Learn Accounting.
Think Like an Accountant.

1. Purpose

• Ensure every asset purchase is correctly classified as capital expenditure or expense per the approved capitalization policy.
• Ensure every capitalized asset is tagged, registered and depreciated consistently from the day it's placed in service.
• Ensure physical asset verification happens regularly, and the fixed assets register stays reconciled to the GL.
• Ensure no asset disposal, write-off or impairment is recorded without documented approval and evidence.
• Maintain segregation of duties between physical custody of an asset, its accounting record and approval of its disposal.

2. Scope

• All property, plant, equipment, vehicles, furniture and other items meeting the capitalization threshold, owned at any company site.
• GL Accountant, Procurement, Department Heads (as asset custodians), Internal Audit and the General Manager.
• Every stage: acquisition and capitalization decision, tagging and registration, depreciation, physical verification, impairment review, and disposal or write-off.

3. General Policies

3.1 Capitalization Threshold

1. Only purchases meeting the approved capitalization threshold and useful life criteria are recorded as fixed assets — everything else is expensed; the threshold itself can only change with CFO/GM approval.

3.2 Tagging & Registration

1. Every capitalized asset receives a unique physical tag and is entered in the fixed assets register with location, custodian, cost, and useful life before it's placed in service.

3.3 Depreciation

1. Depreciation is calculated using the approved method and rates per asset category, run automatically every period — manual overrides require documented approval.

3.4 Physical Verification & Segregation of Duties

1. A physical count of fixed assets is performed at least annually by a team independent of the asset custodians; the person recording asset transactions is never the sole person approving a disposal or write-off.

3.5 Disposal, Write-off & Impairment

1. Any disposal, write-off or indication of impairment requires a documented request, evidence and CFO/GM approval before the asset is removed from the register.

4. Detailed Procedure Steps

Chapter 1 — Acquisition & Capitalization

Chapter 2 — Depreciation & Physical Verification

Chapter 3 — Impairment, Disposal & Write-off

5. Appendices & Forms

1. Purpose

• Ensure the chart of accounts remains a single, consistent structure across every entity, cost center and reporting segment.
• Ensure no account is created, merged or deactivated without a genuine business need and formal approval.
• Prevent duplicate, orphaned or inconsistently-named accounts that distort reporting and reconciliation.
• Ensure every account maps correctly to the group's consolidated reporting structure.
• Maintain segregation of duties between requesting an account change and approving or implementing it.

2. Scope

• The entire chart of accounts across all legal entities, cost centers and consolidation structures within the group.
• GL Accountant, Finance Manager, CFO, System Administrator and Internal Audit.
• Every stage: naming convention, account creation, amendment, deactivation, segment mapping and periodic housekeeping review.

3. General Policies

3.1 Naming & Numbering Convention

1. Every account follows the approved numbering block (by account type) and naming convention — no free-text account names outside the standard.

3.2 Account Creation & Amendment

1. A new account is created only after confirming no existing account already serves the purpose; every request requires Finance Manager/CFO approval before the System Administrator implements it.

3.3 Segment & Consolidation Mapping

1. Every account is mapped to its correct entity, cost center and consolidated reporting line at the time of creation — unmapped accounts are blocked from posting.

3.4 Deactivation & Housekeeping

1. Accounts with no activity for a defined period are reviewed for deactivation; an account is never deleted once it has historical postings — it's deactivated instead, preserving the audit trail.

3.5 Segregation of Duties

1. The person who requests an account change is never the same person who implements it in the system; Internal Audit periodically reviews the chart for duplicates, orphans and naming inconsistencies.

4. Detailed Procedure Steps

Chapter 1 — New Account Request

Chapter 2 — Amendment & Deactivation

Chapter 3 — Periodic Housekeeping Review

5. Appendices & Forms

1. Purpose

• Define exactly who may approve each type of transaction, and up to what financial limit, across the company.
• Ensure the specific approval references in every other SOP ("per the authority matrix") resolve to one single, unambiguous source of truth.
• Prevent any single individual from having unchecked authority over a transaction from initiation to payment.
• Ensure delegation is formal, documented and time-bound — never informal or assumed.

2. Scope

• Every transaction type referenced by another SOP as requiring approval "per the authority matrix" — purchasing, payments, payroll, credit, write-offs, budget, journal entries, capital expenditure and contracts.
• All employees who hold any approval role, from Department Head up to the Board.
• Governance of the matrix itself: how it's set, reviewed, delegated temporarily, and enforced.

3. General Policies

3.1 Single Source of Truth

1. This matrix is the only valid reference for approval limits company-wide; any limit mentioned informally elsewhere (email, verbal instruction) has no standing if it conflicts with this document.

3.2 No Self-Approval

1. No person may approve a transaction they initiated, prepared, or personally benefit from, regardless of their authority limit.

3.3 Delegation & Sub-Delegation

1. Temporary delegation (e.g. during leave) requires written notice to Finance and Internal Audit, stating the delegate, scope and exact date range — it is never assumed or verbal.
2. A delegate may never hold a higher limit than their own substantive role allows, even temporarily, without GM/Board approval.

3.4 Splitting Transactions

1. Deliberately splitting a single transaction into smaller amounts to stay under an approval threshold is a violation of this policy, regardless of intent.

3.5 Review & Enforcement

1. Internal Audit tests compliance with this matrix as a standing item in every audit cycle; any breach is reported directly to the Audit Committee regardless of materiality.

4. Approval Matrix (EGP)

How to read this table

Each row shows the single highest approval level required for a transaction up to the stated limit. A transaction exceeding a limit requires the next level up — it is never approved at the lower level merely because a deadline is tight.

5. Appendices & Forms

1. Purpose

• Ensure goods and services are received only against a valid, approved purchase order.
• Ensure quantity and quality are physically verified before a goods receipt note is issued.
• Ensure discrepancies (short shipment, damage, wrong item) are documented and routed for resolution before payment.
• Maintain segregation of duties between ordering, receiving and payment approval.
• Ensure the goods-received-not-invoiced (GRNI) balance is tracked and cleared promptly every period.

2. Scope

• All physical goods and contracted services received at any company warehouse, site or office.
• Receiving Accountant, Warehouse/Store Keepers, Procurement, AP Accounting and Internal Audit — each within their role in the receiving cycle.
• Every stage: PO verification, physical inspection, GRN issuance, discrepancy handling and GRNI reconciliation.

3. General Policies

3.1 Receiving Against Approved Orders

1. No delivery is accepted without a valid, approved PO on file; deliveries with no matching PO are held, not received, until Procurement confirms.

3.2 Physical Inspection

1. Quantity and visible condition are checked against the PO and delivery note before signing for receipt; quality-sensitive items require sign-off from the requesting department.

3.3 Discrepancy Handling

1. Short shipments, damage or wrong items are documented on a discrepancy report and routed to Procurement for supplier resolution before any related invoice is processed.

3.4 Segregation of Duties

1. The person who places or approves the order is never the same person who physically receives it; GRN data entry is independent of AP invoice processing.

3.5 GRNI Tracking

1. A GRNI aging report is reviewed every period, and any balance unmatched to an invoice beyond a defined threshold is investigated and escalated.

4. Detailed Procedure Steps

Chapter 1 — Pre-Receipt Verification

Chapter 2 — Physical Inspection & GRN Issuance

Chapter 3 — Discrepancy Handling & GRNI Reconciliation

5. Appendices & Forms

1. Purpose

• Ensure the general ledger is complete, accurate and reflects only authorized and properly supported transactions.
• Ensure period-end closing is performed according to a defined timetable with all required reconciliations and adjustments completed.
• Ensure no journal entry is posted without appropriate supporting documentation and approval.
• Maintain segregation of duties between transaction processing, journal preparation, posting and review of financial statements.
• Ensure timely production of reliable trial balances, financial statements and management reports.

2. Scope

• The entire chart of accounts and all general-ledger accounts.
• GL Accountant, all Finance sub-ledgers (AP, AR, Payroll, Fixed Assets, Inventory, Tax, Treasury), Budget Controller and Internal Audit.
• Every stage: journal entry processing, account reconciliations, period-end adjustments, closing, financial statement preparation and post-closing review.

3. General Policies

3.1 Chart of Accounts & Master Data

1. Changes to the chart of accounts require prior approval of the Finance Manager/CFO; only authorized personnel may create or amend GL accounts.

3.2 Journal Entry Controls

1. All manual journal entries are supported by adequate documentation and approved per the authority matrix; recurring journals are reviewed periodically; suspense and clearing accounts are monitored and cleared promptly.

3.3 Reconciliations

1. All balance-sheet accounts are reconciled at least monthly, prepared by one person and reviewed by an independent person; items older than defined thresholds are escalated.

3.4 Period-End Closing

1. A formal closing timetable is issued each period; no period is closed until all material reconciliations, accruals, provisions and intercompany eliminations are completed and reviewed; post-closing adjustments need elevated approval.

3.5 Segregation of Duties

1. The person who prepares a journal is never the sole person who posts or reviews it; access to post journals is restricted and periodically reviewed; Internal Audit tests key GL controls.

4. Detailed Procedure Steps

Chapter 1 — Journal Entry Processing

Chapter 2 — Account Reconciliations

Chapter 3 — Period-End Closing & Financial Statements

5. Appendices & Forms

1. Purpose

• Ensure financial ratios, KPIs and performance analyses are calculated from accurate, reconciled source data.
• Ensure management reports and commentaries are objective, timely and free from bias.
• Ensure forecasts, scenario analyses and investment appraisals follow approved methodologies and assumptions.
• Maintain segregation of duties between data preparation, analysis and final report approval.
• Ensure insights and recommendations support informed decision-making by senior management.

2. Scope

• All financial performance reporting, ratio analysis, forecasting, budgeting support and ad-hoc analytical projects.
• Financial Analyst, Budget Controller, General Ledger, Department Heads and Internal Audit.
• Every stage: data extraction, analysis, report preparation, commentary, distribution and archiving.

3. General Policies

3.1 Data Integrity

1. All analyses are based on reconciled GL and sub-ledger data; source extracts are validated before use, and any adjustments are documented and approved.

3.2 Methodology & Consistency

1. Standard ratios, KPIs and calculation methods are defined and applied consistently; changes to methodology require prior approval from Finance Manager/CFO.

3.3 Objectivity & Review

1. Reports and commentaries are fact-based and free from unsubstantiated opinion; significant analyses are reviewed by a second person before distribution.

3.4 Segregation of Duties

1. The analyst who prepares the report is never the sole approver of the final version; access to sensitive models and working files is restricted; Internal Audit may review selected analyses.

3.5 Confidentiality & Distribution

1. Analytical reports are distributed only to authorized recipients per the approved distribution list; working papers and models are retained in a controlled location.

4. Detailed Procedure Steps

Chapter 1 — Data Extraction & Validation

Chapter 2 — Analysis & Report Preparation

Chapter 3 — Ad-hoc Analysis & Archiving

5. Appendices & Forms

1. Purpose

• Ensure all inventory movements (receipts, issues, transfers, adjustments) are accurately recorded and supported by authorized documents.
• Ensure inventory is valued correctly according to the approved accounting policy (FIFO, weighted average, standard cost).
• Ensure physical stock counts are performed, discrepancies investigated and adjustments properly approved.
• Maintain segregation of duties between warehouse operations, inventory recording and GL posting.
• Ensure inventory records remain complete, accurate and reconciled to the GL at all times.

2. Scope

• All inventory items (raw materials, work-in-progress, finished goods, consumables) held in company warehouses or sites.
• Inventory Accountant, Warehouse/Store Keepers, Receiving, Cost Accountant, GL and Internal Audit.
• Every stage: goods receipt, issues to production or sales, transfers, stock counts, valuation, adjustments and period-end reconciliation.

3. General Policies

3.1 Movement Controls

1. No inventory may enter or leave the warehouse without a properly authorized document (GRN, issue note, transfer note); all movements are recorded in the system the same day they occur.

3.2 Valuation

1. Inventory is valued strictly per the company's approved method; standard costs/average rates are updated only through the controlled process in the Cost Accountant SOP; obsolete or damaged stock is identified and provided for promptly.

3.3 Physical Counts

1. Full physical stock counts are performed at least annually (more frequently for high-value/risk items); cycle counts follow an approved schedule; count teams are independent of daily warehouse operations where practical.

3.4 Segregation of Duties

1. Warehouse staff who handle physical stock are never the sole persons who record the related transactions; adjustments above defined thresholds require dual approval; Internal Audit periodically tests controls and observes counts.

3.5 Reconciliation & Reporting

1. The inventory sub-ledger is reconciled to the GL control account every period; significant variances, write-offs and provisions are reported to management promptly.

4. Detailed Procedure Steps

Chapter 1 — Goods Receipt & Issues

Chapter 2 — Stock Counts & Adjustments

Chapter 3 — Valuation, Reconciliation & Period-End

5. Appendices & Forms

1. Purpose

• Ensure all project costs, revenues and progress billings are recorded accurately and only against approved budgets and contracts.
• Ensure site expenses, material issues and subcontractor claims are supported by proper documentation and authorized before payment or posting.
• Ensure no project variation, claim or revenue recognition occurs without formal approval aligned with contract terms.
• Maintain segregation of duties between site cost recording, progress certification, payment authorization and GL posting.
• Ensure timely and reliable project cost reports are provided to management for control and decision-making.

2. Scope

• All construction, installation or long-term projects managed by the company.
• Site Accountant, Project Managers, Quantity Surveyors, Procurement, Treasury and Internal Audit — each within their role in the project cycle.
• Every stage: project budget set-up, cost collection, progress measurement, variation management, billing, payment and project close-out.

3. General Policies

3.1 Project Budget & Cost Control

1. Every project must have an approved budget before costs are incurred; actual costs are tracked against it and significant variances reported promptly; no cost is charged without a valid project code and supporting document.

3.2 Supporting Documentation

1. All site expenses, material receipts, labor and subcontractor claims must be supported by original documents (delivery notes, timesheets, certified invoices) — unsigned or incomplete documents aren't accepted.

3.3 Variations & Claims

1. Any variation to the original contract scope or value requires formal written approval before work proceeds; claim revenue is recognized only when the claim is approved or becomes highly probable.

3.4 Segregation of Duties

1. The person who records site costs or prepares progress certificates is never the sole person who authorizes related payments; GL postings are reviewed by a person independent of the Site Accountant.

3.5 Reporting & Close-out

1. Monthly project cost and progress reports are prepared for management; projects are formally closed only after final account agreement, retention release and complete documentation handover.

4. Detailed Procedure Steps

Chapter 1 — Project Set-up & Budget

Chapter 2 — Cost Collection & Progress Measurement

Chapter 3 — Billing, Payments & Project Close-out

5. Appendices & Forms

1. Purpose

• Ensure the annual budget and any subsequent revisions are prepared, reviewed and approved in a structured, transparent and timely manner.
• Ensure actual results are compared to budget regularly and significant variances are explained and acted upon.
• Ensure no expenditure or commitment exceeds approved budget limits without formal prior approval.
• Maintain segregation of duties between budget preparation, approval, monitoring and financial posting.
• Ensure reliable budget information is available to support management decision-making and performance evaluation.

2. Scope

• All company budgets (operating, capital, cash and project budgets).
• Budget Controller, Department Heads, CFO, GM and Internal Audit — each within their role in the budgeting cycle.
• Every stage: budget guidelines, preparation, consolidation, approval, monitoring, variance analysis and revised forecasts.

3. General Policies

3.1 Budget Preparation & Approval

1. Annual budget guidelines and timetable are issued by Budget Controller and approved by CFO; departmental budgets must be supported by clear assumptions; the consolidated budget requires CFO and GM approval before the financial year starts.

3.2 Budget Discipline

1. No expenditure or commitment may exceed the approved budget without a formal budget revision or special approval; budget holders manage their budgets within approved limits.

3.3 Monitoring & Variance Analysis

1. Actual results are compared to budget at least monthly; significant variances (per materiality thresholds) are investigated, explained and reported; persistent adverse variances require a corrective action plan.

3.4 Segregation of Duties

1. The person who prepares departmental budgets is never the sole person who approves the consolidated budget; revisions require the same approval level as the original budget.

3.5 Forecasts & Revisions

1. Rolling forecasts or formal mid-year revisions are prepared per the approved timetable, following the same documentation and approval process as the original budget.

4. Detailed Procedure Steps

Chapter 1 — Annual Budget Preparation & Approval

Chapter 2 — Budget Monitoring & Variance Analysis

Chapter 3 — Budget Revisions & Forecasts

5. Appendices & Forms

1. Purpose

• Ensure the Internal Audit function operates independently and objectively to evaluate internal controls, risk management and governance processes.
• Ensure all significant risks and control weaknesses are identified, reported and followed up to resolution.
• Ensure audit work is planned, performed and documented in accordance with professional standards and the approved Internal Audit Charter.
• Maintain segregation of duties and independence so Internal Audit doesn't design, implement or operate the controls it audits.
• Ensure timely and constructive reporting to senior management and the Audit Committee / Board.

2. Scope

• All company processes, departments and locations (Finance, Operations, HR, IT and project sites).
• Internal Audit team, process owners, senior management and the Audit Committee / Board.
• Every stage: risk assessment, annual audit planning, engagement execution, reporting, follow-up and quality assurance.

3. General Policies

3.1 Independence & Objectivity

1. Internal Audit reports functionally to the Audit Committee / Board and administratively to the GM or CFO; auditors have no operational responsibility for what they audit; any threat to independence is declared and managed immediately.

3.2 Risk-Based Planning

1. The annual audit plan is based on a documented risk assessment and approved by the Audit Committee / Board, and stays flexible to address emerging risks.

3.3 Audit Execution Standards

1. All audit work follows the Internal Audit Charter and professional standards (e.g. IIA Standards), with adequate working papers and sufficient, reliable and relevant evidence.

3.4 Reporting & Follow-up

1. Draft reports are discussed with process owners for factual accuracy before finalization; final reports go to the appropriate management level and Audit Committee; agreed actions are followed up until fully implemented, with overdue actions escalated.

3.5 Quality & Continuous Improvement

1. Internal Audit maintains a quality assurance and improvement program, with periodic external quality assessments performed as required by standards.

4. Detailed Procedure Steps

Chapter 1 — Annual Planning & Risk Assessment

Chapter 2 — Audit Engagement Execution

Chapter 3 — Reporting, Follow-up & Closure

5. Appendices & Forms

1. Purpose

• Ensure product costs (materials, labor, overhead) are calculated only from approved standards and actual recorded inputs.
• Ensure cost variances are identified, analyzed and approved before they affect inventory valuation or the GL.
• Ensure no change to standard costs or overhead rates occurs without prior budget-aligned approval.
• Maintain segregation of duties between cost calculation, inventory movement and financial posting.

2. Scope

• All manufactured or processed products and their related cost centers.
• Cost Accountant, Inventory/Warehouse, Purchasing, Production, Budget Controller and Internal Audit — each within their role in the costing cycle.
• Every stage: standard cost approval, material and labor consumption recording, overhead absorption, variance calculation and GL posting.

3. General Policies

3.1 Standard Cost Governance

1. Prior approval is mandatory for every change to standard costs or overhead rates, aligned with the approved budget; access to standard-cost master data is restricted to authorized personnel.

3.2 Actual Cost Collection

1. All material, labor and overhead costs used in product costing come only from recorded and approved transactions (GRNs, timesheets, overhead journals) — no estimated or assumed quantities allowed.

3.3 Variance Control

1. Every material, labor and overhead variance is calculated, analyzed and formally approved before it's posted to inventory or the GL — unapproved variances can't affect financial results.

3.4 Segregation of Duties

1. The person who calculates product costs or variances is never the same person who records inventory movements or posts final entries to the GL; Internal Audit periodically tests this.

3.5 Documentation & Retention

1. All costing worksheets, variance analyses and approval records are retained for the period required by company policy and applicable regulations.

4. Detailed Procedure Steps

Chapter 1 — Standard Cost Setting & Approval

Chapter 2 — Actual Cost Collection & Variance Analysis

Chapter 3 — Period-End Cost Closing & Reconciliation

5. Appendices & Forms

1. Purpose

• Ensure all cash and bank movements are authorized, recorded and reconciled promptly.
• Ensure no payment or transfer is executed without proper dual approval and supporting documentation.
• Ensure bank accounts are opened, closed or amended only with formal management approval.
• Maintain segregation of duties between payment initiation, approval, execution and reconciliation.
• Ensure idle cash is managed according to approved investment and liquidity policies.

2. Scope

• All company bank accounts (local and foreign currency), cash receipts, payments, transfers, cheque management and bank reconciliations.
• Treasury, Finance, Cashiers, authorized signatories and Internal Audit — each within their role in the cash cycle.
• Every stage: account opening/closing, payment processing, daily cash position, bank reconciliation and investment of surplus funds.

3. General Policies

3.1 Bank Account Governance

1. Opening, closing or amending any bank account requires prior written approval of the CFO and GM; only authorized signatories listed in the bank mandate may approve or release payments.
2. Access to online banking platforms is restricted to named users with individual credentials — shared logins are prohibited.

3.2 Payment Authorization

1. Every payment or transfer above a defined threshold requires dual authorization, with complete supporting documents; cash payments are avoided and bank transfer or cheque preferred.

3.3 Segregation of Duties

1. The person who prepares a payment instruction is never the same person who approves or releases it; the person recording bank transactions is never the sole person doing the reconciliation.

3.4 Bank Reconciliation

1. All bank accounts are reconciled at least monthly (daily for high-volume accounts), reviewed by an independent person; unresolved items older than 30 days escalate to the CFO.

3.5 Cash & Liquidity Management

1. Daily cash position is prepared and reported to management; surplus funds are placed only in instruments approved by the investment policy; borrowing requires prior CFO and GM approval.

4. Detailed Procedure Steps

Chapter 1 — Bank Account Opening, Amendment & Closing

Chapter 2 — Payment Processing & Release

Chapter 3 — Bank Reconciliation & Cash Position

5. Appendices & Forms

1. Purpose

• Ensure all tax returns (VAT, corporate income tax and other statutory filings) are prepared accurately, completely and submitted on time.
• Ensure tax positions and provisions are calculated only from approved accounting records and supporting documents.
• Ensure no tax payment, refund claim or adjustment is made without proper review and dual approval.
• Maintain segregation of duties between tax calculation, return preparation, payment authorization and GL posting.
• Ensure the company remains fully compliant with all applicable tax laws and maintains complete audit-ready documentation.

2. Scope

• All tax types applicable to the company (VAT, corporate income tax, withholding tax, payroll taxes and any other statutory levies).
• Tax Accountant, GL, AP, AR, Payroll and Internal Audit — each within their role in the tax cycle.
• Every stage: data collection, tax calculation, provision, return preparation, filing, payment and response to tax authority queries.

3. General Policies

3.1 Tax Compliance & Deadlines

1. All tax returns and payments meet statutory due dates; a tax calendar is maintained and reviewed monthly by the Tax Accountant and CFO; late filings require immediate escalation.

3.2 Data Integrity

1. Tax calculations are based only on reconciled accounting records and original source documents — no estimated or unsupported figures in final returns.

3.3 Approval & Payment Controls

1. Every tax return and significant payment requires CFO review and approval before submission or release; tax payments follow the same dual-authorization rules as other treasury payments.

3.4 Segregation of Duties

1. The person who prepares a tax return is never the sole person who approves it or authorizes the related payment; GL tax postings are made by an independent person where practical.

3.5 Documentation & Retention

1. Complete working papers, supporting schedules, correspondence with the tax authority and filed returns are retained for the period required by law and company policy.

4. Detailed Procedure Steps

Chapter 1 — Tax Data Collection & Provision

Chapter 2 — Tax Return Preparation & Filing

Chapter 3 — Tax Payments, Refunds & Authority Queries

5. Appendices & Forms

1. Purpose

• Ensure no sale is shipped or invoiced without an approved, current credit limit.
• Ensure invoices are raised accurately and promptly, only against approved sales orders, delivery notes or contracts.
• Ensure receipts are matched correctly to outstanding invoices and applied without delay.
• Ensure credit limits, payment terms and write-offs are controlled and formally authorized.
• Maintain segregation of duties between the person granting credit, the person billing, and the person collecting/applying cash.
• Ensure aged receivables are monitored and collection actions are timely and documented.

2. Scope

• All credit-based sales, invoices, credit notes, receipts and debtor balances.
• Sales, Credit Control, AR Accounting, Treasury and Internal Audit — each within their role in the order-to-cash cycle.
• Every stage: credit approval, order-to-invoice, cash application, collections, and period-end reconciliation.

3. General Policies

3.1 Credit Approval Governance

1. Every new customer requires a completed credit application and a formally approved credit limit before the first credit sale; Credit Control — not Sales — holds approval authority.
2. Orders that would exceed the approved credit limit are blocked until reviewed and authorized.

3.2 Invoicing Controls

1. An invoice is issued only after order, delivery confirmation, price and tax are matched to the authorized source document.
2. Credit notes require the same level of approval as the original invoice, or higher.

3.3 Cash Application

1. Unidentified receipts are parked in suspense — never guessed onto a customer account — and investigated promptly.

3.4 Collections & Write-off

1. Overdue accounts are followed up per the aging escalation schedule; no balance is written off without documented CFO approval.

3.5 Segregation of Duties & Monitoring

1. The person who raises invoices is never the sole person who applies cash or authorizes credit notes; bank reconciliations involving AR receipts are reviewed independently.
2. Aged receivables analysis is prepared at least monthly.

4. Detailed Procedure Steps

Chapter 1 — New Customer Credit Setup

Chapter 2 — Order to Invoice

Chapter 3 — Cash Application & Collections

Chapter 4 — Write-off & Period-End Reconciliation

5. Appendices & Forms

1. Purpose

• Prevent duplicate, unauthorized or premature supplier payments.
• Ensure every invoice is recorded accurately and only after genuine three-way matching to an approved purchase order and goods/service receipt.
• Ensure payments are made only for authorized, valid and correctly calculated obligations, from approved payment runs.
• Maintain segregation of duties between requisitioning, receiving, invoice processing, payment approval and execution.
• Ensure supplier master data, aged payables and payment runs are controlled and reconciled every period.

2. Scope

• All purchases of goods and services on credit terms: invoices, credit notes, purchase orders, goods receipts and payments.
• Purchasing, Warehouse/Receiving, AP Accounting, Treasury and Internal Audit — each within their role in the procure-to-pay cycle.
• Every stage: supplier master data, requisition, PO issuance, receiving, invoice matching, approval, payment, and period-end reporting.

3. General Policies

3.1 Purchase Order Governance

1. No invoice is processed for payment without a valid, approved purchase order on file (documented exceptions apply for utilities, rent, etc.).

3.2 Three-Way Match & Invoice Processing

1. Every invoice is matched against the PO and the goods receipt note for quantity, price and tax before posting; duplicate invoices are prevented by system controls and manual review.
2. Invoice coding (GL account, cost center, project) is reviewed for accuracy before approval.

3.3 Payment Authorization

1. Whoever prepares a payment proposal is never the same person who gives final approval; payment runs require dual review per the authority matrix.

3.4 Supplier Master Data

1. Any change to a supplier's bank details requires independent verification before it takes effect, and is reviewed independently of the requester.

3.5 Monitoring & Reconciliation

1. Aged payables analysis is prepared at least monthly; AP sub-ledger is reconciled to the GL control account every period.
2. Unmatched goods-receipt / invoice (GR/IR) clearing accounts are reviewed and cleared promptly.

4. Detailed Procedure Steps

Chapter 1 — Requisition to Purchase Order

Chapter 2 — Invoice Receipt, Matching & Approval

Chapter 3 — Payment Preparation & Approval

Chapter 4 — Supplier Master Data & Period-End

5. Appendices & Forms

1. Purpose

• Ensure no addition, change or removal happens to payroll or headcount without prior, budget-aligned approval.
• Ensure pay is calculated strictly from official HR data and actual attendance records — no manual overrides or estimated figures without written approval.
• Ensure no payroll payment is released without dual review and proper supporting documentation.
• Govern the use of temporary and casual labor and its separate payment cycle.
• Ensure every employee receives their genuine leave and benefit entitlement — no more, no less.
• Maintain segregation of duties across the full payroll cycle, and ensure timely statutory filings (tax, social insurance).

2. Scope

• All permanent, temporary, seasonal and casual (day) workers paid through the company payroll.
• HR, Payroll Accounting, Treasury, General Ledger, department heads and Internal Audit — each within their role in the payroll cycle.
• Every stage: headcount requests, data receipt from HR, payroll calculation, statutory deductions, payment processing, reconciliation, GL posting, and all leave and benefit types.

3. General Policies

3.1 Headcount & Payroll Governance

1. Prior approval is mandatory for every payroll addition or change, aligned with the approved headcount and salary budget.
2. Access to payroll data is restricted strictly to authorized personnel.

3.2 Temporary & Casual Labor

1. Temporary staff are added to the regular payroll for their contracted period; casual (day) workers are never added to the payroll — they are paid only upon confirmed task completion.

3.3 Timekeeping & Data Integrity

1. All employees, including managers, are paid strictly on the hours their time card or approved attendance record shows — no manual overrides without formal written approval.

3.4 Payment Controls & Segregation of Duties

1. Payment is made only through the dedicated, separate payroll bank account; cash payroll is avoided under normal circumstances.
2. The person who prepares the payroll calculation is never the sole person who approves the payment or posts the journal — Treasury releases payment independently of Payroll Accounting.

3.5 Leave & Benefits

1. Every employee receives a Benefits Handbook at hire, detailing their full entitlement, and HR owns responsibility for ensuring every employee receives exactly what's due.

3.6 Statutory Compliance & Reconciliation

1. All payroll-related tax and social-insurance filings are completed on time, and payroll control accounts in the GL are reconciled every period with differences investigated promptly.

4. Detailed Procedure Steps

Chapter 1 — Headcount Request & Addition

Chapter 2 — Payroll Calculation & Review

Chapter 3 — Payment Processing & Statutory Filings

Chapter 4 — Casual Labor Cycle

Chapter 5 — Leave, Benefits & Reconciliation

5. Appendices & Forms