Creditors Management: Use the Aged Payable Detail report to view bills, credit notes, expense claims and over payments that you owe, based on the age of the transaction.
Invoice Processing: Ensure accurate and timely processing of supplier invoices.
Payment Scheduling: Develop and maintain a payment schedule to manage cash flow and avoid late fees.
Record Keeping: Maintain detailed records of all transactions, including invoices, payments, and correspondence with suppliers.
Reconciliation: Regularly reconcile creditor accounts to ensure that all transactions are correctly
Supplier Relations: Communicate with suppliers to resolve any issues related to payments, such as discrepancies or disputes.
Compliance: Ensure adherence to company policies and legal requirements related to creditor transactions.
Reporting: Prepare reports on creditor activities, outstanding invoices, and payment schedules for management review.
Aged Payables Management
Aged Payables Analysis: Monitor and analyze aged payables reports to identify overdue accounts and take appropriate action.
Collection Efforts: Follow up with suppliers on overdue invoices and negotiate payment terms if necessary.
Prioritization: Prioritize payments based on due dates, supplier relationships, and available cash flow.
Dispute Resolution: Resolve disputes or discrepancies in aged payables promptly.
Cash Flow Management: Adjust payment schedules as needed to optimize cash flow and maintain good relationships with suppliers.
Documentation: Ensure all actions and communications related to aged payables are well documented.
Standard Operational Procedure:
Invoice Processing SOP
Step 1: Receive and verify invoices against purchase orders and delivery receipts.
Step 2: Enter invoice details into the accounts payable system.
Step 3: Obtain necessary approvals from relevant departments.
Step 4: Schedule the invoice for payment based on terms agreed upon with the supplier.
Step 5: Issue payment and record the transaction.
Step 6: File the invoice and related documents for record-keeping.
Payment Scheduling SOP:
Step 1: Review the payment schedule and prioritize payments based on due dates and cash flow.
Step 2: Prepare payment batches and verify details.
Step 3: Obtain necessary approvals for payments.
Step 4: Process payments through the appropriate method (e.g., bank transfer, check).
Step 5: Record the payment and update the accounts payable ledger.
Step 6: Communicate with suppliers regarding payment status.
Aged Payables Management SOP:
Step 1: Generate and review the aged payables report regularly (e.g., weekly).
Step 2: Identify overdue invoices and categorize them by age and amount.
Step 3: Contact suppliers to discuss overdue invoices and negotiate payment terms if needed.
Step 4: Update the payment schedule to address overdue invoices.
Step 5: Document all communications and actions taken regarding overdue accounts.
Step 6: Report on aged payables status and resolutions to management.
Reconciliation SOP:
Step 1: Compare creditor account statements with internal records.
Step 2: Identify and investigate discrepancies.
Step 3: Adjust records as necessary and resolve discrepancies with suppliers.
Step 4: Document reconciliation process and any issues resolved.
Step 5: Prepare and submit reconciliation reports to management.
Supplier Communication SOP
Step 1: Establish clear channels of communication with suppliers.
Step 2: Maintain regular contact to address any issues or queries.
Step 3 Document all communications and agreements.
Step 4: Address and resolve disputes or issues promptly.
Step 5: Maintain positive relationships through timely and professional interactions.