> For the complete documentation index, see [llms.txt](https://handbook.opencoreventures.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://handbook.opencoreventures.com/company-ops/finance-ops/payment-processing.md).
# Invoice & Payment Processing
All invoices should be sent to the company’s accounting email (accounting\@...). The Accounting and Finance Teams use an Accounts Payable system to record and pay vendor bills electronically.
{% hint style="info" %}
#### Vendor tax forms
When engaging with a service provider, please ask the new vendor to provide one of the following forms that Accounting needs to collect before processing any payment.
**US-based vendors**
US-based vendors are required to provide a completed[ W-9 Form](https://www.irs.gov/pub/irs-pdf/fw9.pdf) prior processing their first invoice and upload a copy in e-payment system under the Document section. This form can be downloaded from the IRS website. *If the vendor is unable to upload their W-9, please email the form to our accounting email alias.*
**Non-US vendors**
Non-US based vendors are required to provide a completed[ W-8BEN-E Form](https://www.irs.gov/pub/irs-pdf/fw8bene.pdf) prior to or at the time they submit their 1st invoice and upload a copy of[ ](https://www.irs.gov/pub/irs-pdf/fw8ben.pdf)in e-payment system under the Document section. This form can be downloaded from the IRS website. Here are the[ instructions](https://www.irs.gov/instructions/iw8bene) for Form W-8BEN-E Form. *If the vendor is unable to upload their W-8BEN-E, please email the form to your company’s accounting email alias.*
{% endhint %}
### Vendor Onboarding
Vendors will need to be onboarded into the AP system to process invoices. Founders have the option to onboard the vendor directly or send an email to "Accounting@" to have the vendor set up on their behalf. The following information is needed:
* Vendor name, physical address, and email
* Type of service or product the vendor provides (to correctly categorize the expense)
* An email to send the AP platform invite so the vendor can enter banking and W-9 tax information (for US vendors only)
* For foreign vendors requiring payment in a foreign currency, a completed W-8BEN, along with a request to Accounting to set up the correct payment currency and banking details
**Note:** If the founder is engaging a contractor or service provider, please ask the vendor to submit a monthly invoice by the end of the month, and no later than the **3rd of the following month**, so the expense can be recorded accurately and on time.
### Vendor Bill Payment Process
The company's standard payment term is "net 30"; bills are paid 30 days from the invoice date. Due to AP review and control processes, it takes a **minimum of 3 to 5 business days** for a vendor bill to be processed for payment in the AP system, and an **additional 2 to 3 days for the payment to settle** in the vendor's bank account. For this reason, it's critical that the founder forward vendor bills to Accounting as soon as they're received. Approval can be held in the system if needed.
1. Email the vendor bill to Accounting as soon as it's received. Please do not submit vendor bills or payment instructions through any other channel.
2. **Accounting processes bills on a weekly basis (Tuesday or Thursday),** sets up the payment date, and routes the bill to the founder for approval.
3. The AP system will prompt the founder for review and approval — please log in to the AP system to approve.
4. The AP system will auto-pay the bill on the scheduled date. Payments typically arrive in the recipient's US account within 2–3 business days via ACH. For foreign vendor payments, a wire will be initiated from SVB (USD) or Brex (foreign currency).
If a vendor bill needs to be paid urgently, please forward the email to Accounting and also post an alert in the Accounting Slack channel so a member of the Accounting team can respond within a few hours.
## Customer invoicing and payments
It is recommended to loop in the Accounting and Finance Team as early as possible when considering launching paid features. The company’s controllers should have access to the company’s [payment processor](https://handbook.opencoreventures.com/company-ops/business-systems#stripe) account which will enable them to add necessary integrations and coordinate on setup.
There is a significant amount of lead time that will likely be dedicated to development in integration of payments and some of the associated setup processes for different companies. Registration for VAT may take a significant amount of time while US sales tax registration is comparatively quicker (if required).
### Setting up sales taxes/VAT
It is important to configure the payment processor to appropriately target sales taxes and VAT for the type of customer and location that each company is targeting. The payment processor will help manage this when marked appropriately. Part of appropriately designating purchases includes if the type of transaction is B2B or B2C.
The payment processor offers specific Tax Set up for VAT taxes, United States Taxes as well as other Countries taxes to be added to each transaction when invoicing. Once you receive your Tax Registration you can add the registration in ‘Tax Settings’. The ‘Tax Settings’ is also where the payment processor monitors the thresholds for charging VAT, Sales Tax and other taxes.
When setting up customers it is critical to obtain their location (address) and ensure it is entered correctly. This allows the Monitoring of Tax Thresholds to work and inform users of the data correctly.
It is important that companies create a separate line in payments to differentiate charges associated with the products and services they provide and the taxes associated with them.
### Testing and launching payment processor
Before you launch your payment processing system, it's important to test it thoroughly. You can do this by using the payment processor's test mode to simulate transactions and ensure that everything is working correctly. Once you are satisfied with your payment processing system, you can launch it on your website and start accepting payments from customers.
## Foreign exchange
During the pre-Seed stage, OCV companies are expected to operate predominately in USD. The companies are funded in USD, customer contracts are expected to be denominated in USD, expenses are incurred in USD.
If the company has team members outside of the U.S., the EOR platform manages foreign currency exchange and charges the company in USD at the prevailing market exchange rate. In this respect, the company takes on foreign exchange rate risk when hiring outside of the U.S.
If and when a company expects large (6-7 figures) customer contracts and/or expenses in foreign currency, contact the Accounting and Finance Team to evaluate foreign currency management options.
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