Well, I do suggest to my clients to include the 'Payment Process' (or Billing, Invoicing, etc) among the business processes for the following reasons:
- it is a part of the business processes
- it closes the circle that starts with receiving an order then 'concludes' with shipping the product
- it helps the organization be more efficient in receiving the money necessary for a steady cash flow
- it is part of the contractual agreement that included the parts shipped (see Payment Terms)
However, during such an audit I would not be concerned with the Accounting part of it (i.e. accuracy of billing, matching of orders with invoices and payments received, etc). A few things that I look at during the audit of the Payment Process are:
- how does the organization know when, how and how much to invoice?
- how are the invoices communicated to the customers? are they compatible with customers' requirements?
- how are the invoices and payments monitorized for timeliness and accuracy?
- what actions are taken when the invoices are not accurate, or payments are late?
I believe that the expected outputs from this process are:
- From customer's perspective, accuracy and timeliness of invoicing; the customer expects an accurate invoice, submitted within a reasonable/agreed time from the shipment, and in a way that can be processed effectively (paper, electronic, on-line, etc)
- From organization's perspective, accuracy and timeliness of payments; the company needs the money to pay its suppliers for materials and services, to pay the utilities, to pay its employees and investors/owners, to re-invest into the organization, etc
Bottom line, it is up to you to decide whether to continue auditing the Payment Process, just consider the benefits and drawbacks of not doing it.