Accounts Department Purchase Ledger

High Level Activities / Processing

1. Receive Supplier Invoice
2. Reconcile Internal PO to Supplier Invoice
3. Liaise with supplier / internal departments if discrepancies
4. Record PO details in Accounting Package / Attach supplier invoice files
5. Update PO's as Paid in, and Generate Payment Instructions within, Accounts Package
6. Upload Payment Instructions to Bank for wire transfers
7. Provide Payment advice to suppliers
8. Reconcile Bank Balance post payments.

Inputs

Outputs

Current Processing Flow

1. Suppliers send invoices to TOT for the services they have provided.
2. Accounts staff seek to find a corresponding Purchase Order record in the internal system
3. If an internal purchase order is not found, accounts staff will seek the relevant department that the invoice pertains to so that the charges can be validated
4. Where an Internal Purchase Order record exists, Accounts staff reconcile the supplier invoice to the internal record
5. If discrepancies are encountered, accounts staff will liaise with the respective internal department, and/or the supplier to resolve the discrepancy
6. Once the invoices are financially validated, they are manually entered into the accounts package
7. The accounts package is preconfigured with nominal code data which is used to categorise the service costs
8. Additionally the accounts package is configured with supplier credit terms which are used to calculate invoice payment date
9.  Accounts staff run a payment process in the accounts package which identifies pending payments, i.e. payments that
   1. Have met or exceeded their payment date
   2. Have not been paid
10. Within the accounts package, accounts staff generate a e-payment-report for the set of payments identified in #9. The e-report contains payments instructions for each of the payments
11. Accounts staff save this e-payment report to their desktop. At the same time, in the accounts package, they update each of the payments identified as "Paid"
12. Accounts staff upload the e-payment report to TOT's Banking provider, which then generates the corresponding wire transfer payments
13. Remittance advices can be generated from the accounts package and sent/emailed to suppliers to confirm payments.
14. Finally, post payments, the updated bank balance for TOT is reconciled back to the accounts package to verify that the balance is in proof.

See here for workflow schematic