Accounts Payable Procedures Index
Purpose: Purchasing, vendor payments, and compliance procedures
Audience: AP Team, Project Managers, Purchasing
Documents in This Section
| Document | Description | Priority |
|---|
01-purchase-order-process.md | Creating and managing POs | Critical |
02-subcontractor-payment-process.md | Processing sub pay applications | Critical |
03-invoice-processing.md | Invoice receipt and approval | Critical |
04-vendor-setup.md | New vendor onboarding | High |
05-expense-management.md | Employee expense management | Medium |
05-month-end-close.md | Month-end close procedures | High |
06-tax-planning-construction.md | Tax planning for construction | Medium |
07-budget-preparation.md | Budget preparation | High |
07-check-request-process.md | Check request process | Medium |
08-overhead-allocation.md | Overhead allocation | Medium |
09-bank-reconciliation.md | Bank reconciliation | High |
10-cost-control.md | Cost control procedures | High |
AP Payment Schedule
| Payment Type | Terms | Payment Day |
|---|
| Subcontractors | Net 30 | 5 days after owner payment |
| Material Suppliers | Net 30 | 15th and 30th |
| Equipment Rental | Net 30 | 15th and 30th |
| Utilities/Services | Per invoice | Per due date |
| Credit Cards | Monthly | Statement due date |
Key Controls
Three-Way Match Required
All payments over $500 require:
- Purchase Order
- Receiving Document (delivery ticket, field verification)
- Invoice
Approval Authority Matrix
| Amount | Approver |
|---|
| $0 - $500 | Foreman |
| $501 - $5,000 | Superintendent |
| $5,001 - $25,000 | Project Manager |
| $25,001 - $100,000 | Operations Manager |
| $100,001+ | Executive |
Lien Waiver Requirements
NEVER pay without collecting appropriate lien waiver:
| Payment Type | Waiver Required |
|---|
| Progress Payment | Conditional for current, Unconditional for previous |
| Final Payment | Unconditional Final |
| Retainage Release | Unconditional Final |
Quick Reference: Invoice Processing Checklist