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AP Process - Vendor Help Desk - Work Flow!

 

1.  Receipt of Invoices from Vendors

Vendor Help Desk  shall be completely responsible for the due receipt and acknowledgement of the Invoices for Accounting and Payment  to the Vendors.


a.  Operational Time

VHD shall be manned and operated from 0930 Hours to 1730 Hours on all working days.


b.  Receipt of Vendor Invoices

At Vendor Help Desk the Vendor Invoices are received by the following mode:-

- By Courier / Post duly delivered through the reception

- By Hand delivery by the representative of the Vendor

- By due receipt at the respective department and transfer to VHD


c.  Acknowledgement of Receipt

Upon due receipt of Invoices from the Vendor, the VHD representative shall acknowledge the receipt for due processing:-


By Post / Courier

Duly delivered at Reception

Acknowledgement being provided in the Courier slip / Post Register kept at Reception


By Hand delivery

Duly received by the VHD Representative

Sign the duplicate copy of the Invoice as acknowledgement of receipt with date and time


By due transfer from the User Department to VHD

Duly received by the User Department Representative and then transferred to VHD

Sign the duplicate copy of the Invoice as acknowledgement of receipt with date and time

And / or Sing on the Invoice Receipt Register

Ensure the seal of VHD is duly affixed on the acknowledgement copy of the Invoice.


2.  Stamp the Inward Invoice

Vendor Help Desk will be responsible for the due stamping of the Inward Receipt of Invoice at VHD.    The TAT for the VHD will completely depend on the Stamped date.


3.  Process for New Vendor

If VHD representative had identified that the Invoice for Accounts Payable received at VHD pertains to a New Vendor the following process shall be duly followed:-


a.  Additional information required

VHD shall inform the New Vendor for the requirement of the following documents to process the payment:-

PAN Copy – Permanent Account Number under the Income Tax Act of the Vendor

Bank Details – Details of the Bank Account of the Vendor which shall include

- Bank Account Number

- Name of the Bank where the account is held

- Address of the Bank Branch where the account is duly operated

- Branch Code along with MICR Code

- Other process required for due Electronic Funds Transfer into the account

- GST Number  – Copy of the GST Registration, if applicable

VHD shall duly follow-up with the Vendor and obtain this information within the TAT.


b.  Confirmation of the above additional information

Along with the First Invoice for Accounts Payable, VHD representative shall confirm the receipt of the above required information and ensure due submission of these documents to Accounts Payable Team for due payment process.


c.  Creation of New Vendor Account

With the above information, VHD shall ensure to follow-up with the IT / Networking / Software Team to ensure due creation of the New Vendor Account and keep the Accounts Payable Team informed of the additional of the same.


d.  Update Vendor Master

VHD shall ensure to maintain and update a Vendor Master containing the following information:-

1.        Name of the Vendor

2.       Address for Communication including the Email ID, Mobile and contact of the Vendor Representative

3.       PAN / TAN / GST and Statutory compliance codes

4.       Vendor Account Number with the Accounts Payable Team


4.  Vendor Invoice Tacker

VHD representative shall be responsible to Create, Update and Maintain the Vendor Invoice Tracker.  The said tracker will be the Performance Indicator of the VHD efficiency.  

The Vendor Invoice Tracker shall contain:-

- Accounts Payable Invoice Tracker ID

- Name of the Vendor

- Count of Invoice from the Vendor against the Accounts Payable Invoice submitted

- Invoice Number

- Invoice Date

- Invoice Amount Gross

- GST Amount

- Invoice Amount Net

- Description of the Invoice

- Purchase Order Number

- Purchase Order Date

- User Department

- Whether MRN Based – Yes / No

- Date of Receipt at VHD

- Date of forwarding to Commercial Department for GRN

- Date of receipt from the Commercial Department with GRN

- GRN Number

- GRN Date

- Date of forwarding to User Department for Acceptance

- Date of receipt from the User Department with due User Acceptance

- Date of forwarding to Accounts Payable Team

- Date of receipt from the Accounts Payable Team upon due payment made

- Date of Payment made

- Mode of Payment

- UTR Number

- Cheque Number, if paid by Cheque

- Cheque Date, if paid by Cheque

- RTGS Date, if paid by RTGS

- Status report of the Vendor Invoice Payment process


5.  Update Tracker upon receipt of Invoice

VHD shall ensure to update the Tracker upon receipt of the Invoice from the Vendor for Accounts Payable Process with all the possible data duly entered into the Tracker Sheet.


6.  Invoice Top Sheet

VHD representative shall ensure the TOP Sheet is attached with the Invoice and forwarded to the respective department for due process.


7.  Daily Consolidation Sheet

At the end of the day, VHD representative shall prepare a daily consolidation of the Invoice for Accounts Payable to be submitted to Commercial / User / Accounts Payable Team.

These Consolidation sheet shall serve the purpose with the VHD as the acknowledgement sheet for due delivery of the Invoices for Accounts Payable process to the respective department.

A separate file for each of the department shall be maintained with the Daily Consolidation sheet.


8.  Submit Invoice to respective Function

Along with the Consolidation sheet, the VHD representative shall handover the Invoices to the respective Departments every day morning, the previous day’s receipt and obtains the acknowledgement on the Consolidation Sheet.

- Accounts Payable Invoices are forwarded to Commercial Department for confirmation on the Materials Receipt

- Commercials Team shall confirm and certify the receipt of Material with the MRN

- Accounts Payable Invoices are forwarded to the User Department for due certification of the User for due receipt of Material / Services as per the required standards

- User Department shall ensure due verification of the receipt of material / service as required and certify for onward processing of the payment

- VHD shall forward the duly certified Vendor Payments to the Accounts Payable Team for processing the payments


9.  Update Tracker for due submission

Upon due submission of the respective Invoices to the Commercial / User / Accounts Payable Team VHD representative shall ensure to update the Tracker with the date of submission as per the consolidation sheet.


10.  VHD follow-up

VHD representatives shall ensure due follow-up with Commercial / User / Accounts Payable Teams to ensure due compliance of the requirement and further process of ensuring the due payment of the Vendor Invoices for Accounts Payable.


Thus, the primary responsibility of the VHD is to ensure the Vendors are paid on time and there is no pending backlog for Vendor Payments.


11.  Prioritize

VHD representative shall be responsible to identify and prioritize the Invoice for Accounts Payable and ensure due follow-up with the respective departments and ensure the Vendor Payments on time.


12.  Update Tracker for due receipt

Upon due receipt from the respective Commercial / User / Accounts Payable Team VHD representative shall ensure to update the Tracker with the date of receipt from the respective teams as per the consolidation sheet.


13.  Ensure Process Flow until Payment is effected

VHD representative shall ensure to follow-up with each of the representative of Commercial / User / Accounts Payable Team to ensure timely payment of the Accounts Payable Invoice and ensure due process is forwarded to the next process.


14.  Escalation of Activity

VHD representative shall escalate priority items with the Manager Accounts to ensure Vendor Payments are made on time.


VHD representative shall also escalate the calls from the Vendor to Manager Accounts in case there is a undue delay in the payment due to any process flaw and ensue due co-ordination with the respective department to ease the pending status.


15.  Forwarding AP Invoice to Accounts Payable Team

VHD representative shall ensure the following before forwarding Invoices to the Accounts Payable Team for due processing of Payment:-

- Vendor Account is duly created in the Software

- Purchase Order is duly issued by Commercials and copy enclosed

- MRN is duly certified by Commercials

- User had duly certified for payment to be made

- Tracker is duly updated for all entries

- Invoice Front Sheet is duly filled-in

- Consolidation sheet is prepared for submission to Accounts Payable Team


16.  Receive Payment Details

Upon due payment is made Accounts Payable Team shall forward the Invoices to VHD.  VHD shall

- Update the Tracker with the payment details

- Keep the Vendor Informed of the payment made

- Keep the respective departments informed for the payment made for the day


17.  Rejection handling

VHD shall ensure to handle the rejected Invoices for Accounts Payable:-

- Update the Tracker with the details of Rejection

- Keep the Vendor Informed of the rejection made along with the reason

- Keep the respective departments informed of the rejection


18.  Vendor Help Desk (VHD) – MIS

VHD representative shall be responsible to create, update and maintain the MIS Reporting for the VHD:-

- Update the Tracker with the complete details

- Create Consolidation Sheet for the Invoice forwarding to each departments

- Maintain the Inward Call Register to monitor the calls from Vendors

- Priority List – List of Invoices to be processed on priority basis as instructed by Manager Accounts

- Publish daily status of Invoices on hand at Help Desk, User Department, Commercial Department and Accounts Payable Team

- Statement of Accounts to be sent to Vendor on a monthly basis

- MIS on payments made through RTGS / Cheques bases on values

- MIS on payments made based on Purchase Order and without Purchase Order


The Tracker should result in identifying the efficiency at each of the functional department for clearing the Accounts Payable Invoices.


The acceptable TAT is within 7 days from the date of receipt of Invoices at VHD.

The VHD MIS should clearly indicate the TAT and confirmation of each department for their efficiency.


19.  VHD Response to Calls / Email from Vendors

VHD representative shall be responsible to handle the calls from the various vendors for Payment of Invoices for material supplied or services provided.


- The main purpose and objective of the VHD is to ensure that the Vendor is provided with the necessary information and support in ensuring timely payment.

- VHD representative should be very polite, firm and informative in terms of providing the information to the Vendors

- VHD representative shall ensure that the calls does not get escalated beyond the VHD by the Vendors to the Commercial, User, Accounts Payable or the Manager Accounts

- VHD shall take the responsibility to ensure the vendor is provided with the necessary inputs for due delay in the processing of payments

- While providing the information to Vendors the VHD shall uphold the dignity of Vendor Help Desk and shall not jeopardize with the confidentiality of information held at VHD


Every call from Vendor is duly recorded in the Vendor Call register


Vendor call and the details of the conversation is duly provided to the Manager Accounts


VHD shall respond to the Email from Vendor in the same manner as followed in the call and shall provide the factual information ensuring the emails does not get escalated beyond VHD to the Manager Accounts


20.  Review of Performance of VHD

The performance of VHD Team shall be reviewed with the joint representatives of Vendor Help Desk and SSSPL every week. 


Areas of improvement shall be identified and SSSPL shall ensure due corrective action is taken care.


21.  Composition of VHD Team


a.  Team Leader - VHD

Responsible for the complete operational efficiency of the VHD Team

Ensure due co-ordination with the various functional departments to ensure the payable days are kept below the TAT

Ensure the manning of the VHD continuously

Ensure that the information updated on the Tracker is accurate

Ensure that the MIS is prepared and presented to the Manager Accounts

Ensure that the calls from Vendors are properly handled

Ensure that the Email communication from Vendors are handled

Ensure that the employee payables are made on time


b.  Associate – VHD

Receive and acknowledge the Invoices for Accounts Payable

Prepare daily consolidation sheet for each functional department

Ensure due delivery of the Invoices to the respective department and obtain acknowledgement

Attend to the Calls from Vendors and provide the necessary information

Co-ordinate with the Accounts Payable Team to ensure payment is made to Vendors

Handle priority Invoices and get the payment organised


c.  Associate – VHD

Create, Maintain and update the Tracker sheet

Update Tracker upon due receipt from various departments

Ensure due filling and document safeguard at VHD

Ensure to prepare the required reports and assist Team Leader – VHD

Attend to Vendor calls as and when required

Co-ordinate with various departments for due processing of payment

Follow-up with the various functional heads to ensure due clearance of the Invoices


Please read - https://thehub.org.in 


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