-free number to activate the card.
- When the merchant processes the card, the expiration date or three-digit security number is either not entered or entered improperly.
- The billing address and the account’s address do not match. For your billing address, get in touch with the PCard Administrator at (2-8595).
4. When a purchase is attempted using a declined credit card, what occurs next?
If your purchasing card was declined, contact the purchasing card administrator at (2-8595). If the Pcard Administrator is unavailable during your trip status, you should call the toll-free number shown on the back of your card. When calling, be prepared to supply the last four digits of your employee ID.
5. My current card will expire in a month; what should I do to get a new one?
In the month prior to your current card’s expiration, you will receive an email informing you that your replacement card has arrived. You can get a new card by trading in your old one at the purchasing department. If your purchasing card is close to expiring and you haven’t received a notice, please contact the purchasing card administrator (2-8595).
6. Do I need to replace my card at the beginning of the month or at the end of the month?
Your card will stop working at midnight on the last day of the month.
7. I need a new card since my name has changed or the magnetic strip is damaged.
Send a formal written request through email to the administrator of the purchasing card.
8. When will I receive my new card?
5 to 7 working days.
9. If my debit or credit card is lost or stolen, what should I do?
In the event that your P-Card is lost or stolen, you must immediately notify either JPMorgan Chase (1-800-270-7760) or the P-Card Administrator (2-8595). The customer service rep may ask for some identifying information from you, such as your credit card number, to ensure that you are the account holder. Remember that we don’t actually need your real SSN to work here, but only your employee ID.
10. Can I go above my spending limit?
Your credit card does, in fact, have limits of $3.500 per transaction, $15,000 per billing cycle, and 12 transactions per day. If any of these thresholds are surpassed, the card will be declined.
11. What benefits come with the P-Card Program?
P-Cards provide convenience and security, including:
- Reduces administrative burden and speeds up processes in the accounts payable and purchasing departments.
- Eliminates useless and time-consuming procedures
- Brings down transaction expenses
- Quicker material procurement is facilitated.
- Aids transportation services
- Provides adjustable controls
- Makes data transactions automatic.
- Enhances client relationships
- One can obtain rebates.
12. Am I still need to utilize just contracted suppliers when using my P-Card?
YES! P-Cards are a convenient way to make payments and purchases, but they still require adhering to state procurement regulations and procedures including using state contracts or the GL-71 when none are available.
13. When using a P-Card for transportation, what are the specifics?
Discuss your company’s travel policies with the agency’s travel coordinator. Sanditz Travel, the state’s contracted vendor, is a reservation-taking service. Information to provide to a travel agency includes:
- The organization’s full name and contact information
- Agency name and phone number
- Billing Address for the Agency
- A TA# (Travel Authorization Number) (Travel Authorization Number)
- Documentation pertaining to staff profiles
14. Can I use my P-Card abroad? Does anything out of the ordinary need to be done on my part?
If you have a cardholder who will be traveling internationally, please let the P-Card Administrator know so that she can notify the cardholder’s bank and place a notice on the cardholder’s account for the days of travel. In case of inquiry, the card’s security department will look into the accompanying comments. Both the security and full functioning of the account should be preserved in this manner.
15. If I have a P-Card, when may I use it to buy gas?
Cardholders can only use their P-Cards to refuel rented cars when they travel to other states. However, the state-issued Voyager Fuel Card is the preferred method of payment.
16. How does the payment procedure work?
The cardholder’s agency coordinator issues a statement listing the cardholder’s monthly purchases. Each organization processes a single ACH payment to JPMorgan Chase Bank each month and verifies and reconciles that sum on a monthly basis.
17. Compared to a regular credit card, what sets out a United States commercial credit card (P-Card)?
Because it is a business card, the P-Card has more features than a consumer credit card. Each card can be customized to the needs of the cardholder and the issuing organization by having certain limits put directly into the magnetic strip.
- Controls comprise
- The amount allotted each month
- Limit a single purchasing transaction
- Limitations on daily and weekly transactions
- Commodity classification that is lenient or restrictive
18. What is the vendor’s advantage?
By allowing the P-Card, vendors can be assured that they will be paid within 48 hours, boosting cash flow, reducing paperwork, and decreasing accounts receivable administrative costs.
19. What will the Agency gain from this?
The P-Card streamlines the processes that need time and paperwork by:
Buying orders
Invoices
Checks
Several procedures can be skipped with the P-Card as an alternative.
Small change
Requests for checks
Small-value purchase orders
Travel Compensation
Online registrations and purchases
20. My receipts directly contradict the tax amounts that show up on my report; why is that?
Payment Net’s Sales Tax information is useful, but it can only be as accurate as the information the merchant provides.
Conclusion
Purchasing card usage is typically managed by established regulations and administrative procedures within organizations. Despite the fact that we found evidence of progress in controls since our 2017 report, we also found specific cases where things had gotten worse. Organizations can still do better at managing transaction limits, monitoring purchasing card use, and implementing new regulations.