ACCOUNTS PAYABLE PROCEDURE

Transcription

1 Page 1 of 6 ACCOUNTS PAYABLE PROCEDURE I Procedure Statement The Accounts Payable Procedure clarifies the specific steps in providing timely payment of materials and/or services to our vendors, customers, clients and tenants, etc. II Who Should Read Procedure Individuals responsible for any reporting outlined in the following procedures who will be unavailable at the deadline, must delegate for coverage to ensure the deadline is met. A. President (P) B. Vice-President (VP) C. Chief Finance Officer/Controller (CFO) D. Accounts Payable Administrator (APA) E. Accountant (ACCT) F. Bookkeeper/Accountant (BACCT) G. Receptionist/Secretary (RS) H. Regional Property Managers (RPM) I. Regional Compliance Managers (RCM) J. Executive Assistant (EA) K. Maintenance Director (MD) III Related Documents A. Purchase Orders B. Work Orders C. Invoices

2 Page 2 of 6 D. Vendor Statements E. Recurring Charges F. Coding/Approval Slips G. Check Runs H. Checks IV The Procedure A. All invoices received by mail are opened by the RS and date stamped. B. All hand delivered invoices are given directly to the APA and date stamped. C. All approved purchase orders are received by the APA and date stamped. D. All incoming invoices are forwarded to the APA. 1. All due dates on invoices shall be reviewed at this time. If the due date is going to be past the next A/P run date, a hand check will be issued on the invoice (see W. Hand Checks below). E. Once stamped, the invoices and purchases orders are sorted alphabetically by vendor, then matched together, and reviewed for accuracy of purchase amount. 1. If there is a discrepancy between the purchase order and the invoice, the APA will flag the invoice and the invoice will be reconciled and approved during the invoice approval process. F. A coding/approval slip with the following information is attached to each invoice: 1. Vendor Number a. Must be a company approved vendor. b. It a subcontractor, EA shall have the following items on file prior to work being performed. i. Tax identification number ii. Workers Compensation Insurance certificate iii. Liability Insurance certificate

3 Page 3 of 6 c. If the vendor is new and has to be set up in the system, the APA shall check with the EA for approval (see Vendor Set Up Procedure). 2. General Ledger Account Number 3. Invoice Amount 4. Property 5. Invoice Number G. The invoices are then sorted by property into folders. H. All invoices are then entered into the system by the APA by the 1 st, 10 th and 20 th of the month. 1. The APA verifies via the system that the invoices have not been previously paid. 2. The cutoff date for each pay run is four (4) days prior. Any invoices that come in after the cutoff date will go in the next pay run unless they will accrue a late fee then a hand check will be generated. 3. A pay run will be generated on the 1 st, 10 th and 20 th of each month. I. A payable batch report is generated for each property after each posting and reviewed and compared with the invoices for accuracy by the APA. Information included on the payable batch report is as follows: 1. Control number 2. Property name 3. Vendor number 4. Vendor name 5. Cash account number 6. Invoice number 7. Expense account number 8. Invoice date 9. Period date 10. Due date

4 Page 4 of Amount J. These reports are given to the RS who sorts the reports per property. The reports are filed at the front desk and then attached to the monthly financial packets for each property as they come in. Accounts payable reports are then filed by the end of the month with the financials of the property. K. The APA sorts the invoices by RPM, and then forwards them to the RPMs for review and approval. L. The RPM will verify the following: 1. The invoice is a legitimate expense. 2. Correct vendor. 3. The invoice amount matches the approved purchase amount and identify any major discrepancies. 4. The general ledger account coding is accurate. M. The work order is reviewed to determine whether the time billed is reasonable for the task. If there is a discrepancy, the MD is called for verification. N. Work orders are reviewed for call back work on the same repair. The MD is called for verification or explanation. O. If there are any discrepancies, the invoice is returned to the APA for correction and/or verification. P. If all the information is correct, the RPM gives the invoices back to the APA. 1. The RPMs will have two (2) business days to approve the invoices and have them back to the APA. Q. When the APA receives the invoices back from the RPM, he/she matches the invoices and purchase orders with the appropriate check copy and mails the checks. 1. Unapproved checks are voided and the two copies are filed. R. Accountability 1. It is the RPM s responsibility to notify the APA and make arrangements to meet the two (2) business day turn-around time when they are on vacation or at seminars, etc. Acceptable arrangements include: a. Extensions are granted by the CFO/VP and documented length of time to coincide with time away from office.

5 Page 5 of 6 b. If on business and where feasible, APA can fax/ payables to the RPM. c. RCM approves. 2. It is the APA s responsibility to hold RPMs accountable for getting the approvals completed no later than two (2) business days. This means: a. The APA uses whatever means necessary ( , phone or in person) to notify the RPM of the receipt of payables for approval. It is the responsibility of the RPM to check his/her daily. b. If the APA is unable to get the invoices to the RPMs on the 1 st, 10 th and 20 th for approval, he/she will send an , phone or talk with the APA regarding the anticipated date. c. The APA s the RPM with a reminder 48 hours after the initial , with a copy to the CFO/VP, that the payables have not been approved for payment. The CFO/VP will then follow up with the RPM. S. Payment Process 1. Once the APA receives the approved invoices from the RPMs he/she matches the invoices and checks and gives them to the CFO or authorized individual to review and sign. T. Accountability 1. It is the responsibility of the CFO or authorized individual to notify the APA and take the appropriate steps to have the checks reviewed and signed by someone else, within 24 to 48 hours, if they are to be out of the office. 2. The APA will mail out the checks within one (1) day of being signed. U. Review and Signing of Checks 1. The CFO or VP will review each invoice to ensure the RPM has approved payment. If the RPM has not approved payment, the invoice is sent back to the APA to obtain approval. 2. The CFO or VP reviews to ensure the vendor and apartment community match the invoice and that the dollar amounts match the check. 3. If there are any discrepancies, the invoice is returned to the APA for correction and/or verification. 4. The CFO or VP reviews the expenditure to verify it is not an unauthorized distribution of project funds.

6 Page 6 of 6 5. Once all invoices are reviewed and verified, they are signed and given to the APA. V. Mailing 1. When the APA receives the signed checks back from the CFO or VP, he/she checks to verify all checks are signed. 2. The APA attaches any remittance forms and/or necessary documentation to the checks. 3. The invoices are then put in envelopes and taken to the mail room where they are sorted according to the specific property. Checks will go out with the daily outgoing mail 4. The invoice, purchase order and check copy are then scanned. W. Hand Checks 1. When an invoice or check request is received, it is checked for approval. If it hasn t been approved, the APA obtains approval. 2. The invoice or check request is entered in the system. 3. The check is printed. 4. The APA gets the check signed. 5. The check is either mailed or given to the individual requesting it.