An Accounts Payable Process

1. Receipt of Billing:

All incoming invoices should be reviewed by the Owner, RC or Project Manager following order:

a. The invoices should be sorted for operational expense billing and contract materials/sub-contractor billing. Contract materials/sub-contractor billing should be placed in a color coded “Invoices to Review” file for the Owner, RC or Project Manager to review for approval. The Owner, RC/PM must initial and date each invoice after review prior to submitting it to the business/Office Manager for entry and payment. The person signing off on any invoice should be the person that made the purchase or contracted the sub.

**Note: If an invoice is for a specific Contract or T&M project the job name and number should appear or be written on the invoice. Generally, the PO # submitted at the time of purchase should appear at the top of an invoice. If there is not a PO # listed it is the responsibility of the person or persons signing off on the invoice to write the customer’s name on the invoice as well prior to submitting for entry and payment.

b. All operational and inventory invoices need to also be reviewed, initialed and dated by for submission of payment.

2. Reviewing and Sorting:

Upon receipt of all invoices the QuickBooks purchase orders will need to be matched to invoices. If a PO does not exist one will be created at that time. Invoices are then alpha sorted and placed in the “Accounts Payable to be Entered” file folder for entry on scheduled accounts payable entry day.

3. Entering Invoices:

On scheduled accounts payable entry day the invoices are entered into QuickBooks as follows:

a. Each item on invoice will be coded by either a Chart of Accounts Code/Job Code will be listed in the back of this section, under “Job Codes”/ “Chart of Accounts”.

**Operational Invoices are entered under the “Expense” tab in the “enter bills” window; Materials Item invoices are entered under the “Items” tab of the “enter bills” window. b. Amount on Invoice (if more than one account code is used to enter the invoice the total amount will broken down by the appropriate amount for each account code under appropriate customer job.)

c. In the description section of “enter bills” window the information for the transaction should be entered in detail as it appears on the invoice.

d. In final column the corresponding customer job name and number should be selected for costing identification purposes.

After invoice information has been entered, the information should be reviewed for errors prior to saving.

4. Final process and submittal to Business/Office Manager:

a. After an invoice is entered into QuickBooks, reviewed for errors and saved the invoice will be stamped “Entered” dated and initialed.

b. Upon completion of all of the above steps each batch of entered invoices must first be alpha sorted and then placed in color coded “Entered Payables to Review” file.

5. Review and File for Payment:

a. The Business/Office Manager will review each batch of entered invoices placed in the color coded “Entered Payables to Review” file to be checked for errors.

b. If no errors are found the review process will be recorded on each invoice as follows:

Checked by: ______MM/DD/YY

c. If errors are found a post-it note listing errors will be attached to invoice or invoice batch and then the inaccurate invoices will be re-batched (alpha order) and returned to administrative assistant for correction and re-submittal.

d. All correctly entered invoices will be filed in the “Bills to be Paid” file.

Selecting Bills for Payment:

a. An “Unpaid Bills Detail” report will be accessed and printed from QuickBooks and submitted to the Owner for payment selection.

b. The report is then re-submitted to Business/Office Manager for bill paying process. c. The report is than reviewed by the Business/Office Manager and each bill selected for payment is retrieved from the “Bills to be Paid” file. When all bills to be paid have been retrieved (in alpha order) stamp each invoice with “paid” stamp. In many instances there will be more then one invoice selected for payment for any given vendor. In this case paperclip all invoices to be paid for that vendor together and stamp each with “paid” stamp. d. In QuickBooks the option listed under the “Vendors” heading of “Pay Bills” will be opened and each bill will be selected from list in pop up window. It is important to change the amount to pay if a different amount has been specifically indicated on report. e. Any existing credits pending for individual vendors will be applied during the bill payment selection. f. Make note of the following:

Confirm that “To be Printed” appears in the drop down box below the bill list and the date that appears is the correct date (should be current date). g. When all bills are selected you will navigate to “File” menu at top of QuickBooks window, scroll down to “Forms to Print” and select “checks”. This will open small window with all bills selected for payment listed. h. Located at the top of the “bills to pay” window there is a box labeled “To Be Printed”. This is the first check number to be printed. “Always confirm that the first check number and the number in the box match.” i. After confirming that the correct check number appears click on the “Print Checks” radio button. This will bring up the “Printer” window. Confirm that the following set up information appears in this window:

Print Layout: Portrait/Voucher

Copies: 1

Reverse Print Order

When all of the above set up information is confirm click the “print” radio button. A “printing process” pop up box will open and then close after checks to be printed have completed spooling. A final box will appear asking if the checks printed correctly, click the “OK” radio button. j. After all checks are printed remove each bottom check stub and staple to back of matching invoice. In the “Paid” stamp box write the following: The day’s date and Initial:

MM/DD/YY B/OM initial Check # XXXX Check Amount: $XXX.XX

(the check amount is written regardless of the individual amounts of the invoices)

This information is repeated on each consecutive invoice included in each vendor’s bill payment batch. (This is to insure that if any invoices in an individual bill payment batch should get separated from the batch it can be easily tracked and re-attached to the appropriate bill payment batch for that vendor).

If an invoice or statement has a detachable payment coupon remove and place in envelope included with bill or a check envelope from office supplies. Be sure, if using vendor’s envelope, that the coupon is inserted correctly so that remittance address can be seen through envelope window.

(if your franchise uses check envelopes the check will be placed correctly so that the remittance address can be seen through envelope window, corresponding payment coupons will then be placed behind the check in the envelope)

k. When you have completed recording payment and check information on each invoice in a vendor’s bill payment batch the information that appears on each check stub must be review to insure that the information corresponds with each invoice in batch. This is to insure that unpaid invoices have not mistakenly been pulled and included in batch. Also, review that the check number printed matches the “cash” account register in QuickBooks. Make any necessary corrections record and continue with bill pay process.

l. When all information has been reviewed for each check and bill payment batch the check is than paper clipped to the top invoice of batch and set aside (in alpha order) for signature by the Owner.

m. When all the checks and invoices have been matched the entire bill payment batch is submitted to the Owner for signature.

n. Signed checks will then be re-submitted to Business/Office Manager for mail processing.

2. Processing Checks for Mailing:

When checks have been returned for mailing the following process will be followed. a. Each check will be removed from each bill payment batch and placed in its envelope. The bill payment batch will then be set aside (in alpha order) for filing.

b. Before sealing envelope review check for any remittance address errors and make necessary corrections.

c. Seal envelopes and run all envelopes through postage machine to apply postage (postage should always be $.37 for regular #10 or check envelopes).

For envelopes supplied by the vendor with bill, adhere a Case return address label in upper left corner of envelope. If another return address appears in this location place the address label below it or on back flap of envelope.

e. If time allows all bill payment batches should be filed in a vendor payables files. Otherwise they can be placed (in alpha order) into the filing basket or bin.

1. Receiving and Entering Vendor Credit Card Receipts and Delivery Tickets:

Each HRS (Home Repair Specialist) should be on a daily basis turning in credit account receipts and delivery tickets (pick tickets) for materials purchases. The receipts and pick tickets should be placed by the HRS’s in a wall pocket labeled “Vendor Receipts” or another file or inbox location that you have designated. It is the responsibility of both the HRS’ and the Business/Office Manager to insure that receipts are being turned in promptly. This ensures the processing of the receipts and purchases remains accurate, efficient and timely.

Materials purchases of any kind are should have a purchase order number assignment.

Instructions for creating purchase orders are located in the Case of Knowledge section under systems “QuickBooks”.

a. Receipts and pick tickets should be pulled from “Vendor Receipts” wall pocket daily.

b. A copy of each receipt/pick ticket is made and placed in the corresponding customer’s job binder.

c. The receipts/pick tickets (originals only unless the original is lost) are then matched to the corresponding purchase order. Located in the blue “New Purchase Orders” file in wall pocket outside of Business/Office Managers door. If a matching purchase order does not exist one will need to be created.

**Note it is not necessary to place a copy of the purchase order in the customer’s job binder.

d. Pick tickets and matching purchase orders (with purchase order on top and paper clipped) will be stamped received, dated and initialed. Then placed in the blue “Received Items” file pending receipt of mailed or faxed invoice. This file is also located in wall pocket outside operation manager’s office.

Receipts are then sorted by vendor and placed in the color-coded vendor “Receipts to be Entered” files located in the standing file rack behind front desk.

On scheduled payables day each receipt will be entered into QuickBooks as a credit card charge (receipts turned in by HRS’ are generally from the following credit card accounts; Home Depot, Lowes, Westlake Hardware and Sutherlands).

Instructions for entering credit card charges are located in the back of this section under “QuickBooks Training”.

As with entering invoices, credit card receipts will be entered in the following format:

 Each item on receipt will be coded by Job Code will be listed in the back of this section, under “Job Codes”/ “Chart of Accounts”.

**Materials Item receipts are entered under the “Items” tab of the “enter bills” window.

 Amount on receipt (if more than one account code is used to enter the invoice the total amount will broken down by the appropriate amount for each account code under appropriate customer job.)

 In the description section of “enter bills” window the information for the transaction should be entered in detail as it appears on the invoice.

 In final column the corresponding customer job name and number or Ward Parkway Plaza (for operational expenses) will be selected for costing identification purposes.

After invoice information has been entered, the information will be reviewed for errors prior to saving.