Run: Accounts Payable Invoice Processing SOP

The Accounts Payable Specialist receives the vendor invoice through the approved intake channel, such as email inbox, supplier portal, or scanning workflow. The specialist records the receipt date, vendor name, invoice number, invoice date, and invoice amount in the AP system. The specialist rejects duplicate submissions at intake and routes unreadable or incomplete invoices to exception handling.

The Accounts Payable Specialist verifies that the invoice includes the vendor legal name, invoice number, invoice date, line-item detail or summary, currency, tax if applicable, and remit-to information. The specialist checks for duplicate invoice numbers, obvious arithmetic errors, and missing mandatory fields. If the invoice is incomplete, duplicated, or unreadable, the specialist records the issue and routes it to exception handling.

The Accounts Payable Specialist assigns the invoice coding based on the approved expense category, purchase order, contract terms, or requester guidance. The specialist enters the general ledger account, cost center, department, project code, and tax code required by the organization. If the coding is unclear or outside tolerance, the specialist escalates the invoice to the requester or finance manager for clarification.

The Accounts Payable Specialist performs a three-way match between the invoice, purchase order, and receiving or service acceptance record. The specialist confirms that quantities, unit prices, extended totals, tax amounts, and freight or other charges are within approved tolerance. If the invoice does not match, the specialist documents the deviation and routes the item to the appropriate approver or procurement contact.

The Accounts Payable Specialist reviews the match result and determines whether the invoice can proceed or requires exception handling. The specialist routes pricing discrepancies, missing receipts, unauthorized charges, tax issues, and duplicate invoice alerts to the responsible role. The specialist records the deviation reason, owner, and due date for resolution.

The Accounts Payable Specialist submits the invoice to the designated approver based on amount, department, project, and spend category. The approver reviews the invoice, supporting documents, and coding for accuracy and business validity. The approver confirms that the expense is authorized and within budget or escalates it for higher-level approval if it exceeds authority limits.

The Accounts Payable Specialist contacts the vendor, requester, receiving team, or procurement owner to resolve the discrepancy. The specialist updates the invoice record with corrected quantities, pricing, coding, or supporting documentation when authorized. If the invoice cannot be corrected, the specialist marks it as rejected or on hold and records the non-conformance disposition.

The Accounts Payable Specialist confirms that the invoice is approved, due, and eligible for payment according to vendor terms and cash management rules. The specialist includes the invoice in the scheduled payment run, selects the correct payment method, and releases payment through the approved system controls. The specialist verifies that payment status, check number, ACH trace, or remittance reference is recorded.

The Accounts Payable Specialist stores the invoice, approvals, match evidence, exception notes, and payment confirmation in the designated record repository. The specialist ensures the record is retained according to the organization’s retention policy and ISO 9001 documented information requirements. The specialist confirms that the file is searchable and complete for audit review.