Financial Comprehensive Documentation for an Automated Control

The automated invoice approval process is designed to streamline invoice handling, reduce manual errors, ensure compliance with authorization protocols, and improve efficiency in the financial operations.

This process leverages automation tools to handle invoice receipt, data extraction, validation, approval routing, exception handling, and payment processing.

Control Procedure:

Invoice Receipt:
Process: Invoices are received electronically via the invoicing system.
System: [Invoicing System Name]
Details: The system automatically logs the receipt date and assigns a unique identifier to each invoice.
Responsible Personnel: Accounts Payable (AP) Clerk
Frequency: Continuous
Documentation: Invoicing system logs

Data Entry and Validation:
Process: Invoice details are extracted using Optical Character Recognition (OCR) technology.
System: [OCR Tool Name]
Details: The system validates invoice data against purchase orders (PO) and vendor records.
Responsible Personnel: AP Clerk, System Administrator
Frequency: Continuous
Documentation: OCR logs, validation reports

Approval Workflow:
Process: Invoices are routed to the appropriate approvers based on predefined thresholds.
System: [Workflow Automation Tool]
Details:
Invoices below $5,000 are routed to department managers for approval.
Invoices between $5,000 and $20,000 are routed to senior managers.
Invoices above $20,000 require CFO approval.
Responsible Personnel: Department Managers, Senior Managers, CFO
Frequency: Continuous
Documentation: Workflow logs, approval records

Exception Handling:
Process: Discrepancies are flagged and routed back to the submitter for correction.
System: [Workflow Automation Tool]
Details: The system logs all actions, including who performed each action and timestamps.
Responsible Personnel: AP Clerk, Department Managers
Frequency: As needed
Documentation: Exception logs, correction records

Payment Processing:
Process: Approved invoices are automatically scheduled for payment.
System: [Financial System Name]
Details: Payment details are logged in the financial system, and notifications are sent to relevant personnel.
Responsible Personnel: AP Clerk, Treasury Department
Frequency: Scheduled (e.g., weekly)
Documentation: Payment logs, financial system records