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:
- 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
This document can be used as a general guide to understand and review the p-card process. Organizations should continuously update and monitor the processes included in this document to ensure that they accurately reflect business operations.