The Preferences step is the second stage in configuring an AP Accruals SmartFlow instance. In this step, you define your accrual reach out methods, set timing parameters, and specify email response rules to tailor the workflow for your organization’s financial close and communication requirements.
Figure 1: Preferences Step in AP Accruals SmartFlow Configuration
What You Do in the Preferences Step
- Define Accrual Data Scope:
- Consider POs: Includes Purchase Orders as the basis for accrual automation (recommended default).
Consider PRs: Optionally includes Purchase Requisitions if your accrual process leverages PR data.
Note: Each selected data source must correspond to an active, connected report for accurate processing.
- Configure Communication Grouping:
- Vendor: Sends a consolidated request per supplier.
Vendor and Cost Center: Sends separate communications for each supplier/cost center pair—critical for organizations with shared vendors across departments and requiring granular expense attribution.
Best Practice: Choose the grouping method that best matches your audit requirements and internal review responsibilities.
- Establish Timeline Parameters:
- Close Book on [Day]: Selects the exact calendar day your books are closed for the period.
- Reach out for [N] Days: Specifies the business days suppliers have to respond to accrual requests.
- Prepare for [N] Days: Defines the lead time for internal preparation prior to supplier outreach.
Review for [N] Days: Allocates a final review window before accrual posting.
Important: Synchronize these values with your financial close calendar and critical path review cycles to ensure on-time completion.
- Set Acceptable Email Response Policy:
- Only accept emails from known contacts: Restricts valid replies to authorized supplier or stakeholder addresses, enhancing data integrity and reducing risk of spoofed or unauthorized responses.
- Accept emails from any contact in the reach out thread: Permits replies from any participant in the communication chain, supporting operational flexibility in less restricted environments.
Configuration Rules and Security
Important:
- Ensure that all timing and grouping settings reflect both regulatory and operational expectations.
- Only document types with live, mapped reports can be selected for inclusion to prevent data gaps.
- Communication acceptance policies should be coordinated with your information security and compliance teams to avoid risk exposure or SOX audit findings.
Key Points
- Preferences directly impact AP Accruals workflow automation performance, compliance posture, and efficiency.
- Select document types and grouping based on reporting structure, required detail for analytics, and review hierarchy.
- Adjust communication settings and response restrictions to match your supplier profile and information security standards.
- Use Previous and Continue to navigate configuration steps as policies or inputs evolve.
Tip: If unfamiliar with specific grouping or timing requirements, consult your finance process owner and enterprise audit liaison to ensure alignment before proceeding.