SOP Finance and Accounting – Invoice And Check Preparation

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SOP For Invoice And Check Preparation

Purpose of Invoice And Check Preparation:

The Standard Operating Procedure (SOP) for Finance and Accounting regarding invoice and check preparation is an essential document that outlines the necessary steps and procedures for the efficient and accurate processing of financial transactions.

The SOP details the guidelines for creating invoices, including the necessary information that must be included, such as the date, client information, description of goods or services provided, and payment terms. It also includes the proper procedures for handling invoices, such as ensuring that they are approved by the appropriate personnel before processing them for payment.

Additionally, the SOP outlines the procedures for preparing checks, including the information that must be included, such as the payee’s name, amount, and the reason for payment. It also includes the proper procedures for handling checks, such as ensuring that they are signed and dated by authorized personnel before being issued.

Overall, the SOP Finance and Accounting – Invoice and Check Preparation is an essential document that ensures the accuracy and efficiency of financial transactions, minimizing errors and ensuring compliance with internal and external regulations.

To create a standardized system for all invoice approvals and check preparations. To record invoices accurately in the proper accounts and financial periods.

Invoice And Check Preparation SOP Procedures:

1. All non-food and beverage invoices are sent to accounting initially, not to a department head. Duplicate copies of invoices should be destroyed.

2. All packing slips. Bills of Lading or delivery tickets should be forwarded to accounting.

3. Invoices should be stamped upon receipt with a voucher stamp which contains the following information:

  • Expense Account No (may be several lines)
  •  Received By
  •  General Manager Approval

4. Invoices are matched with Purchase Orders, packing slips, etc., and routed for approval. Invoices must be returned immediately to the accounting. office. Under no circumstances may an invoice be held by a manager.

5. All invoices must have Purchase Orders attached with the following exceptions:

  • Utility Bills
  •  Monthly Leases
  •  Monthly Franchise or Corporate Fees
  •  Food and Beverage Invoices
  •  Tax Payments
  •  Executive Office Expenses
  •  Professional Services
  •  Contractual Services with a Set Amount

6. Food and beverage invoices should be signed and dated at the time of delivery by an authorized receiver and entered on the daily Purchase Log. These logs will be balanced to the general ledger at month’s end.

7. Never pay from a statement. Never pay a previous balance or balance forward on an invoice.

8. Check requests should only be used for items that do not have an invoice such as advances. CODs or mail orders. A detailed description should be included on the check request with any other information attached. COD or mail order items must have some sort of backup attached: Faxed estimate from Vendor Copy of flyer or ad for item

9. Coupon payments, applications, or other bills that must be returned with payment should be photocopied and the photocopy processed as the invoice.

10. Petty Cash reimbursements should be recapped at least at month’s end, but weekly if needed. Individual Petty Cash slips should never exceed $100.00 (As per the hotel policy). unless COD or emergencies. All back-ups should be properly signed and approved with receipts attached. The reimbursement form should have the following information:

  • Date of Transaction
  •  Payee
  •  Reason.
  •  Account Number
  •   Amount

11. Expense Reports should be turned in for reimbursement no later than the week following the week of travel or the transaction takes place. Forms must be filled in completely with all receipts attached and be approved by the department head and General Manager. General Manager Expense. Reports must be approved by the VP of Operations.

12. Use tax should be added to any invoice from out of state. It should not be paid to the vendor but rather accrued to use tax and increase the expense amount. There should be a current State Sales Tax Rules & Regulations book in the accounting office.

13. Cash discounts should be taken whenever possible and credited to the proper expense account.

14. Checks should have a separate voucher to attach to the invoices and file in alphabetical vendor files. This should be the third section of a laser check or a copy of a carbonized check.

Training Summary Questions:

Q1. What should happen to duplicates of food and beverage invoices?

Q2. What information does an invoice stamped upon receipt with a voucher stamp contain?

Q3. What are the exceptions to attaching Purchase Orders to invoices?

Q4 What are the maximum limits for individual petty cash slips?
SOP Number: Finance and Accounting SOP – 24
Department: Accounts Payable
Date Issued: 8-Aug-2021
Time to Train: 25 Minutes

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