Weekly Accounts Payable (AP) Processing

Department: Finance & Accounting
Process Owner: AP Specialist
Last Updated: January 2026

1. Overview and Purpose

Objective:
To define the procedures for weekly accounts payable processing, including receiving, coding, reviewing, and paying vendor invoices using an accounts payable system. This SOP ensures timely and accurate vendor payments, alignment with cash flow management, and enforcement of internal approval workflows.

2. Scope

This SOP applies to all vendor invoices processed on a weekly basis through your organization's AP automation system. It covers invoice receipt (via email or upload), data entry and coding, payment preparation, approvals, and syncing with the accounting system.

3. Step-by-Step Process

3.1 Receive and Identify Invoices

• Vendor invoices are received either via the organization's accounting inbox or directly uploaded by vendors into your AP platform
• All inbox invoices must be forwarded to the AP system for processing
• Monitor the AP platform's inbox/queue daily for vendor-uploaded invoices to ensure all submissions are captured and processed promptly
• Check for duplicate submissions (email + upload)

Reviewer/Back-up: Accounting Coordinator

3.2 Enter Invoice Details in AP System

• Access the Inbox tab in your AP platform and open the unprocessed invoice
• Enter:
  • Vendor Name
  • Invoice Number
  • Invoice Date & Due Date
  • Invoice Amount
• Upload or verify the PDF/image of the invoice
  • Best Practice: Use a consistent file naming convention for uploaded invoices (e.g., VendorName_InvoiceNumber_Date or InvoiceNumber_VendorName_YYYYMMDD). This improves searchability and creates a clear audit trail.

Reviewer/Back-up: AP Specialist

3.3 Code Invoices to Expense Accounts

• Assign proper coding to each invoice:
  • Expense Account (e.g., supplies, contractors)
  • Class (Program/Location)
  • Customer (Grant, if applicable)
• Apply memo field with brief description if not obvious from invoice

Reviewer/Back-up: Finance Director

3.4 Route for Approval

• Assign approver(s) in your AP system based on organizational approval matrix
• Establish approval thresholds:
  • Standard approval level for routine invoices
  • Executive approval required for invoices above a specified dollar threshold (e.g., $25,000)
  • Project-specific approvals for designated programs or grants

Reviewer/Back-up: Controller

3.5 Sync Approved Invoices to Accounting System

• Once approved, invoices are synced from the AP platform into your accounting system
• Confirm sync status in AP platform and verify entry appears in accounting system by checking that vendor name, invoice amount, GL account, and coding (class/grant) match between systems

Reviewer/Back-up: AP Specialist

3.6 Maintain Weekly AP Schedule

• After invoice entry is complete, update the weekly cash flow forecast spreadsheet with bill totals due that week
• Mark invoices by expected payment week

Reviewer/Back-up: Accounting Coordinator

4. Key Roles and Responsibilities

Implementation Note: Organizations should maintain a Role Assignment Matrix that documents the current staff member assigned to each role, their designated backup, and contact information. This ensures continuity during absences, vacations, or staff transitions.

5. Key Files and Systems

• AP Automation Platform – Invoice entry, coding, and approval
• Outlook (Accounting inbox) – Invoice intake (email)
• Accounting System – General ledger system
• Weekly Cash Flow Forecast – Spreadsheet for tracking bill payment timing (Excel). Organizations should establish a designated storage location (e.g., shared drive, cloud storage) with documented access permissions and version control practices.
• Open Bills Report – Used to confirm weekly liabilities

6. Exceptions and Special Cases

• Duplicate Invoices: If a vendor sends the same invoice by email and uploads it to the AP system, delete one and retain the version with better source documentation.
• Split-Coded Invoices: Invoices that span multiple classes or grants must have each line coded and reviewed for completeness.
• Offline Approvals: If approvers are unavailable in the AP system, obtain approval by email and attach it to the invoice record.

7. Risks and Controls Summary