1. The procurement department will submit the original supplier’s invoice to finance department and a copy to warehouse for payment processing.
2. The procurement department will also submit an application to the finance department for the payment to supplier.
3. The finance department will process the payment according to the payment terms mentioned on the purchase order.
4. In case of advance payment or partial payment requirement by the vendor and agreed by the company, the procurement department will issue a payment request to finance department for payment processing.
5. The warehouse staff shall prepare a set of documents for goods received and hand over to finance department for payment processing.
6. In order to process the payment, finance department should have following set of documents;
· Copy of the supplier’s invoice,
· Copy of the purchase requisition
· Copy of the purchase order
· Copy of the supplier’s delivery note
· Original goods received note
7. The invoice shall then be matched up with the PR, PO and the GRN. Finance department shall check the invoice against these documents for correctness of:
· Description of goods,
· Unit rate / price
· Quantity received
· Quality of goods received
· Terms of payment
· Method of payment
8. Cheques for the payment will only be drawn on the name of the supplier. If employer wants a cheque to be drawn in the name of any other person, he will have to submit a written request to the Finance Department on its letterhead. This request must be attested by the The Chamber of Commerce.
9. Supplier will provide a receipt in written form to the finance department upon collection of cheque from them.
Standard Policies and Procedures
- Standard Purchasing Policy in Saudi Arabia
- Policy for Payment to Suppliers
- Ticketing Policy in Saudi Arabia
- Vacation Allowance Policy in Saudi Arabia
- Vacation Policy in Saudi Arabia
- Overtime Policy in Saudi Arabia
- End of Service Benefits Policy in Saudi Arabia
- Advances to Employees Policy in Saudi Arabia
- Standard Medical Policy in Saudi Arabia
- Standard Policy Regarding Iqama Transfer Fee
- Standard Recruitment Policy in Saudi Arabia
- Standard Petty Cash Policy in Saudi Arabia
- Standard Sales Policy in Saudi Arabia