Supplier Payment Process – Standard Operating Procedure

1) Purpose

To establish guidelines for the systematic processing of supplier payments to ensure timely and accurate disbursement within the pharmaceutical purchase department.

2) Scope

This SOP applies to all payments made to suppliers for materials, components, equipment, and services procured for pharmaceutical manufacturing and related activities.

3) Responsibilities

Accounts Payable Department: Responsible for processing supplier invoices and issuing payments.
Purchasing Department: Responsible for verifying invoice accuracy and approval prior to payment.

4) Procedure

4.1) Invoice Receipt and Verification:
4.1.1) Receive supplier invoices and supporting documentation (e.g., purchase orders, delivery receipts).
4.1.2) Verify invoice accuracy, including pricing, quantities, and applicable discounts or terms.

4.2) Invoice Approval:
4.2.1) Obtain necessary approvals for supplier invoices based on established authorization limits.
4.2.2) Ensure invoices are approved by appropriate stakeholders (e.g., purchasing manager, department head).

4.3) Payment Processing:
4.3.1) Schedule payments based on agreed-upon terms with suppliers (e.g., net 30 days, early payment discounts).
4.3.2) Prepare payment batches for processing through approved payment methods (e.g., electronic funds transfer, checks).

4.4) Payment Verification:
4.4.1) Review payment details for accuracy, including amounts, supplier information, and