In the expenditure cycle,Financial Electronic Data Interchange (FEDI)increases efficiency by

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FEDI eliminates the need to prepare and mail checks, which increases efficiency by reducing the time and cost associated with traditional paper-based payment processes. It allows for electronic funds transfer directly from the buyer's bank account to the vendor's bank account, streamlining the payment process and reducing the risk of errors and fraud. FEDI does not eliminate the need for receiving reports, vendor invoices, or purchase orders which are still required for accurate record-keeping and tracking of transactions.

In the Expenditure Cycle,Financial Electronic Data Interchange (FEDI)increases Efficiency by