AP Process Flowchart Template and Guide
A clear process flowchart helps train new staff, identify bottlenecks, and ensure consistent invoice processing. This guide provides templates and guidance for documenting your accounts payable workflow.
Why Document Your AP Process
Benefits
- Training: New staff understand the process faster
- Consistency: Everyone follows the same steps
- Improvement: Visualize bottlenecks and inefficiencies
- Compliance: Demonstrate controls to auditors
- Communication: Share process with stakeholders
When to Create/Update
- New AP system implementation
- Process improvement initiative
- Audit preparation
- Staff turnover
- After significant process changes
Standard AP Process Flow
High-Level Process
┌─────────────┐ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │ Invoice │───▶│ Review │───▶│ Approve │───▶│ Payment │ │ Receipt │ │ & Match │ │ │ │ │ └─────────────┘ └─────────────┘ └─────────────┘ └─────────────┘
Detailed Process Steps
1. Invoice Receipt
Invoice Arrives
│
▼
┌─────────────────┐
│ Log receipt │
│ (date stamp) │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Scan/capture │
│ if paper │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Enter into │
│ AP system │
└────────┬────────┘
│
▼
To Matching
2. Invoice Review and Matching
From Receipt
│
▼
┌─────────────────┐
│ Is there a PO? │
└────────┬────────┘
│
┌────┴────┐
│ │
YES NO
│ │
▼ ▼
┌────────┐ ┌────────┐
│3-Way │ │Non-PO │
│Match │ │Process │
└───┬────┘ └───┬────┘
│ │
▼ ▼
┌────────┐ ┌────────┐
│Match │ │Get │
│OK? │ │approval│
└───┬────┘ └────────┘
│
┌─┴─┐
YES NO
│ │
▼ ▼
To Exception
Approve Process
3. Three-Way Match Detail
┌─────────────────┐
│ Compare: │
│ • PO quantity │
│ • PO price │
│ • Receipt qty │
│ • Invoice qty │
│ • Invoice price │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Within │
│ tolerance? │
└────────┬────────┘
│
┌────┴────┐
│ │
YES NO
│ │
▼ ▼
Match Investigate
OK Exception
4. Approval Routing
From Matching
│
▼
┌─────────────────┐
│ Determine │
│ approver based │
│ on amount/dept │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Route to │
│ approver │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Approved? │
└────────┬────────┘
│
┌────┴────┐
│ │
YES NO
│ │
▼ ▼
Queue Reject/
for Return
Payment
5. Payment Processing
From Approval
│
▼
┌─────────────────┐
│ Check payment │
│ terms/due date │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Add to payment │
│ batch │
└────────┬────────┘
│
▼
┌─────────────────┐
│ Payment method? │
└────────┬────────┘
│
┌────┼────┐
│ │ │
ACH Check Wire
│ │ │
▼ ▼ ▼
┌──────────────────┐
│ Process payment │
│ per method │
└────────┬─────────┘
│
▼
┌─────────────────┐
│ Send remittance │
│ advice │
└────────┬────────┘
│
▼
Complete
Exception Handling Flowchart
Exception Identified
│
▼
┌───────────────────┐
│ Type of exception │
└─────────┬─────────┘
│
┌─────┼─────┬─────┐
│ │ │ │
Price Qty No Other
Diff Diff PO
│ │ │ │
▼ ▼ ▼ ▼
┌──────┐┌──────┐┌──────┐┌──────┐
│Contact││Contact││Route ││Assign│
│vendor ││receiv-││for ││to │
│or ││ing ││non-PO││approp│
│buyer ││ ││approv││owner │
└──┬───┘└──┬───┘└──┬───┘└──┬───┘
│ │ │ │
└───────┴───────┴───────┘
│
▼
┌───────────────┐
│ Resolution │
│ documented? │
└───────┬───────┘
│
┌────┴────┐
YES NO
│ │
▼ │
Process ◄──┘
invoice
Approval Routing Decision Tree
Invoice Amount
│
▼
┌─────────────┐
│ Under $500? │
└──────┬──────┘
│
┌────┴────┐
YES NO
│ │
▼ ▼
Auto ┌─────────────┐
approve │ Under $5K? │
(with PO)└──────┬──────┘
│
┌────┴────┐
YES NO
│ │
▼ ▼
Dept ┌─────────────┐
Manager │ Under $25K? │
└──────┬──────┘
│
┌────┴────┐
YES NO
│ │
▼ ▼
Director VP + CFO
Creating Your Own Flowchart
Step 1: Document Current State
Interview staff and observe the actual process: - How do invoices arrive? - Who touches them and in what order? - What decisions are made? - What systems are used? - How long does each step take?
Step 2: Identify Participants
| Role | Responsibilities |
|---|---|
| AP Clerk | Invoice entry, matching, follow-up |
| AP Manager | Exception resolution, escalation |
| Approvers | Review and approve invoices |
| Purchasing | PO creation, price verification |
| Receiving | Goods receipt confirmation |
Step 3: Map the Process
Standard Flowchart Symbols:
| Symbol | Meaning |
|---|---|
| Rectangle | Process step/action |
| Diamond | Decision point |
| Oval | Start/end |
| Arrow | Flow direction |
| Parallelogram | Input/output |
Step 4: Add Details
For each step, document: - Who performs it - What system is used - Expected timeframe - Controls in place
Step 5: Validate
- Walk through with team
- Test against real invoices
- Get sign-off from stakeholders
Best Practices
Keep It Readable
- Use consistent symbols
- Flow top-to-bottom or left-to-right
- Avoid crossing lines
- Use swimlanes for roles
- Include a legend
Make It Useful
- Post where staff can reference
- Include in training materials
- Review and update periodically
- Version control changes
Show Controls
Indicate key controls in your flowchart: - Approval points (⚡) - Verification steps (✓) - System enforced controls (🔒) - Documentation requirements (📄)
Sample Swimlane Diagram
│ AP Clerk │ Approver │ AP Manager │ Treasury │
─────────┼───────────┼──────────┼────────────┼──────────┼
│ │ │ │ │
Receive │ ○─────────│──────────│────────────│──────────│
│ │ Enter │ │ │ │
│ │ invoice │ │ │ │
│ ▼ │ │ │ │
│ ○─────────│──────────│────────────│──────────│
│ │ Match │ │ │ │
│ │ to PO │ │ │ │
│ ▼ │ │ │ │
│ ◇ Match? │ │ │ │
│ │ │ │ │ │
│YES─────────▶○────────│────────────│──────────│
│ │ │ Review │ │ │
│ │ │ │& approve │ │
│ │ │ ▼ │ │ │
│ │ │ ◇────────│────────────│──────────│
│ │ │Approved? │ │ │
│ │ │ │ │ │ │
│ │ │YES───────│──────▶○────│──────────│
│ │ │ │ │ Add │ │
│ │ │ │ │ to │ │
│NO NO │ │batch│ │
│ │ │ │ ▼ │ │
│ ▼ ▼ │ ○─────│────▶○ │
│ ○ Exception │ │ │ │
│ process │ │ Pay │
│ │ │ │ │
─────────┴───────────┴──────────┴────────────┴──────────┘
Key Takeaways
- Document your process for training, compliance, and improvement
- Use standard symbols for clarity
- Include decision points and exception paths
- Show who is responsible for each step
- Update the flowchart when processes change
- Use swimlanes to show handoffs between roles
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