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I. OBJECTIVE
1. To provide guidelines on the policy surrounding the accounts payable
II. DEFINITION OF TERMS
1. Accounts Payable – refers to the liabilities of the company to its suppliers, lessors, and other third-party entities
III. GENERAL POLICIES
The weekly calendar for accounts payables is from Tuesday to Monday. Collection shall be every Saturday at 1:00pm – 5:00pm, and Monday at 8:00am – 5:00pm.
Cash-On-Delivery or COD is a payment term which means that payment must be made at the same time as countering of receipt. Medium of payment is check.
Credit term is a payment term wherein the supplier designates a specific maximum amount of time when the purchaser must make the payment. It could be within 7 days, 15 days, 30 days, 45 days or 60 days (maximum term in the food industry). Post-dated check or PDC is the payment used. The check is dated in the future and can not be cashed until then.
The Accounting Department assigns an “identified counter” for each supplier to avoid miscommunication between the parties. “Identified counter” refers to the official or the personnel of the other party who is authorized to make the transactions with our Accounting Department.
Suppliers may pick-up their checks directly in the office only during collection days. Banking or delivery of payments may be done by any of the company’s personnel, provided that they are given permission by the CEO and are excused from their superiors. If no other personnel are available, the Accounting Staff will be obligated to do it.
IV. PROCEDURE FLOWCHART
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V. REFERENCE/INTERFACE PROCESS
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VI. FORMS AND RECORDS
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