This document contains two sample policies that establish standards and procedures for handling payment that are returned to the requestor, returned overnight to the vendor, or otherwise handled in a manner inconsistent with overall company check processing procedures. The document emphasizes the importance of having documented policies and procedures as they play a pivotal role in the company's internal control environment and contribute toward efficient and effective operations. The policies adhere to applicable laws and regulations, safeguard the company's resources, and align with the company's mission and philosophy.

The first sample policy outlines the purpose and procedures for handling special payments, including the responsibilities of field offices and shared services centers. It provides detailed instructions on how to use the special payment handling code report. The second sample policy focuses on using payment terms codes within the company's invoice approval workflow. It elaborates on the reasons for using a payment terms code, approval requirements and the policy owner. Both policies discourage the excessive use of payment term codes as they can impede check processing and delay vendor payment.

Sample procedures include:

• A special payment handling code should be used when an approver requires a check to be returned to them versus having the check mailed directly to the vendor from the SSC.
• The special payment terms code will be used in the check run to sequence checks (overnight check-to-vendor or returning check-to-approver versus mailing).
• Only authorized approvers can use the payment handling terms.