Some Segregation of duties rule in P2P Function | P2P SOD Rules

In this post we will discuss some SOD rules that should be implemented in Procurement to pay function. These are some general rules that may be or may not be apply to a specific company. These SOD rules are for reference only and recommended for large scale organisations

SODRule No.RuleRule TypeArea
PR1PR creator and approver should not be sameMaker Checker  controlP2P
 2PR Approver should be at higher grade than PR CreaterMaker Checker  controlP2P
 3PR approver should be HOD of User DepartmentMaker Checker  controlP2P
 4PR cannot be changed post approvalgeneralP2P
 5PR approver and PO Approver for any specific case should be differentConflict of Interest P2P
PO6PO creator and approver should not be sameMaker Checker  controlP2P
 7PO Approver should be at higher grade than PO CreaterMaker Checker  controlP2P
 8PO approvers should not be same  at all levelsMaker Checker  controlP2P
 9PO date should be after PR date generalP2P
 10PO qty and PO value must be mandatory fieldsgeneralP2P
GRN/SRN11GRN/SRN creator and aprover should not be sameMaker Checker  controlP2P
 12GRN/SRN Approver should be at higher grade than GRN/SRN CreaterMaker Checker  controlP2P
 13GRN/SRN must be done by the user receiving the material/servicesMaker Checker  controlP2P
 14GRN date should be after PR and PO date generalP2P
 15PO and GRN rights should be with different userConflict of Interest P2P
Vendor Master16Vendor creation required maker checkerMaker Checker  controlP2P
 17Edit/deletion vendor details must have maker checkerMaker Checker  controlP2P
 18Inactive to active -Change in the status require approverMaker Checker  controlP2P
 19Blocking of vendors requires approvalMaker Checker  controlP2P
 20Blacklisted vendor must be blocked permanently with aprovalMaker Checker  controlP2P
 21Vendor Master data maintainence and vendor master confirmation with different user  
Material/Service Master22Creation of Material code/service requires maker checker controlMaker Checker  controlP2P
 23Edit/deletion of codes must have maker checkerMaker Checker  controlP2P
Invoice24Park and post by different userMaker Checker  controlP2P
 25Posting rights must be  with the user have a higher grade than ParkerMaker Checker  controlP2P
Payment process26Payment processing should be with treasury department onlyConflict of Interest P2P
 27Payment processing must have approval matrixMaker Checker  controlP2P
 28Payment processing and entry by different userConflict of Interest P2P
 29Park – post payment entries with different userConflict of Interest P2P
 30Payment processor is different from BRSConflict of Interest P2P
 31Vendor creation and payment processing should be different usersConflict of Interest P2P
 32Treasury team should not credit vendorConflict of Interest P2P

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Shared by : Alkit Jain

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