DISBURSEMENT MODULE

Set-up: Accounts Payable (AP) processing shall be centralized for all departments. There shall be two divisions as follows:

Accounts Payable 1

o Animal Health Products, Feed Ingredients, Dressed Chicken Ingredients, Supplies

Accounts Payable 2

o Labor & Services, Construction & Repairs, Grower’s Fee, Capital Expenditures

VOUCHER PREPARATION

Items:

For items, Accounts Payable processing shall follow the three-way check. This means that the following original documents are complete:

a. Purchase Order (For Partial Deliveries, certified true copy should be attached)b. Receiving Report (Stamped)c. Sales Invoice and/or Delivery Receipt

Once the above-mentioned documents are complete, voucher preparation should be done by the AP Accounting Specialists on or before the week’s cut-off schedule. All billings countered from last week (Monday to Saturday) shall be processed not later than Wednesday of the following week, provided all necessary documents are complete and billings are due already. For billings countered beyond the agreed payment terms, the payable shall be carried-over on the next cut-off.

After voucher preparation in SAP (refer to Appendix A), the complete documents will be forwarded to the Accounts Payable Accountant for final disbursement approval. The documents will be accompanied with a Routing Slip (Exhibit 1) which shall indicate the important dates and references in relation to the transaction. After approval of the accountant, the same shall be forwarded to the Cashier for Check and Voucher printing for transaction requiring check payments. Otherwise, voucher printing will be done by AP Accountant. Cash/Check vouchers will then be forwarded to the CFO for cash release/ signing of checks.

Releasing of payments is scheduled every Friday and Saturday by the Releasing In-charge.

Services:

For service vouchers, the same procedures shall apply except that no RR is necessary. For service contracts under construction projects, payment request memo is necessary for the processing of invoice.

Transactions without PO:

For transactions without PO, corresponding attachment should be available to prove validity of the payment.

CLOSING OF PAYABLES

Closing of payables shall be done by the Accounts Payable accountant not later than two (2) weeks after payment was released. To do so, refer to Appendix A.

Filing of vouchers shall done by the Accounts Payable Specialist, grouped by supplier, not later than two (2) weeks after vouchers are closed by the AP Accountant.

APPENDICES

APPENDIX A

THE SAP PROCESS

1. PREPARATION OF DISBURSEMENT VOUCHER FOR ITEMS

From the Purchasing – A/P Module, choose A/P Invoice. The A/P Invoice window will appear

then fill in the Name and the Posting Date. Make sure that the Item/Service Type is changed to

Item. At the bottom right of the window, click Copy From and then a list will appear, choose

Goods Receipt PO. The List of Goods Receipt PO window will appear. From there, choose the

corresponding Receiving Report that matches with the reconciled supplier’s statement. Once all

necessary data are encoded, right click on the window and choose Save as Draft.

2. PREPARATION OF DISBURSEMENT VOUCHER FOR SERVICES

From the Purchasing – A/P Module, choose A/P Invoice. The A/P Invoice will appear then fill in

the Name and the Posting Date. Make sure that the Item/Service Type is changed to Service. At

the bottom right of the window, click Copy From and then a list will appear, choose Purchase

Order. The List of Purchase Order window will appear. From there, choose the corresponding

Purchase Order that matches with the reconciled supplier’s statement. Once all necessary data

are encoded, right click on the window and choose Save as Draft.

3. VOUCHER APPROVAL

Vouchers will be approved by the Accounts Payable Accountant. Every time there is a voucher

for approval, he/she will be notified in SAP through the Messages/Alerts Overview. To do the

approval process, click the message from the Messages/Alerts Overview. A Request for Approval

window will appear. Click the Document No. for checking the entry. If all the entries of the

Accounting Specialists are correct, click Add found at the lower left portion of the window. The

Accountant will then supply the necessary details in the routing slip before forwarding to the

Cashier for voucher printing and check preparation.

4. VOUCHER PRINTING

The system is incorporated with a check writing system. All disbursement or in the form of check

except on some cases which requires cash. The Cashier will be the one to print the voucher

together with the check preparation. To do this in SAP, click the Purchasing A/P Module and

choose A/P Invoice. Press Ctrl+F to find the voucher number as indicated in the routing slip and

print the voucher. Each voucher printed by the Cashier is accompanied by a check with the

details of payment. The Cashier will then write the details needed in the routing slip and attach

the voucher and check in the documents before forwarding to the CFO for check signing.

For all payments requiring cash, the Accounts Payable Accountant will be the one to print the

voucher and forward the documents to the CFO for fund releasing.

5. VOUCHER CLOSING

It is the responsibility of the Accounts Payable Accountant to close the payables. To do this in

SAP, click the Banking Module and choose Outgoing Payments. Type the name of the Vendor

Name, Posting Date (date of check or date cash is received by the vendor), Due Date and

Document Date (date of closing). Select the document/s being paid. Click the money bag found

at the upper portion of the window for payment means. Enter the necessary details for payment

and click OK. Once all the details are final click Add found at the lower left portion of the window

to finally close the voucher/s.

EXHIBITS

1. Routing Slip

Docs Received PO:______ DR:______ RR:______

Date:_________ _________ _________

Docs Received CI:_______ SA:______

Date:_________ _________

AcPay Specialist: ____________________ 1_____2_____Date: ____________________ Draft Voucher Number:__________________ AcPay Accountant ____________________ Date: ____________________ Approved Voucher Number:______________

Cashier: ____________________ Date: ____________________ Check Number: ____________________

2. Disbursement Voucher Preparation