Accounts Payable Policy

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Phone: {{phone}}

Email: {{email}}

Website: {{website}}

1. Policy Statement

This Accounts Payable (AP) Policy establishes the framework for managing all expenditures and payments to suppliers and vendors. The objective of this policy is to ensure that all financial obligations are met accurately, timely, and in compliance with internal controls, accounting standards, and relevant legislation. This policy applies to all employees involved in the procurement, approval, and payment processes.

2. Roles and Responsibilities

**2.1 Department Heads/Budget Holders:** Responsible for the initial approval of expenditure requests, ensuring that services or goods have been received as ordered, and verifying the accuracy of invoices against purchase orders.

**2.2 Accounts Payable Department:** Responsible for reviewing invoices for accuracy, matching them with purchase orders and goods received notes, processing payments, maintaining accurate vendor records, and reconciling accounts.

**2.3 Finance Director/CFO:** Responsible for overall oversight of the AP function, approval of significant payments, and ensuring compliance with financial regulations.

3. Invoice Processing

**3.1 Receipt of Invoices:** All invoices must be sent to the designated Accounts Payable email address ({{ap_email_address}}) or postal address.

**3.2 Invoice Verification:** Upon receipt, AP staff will verify the invoice for completeness, accuracy, and compliance with company policies.

**3.3 Three-Way Match:** Invoices must be matched against an approved Purchase Order (PO) and a Goods Received Note (GRN) or proof of service delivery.

**3.4 Invoice Approval:** Invoices exceeding {{approval_threshold_amount}} must be formally approved by the relevant department head or budget holder, typically via an electronic workflow system (e.g., {{workflow_system}}).

4. Payment Procedures

**4.1 Payment Terms:** All payments will be made in accordance with agreed-upon supplier payment terms, typically {{standard_payment_terms}} days from the invoice date.

**4.2 Payment Methods:** Payments will primarily be made via Electronic Funds Transfer (EFT) directly to the supplier's bank account. Cheque payments will only be made in exceptional circumstances with prior approval.

**4.3 Payment Batch Processing:** Payments will be processed in scheduled batches, usually on {{payment_run_days}}.

**4.4 Authorization of Payments:** All payment batches must be authorized by two senior finance representatives before release.

5. Vendor Management

**5.1 Vendor Setup:** All new vendors must be registered in the accounting system ({{accounting_system}}) and undergo a vendor vetting process, including obtaining a valid Tax Clearance Certificate and bank details verification.

**5.2 Vendor Records:** Maintain accurate and up-to-date vendor records, including contact information, payment terms, and banking details. Any changes to vendor details must be verified independently.

**5.3 Supplier Reconciliation:** Regular reconciliation of supplier statements against internal records will be performed monthly to identify and resolve discrepancies.

6. Expense Reimbursement

**6.1 Employee Expenses:** Employee business expenses will be reimbursed in accordance with the company's separate Expense Policy. All claims must be submitted with valid receipts by {{expense_submission_deadline}} of each month.

**6.2 Approval Limits:** Expense claims require approval from the employee's line manager, with higher-value claims requiring additional director-level approval.

7. Internal Controls and Compliance

**7.1 Segregation of Duties:** Duties related to procurement, invoice processing, and payment authorization must be segregated to prevent fraud and errors.

**7.2 Audit Trail:** A comprehensive audit trail of all transactions will be maintained for review.

**7.3 Regulatory Compliance:** This policy adheres to relevant local tax laws (e.g., Value Added Tax - VAT, Pay As You Earn - PAYE considerations for certain payments) and financial reporting standards (e.g., IFRS/GRAP as applicable).

8. Policy Review

This policy will be reviewed annually by the Finance Department and approved by senior management to ensure its continued effectiveness and relevance. The next review date is {{next_review_date}}.

Signature Block

___________________________

{{approver_name}}

{{approver_title}}

Date: {{date}}