Shebaz Dhillon

VCI EMERGENCY VEHICLE SPECIALISTS Standard Operating Procedures APRIL 2024 Table of Contents 1 Sales & Invoicing Pgs. 4-11 2 Purchasing & Accounts Payable Pgs. 13-32 2 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. Sales & Invoicing 3 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. SALES & INVOICING 1.0 Sales Proposal Responsible Group(s): General Sales Team OUTCOMES ✓Draft options and cost worksheet 1.2 Conduct needs assessment / gain knowledge of client 1.1 Create lead generation 1.3 Draft customer proposal 1.4 Inform sales manager of outcomes 2.0 Pricing & Discounts Key Start End Decision 4 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. ✓Draft preliminary pricing SALES & INVOICING 2.0 Pricing & Discounts Responsible Group(s): Sales Team and Sales Manager OUTCOMES ✓Draft customer proposal with sales 2.2 Apply applicable discount based on terms 2.1 Calculate product prices 2.3 Ensure all pricing aligns with company pricing policies and goals manager approval (written sign-off) 2.4 Sales Manager signs off on draft proposal 2.5 Inform customer of outcomes 3.0 Sales Contract Finalization Key Start End Decision 5 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. Sales manager sign-off indicates that the proposal is aligned with sales policy SALES & INVOICING 3.0 Sales Contract Finalization Responsible Group(s): Sales Team & Customer OUTCOMES ✓Contract defined with initial price, 3.1 Salesperson presents approved proposal to customer for execution 3.2 Customer accepts proposal 3.3 Inform mgmt., Accounts Receivable, production team, and remits signed contract to admin. team discounts, customer vehicle credits, and net sales amount 4.0 Service & Production customer and salesperson) 8.0 Accounts Receivable Key Start End Decision 6 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. ✓Signed and dated contract (by both SALES & INVOICING 4.0 Service & Production Responsible Group(s): Operations Administration OUTCOMES ✓Purchase orders / requisitions for project parts and / or services 4.1 Administration files priced proposal and signed contract in customer files 4.2 Requisition necessary orders 4.3 Plan and execute production 4.4 Track project labor and parts costs ✓Opened service orders ✓Service orders reviewed by service managers ✓Change orders 5.0 Change Order Inform sales department of change order(s) Yes Change order required? No 6.0 Project Completion Key Start End Decision 7 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. SALES & INVOICING 5.0 Change Orders Responsible Group(s): Production Team & Sales Team OUTCOMES ✓Change order signed and dated by 5.1 Production team informs sales team if scope of project has materially changed 5.2 Sales team informs customer of change and negotiates contract revisions 5.3 Sales team prepares and presents customer with change order details and costs 5.4 Sales team to send copy of signed change order to invoicing department 4.0 Service & Production Key Start End Decision 8 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. customer SALES & INVOICING 6.0 Project Completion Responsible Group(s): VCL Customer Service Rep. OUTCOMES ✓Signed and dated delivery receipt 6.2 Obtain customer’s signature and date on the service order when a service order’s work is completed 6.1 Obtain a signed and dated delivery ticket (vehicle delivery) 6.3 Send invoicing dept. customer signed and dated delivery tickets or signed and dated service order Remitted to invoicing department the same day of delivery Key Start End Decision 9 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 7.0 Invoicing SALES & INVOICING 7.0 Invoicing Responsible Group(s): Invoicing Department Can not be a salesperson or initiator of a service order OUTCOMES ✓Official customer invoices 7.1 Create invoice that exactly matches the contract along with any change orders Key Start End 7.2 Remit contract, delivery ticket (or signed RO), change order, and invoice to Accounts Receivable Decision 10 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. SALES & INVOICING 8.0 Accounts Receivable Responsible Group(s): Finance Department Can not receive funds or goods OUTCOMES N/A 8.2 Checks customer balances before work begins and alerts production team if an outstanding balance on customer account exists 8.1 Set up new customers in ERP system 8.3 Records sales and checks invoices for accuracy 8.4 Records deposits Can not be someone who receives goods or someone who can open an RO 8.5 Informs mgmt. (determines customer credit limit) and production team (AR signs off on open order to indicate customer has no outstanding balance) Key Start End Decision 11 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. Purchasing & Accounts Payable 12 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. PURCHASING & ACCOUNTS PAYABLE 9.0 Identifying Needs Responsible Group(s): Purchasing Department OUTCOMES N/A 9.1 Receive requests for goods or services from various departments within the organization Key Start End 9.2 Evaluate the necessity and urgency of the requested items or services Decision 13 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 9.3 Ensure that requests comply with budgetary constraints and organizational policies 10.0 Vendor Selection PURCHASING & ACCOUNTS PAYABLE 10.0 Vendor Selection Responsible Group(s): Purchasing Department OUTCOMES N/A 10.2 Evaluate vendors based on factors such as price, quality, reliability, reputation, and compliance with GAAP 10.1 Identify potential vendors through research, referrals, or requests for proposals (RFPs) Key Start End Decision 14 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 10.3 Conduct due diligence on vendors, including background checks and reviews of financial stability 10.4 Enter new vendor in the service writing / accounting system PURCHASING & ACCOUNTS PAYABLE 11.0 Vendor Management Responsible Group(s): Purchasing Department OUTCOMES N/A 11.1 Maintain ongoing communication with vendors to address any issues or concerns promptly Key Start End 11.2 Evaluate vendor performance based on criteria such as delivery timeliness, product / service quality, and responsiveness Decision 15 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 11.3 Negotiate contract terms and pricing with vendors to optimize value for the organization 12.0 Purchase Requisition PURCHASING & ACCOUNTS PAYABLE 12.0 Purchase Requisition Responsible Group(s): Purchasing Department OUTCOMES N/A 12.2 Include detailed specifications, quantities, delivery requirements, and any special terms or conditions 12.1 Generate purchase requisitions based on approved requests for goods or services Key Start End Decision 16 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 12.3 Obtain appropriate approvals from authorized personnel before proceeding with purchases 13.0 Purchase Order Processing PURCHASING & ACCOUNTS PAYABLE 13.0 Purchase Order Processing Responsible Group(s): Purchasing Department OUTCOMES N/A 13.2 Ensure that purchase orders contain accurate information, including vendor details, item descriptions, quantities, prices, terms, and delivery dates 13.1 Create purchase orders based on approved purchase requisitions Key Start End Decision 17 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 13.3 Distribute purchase orders to vendors electronically or via mail / fax 14.0 Receipt of Goods / Services PURCHASING & ACCOUNTS PAYABLE 14.0 Receipt of Goods / Services Responsible Group(s): Parts & Materials Manager Separate from recording vendor invoices and creating a vendor in the service writing and accounting system OUTCOMES N/A 14.1 Receive and inspect goods upon delivery or verify the completion of services 14.2 Compare received goods or services to the details specified in the purchase order 14.3 Ensure that the quality and quantity of goods / services meets the organization's standards and requirements 14.4 Match vendor invoices with corresponding purchase orders and receiving documents 14.5 Verify the accuracy of invoices, including prices, quantities, discounts, and any additional charges 14.6 Resolve discrepancies or issues with vendors promptly 14.7 Signs off on invoices to indicate invoice accuracy, goods / services received 14.8 Remits signed / approved invoice and packing slip / receiving report to Accounts Payable 15.0 Invoice Receipt Key Start End Decision 18 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. PURCHASING & ACCOUNTS PAYABLE 15.0 Invoice Receipt Responsible Group(s): Finance Department Separate from payment processing OUTCOMES N/A 15.1 Physically or electronically receive invoices Key Start End 15.2 Sort invoices by type and due date Decision 19 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 16.0 Invoice Scanning PURCHASING & ACCOUNTS PAYABLE 16.0 Invoice Scanning Responsible Group(s): Finance Department Separate from invoice verification OUTCOMES N/A 16.1 Scan paper invoices into electronic format Key Start End 16.2 Assign metadata to digitized invoices Decision 20 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 17.0 Invoice Verification PURCHASING & ACCOUNTS PAYABLE 17.0 Invoice Verification Responsible Group(s): Finance Department Separate from invoice scanning and payment processing OUTCOMES N/A 17.1 Verify invoice accuracy, including quantities and prices Key Start End 17.2 Confirm goods or services were received as per purchase orders Decision 21 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 18.0 Purchase Order Matching PURCHASING & ACCOUNTS PAYABLE 18.0 Purchase Order Matching Responsible Group(s): Finance Department Separate from invoice verification and payment processing OUTCOMES N/A 18.1 Match invoices with corresponding purchase orders Key Start End 18.2 Ensure proper authorization for the purchase Decision 22 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 19.0 Receipt Matching PURCHASING & ACCOUNTS PAYABLE 19.0 Receipt Matching Responsible Group(s): Finance Department Separate from purchase order matching and payment processing OUTCOMES N/A 19.1 Verify that goods or services were received with documented proof of receipt Key Start End 19.2 Confirm quantities and quality Decision 23 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 19.3 Enter bill as payable in the accounting system in the same month as the receipt 20.0 Coding & Approval PURCHASING & ACCOUNTS PAYABLE 20.0 Coding & Approval Responsible Group(s): Finance Department Separate from invoice verification and payment processing OUTCOMES N/A 20.1 Assign proper accounting codes to invoices Key Start End 20.2 Obtain necessary approvals for payment Decision 24 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 21.0 Payment Processing PURCHASING & ACCOUNTS PAYABLE 21.0 Payment Processing Responsible Group(s): Finance Department Different employees handle approvals and payments OUTCOMES N/A 21.2 Schedule payments according to vendor terms 21.1 Process approved invoices for payment Key Start End Decision 25 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 22.0 Payment Review PURCHASING & ACCOUNTS PAYABLE 22.0 Payment Review Responsible Group(s): Finance Department Separate from invoice verification and payment processing OUTCOMES N/A 22.1 Review payment batches for accuracy and compliance Key Start End 22.2 Reconcile payments against invoices Decision 26 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 23.0 Check Printing & Signing PURCHASING & ACCOUNTS PAYABLE 23.0 Check Printing & Signing Responsible Group(s): Finance Department Separate from payment processing and approval OUTCOMES N/A 23.1 Print checks for manual payments Key Start End 23.2 Obtain authorized signatures on checks Decision 27 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 24.0 Electronic Payments PURCHASING & ACCOUNTS PAYABLE 24.0 Electronic Payments Responsible Group(s): Finance Department Separate from check processing and payment approval OUTCOMES N/A 24.1 Initiate ACH or wire transfers for electronic payments Key Start End 24.2 Verify bank account details Decision 28 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 25.0 Vendor Reconciliations PURCHASING & ACCOUNTS PAYABLE 25.0 Vendor Reconciliations Responsible Group(s): Finance Department Separate from payment processing and approval OUTCOMES N/A 25.1 Reconcile vendor statements with Accounts Payable records Key Start End 25.2 Investigate and resolve discrepancies Decision 29 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 26.0 Vendor Master Data Management PURCHASING & ACCOUNTS PAYABLE 26.0 Vendor Master Data Management Responsible Group(s): Finance Department Separate from payment processing and approval OUTCOMES N/A 26.1 Create and maintain accurate vendor records Key Start End 26.2 Update vendor information as needed Decision 30 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 27.0 Aging Reports PURCHASING & ACCOUNTS PAYABLE 27.0 Aging Reports Responsible Group(s): Finance Department Separate from payment processing and approval OUTCOMES N/A 27.1 Product aging reports to track and manage outstanding invoices Key Start End 27.2 Prioritize payments based on due dates Decision 31 | Copyright © VCI Emergency Vehicle Specialists All rights reserved. 28.0 Compliance & Audit PURCHASING & ACCOUNTS PAYABLE 28.0 Compliance & Audit Responsible Group(s): Compliance & Audit Teams Independent audit teams verify compliance OUTCOMES N/A 28.1 Monitor adherence to Accounts Payable policies Key Start End 28.2 Collaborate with audit teams to ensure compliance Decision 32 | Copyright © VCI Emergency Vehicle Specialists All rights reserved.