PAYABLE PROCESS

1. Agreement should be done with the vendor regarding payments.

2. The due date is calculated from the date when the invoice is received to the company.

3. Before sending the invoice should be sealed and signed otherwise it becomes invalid.

4. For calculating tax amount PAN No. should be taken in to consideration. If the PAN number
belongs to a person the tax amount to charge is 1% If PAN number belongs to company then
the normal tax amount is detected.

6. According to the terms and condition the due date is discussed first. For e.g. if the due date is
90 days means the amount should be paid within 90 days from the date when the invoice is
received.

7. The services are classified into different categories for convenience.

8. The total amount which is available will not be given to pay the vendors. Some amount of
cash will kept to meet the immediate expenses.

9. in case if cash is not available in company for payment. The company will give the invoices to
the banks. The banks will give money to the vendors and the company wants to return the
amount to banks after 90 days with interest.