SOP For Invoice And Check Preparation
SOP Number: Finance and Accounting – 24
Department: Accounts Payable
Date Issued: 8-Aug-2021
Time to Train: 25 Minutes
Purpose of Invoice And Check Preparation:
To create a standardised 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:
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 authorised receiver and entered on the daily Purchase Log. These logs will be balanced to the general ledger at month 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 back-up 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 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-up 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 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 carbonised 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?
