ACCOUNTS PAYABLE SYSTEM FUNCTIONAL

REQUIREMENTS CHECKLIST

PRIORITY RATINGS
• Must Have: The feature is highly critical to the organization's business and must be present.
• Need-to-Have: This functionality is expected; however, additional/alternative workarounds would be accepted.
• Nice-to-Have: This feature or function would provide potential improvements and enhancements to the
organization's business but is not required to replicate/reproduce current business practices and processes.

No. Business Function Functional Requirement Priority Comments

Area (1, 2, 3)

Accounts Payable

1 AP Vendor Ability to create voucher invoice templates.

Invoicing

2 AP Vendor Ability to integrate with fixed assets to

Invoicing automatically set up depreciable assets
from vendor invoices.

3 AP Vendor Ability to track invoices by expense

Invoicing category (e.g., recoverable expenses,
employee expense reimbursements, etc.).

4 AP Vendor Ability to mark a voucher (at both the

Invoicing voucher header and voucher line level) as
“Recoverable” to indicate that the expense
can be billed to fund.

5 AP Vendor Ability to integrate with accounts receivable

Invoicing to allow for automatic billing of recoverable
vendor invoices without re-entry.

6 AP Vendor Ability to have vendors directly submit

Invoicing invoices online.

7 AP Vendor Ability to prevent entering duplicate

Invoicing invoices across companies or accounts
payable business units by performing
validations to check for variables, including
invoice number, vendor, invoice date,
invoice amount, invoice currency, etc.

8 AP Vendor Ability to close or cancel invoices that will

Invoicing not be paid and to assign a reason code.

9 AP Vendor Ability to scan invoices for imaging for

Invoicing routing of invoice to approver and for
ultimate storage purposes.

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

10 AP Vendor Ability to batch scan vendor invoices into

Invoicing the system, which will create a queue for
AP clerks to process.

11 AP Vendor Ability to query and run reports on invoices

Invoicing scanned into the system (invoices not yet
vouchered) to determine work in queue
and received (but not yet vouchered)
liabilities.

12 AP Vendor Ability to maintain approval process

Invoicing required for invoices and to electronically
route invoices for approval.

13 AP Vendor Ability to send reminder notices for

Invoicing invoices that have not been approved.

14 AP Vendor Ability to support a flexible and dynamic

Invoicing invoice approval process with approvals
based on different variables.

15 AP Vendor Automatic assignment of voucher

Invoicing numbers.

16 AP Vendor Ability to put invoices on hold.

Invoicing

17 AP Vendor Ability to prevent vouchering or payment of

Invoicing invoices for unapproved vendors.

18 AP Vendor Ability to designate specific invoice fields

Invoicing as "required."

19 AP Vendor Ability to support credit memo functionality.

Invoicing

20 AP Vendor Ability to offset credit memos with unpaid

Invoicing invoices.

21 AP Vendor Ability to support accounting information

Invoicing default on invoices based on vendor
selected.

22 AP Vendor Automatic system warnings when

Invoicing distribution balance doesn't equal invoice
total.

23 AP Vendor Ability to "drill down" to the original

Invoicing transaction (GL to invoice).

24 AP Vendor Ability to search for and track a vendor's

Invoicing invoice number in the system.

25 AP Vendor Ability to designate invoices as

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

Invoicing “intercompany” to support processing AP

on behalf of another business unit.

26 AP Vendor Ability to create zero-balance invoices.

Invoicing

27 AP Vendor Ability to enter invoices for vendor

Invoicing payment, but charge all or a portion of the
expense to another business unit.

28 AP Vendor Ability to enter use tax codes which would

Invoicing apply the correct tax % to the taxable
amount of the vendor invoice. Invoice
posting process should record the
appropriate UT liability as well as establish
the payable to the vendor.

29 AP Vendor When an invoice is posted for a 1099/1042

Invoicing reportable vendor, we should have the
ability to indicate that either the entire
amount, or a portion of the invoice amount,
is not reportable. This is necessary when a
1099 vendor is reimbursed for expenses.
The expense reimbursement amount
should not be reported as income.

30 AP Vendor Ability to process invoices in multiple

Invoicing currencies from a single AP business unit.

31 AP Vendor Ability to interface with the time and

Invoicing expense system for employee time and
expense payments.

32 AP Vendor Ability to enter recurring invoices (e.g.,

Invoicing monthly rent payments).

33 AP Vendor Ability to change the accounting

Invoicing distribution and amounts part way through
recurring payment stream (e.g., change a
monthly recurring payment).

34 AP Vendor Ability to pay a total invoice amount in one

Invoicing period and have the amount posted to
multiple periods (e.g., pay an invoice for
$1200 in January, but post $100 to each
month of the same year).

35 AP Vendor Ability to support two-way (invoice to

Invoicing purchase order) matching.

36 AP Vendor Ability to support three-way (invoice to

Invoicing purchase order to receiver) matching.

37 AP Cash Support multiple payment methods, such

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

Disbursements as check, online bill pay, wire transfer,

foreign drafts or electronic funds transfer.

38 AP Cash Ability to set up check templates with the

Disbursements standard information to be printed on the
check.

39 AP Cash Ability to generate one check per invoice or

Disbursements consolidate multiple invoices onto one
check.

40 AP Cash Ability to print laser checks.

Disbursements

41 AP Cash Ability to print checks with a secured

Disbursements signature card.

42 AP Cash Ability to make electronic payments,

Disbursements including Automated Clearing House
(ACH) and Electronic Funds Transfers
(EFT).

43 AP Cash Ability to directly integrate system with

Disbursements banks for online bill pay, ACH, positive
pay, etc., with no requirement for a person
to upload text files to banks' systems.

44 AP Cash Ability to print checks in a certain order

Disbursements (e.g., by postal code, check number, dollar
amount, vendor name, expense
reimbursement, etc.).

45 AP Cash Ability to allocate invoices across multiple

Disbursements accounts or departments based on a fixed
amount or percentage.

46 AP Cash Ability to process full or partial payments.

Disbursements

47 AP Cash Ability to void checks with an option to

Disbursements reissue.

48 AP Cash Ability to process manual checks.

Disbursements

49 AP Cash Ability to select items for payment based

Disbursements on specific date criteria (e.g., latest due
date, discount date, etc.).

50 AP Cash Ability to establish minimum threshold for

Disbursements vendor payments.

51 AP Cash Ability to identify dollar amount thresholds

Disbursements for payments and require

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

additional/specific signatures and/or

approvals.

52 AP Cash Ability to support centralized cash

Disbursements disbursements.

53 AP Cash Ability to make payments from multiple

Disbursements checking accounts.

54 AP Cash Ability to process payments for a specific

Disbursements invoice or all invoices for a specific vendor
or group of vendors.

55 AP Cash Ability to process time and expense

Disbursements payments through payroll systems.

56 AP Cash Ability to run a single pay cycle over

Disbursements multiple bank accounts.

57 AP Reporting Ability to generate a check register with the

option to include voided checks.

58 AP Reporting Ability to generate a payment trial register.

59 AP Reporting Ability to generate a check register.

60 AP Reporting Ability to generate a vendor invoice report

based on specific data criteria (e.g., latest
due date, discount date, etc.).

61 AP Reporting Ability to generate a vendor history

analysis showing all activity for a vendor
based on a date range.

62 AP Reporting Access to accounts payable details by

vendor, department, due date, etc.

63 AP Reporting Ability to generate a user-defined aged

payables report.

64 AP Reporting Report of discounts taken/not taken.

65 AP Reporting Ability to report on tax liability by taxing

jurisdiction.

66 AP Reporting Ability to track and report on invoices that

are pending (e.g., approvals, payments,
etc.).

67 AP Reporting Ability to support 1099/1042 report writing.

68 AP Reporting Ability to create a file for electronic

1099/1042 filing.

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

69 AP Reporting Ability to apply 1099/1042 status to old

vouchers.

70 AP Reporting Ability to request a preliminary 1099/1042

report for editing purposes to ensure that
1099s/1042s are reported accurately.

71 AP Reporting Ability to generate audit reports for

changes to vendor master file.

72 AP Reporting Ability to generate reports designating

minority vendors.

73 AP Reporting Ability to access accounts payable data

remotely.

74 AP Reporting Online inquiries to view vendor activity,

including invoice and payment information.

75 AP Reporting Online inquiries to view check activity

showing all related invoice information.

76 AP Reporting Ability to report on all AP activity for a

project/cost center.

77 AP Vendor Master Ability to designate specific fields as

Maintenance "required" for vendor setup.

78 AP Vendor Master System will automatically inactivate

Maintenance dormant vendors within a specified
timeframe.

79 AP Vendor Master Ability to prevent duplicate vendor setups.

Maintenance

80 AP Vendor Master Ability to integrate with third-party tax

Maintenance software for updating tax codes and
values.

81 AP Vendor Master Ability to integrate effective-date 1099

Maintenance vendors in the event their tax status
changes.

82 AP Vendor Master Ability to prevent duplicate vendor

Maintenance addresses.

83 AP Vendor Master Ability to view online vendor information

Maintenance when entering an invoice.

84 AP Vendor Master Ability for a vendor to have multiple remit

Maintenance to addresses.

85 AP Vendor Master Ability to indicate whether a supplier is tax

Maintenance exempt (charity, etc.) such that we would

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

not pay sales tax.

86 AP Vendor Master Ability to designate multiple payment

Maintenance options for a vendor, including a preferred
or default payment option.

87 AP Vendor Master Ability to designate employees in their own

Maintenance separate vendor category.

88 AP Vendor Master Ability to support quick setup of one-time

Maintenance vendors.

89 AP Vendor Master Ability to create a workflow to approve

Maintenance vendors during vendor setup.

90 AP Vendor Master Ability to have different workflow routing for

Maintenance different vendor types (e.g., employees
can bypass compliance vendor review).

91 AP Vendor Master Ability to place a vendor on hold.

Maintenance

92 AP Vendor Master Ability to have a single vendor master

Maintenance across multiple payables units OR to be
able to report on common vendors across
multiple vendor masters for consolidated
vendor reporting.

93 AP Vendor Master Ability to run a mass update process to

Maintenance inactivate vendors who have had no
activity for a given period.

94 AP Vendor Master Ability to set up security levels governing

Maintenance vendor master (e.g., AP [add, update],
compliance [update], deal side [read-only]).

95 AP Vendor Master Ability to set up parent-child relationships

Maintenance for consolidated vendor reporting.

96 AP Security/ Ability to configure security/access for

Access various SOX-compliant segregation of
duties scenarios.

97 PR Procurement Ability to maintain contracts and link

contract terms electronically.

98 PR Procurement Ability for requisitioner to create to create

purchase requisitions and purchase orders
online.

99 PR Procurement Ability to create and maintain requests for

proposals and vendor bids.

100 PR Procurement Ability to route purchase requisitions or

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 No. Business Function Functional Requirement Priority Comments
Area (1, 2, 3)

purchase orders to the appropriate level of

management for online approvals.

101 PR Procurement Ability to create blanket POs.

102 PR Procurement Ability to report on supplier performance

(e.g., on-time delivery, supplier discounts,
etc.).

103 PR Procurement Ability to share vendor pricing data across

business units.

104 PR Procurement Ability to track open purchase orders at the

project level.

105 PR Procurement Ability to interface with budgeting and fixed

assets.

106 PR Procurement Ability to establish purchase order limits by

business unit/project.

107 PR Procurement Ability to establish vendor overrides for

purchase order limits.

108 PR Procurement Ability to track service vendor online time

and integration to payables.

109 PR Procurement Ability to handle p-card payments and

track payments to individual vendors to
prevent duplicate payment by other
methods (such as check, ACH, etc.).

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