We are a small IT Firm that works with mostly Fortune 100 companies. We have noticed a trend towards Vendor Management Systems where we are required to gain access to a platform where we can enter our invoices, upload POs and generally conduct most of our financial inquiries. I would guess that this holds true for approximately 70% of our clients. This has become extremely time-consuming for our staff as it takes an average of 10 minutes in addition to invoice generation to log-in to and submit invoices with the client specific requirements. Not to mention, we have over 40 unique log-in accounts and are forced to take training for each of these systems in order to learn how to use them properly. Often this training (in the form of PowerPoint presentations, endless PDF documentation or videos) takes upwards of 4 hours. Additionally, the systems require constant updating of corporate status such as D&B report filings, Small Business Certificate uploads or diversity compliance. Some of these systems are extremely convoluted, a few even requiring that we obtain special authentication and a security token for unique codes we must use in order to enter an invoice. To add insult to injury, many of these systems require that we PAY to use them (buying invoices, payment for the tokens, etc.). We are stretched to our limits with our small staff and this has become a monthly frustration that we obviously cannot avoid -- we are forced to use this method of invoice entry and make the payments otherwise, we wont be paid. I am furious that these companies call it "the cost of doing business" when clearly the cost is being passed on to their much smaller vendors. Worse yet, many of them have now moved to 60 day payment terms (some 90!) in what they describe as "industry standard". But the VMS is supposed to be a more efficient way to enter invoices and receive payments! So - now that my complaining is out of the way, on to my question, and thanks for listening: Has your company countered these systems within your SOWs/Contracts? Have you made adjustments? We are debating a surcharge for every invoice that requires submission other than a simple email/US Mail. Has anyone had success with something like this? If I knew I'd be spending the majority of my accounting career answering security questions, making up tricky passwords and basically working for my clients as their payables data entry clerk rather than helping my own company develop financially, I would have gone to work for them instead :-(
