Another headline hit the local news last week regarding a well-known company controller allegedly embezzled a lot of money over the last 8 years.   This is shocking to me since there are so many controls that should be in place to prevent employees from stealing.  I have a work history in retail and now in business financials for Dynamics GP at Custom Information Services (CIS).  I began my career as a store manager for 7 years, and then as a district manager for 8 years with Musicland / Sam Goody.  I attended loss prevention seminars annually, completed surprise store visits and went through the voids, refunds, and deposits on every visit.  I did not do these audits because I thought someone was stealing.  I did them to prevent someone from stealing.  Most people are honest unless given the opportunity to steal.  The company figured that if you did surprise visits and did things like spot check the daily paperwork and the trash then we would be letting our managers and staff know that if they do steal there is a good chance they will be caught.  We also prosecuted thieves.  Honestly, I did catch some theft by placing in these types of controls, but I would like to think that I prevented a lot more!

In my second career as a sales person for Dynamics GP, I see several different company environments in the sales process.  Such as lax controls and of course the dreaded custom software that for some reason the controller does not want replaced… Implementing a new financial software package like Dynamics GP will allow you to have a certified professional with years of financial experience review your current practices and then help you ensure that your new implementation has the checks and balances in place to deter those honest end users.

Here are some of the tools within Dynamics GP that help with fraud prevention and detection:

1. Restrict windows, reports, transactions etc., by user or user group
2. Dynamics GP also has field level security if needed
3. Purchase order requisitioning with workflow approvals
4. Accounts payable batch approval with password
5. Check printing approval with password
6. Setup alerts that will notify you if a user has voided a check, completed an inventory adjustment, etc.
7. Institute new vendor setup workflow approvals
8. Review activity tracking of failed login attempts, failing to open windows or reports.  You can also see end users that are deleting records – if they have security access in the first place.   Why are they trying to access areas of the system that they should not.
9. Password enforcement should be in place with a written policy published to all employees. For more information on Dynamics GP and general best practices for security planning visit this PDF. http://www.customis.com/resources/library/securityplanning.pdf
10. Mekorma MICR also offers the following security features for Dynamics GP Payables and Payroll:

• Print MICR Encoding
  Print your own MICR line and the rest of the check on secure, easy-to-manage blank check stock.
• Secure Approval Workflow
  Individualized approvals with audit trail. Enter your password from wherever you are.
• Encrypted Signature Stored in SQL
  Signature images safely stored with company data in encrypted file in MS-SQL.
• Sign Checks based on User ID
  Print a different signature on checks based on user who approves the check.
• Sign Checks based on Check Amount
  Print one, two or no signatures based on the dollar amount you specify. Unsigned checks print to the top for easy removal.
• Require Passwords to Print Checks & EFTs
  Password protection based on dollar amount you specify.
• Require Fully Received Purchase Order
  Only print signatures for checks paying invoices for fully received P.O.s.
• Create Audit Log of Check Approvers
  Automatically record check approver each time checks are printed.
• View Check Image in Dynamics GP Inquiry
  View or print a visual replica of your checks right from your Dynamics GP inquiry windows.
• Print Check Copies to PDF
  Automatically create non-negotiable PDF copies of each posted check.
• Restrict Invoices to Specific Checkbooks
  Assign a checkbook to an invoice at entry time and ensure invoice is paid from that checkbook.
• Restrict Vendors to Specific Checkbooks
  Assign a checkbook to a vendor and ensure vendor is only paid

Great resources available to assist business owners in preventing and detecting fraud:

• Financial Reporting Fraud: A Practical Guide to Detection and Internal Control - 2nd edition
• Nine ways to Prevent fraud in Your Workplace

If you care to comment on the information above or have any questions please feel free to contact me at 817-640-0016 x 109 or by emailing me at nphillippi@customis.com.

CIS is a Dynamics GP Silver Partner in North Texas

August 23, 2013 by Custom Information Services (CIS)

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Tags: accounts payable tips, Accounts Payable Transaction Approval, Dynamics GP, Dynamics GP 2010, erp fraud prevention, ERP Security, fraud prevention, Mekorma MICR, Microsoft Dynamics GP, Silver Dynamics GP Partner Texas, Texas Microsoft Partner
Posted in About Microsoft Dynamics GP, Accounting Software Selection Tips, Dynamics ERP for Distribution, Dynamics ERP for Financial Services, Dynamics ERP for Manufacturing, Dynamics ERP for Professional Services, ERP Software Implementation Tips, ERP Software Information, Finance Department Tips & Tricks, Microsoft Dynamics ERP Functionality | No Comments »

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