Example of AP Process for CAPEX Department - AP and AR Process

Transcript

AP Process Miss Priya Sales (Need Laptop) Ask Manager as per Expense Authorization Matrix Purchase Amount Up to 10000 10000 – 100000 100000 Authorization Matrix Approval by No Approval Manager Senior Manager Correct Mode [Mail Approval / Material Requisition / Voucher Sign] Manager Approves [No Oral Approval Must be Writing or Mail Approval / Material Requisition /Sign or Voucher] Actual Purchase by Correct Department Purchase Debt For factory Purchase IT Debt For Capital Goods Admin For Office Expenses Self Small Companies Obtain Quotations From Vendors Up to 10000 No Quotation 10000 – 100000 3 Quotations 100000 5 Quotations Take Approval to Select Vendor [ Approval by Correct Person as per Company Policy e.g. Purchase Dept. Head ] Issue Purchase Order to Selected Vendor [ It Contains Only Rate / Amt. ] Vendors Sends Goods Entry by Security Guard [On Goods received Security Guard Updates Register] Proper Weighing Checking by Stores [Goods are Checked as per Company Policy by Stored IT Dept. / Adm. ] Issue GRN [Sometimes Invoice Signed] Bill Received by Accounts (AP Accountant) Things Checked before Passing Entry Things Checked While Passing Entry Procedure After Entry Verification by Assistant Manager (AP Dept.) Issue Cheque to Vendor Prepare MIS Report [It is done by Manager Accounts Matching Budgeted Expenditure with Actual Expenditure]