Workflow Design
Payments
Settlement
Requests
External
Supporting
Document
1. Complete Fraxion
Settlement Request
2. Fraxion
Line Manager
Approval
3. Bursar Print
Fraxion Pay request
and attach to Invoice
4. Input data
into ABSA
system
Output 1
ABSA
printout
5. First payment
approval in
ABSA
Output 2
Proof of
payment
1. Original Invoice
moves to Bursar
7. Documentation
returned for cashbook
processing
8. Capture
payment in
cashbook
Documentation
filed
chronologically
9. Monthly Bank
Reconciliation
with cashbook
Output 4
Bank
Reconciliation
10. Cashbook
Data posted to
General Ledger
6. Second
payment
Approval in ABSA
Output 5
Financial Reports
General Payment Policies
Standard Operating Procedure (SOP)
General Payment Policies
1.
Payments are divided in two main workflow processes namely Settlement Requests and Capital Requests
2.
All payments excluding Capital acquisitions is processed via the Settlement Request workflow.
3.
In Curro Policy Terms, a capital expense is an expense related to the purchase of physical goods with a unit value
greater than R1000.00 per unit and which will be used for at least 3 years or more.
4.
Capital Expenditure requires at least 2 quotations to be submitted with the Capital Payment Request.
5.
Capital Expenditure Requests differ from Settlement Requests in that they involve a quoting process and two
approvals in comparison with the single approval required for Settlement Requests.
6.
Capital Expenditure Requests require approval by both the Executive Head and Head Office Management.
Settlement
Requests
Standard Operating Procedure (SOP)
Processing Cash Payments
1.
Payments may only be processed by the Bursar where a Fraxion payment request document is available. A printed
copy of the payment request is attached to the supporting documents by the Bursar.
2.
Payments related to contractual commitments are exempt from this policy.
3.
After receiving the invoice from the supplier, the applicant logs on to http://fraxion.curro.co.za with their password.
The details of the invoice are captured on the screen as well as the budget from which the expense is allocated (refer
to the manual for detailed instructions). The original physical invoice is signed by the applicant to acknowledge that
services or goods have been received in good order. The signed invoices are then handed to the Bursar, who will
match them with their Fraxion payment requests, which were received after the requests were approved.
4.
Once the submit button is clicked, the Executive Head (approver) or nominated Manager, as set up in Fraxion, will
receive an email notification to approve the transaction. The Executive Head clicks on the link in the email, which
opens the request.
5.
The Approver will view the details of the request and verifies the following:
6.
•
The budget is not exceeded
•
The allocation of the expense is done according to the appropriate budget ITEM (Ensure that Capital
requests are not processed as Settlement requests.
•
The cost is reasonable.
•
The approver has the ability to deny, cancel, revert or approve the request. Upon cancellation or denying of the
expense, the applicant will be notified of the progress on the request via email.
In die event where the request is approved, the Bursar will receive an email, requesting for payment to be processed.
The Bursar prints the payment request document and verifies the following controls:
•
Verify that the invoice received is signed by the applicant
•
Verify that the invoice amount agrees with the Fraxion document amount
Payments
Standard Operating Procedure (SOP)
Processing Cash Payments (Continued)
7.
The Bursar attaches the original invoice to the printed Fraxion payment request.
8.
Once the payment meets all the internal control criteria, the Bursar uploads the payment on the ABSA online
banking facility.
9.
Printouts of the ABSA batches are made and placed with the above mentioned documentation to be presented for
approval to the Executive Head.
10. The admin clerk approves the payments on the ABSA system and signs the batch to indicate that the first
approvals have been made.
11. The documents with the batch printouts are forwarded to the Principal / Executive Head for final authorization.
12. The Executive Head logs into the ABSA system and views the batch printout to agree the total of the printout to the
batch total on the screen. Once the total is confirmed the batch is screened in final authorization of the payments.
13. The second authorization is done by Executive Head on the ABSA business integrator program.
14. The batch is signed to indicate that the final approval was made and the documentation is returned to the Admin
Clerk for further processing on the ERP system (PASTEL) cashbook.
12. Once the documentation is received after the second approval, the Administration Clerk obtains proof of payment
from the ABSA Business Integrator program and forward proof of payment as requested on the documentation.
13. Batch printouts are filed according to date and payment documentation is filed alphabetically according to the
beneficiary name.
14. Payments are now processed in the PASTEL cashbook.
15. Upon processing payments, ensure that the General Ledger code is relevant to the detail of the expense and or
fund indicated on the Fraxion documentation.
16. Ensure that the expenses are loaded in the corresponding cashbook.
17. The description field must contain the beneficiary name and requisition number as well as a short description of the
expenses, space permitting.
18. The batch is not posted until it is reviewed by the Head Office Accountant.
Capital Requests
Standard Operating Procedure (SOP)
Capital Expenditure Process
1.
During a request for Capital expenditure (CAPEX), the applicant obtains at least 2 quotes before completing the
capital payment process on the Fraxion webpage.
2.
Once the quotes have been obtained in soft copy, the applicant logs on to Fraxion and captures the required fields on
the capital payment request page. The quotes are attached to the request and submitted.
3.
Upon submission the first approval notification is sent to the first approver (Executive Head) . Once approved by the
Executive Head, the request is forwarded to the relevant Manager at Head Office for a second approval.
4.
Once Head Office confirmed compliance to budgetary and internal control procedures, the request is approved and
notification is sent to the applicant to proceed with the order.
5.
The status of the Capital Request is changed to “Approved for Ordering”. The applicant submits the order by sending
a Fraxion-generated Purchase Order document to the supplier.
6.
Once the goods have been received, the applicant logs on to Fraxion and receipts the goods on the Fraxion system
(refer to manual for detailed instructions).
7.
The status now changes to “Closed for Ordering” and the Bursar is notified of a payment request requiring attention.
8.
The applicant signs the invoice and hands the original invoice to the Bursar who will match the invoice with the
printed payment request .
9.
The same payment process as per the Settlement Request workflow applies from this point forward.