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Register & Approve Invoice (Purchase Orders)
Finance Policy 011
1. PURPOSE
1.1. Review & register of invoices related to purchase orders and approve it.
2. APPLICABILITY
2.1. All types of invoices and claims related to purchase orders.
3. DEFINITIONS
3.1. This policy and procedure are related directly to purchasing processes which include:
  • 3.1.1. Procurement contracts.
  • 3.1.2. Materials orders.
  • 3.1.3. Fixed assets purchase orders.
  • 3.1.4. Advance payment invoices
  • 3.1.5. Petty cash creation.
  • 3.1.6. Petty cash reimbursement.
  • 3.1.7. Petty cash settlement.
4. POLICY
  • 4.1. All invoices related to purchase orders must be matched to the purchase orders through the system.
  • 4.2. All the purchased items for projects will be charged on the same projects.
  • 4.3. In case of multiple payments, a copy of the purchase order issued by the Organization should be attached.
  • 4.4. Vendor should submit the original purchase order with the final payment.
  • 4.5. Vendors should attach the original documents of purchase orders (purchase order attachments) issued by the organization.
  • 4.6. A copy of original fixed assets invoices should be kept in fixed assets section.
  • 4.7. All supporting documents (completion certificate, receipt, report, etc.) with the needed signature from the concerned person/ department must be attached.
  • 4.8. All invoices / claims should be approved by the chief accountant after matching them against original documents.
  • 4.9. The due date for individual invoices is based on each invoice’s terms and conditions.
  • 4.10. All invoices should be approved according to the authority matrix.
5. PROCEDURE
  • 5.1. This process is started when concerned department received goods from vendors then send the invoices or claim to accounts section.
  • 5.2. The accountant, along with the procurement agent, reviews the invoice and its supporting documents. The following original documents should be attached with invoices:
  • 5.2.1. Purchase Order (directed to the vendor).
  • 5.2.2. Requisition Order (issued by departments).
  • 5.2.3. Receipt Report / Completion Certificate.
  • 5.2.4. Contract Copy (if exists).
  • 5.2.5. Other support documents
  • 5.3. The accountant enters invoice / claim information through accounts payable system and match it against purchase order number. The invoice / claim information covers the following:
  • 5.3.1. Invoice / claim type.
  • 5.3.2. Invoice / claim description if needed.
  • 5.3.3. Vendor name, phone number, and address (branch).
  • 5.3.4. Invoice amount and date.
  • 5.3.5. Invoice currency.
  • 5.3.6. Invoice currency exchange rate.
  • 5.3.7. Invoice / claim accounting date.
  • 5.3.8. Payment terms (can be determined automatically).
  • 5.3.9. Payment methods (can be determined automatically).
  • 5.3.10. Items & accounts of invoice payment (expenses allocation).
  • 5.4. If the invoice is not correct or there are comments or discrepancies, the responsible party informs the vendor with the existing discrepancies to be corrected, then sends it back to the accounts section
  • 5.5. The accountant checks if there are any (advance payment, penalties or deductions) or the invoices should be sent for approval.
  • 5.6. In case there are any (advance payment, penalties or deductions) the accountant settles them against the invoice or claim to ensure its completeness and accuracy then submit the invoice or claim for final approval.
  • 5.7. Finally, the Chief Accountant gives final approve of the invoices information into the system.
6. RESPONSIBILITIES
  • 6.1. The accountant is responsible to review all invoices and support documents and enter Invoices Information in the system.
  • 6.2. The accountant is responsible of adjustment for deductions, penalty or advance payment of the invoices.
  • 6.3. The accountant is responsible of initial approval of the invoice and send it to the Chief Accountant.
  • 6.4. The Chief Accountant is responsible of final approval for all invoices
7. APPENDICES
  • 7.1. Process graphic: Register & Approve Invoice. (Appendix A.)
  • 7.2. Process steps: Register & Approve Invoice. (Appendix B.)
8. REFERENCES
8.1. N/A.
9. DEVELOPMENT TEAM
  • 9.1. Accountant, Financial Control
  • 9.2. Accountant, Treasury
  • 9.3. Accounting, Financial Accounting