https://6992543.fs1.hubspotusercontent-na1.net/hubfs/6992543/Video/VSE/SOD/Segregation of Duties (SOD) (ENG).mp4

Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. The principle of SOD is based on shared responsibilities of a key process that disperses the critical functions of that process to more than one person or department.

Without this separation in key processes, fraud and error risks are far less manageable.

What Is Segregation of Duties?

The aim of SOD is quite simple: no individual should be given access to two or more parts of a process that would allow him or her to engage in financial or fraudulent activity. For example, with SOD in place, it would be impossible for the same individual to raise and approve a purchase order, receive the purchase order and approve payment for that same order. A person with all of these security privileges could potentially abuse responsibilities for his or her own financial gain. SOD mechanisms reduce this risk by splitting out each part of the purchase requisition process across a number of approved individuals.

VSE ships with a default set of SOD rules for any M3 ERP Setup. In addition, VSE also supports creation of custom SOD Rules.