A P-Card or purchasing card is a charge card that allows the cardholder to purchase high-volume, low-value purchases without going through the hassle, and incurring the exorbitant costs, of generating a purchase order.
With an ordinary CorporateCard, the amount of information reflected in the statement is fairly simple. You’ll see the date of transaction, the name of the supplier and how much was spent. But procurement staff need far more detail, which is why purchase orders are generated and invoices retained, says Ian Hendry, Corporate Card Product Manager at Nedbank Corporate Card.
A full P-Card solution in conjunction with an expense management solution can contain all the detailedinformation you would normally receive in an invoice, which means the procurement department can rely on the detail from the P-Card solution instead of reconciliation of the P-Card statement within the expense management solution by the cardholder. This means you can cut down on administration costs for small purchases, which often cost less than the actual cost to generate a purchase order.
Here are three things you need to know about P-Cards:
How much can I spend on a P-Card?
This depends on you. Your company can and should put certain limits on the card according to your policies, restricting the card user in terms of the supplier, the transaction limit and even the number of transactions. Your P-Card administrator can work with your card provider to ensure that the system is aligned with your company’s business needs, and if an amendment needs to be made, this can be done quickly and efficiently.
What can I use a P-Card for?
P-Cards are ideal for smaller, low-value incidentals where you don’t need a buyer to effect the transaction, which means you can free up staff to do strategic purchasing on high-ticket items. Items such as stationery, coffee supplies or payments to plumbers are ideal for P-Cards.
What’s the difference between a P-Card and a CorporateCard?
A P-Card is for staff who make frequent, low-value purchases, while a Corporate Card is used by staff who travel or entertain often. The Corporate Card is used for items such as hotel costs, restaurant meals, car rental and airport parking. In the case of aCorporateCard the cardholder is responsible for submitting detailed T&E receipts.
If you want to know if a P-Card programme would work for your business, simply email Pascalle Albrecht for more information about Nedbank’s P-Card.