An Executive Guide To Maverick Spend Definition With A Source-To-Pay Solution
Maverick Spend Definition
As an executive working in the finance department of business, you need an effective way to manage and track maverick spend. Many business use Source-to-Pay Solution as way to track and reduce maverick spend. This guide will cover how to utilize Source-to-Pay Solution for maverick spend definition.
Step 1: Defining maverick spendMaverick spend is any spontaneous and unapproved spending that happens within business. It is often done by employeewho purchase goods or services without approval from the proper authority. Maverick spend can be difficult to track and can lead to unnecessary costs or losses.
Step 2: Setting up the Source-to-Pay SolutionThe first step to using Source-to-Pay Solution for maverick spend definition is to set up the software. This includes selecting the right type of solution for your unique business needs. The setup process often involves configuring user roles, integrating the software with other systems, and setting up access rights and permissions.
Step 3: Establishing control and visibilityOnce the Source-to-Pay Solution is in place, the next step is to establish controls and visibility across the business. This means setting up visibility thresholds and approval limits for different types of purchases. This will help ensure that no unauthorized purchases are made and that any maverick spend that does occur is quickly identified and remedied.
Step 4: Adding detection rulesIt is also important to create detection rules that can be used to identify and flag maverick spend. This includes setting up rules to detect suspicious transactions, merchants, and patterns of buying. In addition, rules can be created to prevent maverick spend from occurring. This can involve setting up rules that limit the number of transactions an employee can make, restrict purchases over certain amount, or monitor suppliers to ensure they are compliant.
Step 5: Implementing best practices Once the Source-to-Pay Solution is set up, best practices should be implemented to ensure that all employeeare aware of the process and follow the rules. This includes training all staff on the proper use of the system, as well as regularly reviewing reports and data to identify any potential maverick spend.
Step 6: Installing analytics and reporting tools Finally, analytics and reporting tools should be used to track, monitor, and analyze maverick spend. This will allow you to identify trends, visualize data, and generate reports that provide insight into how maverick spend is impacting your business. These tools can also be used to monitor budget performance and compare budget against actual spend.
By following these steps, any business can effectively use Source-to-Pay Solution for maverick spend definition. This will help ensure that all purchases meet the standards set out by the finance team, while still remaining flexible enough to accommodate any unexpected or urgent purchases. Additionally, having access to data and analytics will provide insight into how and where maverick spend is occurring, allowing business to make improvements and better manage their finances.
