PROCESS NUMBER INITIAL ISSUE DATE

PO - 003 AUGUST 12, 2013

CYGNUS INDUSTRIES, INC. VERSION NO. REVISION NO.
2 0

PROCESS NAME: REVISION DATE PAGE NO.

Payment Process Flow AUGUST 17, 2020 2 of 10

1.0 OBJECTIVE

TO ESTABLISH THE PROCESS NEEDED FOR ENSURING THE PROPER AND

EFFICIENT PROCESSING OF PAYMENT OF LOCAL SUPPLIER OF RAW
MATERIALS, SUPPLIES AND SERVICES RENDERED.

2.0 SCOPE

THIS PROCESS SHALL COVER THE PAYMENT PROCEDURE FOR PURCHASES OF

RAW MATERIALS, SUPPLIES AND SERVICES RENDERED BY THE SUPPLIER,
SHALL EXCLUDE OTHER FORMS OF PAYMENT SUCH AS PAYMENT OF
IMPORTATION

3.0 DEFINITION OF TERMS

3.1 SUPPLIER – REFERS TO SUPPLIERS OF LOCAL RAW MATERIALS AND

SUPPLIES
3.2 SALES INVOICE – AN ACCOUNTING DOCUMENT SENT BY SUPPLIER. IT
RECORDS SERVICES RENDERED, ITEMS PROVIDED, THE AMOUNT OF
VAT AND OWED BY THE COSTUMER

3.3 PAYMENT VOUCHER – A WAY TO RECORD PAYMENTS MADE TO

SUPPLIER AND USE TO GATHER AND FILE SUPPORTING DOCUMENTS
THAT ARE REQUIRED TO APPROVE AND TRACK PAYMENTS.

4.0 REFERENCES

4.1 PURCHASING
4.2 ACCOUNITNG
4.3 CORRECTION, CORRECTIVE AND PREVENTIVE ACTIONS
4.4 CONTROL OF RECORDS

5.0 PAYMENT PROCESS FLOW

 PROCESS NUMBER INITIAL ISSUE DATE
PO - 003 AUGUST 12, 2013
CYGNUS INDUSTRIES, INC. VERSION NO. REVISION NO.
2 0

PROCESS NAME: REVISION DATE PAGE NO.

Payment Process Flow AUGUST 17, 2020 3 of 10

Input Activity Process Owner Detailed Description

- Accounting Staff shall review

Accounting Team attached documents which includes
(Payables Dept) price(PO), quantity(DR), date of
Reviewing Delivery, Sales Invoice and other
Sales Documents
Invoice supporting documents

- Any inconsistencies in the attached

documents shall be communicated by
the Accounting Staff to the Logistics
dept, purchasing dept and supplier to
ensure that all relevant information is
Back to correct before preparation of the
No Supplier
Approve? process of payment.
/Logistics/
Purchaser
Yes
- Prepare an Accounts Payable entry or
Journal Voucher Entry after
Accounting Staff successfully reviewing all the
Preparation (Payables Dept) attachments and defining the given
Of AP/JE Entries terms.

- Accounting staff shall submit the

Accounting Staff prepared AP/JV with all the
(Payables Dept) supporting documents to Accounting
Payables Head for approval.
Submit
AP / JV

- Accounting Payables Head shall

check and validate Accounting
Accounting Entries of AP/JV. (Accounts used,
Payables Head item, price, quantity, terms and proper
computation of Vat and due to
supplier)

Approve? - After the approval of the AP/JV

 PROCESS NUMBER INITIAL ISSUE DATE
PO - 003 AUGUST 12, 2013
CYGNUS INDUSTRIES, INC. VERSION NO. REVISION NO.
2 0

PROCESS NAME: REVISION DATE PAGE NO.

Payment Process Flow AUGUST 17, 2020 4 of 10

Entries by the Accounting Payables

Head, He shall notify the Accounting
Manager for budget preparation
before preparing Payment Voucher.
No Revising
prepared AP/JE
Entries
Yes Accounting
Payables Head - Awaiting for availability of funds.

Notify the
Accounting
Manager

- Notify the Accounting Payables Head

to proceed the payment, the Payables
head shall prepare and provide the
payment vouchers for final approval.
No Process on hold,
Availability
Of Funds?

Accounting
Yes Payables Head
Preparation of
/Exe-com
Vouchers

- The payment Voucher shall be

forwarded to Accounting Manager
and Exe-com to the final approval of
Payment Voucher before printing of
checks.

- Accounting Payables shall proceed to

B
the printing of checks of Approved
Payment Vouchers. The Exe-com
Accounting shall sign the prepared check.
Payables
Preparation
Recording
Printing
Approvalandof
and
of Checkbook
Payment Head/Exe-com
collection
Issuance
signing
Payment ofof Voucher
Record
schedule
Voucher
checks.
Checks
END - The Accounting Payables Head shall
record the issued check to the
 PROCESS NUMBER INITIAL ISSUE DATE
PO - 003 AUGUST 12, 2013
CYGNUS INDUSTRIES, INC. VERSION NO. REVISION NO.
2 0

PROCESS NAME: REVISION DATE PAGE NO.

Payment Process Flow AUGUST 17, 2020 5 of 10

checkbook and to the System for

proper monitoring and reconciliation.

- The Accounting Payables Head shall

forward the prepared checks to the
Accounting staff for collection
schedule. The Accounting Staff will
prepare the collection schedule based
on the terms of payment.

- The Supplier will only issue receipts

such as Acknowledgment Receipt,
Collection Receipt or Official Receipt
upon collection. The Accounting
Staff shall validate the issued CR, OR
or AR by the Supplier for
compliance.