Accounts Payable Procedure

Prepared By:	[YOUR NAME]
Company Name:	[YOUR COMPANY NAME]
Department:	[YOUR DEPARTMENT]
Company Email:	[YOUR COMPANY EMAIL]
Company Number:	[YOUR COMPANY NUMBER]
Date:	[DATE]

I. Purpose

The purpose of this document is to outline the standard procedures for managing accounts payable at [YOUR COMPANY NAME] to ensure efficient, accurate and timely processing of all payable transactions.

II. Scope

This procedure applies to all employees of [YOUR COMPANY NAME] who are responsible for the processing and management of accounts payable.

III. Definitions

Invoice: A document issued by a supplier to [YOUR COMPANY NAME] relating to products or services delivered or agreed upon that demands payment.
Vendor: An external party that supplies goods or services to [YOUR COMPANY NAME].
Accounts Payable: Money which [YOUR COMPANY NAME] owes to vendors for products or services that have been received but not yet paid for.

IV. Responsibilities

Accounts Payable Clerk: Responsible for processing invoices and maintaining the accounts payable ledger.
Procurement Officer: Accountable for verifying that goods or services billed for were received or rendered satisfactorily.
Finance Manager: Oversees the accounts payable process and approves payments over a certain threshold.

V.Procedure

A. Invoice Receipt and Verification

Receipt of Invoices: Upon receipt of an invoice, the Accounts Payable (AP) department will [DESCRIPTION].
Verification: Verify the accuracy and validity of each invoice, including [VERIFICATION CRITERIA].

B. Invoice Approval

Approval Process: Route invoices through the appropriate approval channels, ensuring that [APPROVAL CRITERIA] are met.
Authorized Signatures: Obtain authorized signatures or approvals before proceeding with payment.

C. Payment Processing

Payment Scheduling: Schedule payments based on [PAYMENT TERMS] and prioritize payments according to [PRIORITY CRITERIA].
Payment Methods: Choose the appropriate payment method, such as electronic funds transfer (EFT), checks, or wire transfers, based on [PAYMENT METHOD POLICY].

VI. Contact Information

Contact Role	Name	Email	Phone
Accounts Payable Clerk	[Contact Name - AP Clerk]	[Contact Email - AP Clerk]	[Contact Phone - AP Clerk]
Procurement Officer	[Contact Name - Procurement]	[Contact Email - Procurement]	[Contact Phone - Procurement]
Finance Manager	[Contact Name - Finance Manager]	[Contact Email - Finance Manager]	[Contact Phone - Finance Manager]

VII. Amendment and Review

This procedure is subject to review annually or as needed to reflect changes in financial regulations or operating practices. All amendments must be approved by [YOUR COMPANY NAME]'s executive team and communicated to all relevant staff members immediately.

VIII. Additional Reminders and Tips

Vendor Relationships: Foster positive relationships with vendors and suppliers to facilitate smoother transactions.
Timely Communication: Communicate promptly with vendors regarding payment status and any issues or delays.
Continuous Improvement: Regularly review and update this procedure to incorporate best practices and address any identified deficiencies.

IX. Conclusion

Implementing and following this Accounts Payable Procedure is essential for maintaining financial accuracy, ensuring compliance with regulations, and fostering strong vendor relationships. By adhering to these guidelines, [YOUR COMPANY NAME] can streamline accounts payable processes and contribute to the overall success of the organization.