Payables Approval Procedure

Nomenclature

Term	Definition
ApprovalMax	The approval-workflow system Westlink uses to review and approve supplier invoices and payee-account confirmations before payment.
FTM	Finance & Technology Manager — the role accountable for Westlink’s finance function and the owner of this procedure.
PM	Project Manager — the owner of a project, responsible for approving project-related costs.
WMS	Westlink Management System.
Xero	The cloud accounting system Westlink uses to record invoices, manage the payment queue, and clear and reconcile payments.

Purpose

This procedure sets out the internal financial control for approving and paying supplier invoices at Westlink. It defines how an invoice is received, coded and routed for approval, how the payee’s bank-account details are independently verified before any payment is set up, and how a payment is loaded and released. The objective is that every payment is for a valid, approved cost, is authorised by a person with the authority to approve it, and is paid to the correct payee. The control protects Westlink against incorrect, unauthorised and fraudulent payments.

Scope

This procedure applies to the approval and payment of all supplier invoices processed through Westlink’s accounting and banking systems. It covers invoice entry, approval routing and authorisation, payee-account verification, and the loading, release and reconciliation of payments. It applies to everyone involved in the payables process — the Accounts Administrator, the Project Managers, the Chartering Manager, the Finance & Technology Manager and the Chief Executive Officer.

The prequalification and onboarding of suppliers is governed by the supplier prequalification procedures and is outside the scope of this procedure, which begins when a valid invoice is received from a supplier.

Definitions

Terms and acronyms used in this procedure are defined in the Nomenclature table at the front of this document.

Responsibilities

The payables process separates the duties of recording an invoice, approving the cost, verifying the payee and releasing the payment, so that no single person can both originate and pay an invoice. The following roles apply.

Role	Responsibility	When
Accounts Administrator	Receives supplier invoices; records each invoice in Xero with the correct item code, category and project; submits the invoice for approval; obtains and loads the payee’s verified bank-account details; loads approved payments into the banking system; and clears and reconciles payments in Xero.	On receipt of each invoice; before each payment
Project Manager	Reviews and approves project-related invoices in ApprovalMax up to AU$100,000, confirming the cost is valid and correctly attributed to the project, or resolves discrepancies with the vendor.	On each project invoice
Chartering Manager	Reviews and approves ocean-freight invoices in ApprovalMax up to AU$100,000, or resolves discrepancies with the vendor.	On each ocean-freight invoice
Finance & Technology Manager	Owns this procedure; reviews and approves non-project invoices in ApprovalMax; co-approves invoices above AU$100,000 with the CEO; reviews and approves payee-account confirmations in ApprovalMax; and provides the first or second banking-system approval.	Ongoing
Chief Executive Officer	Co-approves invoices above AU$100,000 with the Finance & Technology Manager; reviews and approves payee-account confirmations in ApprovalMax; and provides a banking-system approval, so that every payment is released under two approvals.	On invoices above AU$100,000; on account confirmations; on payment release

Invoice Receipt and Entry

When a supplier invoice is received, the Accounts Administrator records it in Xero and ensures the following are completed before submitting it for approval:

• Item code — the sales invoice number is entered, linking the cost to the job it belongs to;

• Category — the approver’s initials are entered; the category determines the approval flow the invoice follows;

• Project — the project is recorded for tracking and reporting.

Once the invoice is entered correctly, the Accounts Administrator submits it for approval from Xero, which routes it to the appropriate approver in ApprovalMax. If the invoice has not been entered correctly, it is corrected and updated before submission.

Approval Routing and Authorisation

The category entered at invoice entry routes the invoice to the approver responsible for the cost. In every case the approver reviews the invoice in ApprovalMax; where the invoice is not correct, the approver resolves it with the vendor before approving.

Project-related Invoices

A project-related invoice is routed to the Project Manager who owns the project. The Project Manager reviews the invoice in ApprovalMax and, if it is correct and the amount is at or below AU$100,000, approves it. An invoice above AU$100,000 is escalated for approval by the Chief Executive Officer and the Finance & Technology Manager. Where the invoice is not correct, the Project Manager resolves it with the vendor before approval.

Ocean-freight Invoices

An ocean-freight invoice is routed to the Chartering Manager. The Chartering Manager reviews the invoice in ApprovalMax and, if it is correct and the amount is at or below AU$100,000, approves it. An invoice above AU$100,000 is escalated for approval by the Chief Executive Officer and the Finance & Technology Manager. Where the invoice is not correct, the Chartering Manager resolves it with the vendor before approval.

Other Invoices

An invoice that is not project-related is routed to the Finance & Technology Manager, who reviews it in ApprovalMax. Where the invoice has not been entered correctly, it is corrected and updated, or the Owner / Project Manager is advised, before approval.

Approval Threshold

The approval threshold is AU$100,000. An invoice with an amount at or below AU$100,000 is approved at the Project Manager or Chartering Manager tier. An invoice with an amount above AU$100,000 is approved by the Chief Executive Officer together with the Finance & Technology Manager. Once approved, the invoice proceeds to the Xero payment queue.

Payee Account Verification

Before a payee’s bank-account details are loaded into the banking system for the first time — or whenever a supplier advises a change of account — the account is independently verified. This control protects Westlink against payment-redirection fraud, in which a fraudulent party poses as a supplier to have payments diverted to an account they control. An account that cannot be verified is not paid.

The Accounts Administrator obtains the payee’s confirmation of the account details on the supplier’s letterhead and makes a follow-up telephone call to confirm them. The number called must be sourced independently — from a reputable source such as the supplier’s website, and not from an email or document supplied by the party advising the account. The number called must be the supplier’s main reception number; the call then asks to be transferred to the supplier’s accounts department, and the account details are confirmed by that department.

The Accounts Administrator loads the account-confirmation approval request, with the letterhead confirmation, into ApprovalMax. The Finance & Technology Manager and the Chief Executive Officer each review the provided document and comments and the follow-up call:

• Where the confirmation is in order, the approver approves the account in ApprovalMax.

• Where the confirmation is not in order, the approver makes additional enquiries to confirm the legitimacy of the account before deciding.

• Where the account cannot be confirmed, the approver declines it in ApprovalMax and no payment is made.

Once the account is approved, the Accounts Administrator loads the payee account details into the banking system and checks that they have been loaded correctly. A Planner task is created and assigned to track the loading and the check.

Payment Loading and Release

An approved invoice with a verified payee account is paid through the banking system under two approvals. The Accounts Administrator determines the payment schedule and reviews and updates it as needed, and Xero is updated with the agreed payment dates. Where the dates have not been entered correctly, they are corrected and updated.

The payment is loaded into the banking system and released under dual approval. Two different authorised approvers — the Finance & Technology Manager and the Chief Executive Officer — give a first approval and a separate second approval in the banking system. No payment is released on a single approval.

After release, the payment is cleared and reconciled in Xero, so that the accounting record agrees with the bank record.

Applicable Standards and Legislation

This procedure is an internal financial control. It is not mandated by a specific statute; it is maintained as documented information for a controlled process within the management system, and supports the integrity of Westlink’s financial records. The following standard applies to the control and documentation of the process.

• ISO 9001:2015 Quality Management Systems — Requirements — cl. 4.4 (the management system and its processes), cl. 7.5 (documented information — creating, controlling and retaining the records of a controlled process) and cl. 7.1.6 (organisational knowledge). The payables approval process is a controlled process whose authorisation and verification records are documented information retained under the management system.