This Accounts Payable Policy serves as an essential resource for organizations aiming to enhance their financial operations through structured and standardized procedures. By providing a framework for managing accounts payable, this tool streamlines processes and ensures compliance with regulatory requirements, promotes accuracy in payments and safeguards company resources. Its user-friendly approach encourages teams to adopt best practices that foster efficiency and accountability, making it an asset for businesses seeking to optimize their financial management.

This tool includes seven samples designed to illustrate key aspects of accounts payable policies and procedures. Sample 1 covers uniform policies for recording payables, ensuring all expenses are accurately captured in the correct accounting period. Sample 2 details procedures for operating invoices, focusing on proper approval and documentation before payment processing. Sample 3 presents a process map of the Accounts Payable function, including personnel roles and decision points. Sample 4 explains procedures for documenting, recording and issuing payments, with emphasis on reconciliation and authorization. Sample 5 addresses business associate and master file maintenance, invoice processing, payment processing and month-end activities. Sample 6 provides supporting guidelines for invoice processing, including purchase order and non-purchase order invoices and payment requests without invoices. Sample 7 outlines standardized policies for vendor payments, internal controls and comprehensive month-end activities, offering organizations a complete framework to strengthen their accounts payable operations.

Sample procedures include:

• All payables and disbursements must be recorded accurately, completely and in the appropriate accounting period.
• All domestic office utility bills must be sent directly from the utility company to the Accounts Payable department.
• Check requests must include proper general ledger account coding.
• Employees will be reimbursed through the same process that vendors are paid for services.