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					                                              REF / TITLE

                                                                                                 W.I. 4.6.1.3
                                                                                            PAYABLE PROCESS
WORK INSTRUCTIONS
                                              BY / APPROVAL                         REV / DATE ISSUED
                                                        R. Hill / J.McKenzie           Rev 1.5 October 30, 1998



1      PURPOSE
       To ensure all vendors’ invoices are checked for accuracy, all discounts are taken (if cash flow allows),
       payments are timely and that the MONK item and cost database is accurate before paying vendors.

2      SCOPE

       The scope of this work instruction begins at the time an invoice is received through to the time that
       the signed cheques are mailed to vendors or the buying group BASICS and the invoices filed with the
       cheque stubs.

3      RESPONSIBILITY

       The VP Finance is responsible to insure that the requirements of this work instruction are adhered
       to. Other responsibility is assigned within this document.

4      PAYABLE PROCESS

4.1.   The vendor’s invoice is received at Viewfield through the mail or by hand. If invoices are received
       with the goods, they should be forwarded immediately to Accounts Payable. If they are received at
       some other location outside Viewfield, they should be forwarded in the next internal mail to
       Viewfield.

4.2    The invoices are forwarded to Accounts Payable (A/P) immediately.

4.3    The invoices are date stamped by A/P with the current date.

4.4    Invoices received in bulk from the company’s buying group, BASICS, will also be stamped and
       forwarded with the same urgency and method as all other invoices above. Vendors that bill MONK
       through BASICS are referred to as BASICS Vendors. Note that only the cover sheet received from
       BASICS is stamped, not each individual supplier invoice.

4.5    Invoices are entered into the system by A/P including

                      1. The MONK Purchase Order (PO) number,
                      2. The supplier invoice number
                      3. The invoice date
                      4. The dollar value of the invoice for goods alone (i.e. excluding freight, GST),
                      5. The freight amount,
                      6. The GST amount
                      7. Additional PO numbers if they exist


                                                                                                        Page 1 of 3
Check network for most up-to-date version                                 Date Printed: 08/15/11
                                                REF / TITLE

                                                                                                   W.I. 4.6.1.3
                                                                                              PAYABLE PROCESS
WORK INSTRUCTIONS
                                                BY / APPROVAL                         REV / DATE ISSUED
                                                          R. Hill / J.McKenzie           Rev 1.5 October 30, 1998

                        Note that the company does not pay PST on goods for resale / inventory.

4.6     The terms on the vendor’s invoice are compared to the terms in our accounts payable system.
        Invoices through BASICS should have the discount amount entered into the discount box of the
        account payable system and the BASICS reference number entered into the description line. The
        BASICS reference number is found on the BASICS label attached to the invoice by BASICS.

4.7     When a Purchase order has been received into our system by the receiver and the purchasing
        department, a “Receiving Number” is assigned. If the total cost against the receiving number matches
        the supplier invoice cost then cost and quantity is OK. A tolerance of $10 is acceptable, although
        experience will allow this to vary.

4.8     If the cost on the receiving does not match the supplier invoice, each line is checked for
        discrepancies.

4.9     For Basics Vendors, any discrepancies should be accepted and the paperwork forwarded to the
        appropriate staff member for resolution (purchasing for pricing or operations for quantity).

4.10    For non BASICS Vendors, determine where the discrepancy lies before completing the data entry.
        The invoice and receiving discrepancies should be noted by the receiver on a Non Conformance
        Report (NCR), and forwarded in a batch to purchasing on an ongoing basis. Discrepancies may be a
        result of an early invoice receipt or a late delivery; these situations should be considered before
        initiating an NCR.


4.11    Purchasing, on receipt of the “problems” file folder and NCR’s, should correct and execute the
        disposition within one week.

4.12    After the NCR’s have gone through disposition and the discrepancies have been determined, then the
        orange folders are returned to Accounts payable and processed as above. If credits are due from
        vendors, accounts payable asks for credit and the invoices are to be held until the credits are received.
        If credits are due from BASICS vendors, the invoice should not be held; rather the discrepancies are
        filed and matched to credits when they come through from BASICS as indicated on the BASICS
        payment due print out.

4.13.   Vendor invoices are stamped entered with the date, the receiving number is entered and then filed by
        vendor in the un-paid file. BASICS invoices are stamped and processed in the same manner, but are
        filed separately.

4.14    Debit procedures for BASICS:

                               1. Complete BASICS Debit Form

                                                                                                          Page 2 of 3
Check network for most up-to-date version                                   Date Printed: 08/15/11
                                               REF / TITLE

                                                                                                  W.I. 4.6.1.3
                                                                                             PAYABLE PROCESS
WORK INSTRUCTIONS
                                               BY / APPROVAL                         REV / DATE ISSUED
                                                         R. Hill / J.McKenzie           Rev 1.5 October 30, 1998

                              2. Mail completed Debit Form and copy of Vendor invoice to BASICS.
                              3. Mail information copy to vendor
                              4. BASICS will withhold payment (if required) to the BASICS vendor on our
                              request until a credit is received.

4.15   Once a week, vendor invoices that are due for payment within the next 14 days will be selected to
       form a cheque run. Cash flow considerations may override the weekly schedule.

4.16   Cheques are printed in the account payable office once a week or as required.

4.17   The invoices that are being paid on a particular cheque to a vendor are attached to each cheque
       (behind) and forwarded to the controller for signature. The cheques are forwarded to the President for
       the second signature required on MONK cheques.

4.18   The President and Controller are required to sign and return the cheques to Account Payable within 4
       days. A/P will record the date the cheques were sent for signing on the folder that the cheques are in
       so that turn around time can be verified to be 4 days. There may be unusual circumstances where the
       controller will not release the cheques within 4 days and will therefore not sign the cheques. If this is
       the case, A/P will be informed.

4.19   The cheques are stuffed into envelopes and mailed. If the cheques are to be couriered, A/P will see
       that they’re sent. If the envelopes are overweight, they are forwarded to Oak Street for postage and
       mailing. The cheques are placed in the mail in time to meet vendor payment commitments.

5      RELATED DOCUMENTS

        TYPE        REFERENCE        TITLE


6      DOCUMENT CHANGE HISTORY

        REV NO.      DATE ISSUED       DESCRIPTION OF CHANGE(S)
        1.1          Mar. 12, 1996     Minor clarifications
        1.2          May 14, 1996
        1.3          Aug. 26, 1996     Altered 4.18: time for signatures.
        1.4          Dec. 5, 1997      Removed all references to reception/receptionist
        1.5          Oct 30, 1998      Revisions due to MAS90 software implementation.




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