Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.
Accounts payable represents all monies owed by an enterprise to its suppliers in agreed terms as a liability on the balance sheet of that enterprise. It is different from general notes payable, which are obligations generated by written formal legal instruments. General notes are obligations that are due by an enterprise at a particular date and are not secured by any asset or equity. Accounts payable are usually settled at the close of the year and collections are generally made in the first half of the fiscal year. Generally, the balance sheet will record the collection rather than an accounting allowance.
The process of accounts payable collection begins with a notice of default by one or more suppliers to the enterprise. The enterprise must investigate the account before attempting to collect the outstanding balances from the vendors. The enterprise must establish both a practical and potential claim to the goods or services owed by the vendors and must be able to estimate a reasonable estimate of the loss, if any, to the enterprise due to the non-payment of accounts payable by the vendors. Once the claim has been made in good faith, the vendor will then be required to make payment in terms of cash, with funds being available for a recovery action to be filed by the supplier or manufacturers in the event of refusal to pay.
Accounts Payable collection can be used by manufacturers, suppliers, distributors, or retailers to meet their short-term debt requirements. Accounts payable collections are generally less costly to large businesses since it only involves a small amount of money to create the payment process between the supplier and the receiver of the goods, with a lesser amount of money to pay the suppliers as well. This process can be established for short-term periods, such as one month to four months, or can be extended indefinitely with a contract that allows the company to set up a revolving account that collects amounts from suppliers over time. This provides an opportunity for the business to establish a sound supply chain with its suppliers and to gain a solid credit history with its suppliers and creditors. As more companies take advantage of Accounts Payable to satisfy their supplier needs and avoid additional expense to themselves, this method of collecting overdue invoices will become increasingly popular and beneficial to all parties involved.
Related ArticlesWhat Are BOM Types?
Single Level Bill of Materials
What is a Single-Level Bill of Materials (BOM)?
Manufacturing Bill of Materials (mBOM)
Certified Inventory Optimization Professional
CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security.
CIOP Knowledge Series
One-Minute Supply Chain Facts
The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.