Special Payment Handling Policy

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Understanding and Implementing Best Practices for Secure Payment Processing

This document includes two samples that aim to establish standards and procedures for handling special payments. The objective of these policies is to ensure proper management of checks that need to be returned to the requestor, sent overnight to the vendor, or handled in a way different from standard company check processing procedures. A key principle outlined is the use of a special payment terms code in the company's workflow when an approver requires a check to be returned to them rather than having it sent directly to the vendor from the Shared Services Center (SSC).

In Sample 1, it is emphasized that returning a check to an approver compromises basic internal controls. Thus, it is recommended that checks be typically sent directly to vendors, as this provides another level of control over cash. However, special cases such as broker commissions, third-party management fees, and tenant-customer cash allowances or reimbursements are considered acceptable for special payment handling. The policy includes an outline of how this can be done using system coding forms and how reports related to these transactions can be generated.

Sample 2 discourages excessive use of payment terms codes due to their potential impact on impeding check processing and delaying vendor payments. It states that any necessary payment term must be designated within the company’s workflow prior to submitting invoices for check processing. It also includes provisions for situations where supporting documentation needs to be accompanied by checks or legal reasons necessitate a different approach from standard practices. Special requests are subjected to periodic audits by SSC management before checks leave SSC premises as part of internal control measures.

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