Virtual purchasing account
- Faster payment processing with automated settlement
- Empower employees with direct purchasing with no need to issue and keep track of multiple cards
- Automate your VAT processing with enhanced data capable suppliers
- Detailed reporting and analysis tools for better negotiation with preferred suppliers and control over company spending
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Overview
How virtual purchasing accounts benefit your business
A virtual purchasing account is a payment solution that lets you automate payment processing for selected preferred suppliers. It's ideal if you have suppliers who provide goods or services to various people within your business – such as office supplies providers or utility companies.
It helps streamline your procure-to-pay process and control spend by encouraging employees to buy only from chosen suppliers, helping you maximise volume discounts.
A virtual purchasing account offers all the security, speed, control and information of a purchasing card, without having to manually submit card details each time an order's placed. Users are empowered to purchase directly, while suppliers have secure access to payment instructions without having to distribute account details across the organisation.
Benefits for your business
- Save time and money by eliminating manual invoice settling
- Electronic VAT invoices from data capable suppliers allow you to automate VAT processing
- Consolidate invoicing for better workflow between you and your suppliers
- Integrate data directly into your financial and Enterprise Resource Planning (ERP) systems reducing the need for heavy manual data entry and saving time and cost
- Better visibility of spend across your business with detailed reporting and analysis tools
- Empower multiple users to purchase directly without distributing many cards
- Better compliance with preferred supplier policies
- Additional Management Information (MI) and control improves negotiation with suppliers.
Benefits for your suppliers
- Shorter purchasing cycle means less time spent on manual invoice processing
- Payment in as little as 3 days via Visa, cutting the process down by up to 60 days
- Opportunity to provide electronic invoice data and deve op and maintain long term, integrated solutions with clients
- Reduces risk and concern around credit worthiness and time spent carrying out credit checks.
Terms and conditions apply
View purchasing card terms and conditions PDF
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How it works
A step-by-step guide to using virtual purchasing accounts
A virtual purchasing account is embedded with your preferred suppliers and is typically controlled and monitored by your Accounts Payable team. Providing one account for each supplier that's settled monthly provides a faster, streamlined and more efficient process than dealing with multiple individual invoices for the same supplier.
Here's the process from order to payment and reconciliation:
- The purchaser places their order with a preferred supplier and provides their details for back end reconciliation.
- They log the order for their records and reconciliation.
- The supplier charges the embedded Visa payment account to initiate payment which is automated, cutting down on admin for your Accounts Payable department.
- Typically, the supplier sends the electronic invoice through with the transaction, providing the VAT information for your records – but no request for payment as it's already been made.
- Goods are dispatched by the supplier.
- You receive a monthly statement from Barclaycard showing all of your virtual purchasing account transactions. If the supplier can provide enhanced electronic invoice data, you'll also receive a VAT report and detailed breakdown of each transaction. These details about the order amount and the person who made it, enable you to monitor spending, so the cost of each transaction is allocated back to the individual purchaser.
- Each purchaser checks their cost centre report to see what's been allocated to them and verifies it against the transaction and goods received for a three way reconciliation of the order, goods received and amount paid.
