Accounts Payable — VP Accounts Payable

Phase 1 — AP Command Center

AP DASHBOARD — [Period]
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
VENDOR INVOICES
  Invoices received MTD:       [N]    Total: $[X]
  Invoices approved & queued:  [N]    Total: $[X]
  Invoices pending approval:   [N]    Total: $[X]
  Invoices on hold / dispute:  [N]    Total: $[X]

PAYMENTS
  Payments disbursed MTD:      [N]    Total: $[X]
  Next payment run:            [Date] Estimated: $[X]
  Overdue to vendors:          [N]    Total: $[X]   ← pay immediately

PURCHASE ORDERS
  POs issued MTD:              [N]    Total: $[X]
  POs awaiting approval:       [N]    Total: $[X]
  POs pending receipt:         [N]    Total: $[X]

EXPENSES
  Expense reports submitted:   [N]    Total: $[X]
  Expense reports approved:    [N]    Total: $[X]
  Reimbursements pending:      [N]    Total: $[X]   Next batch: [Date]
  Out-of-policy claims:        [N]    Total: $[X]

AP AGING
  Current (not yet due):       $[X]
  0–30 days past due:          $[X]
  31–60 days past due:         $[X]   ← pay this week
  > 60 days past due:          $[X]   ← escalate, vendor relationship risk

ALERTS
  [!] Invoices without a PO:   [N] — $[X] (investigate)
  [!] Duplicate invoice flags: [N]
  [!] Vendor bank changes:     [N] (requires verification call)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Phase 2 — Vendor Master Management

2.1 Vendor Onboarding Checklist

vendor_setup:
  legal_entity_name: ""
  doing_business_as: ""
  vendor_type: supplier | contractor | consultant | saas | landlord | utility | other
  payment_currency: ""
  banking:
    bank_name: ""
    account_number: ""           # encrypted at rest
    routing_number: ""           # or SWIFT/IBAN for international
    account_type: checking | savings
    verification_method: ""      # verbal callback, micro-deposit, Plaid, etc.
  tax_info:
    country: ""
    us_w9_on_file: false         # required for US vendors
    w8_on_file: false            # required for international
    tax_id: ""
    vat_gst_id: ""
  contacts:
    primary_contact: ""
    ar_billing_email: ""
    escalation_contact: ""
  payment_terms: net_15 | net_30 | net_45 | net_60
  approved_by: ""               # VP Finance or CFO
  onboarding_date: ""
  annual_spend_category: < 10K | 10K-100K | 100K-500K | > 500K

2.2 Vendor Risk Tiers

Phase 3 — Invoice Processing & Three-Way Match

3.1 Invoice Entry Standards

Every vendor invoice must capture:

• Invoice number (from vendor)
• Invoice date
• Due date (calculated from payment terms)
• Vendor name and ID (matched to vendor master)
• Line items: description, quantity, unit price, total
• PO number (if applicable)
• Cost center and GL account codes
• Tax amount (GST/VAT separated from net)
• Total amount in billing currency

3.2 Three-Way Match Process

Step 1: Invoice received → log and timestamp
Step 2: Match to PO:
  - Invoice amount ≤ PO amount?      → Pass
  - Invoice amount > PO by < 5%?     → Soft hold; get approver sign-off
  - Invoice amount > PO by ≥ 5%?     → Hard hold; require PO amendment first
Step 3: Match to receipt/goods acknowledgement:
  - Services delivered or goods received?  → Pass
  - Not yet delivered?                     → Hold until receipt confirmed
Step 4: Tolerance check:
  - Unit price variance < 2%?         → Auto-approve
  - Unit price variance 2–5%?         → Route to buyer for approval
  - Unit price variance > 5%?         → Route to VP AP
Step 5: GL coding verified → post to AP ledger
Step 6: Route for payment on next scheduled run

3.3 Invoices Without POs

For invoices received without a matching PO:

• Amount < $1,000: retroactive approval from manager accepted
• Amount $1,000–$10,000: retroactive PO required within 2 business days
• Amount > $10,000: escalate to VP Finance; investigate why PO was bypassed
• Any repeat offender: flag to CFO; block future orders until process trained

Phase 4 — Payment Processing

4.1 Payment Run Schedule

4.2 Payment Authorization Matrix

4.3 Payment Fraud Prevention

Always verify before executing:

• New vendor first payment: callback to AP contact at vendor using a number from their official website (not the invoice)
• Vendor banking change: callback verification mandatory — never change banking details via email request alone
• Rush payment requests: confirm with the approver via phone or Slack (not the same email chain)
• International wire to new beneficiary: dual authorization + 24-hour delay

Phase 5 — AP Aging & Cash Management

5.1 AP Aging Report

AP AGING REPORT — As of [Date]
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Vendor Name         | Total Owed | Current | 1–30 | 31–60 | 60+
────────────────────|────────────|─────────|──────|────---|────
[Vendor A]          | $[X]       | $[X]    | $[X] | $[X]  | $[X]
[Vendor B]          | $[X]       | $[X]    | $[X] | $[X]  | $[X]
────────────────────|────────────|─────────|──────|────---|────
TOTAL               | $[X]       | $[X]    | $[X] | $[X]  | $[X]
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Action: Any vendor 60+ days overdue gets prioritized in next payment run
        Any vendor > $50K overdue escalated to CFO

5.2 Cash Disbursement Planning

Weekly cash disbursement forecast:

DISBURSEMENT FORECAST — Week of [Date]
  Vendor payments due:        $[X]
  Payroll (if applicable):    $[X]
  Reimbursements:             $[X]
  Tax payments:               $[X]
  ─────────────────────────────────
  Total outflows:             $[X]
  Available cash:             $[X]
  Net after disbursements:    $[X]
  Days cash on hand post-run: [N]

Phase 6 — Month-End AP Close

AP Month-End Close Checklist:
  Day 1–2:  All invoices for the period entered and coded
  Day 3:    Three-way match complete on all POs
  Day 4:    AP aging reviewed; payment holds resolved or documented
  Day 5:    Accruals calculated for services received but not yet invoiced
  Day 6:    AP sub-ledger reconciled to GL control account
  Day 7:    Payment run for all items due this period
  Day 8:    Final AP aging report generated and reviewed
  Day 9:    Provide AP balance and accruals schedule to Controller

Quality Rules

• Three-way match is mandatory for all PO-backed invoices above $500 — no exceptions.
• Vendor banking details can only be changed with a verbal callback — never via email alone.
• No payment runs on Mondays (bank settlement risk) or the day before major holidays.
• Any invoice sitting unprocessed for more than 5 business days must be escalated.
• AP aging must be reviewed by VP Finance weekly.
• Duplicate invoice detection runs on every batch — same vendor + same amount + same date = reject.
• Expense out-of-policy items must be returned to the employee with specific policy citation, not just "rejected."