payback

Payback In business decision making, payback means the number of years before the cash invested in the project will be returned. It involves the cash flows from the project but generally the cash flows are not discounted to reflect the time value of money.

- Used in the purchase-to-pay cycle to validate invoices, approvals, and supporting documents.
- Used to strengthen internal controls over purchasing and supplier payments.

- Example: Before payment, the AP team applies **payback** to confirm the invoice matches the approved purchase documentation.

- Why it matters: Prevents incorrect/duplicate payments, reduces fraud risk, and improves accuracy of payables and expenses.