A department (e.g., HR) establishes a change fund.
They submit a request form to the relevant team.
The form includes a specified date.
Review and Approval:
The team reviews the request.
If approved, the team signs the form.
The form is then forwarded to the AP (Accounts Payable) team.
Supplier ID Check:
The AP team checks if the requester (supplier) already has a supplier ID.
Existing Supplier: If the supplier ID exists, the form is sent back to the department, and they can initiate the AP payment process directly with the supplier.
New Supplier: If the supplier is new and does not have a supplier ID, the process differs.
New Supplier Process:
In the example discussed, the "record center" needed a change fund to provide change to customers paying with cash.
The presence of an ID suggests it might be for a new cash custodian.
The team sends the request to AP to create a new supplier ID.
Once the supplier ID is created, AP notifies the department.
The department can then begin the AP payment process to receive a check to establish the change fund.
Logging the Request:
The team manually logs the request in their internal system or form.
Year-End Verification:
At the end of the year, the department (e.g., HR) sends a form confirming the amount of the change fund they have on hand.