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



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

Answer / guest

Answer: C

EDI is the best answer. Properly implemented (e.g.,
agreements with trading partners 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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