Standard Operating Procedure: Accounts Payable (AP) Management

1.0 Purpose

To define the procedure for recording, verifying, and paying vendor obligations using QuickBooks. This ensures fiscal accountability and maintains strong relationships with HWB’s supply chain.

2.0 Scope

Applies to all external expenses, including cleaning supplies, equipment maintenance, insurance premiums, and utilities.

3.0 Universal Mandates (2026 Baseline)

1. Guidance First: If a vendor invoice is missing, ASK the CEO before searching the filesystem.
2. Tier 6 Telemetry: Every payment approval must be traceable in the system interaction logs.
3. Physical Truth: Reference absolute server paths for all digital copies of invoices.

4.0 Prerequisites

• Approved Purchase Order (refer to HWB-PUR-001).
• Verified physical receipt of goods/services.
• QuickBooks access.

5.0 Procedure

5.1 Bill Entry

1. Document Matching: Upon receipt of a vendor invoice, match it against the corresponding HWB Purchase Order and packing slip.
2. QuickBooks Recording: Enter the invoice as a "Bill" in QuickBooks, ensuring the "Expense Category" (e.g., Supplies, Maintenance) is accurate.
3. Verification: Confirm that the items received match the empirical price quoted by the vendor.

5.2 Payment Processing

1. Approval: Weekly review of "Bills to Pay" by the Finance Manager.
2. Execution: Process payments directly from QuickBooks to ensure 100% traceability.
3. Filing: Digital copy of the vendor invoice must be attached to the transaction record.

5.3 Vendor Reconciliation

1. Statement Review: Monthly comparison of vendor statements against QuickBooks account history.
2. Dispute Resolution: Immediate notification to the Purchasing Department regarding any billing discrepancies.

5.4 [Process Flow Chart]

6.0 Verification (Zero-Defect Check)

• Monthly "Profit & Loss" statement review.
• Vendor statement reconciliation records verified.
• Zero variance between physical receipts and digital entries.

7.0 Notes and Cautions

8.0 Revision History