Document ID: PROC-DP-001 Version: 1.0 Last Updated: May 2026
This document provides detailed breakdown of each process within the Procurement Management Module, with specific steps, decision points, and handling procedures.
Step 1: Access Procurement System - Navigate to Procurement Module - Verify login credentials - Select “Create New Requisition” - System loads blank requisition form
Step 2: Form Initialization - System auto-populates: - Current date - Logged-in user name - Department (from user profile) - Requisition number (auto-generated) - Form displays all required fields - Optional fields marked clearly
Step 3: Enter Item Details
| Field | Entry | Validation |
|---|---|---|
| Item Description | Free text or select from catalog | Required; min 10 chars |
| Quantity | Numeric only | Required; must be >0 |
| Unit | Select from dropdown | Required; triggers UOM validation |
| Unit Cost | Numeric; decimal allowed | Required; must be >0 |
| Total Cost | Auto-calculated | Read-only; Qty × Unit Cost |
Step 4: Item Master Lookup
If selecting from catalog: 1. Click “Browse Catalog” 2. Filter by category/department 3. Search by keyword 4. Select item 5. Details auto-populate: - Standard cost - Preferred vendors - Lead time - Part number - Specifications 6. Edit as needed
If non-catalog item: 1. Enter full description 2. Attach specifications (optional) 3. Provide any drawings/images 4. Note special requirements 5. Indicate if catalog addition recommended
Step 5: Budget Allocation
Budget Selection Flow:
1. Click "Select Budget"
2. System shows department budgets
3. Filter by:
- Cost center
- Project
- Fiscal year
- Budget type (operational, capital, etc.)
4. Select appropriate budget line
5. System displays:
- Total budget
- YTD spent
- YTD committed
- Available balance
6. If insufficient budget:
- Option 1: Select different budget
- Option 2: Reduce quantity/cost
- Option 3: Apply for budget increase
- Option 4: Move to next fiscal year
7. System flags if >90% of budget usedStep 6: Cost Center Coding
Step 7: Delivery Details
Step 8: Auto-Determine Approval Chain
System automatically determines approvers based on:
IF Cost <= $5,000
→ Department Head approval required
→ Finance review skipped
ELSE IF $5,000 < Cost <= $25,000
→ Department Head required
→ Finance Manager required
ELSE IF $25,000 < Cost <= $100,000
→ Department Head required
→ Finance Manager required
→ Authority Officer required
ELSE (Cost > $100,000)
→ Department Head required
→ Finance Manager required
→ Authority Officer required
→ Procurement Committee requiredStep 9: Override Approvers (if needed)
Step 10: Attach Supporting Documents
File types allowed: - PDF documents - Excel spreadsheets - Word documents - Images (JPG, PNG) - Drawings/CAD files
Maximum file size: 10MB per file, 50MB total
Examples of useful attachments: - Vendor quotes - Specifications - Equipment drawings - RFQ results - Benchmark pricing - Previous purchase history
Step 11: Special Instructions & Notes
Optional Fields:
Justification/Business Reason:
├─ Why is this purchase needed?
├─ How does it support operations?
└─ Any strategic alignment?
Special Instructions:
├─ Delivery day preference
├─ Packaging requirements
├─ Installation needed?
├─ Training needed?
└─ Special handling?
Vendor Preference:
├─ Preferred vendor (if known)
├─ Reason for preference
├─ Contract reference
└─ Previous vendor performance notes
Additional Stakeholders:
├─ CC list (informational only)
├─ Department contact person
├─ Delivery point contact
└─ Questions/clarifications neededStep 12: Budget Pre-Check
Step 13: Final Review
Step 14: Submit Requisition
Submission Process:
1. Click "Submit for Approval"
2. System validates all fields
3. If errors found:
├─ Display error messages
├─ Highlight problem fields
└─ Do not allow submission
4. If all valid:
├─ Generate requisition number
├─ Create audit record
├─ Move to first approver
├─ Send notifications
└─ Display confirmation
Confirmation Includes:
├─ Requisition number (REQ-XXXXXX)
├─ Submission timestamp
├─ First approver name
├─ Next action timeline
├─ Tracking link
└─ Option to print confirmationStep 1: Receive Notification
Department Head receives: - Email notification (with requisition summary) - In-app notification (badge on dashboard) - SMS alert (if configured)
Email template includes:
Subject: NEW REQUISITION FOR APPROVAL - REQ-XXXXXX
From: Procurement System
To: Department Head email
Body:
A new requisition requires your review and approval.
Requisition Details:
├─ Requisition ID: REQ-XXXXXX
├─ Submitted by: [Name]
├─ Item: [Description]
├─ Quantity: [#]
├─ Total Cost: $[Amount]
├─ Department: [Name]
├─ Submitted: [Date/Time]
└─ Status: Awaiting your approval
View Details: [Link to requisition]
Approve/Reject: [Action buttons]
SLA: Please review within 3 business days.Step 2: Access Requisition
Step 3: Review Item Details
Verify: - [ ] Item description is clear and specific - [ ] Quantity is appropriate for need - [ ] Cost is reasonable - [ ] Specifications are complete - [ ] Attachments provide adequate detail - [ ] Delivery location is correct - [ ] Timeline is appropriate
Step 4: Departmental Assessment
Review for departmental fit: - [ ] Is this purchase needed by department? - [ ] Does it align with department priorities? - [ ] Is timing appropriate? - [ ] Are stakeholders in agreement? - [ ] Any conflicts with other initiatives? - [ ] Is requester authorized to request this? - [ ] Does department benefit?
Step 5: Budget Review
Assess: - [ ] Budget code is correct - [ ] Sufficient budget available - [ ] Cost allocation appropriate - [ ] Any budget concerns? - [ ] Fiscal year appropriate?
Step 6: Make Approval Decision
Decision Options:
Option A: APPROVE
├─ Proceed to Finance Manager
├─ No additional comments required
└─ Timeline for next stage shown
Option B: APPROVE WITH COMMENTS
├─ Proceed to Finance Manager
├─ Add comments/notes for next reviewer
├─ Comments visible to subsequent approvers
└─ Does not delay approval
Option C: REQUEST MODIFICATION
├─ Return to requester
├─ Specify what needs to change
├─ Requester can edit and resubmit
├─ Requisition goes back to you after revision
└─ Timeline pauses
Option D: REQUEST MORE INFORMATION
├─ Return to requester
├─ Ask for clarifications/details
├─ Requester provides response
├─ Can be text response or revised requisition
└─ You review again
Option E: REJECT
├─ Return requisition to requester
├─ Mandatory to provide reason
├─ Requester can revise and resubmit
├─ OR escalate to your manager
└─ Reason recorded in audit trailStep 7: Enter Comments (if applicable)
Comment template:
Type: [Select reason code if rejection/request]
Severity: [Normal / Urgent / On Hold]
Comments: [Free text - minimum 20 characters for rejection]
For Rejection, select reason:
├─ [ ] Item not needed
├─ [ ] Timing not appropriate
├─ [ ] Budget concerns
├─ [ ] Duplicate of existing purchase
├─ [ ] Alternative available
├─ [ ] Need more information
├─ [ ] Policy violation
├─ [ ] Other: [specify]
For Modification, specify:
├─ [ ] Reduce quantity to: [#]
├─ [ ] Find less expensive option
├─ [ ] Change delivery timing to: [date]
├─ [ ] Add additional details about: [item]
├─ [ ] Other change: [specify]Step 8: Submit Decision
Step 9: Automatic Notifications Sent
Based on decision:
If Approved:
To: Finance Manager
Subject: REQUISITION APPROVED FOR FINANCE REVIEW - REQ-XXXXXX
From: [Department Head Name]
Status: Department Head Approved
Next Step: Finance Manager Review
Timeline: 2 business daysIf Rejected:
To: Requisitioner
Subject: REQUISITION RETURNED - REQ-XXXXXX - Action Required
From: [Department Head Name]
Reason: [Reason code]
Comments: [Your comments]
Action Required: Review feedback and revise OR escalate
Can Resubmit: Yes, after revisions
Timeline: Resubmit within 5 business daysIf Request for Modification:
To: Requisitioner
Subject: REQUISITION REQUIRES MODIFICATION - REQ-XXXXXX - Action Required
From: [Department Head Name]
Requested Changes: [Specific changes needed]
Timeline: Make changes within 2 business days
Next Step: Will re-review after revisionStep 1: Budget Verification
System Performs Automatic Check:
1. Calculate total budget impact:
New Cost = Requisition Amount
2. Check available budget:
Available = Total Budget - YTD Spent - YTD Committed
3. Validate equation:
IF New Cost <= Available
THEN Show "Budget Available" (Green)
ELSE Show "Budget Exceeded" (Red)
4. Calculate impact:
Budget Used % = (YTD Spent + YTD Committed + New Cost) / Total Budget
5. Show projection:
IF >90% utilized THEN Flag "Caution - High budget usage"
IF >100% THEN Flag "Budget Exceeded"
6. Show forecast:
Year-end budget position if approved
Remaining budget after approvalStep 2: Policy Compliance Check
Verify: - [ ] Vendor is approved vendor (not blacklisted) - [ ] Purchasing follows institutional policy - [ ] Conflicts of interest check passed - [ ] Sustainability/environmental policy met - [ ] Diversity/small business considerations - [ ] Tax exemption status confirmed (if applicable) - [ ] No prohibited vendors
Step 3: Cost Reasonableness Assessment
Cost Analysis:
1. Compare to historical purchases:
└─ How much did we pay last time?
└─ Has price changed significantly?
└─ Is this normal seasonal variation?
2. Market rate comparison:
└─ Is this competitive?
└─ Any benchmark data available?
└─ Suggest alternative if significantly higher?
3. Volume discounts:
└─ Is quantity optimal for cost?
└─ Opportunity to buy more and save?
└─ Or reduce quantity to lower cost?
4. Total cost of ownership:
└─ Consider maintenance costs
└─ Consider disposal costs
└─ Consider implementation costs
└─ Is cheaper option actually more expensive long-term?
5. Financial impact:
└─ How does this affect department budget?
└─ What's the cost per unit impact?
└─ Multi-year cost implications?Step 4: Decision Logic
Finance Review Decision Tree:
Question 1: Is budget available?
├─ NO → REJECT with reason "Insufficient Budget"
└─ YES → Continue to Question 2
Question 2: Does this meet policy requirements?
├─ NO → REJECT with reason "Policy Non-Compliance"
└─ YES → Continue to Question 3
Question 3: Is cost reasonable?
├─ NO (significantly higher) → REQUEST MODIFICATION
│ ├─ Ask for cost reduction OR
│ └─ Ask for vendor alternative
└─ YES → Continue to Question 4
Question 4: Are there financial concerns?
├─ YES (unusual patterns) → REQUEST MORE INFO
│ └─ Ask for justification of high cost
└─ NO → Continue to Question 5
Question 5: Approve?
├─ YES → APPROVE
├─ MAYBE → APPROVE WITH COMMENT
└─ NO → REJECT or REQUEST MODIFICATIONStep 5: Enter Finance Approval
Approval Form:
Decision: [Approve / Reject / Request Modification / Request Info]
IF APPROVE:
└─ Cost approved as submitted
└─ Budget committed to this requisition
└─ Proceeds to next level (if required)
IF APPROVE WITH MODIFICATION:
├─ Specify modification
├─ New approved cost
├─ Reason for modification
└─ Will proceed after modification confirmed
IF REJECT:
├─ Select reason code (Required)
├─ Provide detailed explanation
└─ Specify if resubmission possible
Comments: [Optional additional notes]
If amount triggers Authority Officer:
└─ Approves with understanding that Authority approval also needed
Financial Notes:
├─ Cost impact on fiscal year
├─ Budget utilization after approval
├─ Multi-year fiscal impact (if applicable)
└─ Any special budget considerationsStep 1: Identify Approved Vendors
Vendor Selection Process:
1. System suggests vendors based on:
├─ Item requested
├─ Institutional vendor agreements
├─ Historical purchase patterns
├─ Price competitiveness
├─ Delivery capability
└─ Performance history
2. Evaluate each suggested vendor:
├─ Pricing (lowest cost?)
├─ Delivery time (fastest?)
├─ Quality rating (highest rated?)
├─ Contract terms (best terms?)
├─ Payment terms (2/10 net 30?)
└─ Customer service (known to be responsive?)
3. If no approved vendors:
├─ Identify alternative suppliers
├─ Request quote
├─ Get approval for new vendor
└─ Proceed once approvedStep 2: Price Comparison
Price Comparison Analysis:
For each qualified vendor:
├─ Unit cost
├─ Total cost
├─ Shipping cost
├─ Any discounts available
├─ Terms discount (2/10 net 30?)
├─ Volume discount potential
└─ Total effective cost
Calculation:
Total Cost = (Unit Cost × Qty) + Shipping + Taxes - Discounts
Display comparison matrix:
Vendor A | Unit: $X | Total: $Y | Rating: 4.5/5 | Delivery: 5 days
Vendor B | Unit: $Z | Total: $W | Rating: 4.0/5 | Delivery: 3 days
Vendor C | Unit: $V | Total: $U | Rating: 3.5/5 | Delivery: 7 days
Recommendation: Vendor with best value
(Not always lowest price - consider quality, delivery, reliability)Step 3: Generate PO
System automatically creates PO including:
PO HEADER:
├─ PO Number (auto-generated, unique)
├─ PO Date
├─ Requisition number (cross-reference)
├─ Department
├─ Cost center
└─ Budget code
VENDOR INFORMATION:
├─ Vendor name
├─ Vendor address
├─ Vendor contact
├─ Tax ID
├─ Payment terms
├─ Standard lead time
└─ Special shipping instructions
LINE ITEMS:
├─ Item description (from requisition)
├─ Quantity
├─ Unit of measure
├─ Unit price
├─ Extended price (Qty × Price)
├─ Line number
└─ GL account code
TOTALS:
├─ Subtotal
├─ Shipping cost
├─ Tax amount
├─ Total amount
TERMS & CONDITIONS:
├─ Payment terms (e.g., Net 30)
├─ Delivery date
├─ Cancellation conditions
├─ Inspection requirements
├─ Return policy
├─ Warranty terms
└─ Special requirementsStep 4: PO Customization
Before sending, verify/modify: - [ ] Delivery address correct - [ ] Delivery date acceptable - [ ] Shipping method appropriate - [ ] Special handling instructions clear - [ ] Budget code accurate - [ ] Cost center assignment correct - [ ] Any special terms needed - [ ] Insurance requirements - [ ] Signature authorities
Step 5: Send PO to Vendor
Transmission Methods:
Primary: Email
├─ Formatted PDF attachment
├─ Email body with summary
├─ Vendor email address verified
├─ Read receipt requested
└─ Sent with timestamp
Alternative: EDI
├─ Electronic Data Interchange
├─ Automated transmission
├─ Confirmation receipt
└─ Used for high-volume vendors
Alternative: Vendor Portal
├─ Upload to vendor's platform
├─ Vendor automatically notified
├─ Confirmation tracked
└─ Used for large vendors
Alternative: Fax/Mail
├─ For vendors without email
├─ PDF printed and faxed
├─ Postal mail with tracking
└─ Last resort only
Confirmation:
├─ System records transmission
├─ Date/time logged
├─ Delivery method noted
├─ Vendor acknowledgment requested
└─ Status set to "PO Sent"Step 6: Post-Transmission Actions
After PO Sent:
1. Notify Stakeholders:
├─ Email: Requisitioner (PO created and sent)
├─ Email: Department Head (FYI)
├─ Email: Receiving department (item incoming)
└─ Email: Finance (for AP tracking)
2. Update System:
├─ Requisition status: "PO Created"
├─ PO status: "Sent to Vendor"
├─ Budget status: "Committed" (no longer "Pending")
├─ Create audit record
└─ Set follow-up reminder (48 hours for ack)
3. Track Vendor Response:
├─ Awaiting vendor confirmation
├─ System auto-escalates if 48h, no ack
├─ Send vendor reminder email
└─ Update status when confirmation received
4. Estimated Delivery Tracking:
├─ Calculate EDD based on vendor lead time
├─ Set delivery alerts for 2 days before
├─ Notify receiving department
└─ Schedule receiving dock if neededStep 1: Advance Notice
When vendor confirms shipment:
Notification to Receiving Department:
Subject: INCOMING DELIVERY - PO-XXXXX - [Item] arriving [Date]
Details:
├─ PO Number and date
├─ Vendor name and contact
├─ Items arriving
├─ Quantity expected
├─ Expected delivery date/time
├─ Special handling needed
├─ Receiving location
├─ Contact for delivery questions
└─ Action required: Prepare receiving areaStep 2: Goods Arrival
When delivery arrives: 1. Verify driver credentials 2. Check delivery truck for damage 3. Unload items carefully 4. Inspect exterior packaging: - [ ] Boxes intact - [ ] Seals unbroken - [ ] Visible damage absent - [ ] Weight reasonable
Step 3: Verify Shipment Documentation
Check: - [ ] Packing slip present - [ ] Item list matches PO - [ ] Quantities match packing slip - [ ] Weights/dimensions reasonable - [ ] No evidence of transit damage - [ ] All boxes/cartons present
Step 4: Item-by-Item Inspection
For each item:
Inspection Procedure:
1. Count
├─ Count physical quantity
├─ Compare to PO quantity
├─ Document any variance
├─ If missing: Note quantity short
└─ If excess: Note quantity over
2. Description Verification
├─ Verify item matches description
├─ Check model/version/SKU
├─ Verify specifications match
├─ Note any substitutions
├─ Verify correct item, not similar
└─ Flag mismatches
3. Quality Inspection
├─ Check for physical damage
├─ Verify all components present
├─ Test (if applicable)
├─ Check expiration dates (consumables)
├─ Verify documentation included
└─ Note any defects found
4. Documentation Review
├─ Warranty documents present?
├─ User manuals included?
├─ Certificates of compliance?
├─ Shipping manifests match?
├─ Quality inspection cert present?
└─ Note any missing documents
5. Barcode Scanning
├─ Scan barcode on item
├─ System matches to PO
├─ Capture serial numbers (if required)
├─ Capture batch numbers (if applicable)
├─ Photograph high-value items
└─ Note in receiving systemStep 5: System Entry
Goods Receipt Document (GR) Entry:
Required Information:
├─ PO Number
├─ Vendor name
├─ Delivery date/time
├─ Receiving location
├─ Item-by-item details:
│ ├─ Description
│ ├─ Quantity received
│ ├─ Unit price
│ ├─ Serial numbers
│ ├─ Batch/lot numbers
│ └─ Condition assessment
├─ Issues noted
├─ Photos (if applicable)
├─ Receiving clerk signature
└─ Date/time of receipt
Status Options:
├─ Fully Received (100% of PO received)
├─ Partially Received (Some items pending)
├─ Received with Issues (Quality/qty problems)
├─ Returned (Sent back to vendor)
└─ Rejected (Not accepted)Step 6: Handle Any Discrepancies
If Quantity Short:
├─ Document actual received
├─ Create variance note
├─ Contact vendor immediately
├─ Request remaining items (ASN)
├─ Accept what received (create backorder)
├─ Continue with payment for received items
└─ Track follow-up shipment
If Quality Issues Found:
├─ Document defect with photos
├─ Determine severity
├─ Contact vendor immediately
├─ Report issue in GR
├─ Options:
│ ├─ Accept with defect (if minor)
│ ├─ Return to vendor (if major)
│ ├─ Request replacement (partial)
│ └─ Reject entire shipment
└─ Do not pay for rejected items
If Wrong Item Received:
├─ Document in detail
├─ Take photos
├─ Contact vendor immediately
├─ Arrange return
├─ Mark GR as "Received Wrong Item"
├─ Requisition correct item
└─ Create new PO if neededStep 1: Receive Invoice
Invoice received via: - Email attachment - Paper mail - Vendor portal - EDI transmission
System captures invoice:
Invoice Header Information:
├─ Vendor name
├─ Invoice number (unique from vendor)
├─ Invoice date
├─ PO reference number
├─ Total invoice amount
├─ Invoice due date
├─ Payment terms
├─ Payment instructions
└─ Any special notesStep 2: System Entry
Invoice Entry Form:
Basic Information:
├─ Invoice date [Required]
├─ Invoice number [Required]
├─ Vendor [Auto-populated from PO]
├─ Amount [From invoice]
└─ Due date [From invoice]
Line Item Details:
├─ For each line item:
│ ├─ Description
│ ├─ Quantity invoiced
│ ├─ Unit price
│ ├─ Extended price
│ ├─ Line amount
│ └─ GL account code
Additional Charges:
├─ Shipping [if separate line]
├─ Taxes [calculated or entered]
├─ Insurance [if separate]
├─ Discounts [if offered]
└─ Total invoice amount [calculated]
Attachments:
├─ Copy of invoice scanned
├─ Supporting documents
├─ Delivery notes
└─ Any correspondenceStep 3: Automated Three-Way Match
Matching Algorithm:
For Each Line Item:
1. Retrieve PO Details:
├─ PO quantity
├─ PO unit price
├─ PO total price
└─ PO description
2. Retrieve GR Details:
├─ Actual received quantity
├─ Condition notes
└─ Variance notes
3. Compare Invoice to PO:
Match Check 1: DESCRIPTION
├─ PO Description ≈ Invoice Description?
├─ Same item/SKU?
├─ Flag if mismatch
└─ Need: [Exact match required]
Match Check 2: QUANTITY
├─ PO Qty = Invoice Qty = GR Qty?
├─ Calculate variance: |Invoice Qty - GR Qty| / GR Qty
├─ Acceptable variance: ≤ 5%
├─ If variance > 5%: FLAG for review
└─ If partial GR: Accept invoice only for received qty
Match Check 3: UNIT PRICE
├─ PO Unit Price = Invoice Unit Price?
├─ Calculate variance: |Invoice Price - PO Price| / PO Price
├─ Acceptable variance: ≤ 2%
├─ If variance > 2%: FLAG for review
└─ Document reason for variance
Match Check 4: TOTAL AMOUNT
├─ PO Total ≈ Invoice Total?
├─ Calculate: Expected Total = GR Qty × Invoice Price
├─ Invoice Total = (Qty × Price) + Shipping + Tax - Discount
├─ Acceptable variance: ≤ $50 or ≤ 3%
├─ If variance exceeds: FLAG for review
└─ Document explanation
4. Overall Match Result:
├─ EXACT MATCH: All items match exactly
│ └─ Auto-approve for payment
├─ ACCEPTABLE MATCH: Minor variances within tolerance
│ └─ Approve with note
├─ FLAGGED MATCH: Variance exceeds tolerance
│ └─ Requires manual review & approval
└─ NO MATCH: Significant discrepancies
└─ Reject or hold pending resolutionStep 4: Review Flagged Invoices
Review Process for Flagged Items:
1. Assess Exception:
├─ Quantity variance: [amount]
├─ Price variance: [amount] [%]
├─ Amount variance: [amount] [%]
└─ Severity assessment
2. Determine Cause:
└─ Ask questions:
├─ Was it partial shipment? (accept invoice for what received)
├─ Did vendor give discount? (check invoice for discount line)
├─ Is early payment discount? (verify discount terms)
├─ Was there price change? (check contract for price adjustment)
├─ Is this a known issue? (check vendor history)
└─ Did receiving drop items? (check GR notes)
3. Resolution Options:
├─ ACCEPT VARIANCE
│ ├─ If minor/acceptable
│ ├─ Document reason
│ ├─ Finance approves
│ └─ Proceed to payment
├─ REQUEST CREDIT MEMO
│ ├─ Quantity variance → Contact vendor for credit
│ ├─ Price variance → Request credit for difference
│ ├─ Wait for vendor response
│ └─ Resubmit invoice after credit received
├─ HOLD PAYMENT
│ ├─ Contact vendor for clarification
│ ├─ Request corrected invoice
│ ├─ Await vendor response
│ └─ Resubmit after correction
├─ REJECT INVOICE
│ ├─ Major discrepancies
│ ├─ Return to vendor
│ ├─ Request corrected invoice
│ └─ Document reason
4. Communication:
├─ Email to vendor if issue
│ ├─ Specify discrepancy
│ ├─ Request resolution
│ ├─ Reference PO and invoice
│ └─ Set timeline for response
├─ Documentation:
│ ├─ Note in invoice record
│ ├─ Track correspondence
│ └─ Audit trail maintainedStep 1: Identify Eligible Invoices
Eligibility Criteria:
Invoice must have:
├─ [✓] Matched status (3-way match complete)
├─ [✓] Due date today or earlier
├─ [✓] No holds or disputes
├─ [✓] All required approvals
├─ [✓] Valid vendor information
├─ [✓] Correct GL coding
└─ [✓] Attached supporting documentationStep 2: Batch Composition
Batch Organization Strategy:
Group by Payment Method:
├─ Check Payments (all check payments in one batch)
├─ ACH Transfers (all bank transfers in one batch)
├─ Credit Card Charges (batch to corporate card)
├─ Wire Transfers (separate batches for large amounts)
└─ E-Payment Platform (batch to platform)
Within Each Method:
├─ Sort by vendor
├─ Sort by invoice date
├─ Verify no duplicates
├─ Total amounts
└─ Create batch control sheetStep 3: Batch Verification
Quality Control Checks:
□ Count invoices: [#] invoices
□ Total amount: $[______]
□ By vendor: [List top vendors]
□ By department: [Breakdown]
□ Average amount: $[______]
□ Largest single: $[______]
□ Any duplicates: [None/List]
Vendor Information:
□ All vendor names correct
□ Addresses verified
□ Tax IDs present (for large vendors)
□ Payment routing correct (ACH)
□ Contact info updated
□ Any vendor issues/flags
Budget Impact:
□ Total budget impact: $[______]
□ By cost center: [Breakdown]
□ Budget remaining: $[______]
□ Any budget overages: [None/List]
□ Budget variances noted: [Y/N]
Exceptions:
□ Invoices on hold: [#]
□ Disputed amounts: [#]
□ Pending information: [#]
□ Any issues to resolve: [Y/N]Step 4: Batch Approval
Approval Routing:
Standard Batch:
├─ AP Manager reviews
├─ Finance Manager approves
└─ Payment executed
Large Batch (>$50,000):
├─ AP Manager reviews
├─ Finance Manager reviews
├─ CFO approves
└─ Payment executed
Exception Batch:
├─ Has discrepancies
├─ Has disputed items
├─ Requires clarification
├─ Senior Finance reviews
├─ Issues resolved
└─ Then approved & executedStep 5: Process Payments
Process:
1. AP prints check from batch
2. Check details printed:
├─ Payee name and address
├─ Amount (numeric and written)
├─ Date
├─ Check number
└─ Memo line (invoice # or "Services")
3. Signature lines printed
4. Two authorized signatures required
5. Check logged in system
6. Check mailed to vendor
7. Scanned for records
8. Recorded in GL
Timeline:
├─ Preparation: 1 business day
├─ Mailing: 1-2 business days
├─ Clearing: 5-10 business days
└─ Total: 7-12 business daysProcess:
1. Gather vendor banking info:
├─ Bank name
├─ Routing number
├─ Account number
├─ Account type (checking/savings)
└─ Account holder name
2. Verify information (no typos)
3. Prepare ACH file with transfers
4. AP Manager reviews and approves
5. Finance Manager authorizes
6. Transmit to bank
7. Bank processes overnight
8. Confirmation received next day
9. Recorded in GL
Timeline:
├─ Preparation: 1 business day
├─ Bank processing: Overnight (1-3 days)
├─ Clearing: 1-2 business days
└─ Total: 2-5 business daysProcess:
1. High-value verification
├─ Confirm vendor legitimacy
├─ Verify wire instructions independently
├─ Call vendor to confirm (if >$100K)
└─ Verify no fraud indicators
2. Gather wire details:
├─ Beneficiary name
├─ Bank name and address
├─ Routing/Swift code
├─ Account number
├─ Purpose of wire
└─ Urgent vs. non-urgent
3. AP prepares wire request
4. Finance Manager reviews
5. CFO or authorized approver signs
6. Transmit to bank via secure channel
7. Bank executes immediately (same day)
8. Confirmation received
9. Recorded in GL
Timeline:
├─ Preparation: 1 business day
├─ Bank execution: Same day (if morning submission)
├─ Clearing: Immediate to same day
└─ Total: 1-2 business daysProcess:
1. Batch invoices by vendor
2. Match to corporate card categories
3. Record amounts in expense system
4. Prepare credit card batch
5. Submit to corporate card platform
6. Charges processed
7. Charges appear on monthly statement
8. Reconcile statement to expense records
9. Department codes charges to GL
10. Pay card monthly balance
Timeline:
├─ Processing: Same day
├─ Appearance on statement: 1-3 days
├─ Statement period: 30 days
├─ Payment due: 30 days from statement
└─ Total: Up to 60+ daysStep 6: System Entry & Recording
Payment Record Entry:
Payment Details:
├─ Payment date
├─ Payment method (Check/ACH/Wire/Card)
├─ Payment amount
├─ Confirmation number
├─ Vendor name
├─ Reference (invoice #)
└─ GL account code
GL Posting:
├─ Accounts Payable decreases (Credit)
├─ Cash/Bank decreases (Debit)
├─ Department expense account affected
└─ Audit trail created
Status Update:
├─ Invoice status: "Paid"
├─ Invoice marked as: Cleared (pending bank confirmation)
└─ Removal from AP aging report
Reconciliation:
├─ Payment matched to invoice
├─ Bank statement reconciliation pending
├─ Confirmation tracking
└─ GL reconciliation queuedStep 1: Pre-Closure Checklist
□ Payment cleared by bank
□ No outstanding disputes
□ No holds or flags
□ All documents received
□ GL posting complete
□ Budget reconciled
□ Vendor account settled
□ No outstanding questionsStep 2: Archive Package Assembly
Collect all documents:
Documentation Package:
Original Documents:
├─ Requisition (signed/approved copy)
├─ All approval comments/emails
├─ Purchase Order (final version)
├─ PO acknowledgment from vendor
├─ Goods Receipt Document
├─ Receiving inspection notes
├─ Vendor invoice (copy)
├─ Three-way match report
├─ Payment authorization
├─ Cancelled check (if by check) OR wire confirmation
├─ Bank statement excerpt showing payment
Supporting Documents:
├─ Vendor quotes
├─ Specifications/drawings
├─ Quality documentation
├─ Any exception reports
├─ Email correspondence
├─ Change order (if any)
├─ Contract (if applicable)
└─ Photos/documentation (if high-value)
Summary Documents:
├─ Procurement summary sheet
├─ Cost analysis/comparison
├─ Budget impact statement
├─ Performance summary
└─ Lessons learned (if applicable)Step 3: Record Archival
System Actions:
Status Update:
├─ Change PO status: "Closed"
├─ Mark as "Fully Executed"
├─ Timestamp closure
└─ Create closure note
Archive Creation:
├─ Move to historical database
├─ Compress/archive files
├─ Create backup copy
├─ Verify archive integrity
└─ Remove from active system
Access Control:
├─ Change to read-only
├─ Archive audit trail
├─ Restrict editing
├─ Maintain view access
└─ Configure long-term retention (7 years)Requisition to Payment Cycle:
Requisition → Approval: [3-10 days]
Approval → PO: [1-2 days]
PO → Delivery: [5-30 days]
Delivery → Invoice: [2-5 days]
Invoice → Payment: [5-15 days]
─────────────────────────────────────
TOTAL: [20-65 days]
Target: < 45 days
Acceptable: 45-60 days
Concerning: > 60 daysMetrics to Track:
1. Approval Time SLA Met: [%]
Target: >95%
2. Three-Way Match Success Rate: [%]
Target: >95%
(% of invoices matching without issues)
3. Average Days to Payment: [#]
Target: < 15 days from invoice receipt
4. Requisition Rejection Rate: [%]
Target: < 5%
5. Vendor On-Time Delivery: [%]
Target: > 95%
6. Quality Acceptance Rate: [%]
Target: > 98%
(% of received goods accepted without issues)
7. Cost Variance: [%]
Target: ±2%
(Actual vs. budgeted)