Standing Operating Procedure (SOP) for Vendor Bill Checking and Bill Payment through RTGS

Purpose:
This SOP outlines the steps and guidelines for efficiently and accurately processing vendor bills,
performing necessary checks, and making payments through Real-Time Gross Settlement (RTGS).
Adhering to this procedure ensures timely and accurate payments to vendors while maintaining
financial control and accountability.

Scope:
This SOP applies to all employees involved in the vendor bill processing and payment through RTGS
within the organization.

Responsibilities:
1. Accounts Payable (AP) Team: Responsible for receiving and processing vendor bills.
2. Manager/Authorized Signatory**: Approves bills for payment and initiates RTGS transactions.
3. IT Department : Ensures the security and functionality of the RTGS system.

Procedure:

1. Receipt of Vendor Bills:

1.1. Vendor bills should be received at the designated accounts payable department.

1.2. Bills should be sorted and organized by their due dates.

1.3. Verify that all bills are accompanied by proper supporting documentation, including purchase
orders, delivery receipts, and invoices.

1.4. Log all received bills in the accounts payable register or software system.

2. Bill Verification:
2.1. Accounts payable personnel should perform a thorough review of each bill to ensure accuracy,
completeness, and compliance with company policies.

2.2. Verify that the goods or services were received in good condition and match the purchase order.

2.3. Check for mathematical accuracy and confirm that all calculations are correct.

2.4. Confirm that the bill complies with any applicable tax regulations.

2.5. Ensure that the payment terms and credit period are in accordance with the vendor's
agreement.

2.6. Verify that the bill has not been previously paid.

2.7. If any discrepancies are found, communicate with the vendor for resolution.

3. Approval for Payment:

3.1. The Finance Manager or an authorized signatory must review and approve the verified bills for
payment.
3.2. Approval should be documented either physically or electronically, depending on the
organization's process.

4. RTGS Payment Initiation:

4.1. The authorized signatory or finance team initiates the RTGS payment through the organization's
banking system.

4.2. Input the necessary details, including the vendor's bank account information, bill amount, and
payment reference.

4.3. Verify the accuracy of the payment details before confirming the transaction.

4.4. Ensure that the payment is scheduled to meet the vendor's payment terms and due date.

5. Confirmation and Record Keeping:

5.1. Upon successful completion of the RTGS transaction, obtain a confirmation receipt from the
banking system.

5.2. Save electronic copies of the payment confirmation, including transaction reference numbers
and timestamps.

5.3. Update the accounts payable register or software system to reflect the payment and mark the
bill as paid.

6. Reconciliation:
6.1. Regularly reconcile the accounts payable records with bank statements to ensure all payments
are accurately reflected.

6.2. Investigate and resolve any discrepancies promptly.

7. Document Retention:
7.1. Maintain a well-organized and secure record-keeping system for all vendor bills, approvals, and
payment confirmations.

7.2. Retain records in compliance with the organization's document retention policy and any legal
requirements.

8. Security and Compliance:

8.1. Ensure that the RTGS system is secure and access is limited to authorized personnel only.

8.2. Comply with all applicable financial regulations and tax laws during the payment process.

## Revision and Review:

This SOP should be periodically reviewed and updated to reflect changes in processes, regulations, or
technology.

By following this SOP, the organization can ensure a systematic and secure process for vendor bill
checking and payment through RTGS, reducing the risk of errors and ensuring financial
accountability.