ADRON Homes & Property Limited

Standard Operating Procedure (SOP)

Document Nbr: xxx

Directorate: Treasury  

Effective Date: xx/xx/xxxx
Version: 1.0

Treasury – Client Payments

1. PURPOSE

This Standard Operating Procedure (SOP) defines the process for managing client payments after a new subscriber is registered as a customer.

It ensures timely and accurate processing of instalment deposits payments, infrastructure fees, and other mandatory payments required before property allocation.

This SOP aims to:

1. Standardize payment collection and recording.
2. Ensure compliance with company policies and regulatory requirements.
3. Enhance transparency and efficiency using ERP systems.

2. SCOPE

This procedure applies to all regional accountants utilizing ERP to manage client payment processing. It covers:

1. Payment verification.
2. Processing of instalment deposits, infrastructure fees and other fees .
3. Documentation and reconciliation of payments.

3. RESPONSIBILITIES

1. Marketers – Declare customer payments to the accountant Regional
2. Accountants – Validate payment and updates payment records on the ERP

4. PAYMENT PROCEDURE

Option 1: Payment Declaration by Marketer

1. The marketer collects payment evidence (e.g., bank teller) from the client.
2. The marketer declares the client’s payment to the Regional Accountant.
3. The accountant updates the specialized Google Sheet to record the payment.
4. General Land Payment Entry on the ERP:
   • Navigation: Real Estate Module  >> Transaction>>Contract Land Transaction
5. Infrastructure  Payment Entry on the ERP:
   • Navigation: Real Estate Module  >> Transaction>>Contract Infrastructure Transaction
6. Based on the payment evidence, the Regional Accountant logs the payment details into the ERP, specifying:
   • Receiving bank
   • Paying client
   • Attached supporting documents
7. The document generated by the Regional Accountant follows an approval workflow to the Alert Confirmation Unit (Treasury Directorate).
8. The Confirmation Officers verify that:
   • The payment reflects on ADRON’s bank statement.
   • The funds have been credited to ADRON’s bank account.
9. Upon confirmation, they approve the document.
10. After Confirmation Team approval:
    • Payments ≤ ₦1 million proceed to the Treasury Manager for final approval.
    • Payments > ₦1 million require additional approval from a joint team (Treasury & Corporate Finance Directorate).
11. Upon final approval, the system automatically executes the following:
    • Action 1: Sends a payment receipt notification to the client’s email.
    • Action 2: Debits the Group Module Bank Account (for the receiving bank) and credits the client’s account with the payment amount.
    • Action 3: Automatically calculates the marketer’s commission based on the predefined rate, then:
      • Credits the marketer’s account.
      • Debits Deferred Commission Expenses.
      • Debits Withholding Tax against  the marketer.

Option 2: Bank-ERP Integration

1. Applicability: This option applies only when the bank’s ERP is integrated with ADRON’s ERP as in some banks like GTB , Union Bank, etc
   • Once the client makes a payment at the bank, the system instantly and automatically:
     • Credits the client’s account.
     • Debits the receiving bank (no manual intervention required).
2. The following actions occur automatically upon payment confirmation:
   • Action 1: Sends a payment receipt notification to the client’s email.
   • Action 2: Debits the receiving bank and credits the client’s account with the payment amount.
   • Action 3: Computes the marketer’s commission based on the set rate, then:
     • Credits the marketer’s account.
     • Debits Withholding Tax from the marketer.
     • Debits Deferred Commission Expenses.

5. ERP SYSTEM UPDATE & DOCUMENTATION

• All payments must be recorded in the ERP under the respective customer account.
• Supporting documents (bank slips, receipts) must be uploaded to the system.
• Regional Accountants reconciles payments daily with bank statements.

6. PAYMENT DISCREPANCY HANDLING:

• If a payment mismatch occurs, the Treasury Manager investigates and resolves it within 48 hours.
• Disputes are escalated to the Director of Treasury if unresolved.

7. RECORDS & REPORTING

• All payment records must be stored securely in the ERP system.
• Monthly payment reports are generated for audit purposes.