Purchasing or procurement cards (p-cards) offer benefits to organizations; reducing checks and purchase orders, streamlining the procurement process, and enabling organizations to set spending limits for each p-card. Because many companies have made the shift to using p-cards in attempt to improve controls over spending, it is important to have standardized processes and controls with regard to p-cards in place.
This sample process flow focuses on the procedures associated with the use, maintenance, and changes related to p-cards. It includes actions related to purchase initiation, month-end procedures, spending limit change requests, systematic audit procedures, new hire approvals, and terminations.
It also includes process steps for the cardholder, administrator, office manager, reviewer, and auditor, such as:
This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.
- Cardholder files purchase receipt into current month’s p-card receipt file
- Administrator initiates payment on last day of payment term
- Office manager reconciles account statement with transaction log
- Reviewer submits monthly reconciliation packet auditor
- Auditor performs monthly p-card audit