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Disbursements Internal Process

By Yvonne Gordon,2014-11-25 10:11
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Disbursements Internal Process

    Accounts Payable Internal Process and Policies for Payments

    Direct Orders, Purchase Order Payments, and Direct Debits

    Implemented February 2007

    Updated November 2009

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    Table of Contents

    Background …………………………………………………3

    Accounts Payable Standard Process……………………3 Direct Payments…………………………………………….3

    Recurring Payments……………………………………….3

    Distributed Directs HFS Process………………………4

    Libraries Process…………………………………………..4

    Rush Payments……………………………………………..4

    OnePurdue SRM PO Payments………………………..5,6

    Payments to Foreign Entities………..…………………..7

    Tolerance…………………………………..………………..7

    Check Handling…………..………………………………...8

    Payment Methods……………….…………………………9

    Miscellaneous………………….…………………………...9

    Additional Resources………….………………………...10

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Background

    Procurement of goods and services occur in the following formats:

    ; Electronic procurement system (OnePurdue)-a Purchase Order is created after an

    electronic purchase requisition is approved and submitted to the vendor.

    ; Direct orders outside of the electronic procurement system- an order is placed with a

    vendor by a department. The vendor will send a bill that is paid upon approval of a direct

    invoice voucher.

    ; Department purchasing card order-an order is placed with a vendor by a department.

    These orders should be charged to the ordering department‟s purchasing card upon shipment

    of the goods.

    In the procurement model, a good or service is ordered at a predetermined or estimated price. When the good is received or the service provided, payment is owed to the vendor. The vendor will provide a bill for the good or service, which should be close to the price identified or estimated during the requisition stage. When these conditions are met, the vendor‟s bill should be paid.

Accounts Payable Standard Process

    Once the Accounts Payable staff receives an invoice voucher, the goal is to have it processed with 48 hours, and paid according to the vendor‟s payment terms.

Upon receipt, the AP clerk will:

    ; Check Invoice Voucher for accuracy and approvals

    ; Match invoice with vendor master data

    o If new vendor, arrange for Master Data team to create one

    ; Key invoice into OnePurdue system

Direct Payments

Direct Invoices (No purchase order, no encumbrance)

    o Customer departments send completed Invoice Voucher with supporting documentation

    and approval signatures to the Central Accounts Payable.

    o Central Accounts Payable clerk will review for completeness, check vendor master data,

    enter into system.

    ; If vendor master data missing, contact Vendor Master Data Team to set up.

Recurring Payments

    Payments can be set up to repeat on a specified schedule, for the same dollar amount each pay date. Recurring payments are created via invoice voucher with the following information included:

    ; First Payment Date

    ; Last Payment Date

    ; Interval (Monthly, Weekly, Daily)

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    ; Reference Information (Invoice number, etc)

    ; Recurring Amount

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    Rush Payments

    Accounts Payable staff prioritize invoice vouchers that are clearly marked as “RUSH”. The goal is to have rush payments processed within 24 hours of receipt of the voucher.

    ; Hand deliver rush check requests to Accounts Payable for vendor payments, or to the

    Tax Department for personal payments.

    ; A completed DIV, including appropriate approvals and backup documentation is

    required

    Housing and Food Services Direct Invoice Voucher Process (Existing Vendors)

ZV60

    o HFS will enter their invoices directly into SAP using Tcode ZV60

    o Once the transaction is parked, a printout of the transaction will be stapled to the invoice (in

    place of an invoice voucher).

    o The printout will be routed for approvals.

    o Once fiscal approval has been obtained, the printout and invoice will be sent to the HFS

    Business Office for review.

    o Upon HFS BO review, the printout and invoice are sent to Central Accounts Payable for

    posting.

ZV60 Upload

    o HFS will enter invoices into Excel Spreadsheet template for ZV60 Upload

    o Entries per upload should be limited to 20 invoices

    o Once the transactions are parked, a printout of the transactions will be stapled to the invoice

    (in place of an invoice voucher).

    o Invoices should be stacked in document number order, with printout on top.

    o The printout will be routed for approvals.