Paying Vendors

Adequate support for payments is a fundamental requirement of a sound accounting system. Before vendor claims are paid, the corresponding invoice should be reviewed, then initialed and dated as approved for payment by an authorized individual.

Marking the invoice as “paid” or “canceled” will also help prevent a second payment from being made for the same invoice. In addition, we suggest that invoices contain the fund and account codes from which the payment will be made, ensuring more accurate posting in the entity’s general ledger.

Date this Avoiding Pitfall was most recently published: 12/17/2021