Standard Operating Procedure (SOP)

Understanding

Standard Operating Procedures (SOP) define the

– Process, – Objectives and – Tasks

including detailed Work Steps, highlighting the Key Controls, identifying the responsible Person / Department for each Work Step and approval Mechanism.

Approach of drafting SOP

– Do the stepwise walkthrough of the process incl. the physical movement of the transaction, system, and documentation (incl. Purchase order, Vendor Invoices, Sales Order, Sales Bills, etc.) – Understand the data received from various business functions in terms of reports & vouchers – Understand the approval mechanism at various stages of the business process – Identification of gaps in the processes which should be separately documented in the procedures – Start documentation of procedures (incl. Process maps & narratives) with the help of understanding gathered in the earlier stages incl. input, output, risk/ controls, authentication, etc. – Discussion with the respective stakeholders and finalization of SOP after incorporating their comments – A final discussion with Management and circulation to the respective business heads for implementations

– Operative guide to all the Departments and their respective teams – Helps in attaining uniformity of operations – Serve as ready reckoner to all the new team members – Reduce errors and enhance productivity. – Meet legal requirements – Establish a chain of command with a clear idea of your leadership structure & other teams

The Coverage of SOP is extended to various

– Policies such as Fixed Assets, HR Manual, etc. – Critical Business Processes (i.e. Purchase to Pay, Order to Cash, etc.) – Sub-Processes (i.e. Vendor selection & on-boarding, PO generation etc.) – Authority Matrix

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