Accounts Payable Process

1. ACCOUNTS PAYABLE
ACCOUNTING AND CONTROL PROCEDURES
PURPOSE
- to ensure that all payables are paid on due date
- to ensure an orderly record of all payables
- to ensure that all payables charge to customers
are properly billed and paid (by customers)
SCOPE
This procedure applies to all employee and company suppliers.
DEFINITION OF TERMS
1. Accounts Payable – the amount due to various suppliers that
A rise from purchases of goods, materials and services rendered.
2. Dated Check / COD - all payables that will fall for a 7,15 and 30
days terms of payment ( non regular supplier )
3. 20th
- all payables that will be due every 20th of the month
( regular suppliers / bulk payables )
4. Telegraphic Transfer – an electronic method used for transferring
of funds applicable for overseas and local suppliers with foreign
currency.
5. Fund Transfer – an electronic transfer of funds through a
computer based system without a direct intervention of bank
staff.
6. CDS – Comprehensive Disbursement System an electronic form of
payment through a computer based with a participation of bank
personnel.

2. ACTIVITY FLOWCHART RESPONSIBILITY
Receiving of approved Purchase
Orders from Purchasing, Impex and
Other payment request from Accounts Payable
Other concern divisions.
Verifying of Purchase Orders,
Request for payments with Accounts Payable
Sales invoice, delivery receipts,
and other related corresponding
documents.
N
Y
Preparation of cash/check voucher
and check payment based on P. O. Accounts Payable
and request for payments.
Recording of payment details
Such as check number, assigned Accounts Payable
Voucher, payee name, date prepare,
currency and amount
Receives approved
PO and Request
for payment
Preparation
of payment
Verifying/Sorting the
accuracy of PO and
Request for payments per
Suppliers and according
to dates of payments
Recording to
Check Register
Is this
already due?
Filed Ascending in
for Preparation
storage bin

3. Verifying/checking of prepared Payroll/Accountant
cash/check vouchers and check
payment.
Approval of cash/check voucher President / CFO
and check. (authorize signatories)
N
Safekeeping Y Accounts Payable
Releasing/Collection of check
payments is done every Friday Accounts Payable
for regular and non regular
suppliers. Every Tuesday for back pay
and daily for cash advances, sickness,
maternity and other dated checks.
Verification of
details of prepared
Check payment
Cash/check vouchers
and checks (includes
attachments are kept
in the vault.
A
8
Check releasing
Are this check
payment due
today?
Approval

4. Updating of Check Register
by marking the date it was released. Accounts Payable
And Putting assigned Voucher number
For SOA monitoring.
N
Y
Unreleased checks are Accounts Payable
returned for safekeeping
Segregation of cash check
Vouchers for billing to client
From company charges
Filing
END
update Check Register
and SOA Monitoring
Sorting of
cash/check
vouchers
Return of
unreleased check
for safekeeping
Are all checks
released?
update Check Register
and SOA Monitoring
Released cash/check
vouchers charge to
customer forwardto AR
section for billing
reference
Released cash/check
vouchers charge to
company w ill be file

5. PROCEDURES
1. The following internal control procedure relating to
payment/disbursement preparation must be observed:
2. The payees or his/her authorized representative must be
required to show an identification card and should sign over
his/her printed name with the date of collection/released on
the voucher . An official receipt must be issued upon
releasing the payment.
3. All released cash/check voucher charge to client must be
update to SOA monitoring then forward to AR Section for
billing reference. And for the company charges all documents
will be put into “for file” bin.
Uncollected- within certain period: within 1 month term
Example: delivered: Jan 8
Due Feb 8
Collection: Until March 8
Future: RCBC to RCBC or non-RCBC (T/T)