Scribd
Upload
125 views2 pages

Sop Ap

SOP AP

Uploaded by

Upendra Buda Chhetri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
125 views2 pages

Sop Ap

SOP AP

Uploaded by

Upendra Buda Chhetri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Accounts Payable Standard Operating Procedure (SOP)

1. PROCEDURE
1.1. Invoice Receipt and Verification:
1.1.1. Upon receipt of vendor invoices, the responsible person will review and
verify the following details:
 Accuracy of invoice information (e.g., invoice number, date, vendor
details).
 Matching of goods or services received with the invoice.
 Appropriate authorization and approval of the expense.
 Proper coding of the expense to the correct general ledger account.
1.2. Invoice Recording and Data Entry:
1.2.1. The responsible person will record the verified invoices into the accounting
system or designated accounts payable software.
1.2.2. Ensure accurate data entry, including invoice number, date, vendor
details, amount, and expense coding.
1.2.3. Attach relevant supporting documents, such as purchase orders or
receiving documents, to the electronic or physical invoice record.
1.3. Three-Way Match:
1.3.1. Perform a three-way match by cross-referencing the invoice with the
corresponding purchase order and goods receipt or service confirmation.
1.3.2. Verify that the quantities, prices, and terms on the invoice match the
purchase order and goods receipt/service confirmation.
1.4. Approval Workflow:
1.4.1. Route the invoice for appropriate approval based on predetermined
authorization levels and company policies.
1.4.2. Send notifications to approvers to review and approve invoices within a
time period.
1.4.3. Ensure proper documentation and record-keeping of approval history and
notes in the accounting system.
1.5. Payment Processing:
1.5.1. Once invoices are approved, initiate the payment process based on the
agreed-upon payment terms with the vendor.
1.5.2. Generate payment instructions, such as cheques or electronic fund
transfers (EFTs), for approved invoices.
1.5.3. Validate banking details and ensure accuracy of payment information.
1.5.4. Obtain necessary signatures and approvals for manual check payments, if
applicable.
1.6. Payment Posting and Reconciliation:
1.6.1. Record the payment details in the accounting system, including the
payment date, amount, payment method, and vendor details.
1.6.2. Reconcile the payment records with the accounts payable ledger and
bank statements to ensure accuracy.
1.6.3. Investigate and resolve any discrepancies or outstanding payments
promptly.
1.7. Vendor Communication:
1.7.1. Maintain regular communication with vendors regarding invoice status,
payment inquiries, and dispute resolution.
1.7.2. Address vendor queries promptly and provide accurate and timely
information.
1.7.3. Cultivate positive vendor relationships through effective communication
and professionalism
1.8. Month-end Closing and Reporting:
1.8.1. Participate in the month-end closing process by ensuring all accounts
payable activities are complete and accurate.
1.8.2. Reconcile accounts payable balances with the general ledger and resolve
any discrepancies.
1.8.3. Prepare and distribute accounts payable reports, including aging analysis,
open invoice
1.8.4. reports, and cash flow projections.
1.9. Record Retention:
1.9.1. Maintain proper documentation and record retention for all accounts
payable transactions, invoices, approvals, and payment records.
1.9.2. Follow the organization's document retention policy to ensure compliance
with legal and auditing requirements.

You might also like