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Last modified on 1/11/2016 3:08 PM by User.

Sarbanes-Oxley Compliance - from New PO Through Payment

Purchase Orders are entered and issued, then

  • Each branch receives the merchandise and posts their own receivers (item quantities are updated in the Warehouse Master, the PO is updated showing the quantity received.  The items on the receiver go into Task 22: Received Items (no invoice). 
  • Each branch sends a package of:  PO/packing slip/receiver, to the purchasing department at the main branch.


Personnel in the A/P or PO department match the vendor invoices to the PO package.  The vendor‘s invoice is now part of PO package.  


Personnel in the A/P or P/O department enter the vendor invoices into the PO module, using Task 3: Vendor Invoice Entry & Editing. 

  • If there is a discrepancy when entering the vendor invoice, (cost or quantity difference, PO has already been used, etc…), use the action of “0=no action” to keep the vendor invoice in an edit mode.  Then send an email to the branch or fax a copy of the invoice, to the branch etc….  The original invoice should not be given to anyone, just a copy of the invoice.  The original remains with the A/P or P/O department responsible for processing vendor invoices.  A file is kept for pending vendor invoices, with notes on who, what, when & where the email, or copy was sent for follow up. Also, at any time you can go back into Task 3: Vendor Invoice Entry & Editing; Sub-task 2: Change Existing Invoice, to see the vendor invoices in the edit mode, or use Sub-task 4: Print Existing Invoice, for an open invoice list. 
  • When the discrepancy is resolved, go into Task 3: Vendor Invoice Entry & Editing; Sub-task 2: Change Existing Invoice, bring up the vendor invoice, make any corrections and post over to the A/P module/Task 1. (Last Cost on the Item and Supplier Master are updated, the PO indicates the quantity vouchered, the items are removed from Task 22 - Received Items (no invoice).  


When the vouchers/vendor invoices are in A/P Task 1: Voucher Entry & Editing, the A/P clerk prints an edit list.  They check each PO package against the edit list and correct minor mistakes, such as invoice number transpositions, date errors, etc.


While the vouchers/vendor invoices are still in AP Task 1: Voucher Entry & Editing, an authorized person gets a copy of the finalized voucher edit list with the complete PO package.  It must be approved before A/P personnel can post the vouchers/vendor invoices.   (Vouchers are on the Vendor’s account, in Voucher History, AP Open Item and Distribution used for the A/P to G/L Interface)


With an additional A/P parameter setting “ON’HOLD’FLAG=Y” (found in 3/32/22/1):

  • All vouchers from AP Task #1: Voucher entry & editing, will be posted with the status of HOLD. 
  • Vouchers on HOLD can Not be selected for payment.
  • The authorized person would authorize the vouchers for payment after posting in AP Task 1: Voucher entry & editing.


When vouchers/invoices are ready for payment, a Cash Requirements report is printed.  An authorized person reviews the Cash Requirements report and decides which vouchers/invoices to pay.  (If vouchers are on HOLD, an authorized person must change payment status from status “4 On hold” to either “0 Marked for pay” or “1 Unpaid”.)

  • The A/P clerk selects the vouchers for payment in Task 25: Voucher Payment Preparation and prints the edit list.
  • The finalized voucher payment edit list is given to the authorized person for approval. 
  • After approval the checks are printed and posted. (Voucher is removed from vendor’s account, marked as paid in AP Open Item & Voucher History, payment goes into Check Account and used in A/P to G/L Interface)
  • The printed checks, along with the PO package of each invoice being paid, goes to an authorized person for review and signature.
  • The signed checks and PO package are given back to the A/P department, where the checks are mailed out and the PO package filed. 



Vendor calls for payment:

If a vendor calls and asks for payment on their invoice, the AP clerk looks in A/P module Task 26: Voucher History Inquiry, to see if it has already been paid or if the voucher has been entered and posted. 

  • If the invoice has been posted but not paid, the AP personnel tells the vendor they will verify when it is going to be paid and will call them back with an answer.  AP makes a note to follow up…..
  • If the invoice hasn’t been posted or paid, the AP clerk looks in AP Task 1: Voucher Entry & Editing to see if the invoice has been vouchered and sent to the authorized person waiting for approval before it is posted.  The AP clerk tells the vendor they will verify when it is going to be paid and will call them back with an answer.  AP makes a note to follow up…..
  • If the vendor invoice isn’t in A/P Task 1: Voucher Entry & Editing, first look in the PO module, Task 3: Vendor Invoice Entry & Editing to see if the invoice has been entered but not posted due to a discrepancy.  If the invoice is not there, they will then need to look for the PO package and proceed as described above.
  • If there is no PO package, someone can look in the PO module, Task 1: PO Entry & Editing to see if the items on the PO have already been received or vendor invoiced. 
    • ‚ÄčIf the items have been vendor invoiced, go to Task 18: Purchased Item History, Sub-task 4: Print.  Print to the computer screen the PO number and all the items on the PO.  It will display the vendor invoice number for each item.  They can then go back to A/P to look for the exact vendor invoice number.    
    • If it has NOT been vendor invoiced but the items have been received, (AP would need to see why the PO package is lost), A/P personnel can then go to Task 3: Vendor Invoice Entry & Editing and enter the vendor’s invoice and post. 
    • If the PO shows the items weren’t vendor invoiced or received, the A/P clerk would need to send a copy of the invoice to either the branch or the purchasing department so they can verify they did, in fact, receive the merchandise.  If they did, they would need to receive the items.  They would then send the PO package to the A/P department, so they can continue with the standard procedures of entering/posting.