Procurement Academy Payment Processing

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Procurement Academy Payment Processing

• Making the Decision to Pay

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AP and Disbursement Contacts

• Manager Pamela Hill Butler
• Accounts Payable OCB 1.160
• Cynthia Richmond (AP Lead)
• Carolyn Mason
• Crystal Morgan
• Leslie Martinez
• Disbursement 9th floor UCT Medical School
• Cecilia Lim (Disbursement Lead)
• Gwendolyn Declouette
• Lisa Ward
• Leslie Phillips-Veals
• Felicia Castillo located at Jesse Jones
  Library
• Janie Ruiz located at Jesse Jones Library

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Methods of Payment

• NON-PO voucher exception process
• Departmental regular voucher entry sent to
  Disbursements for final approval
• UT Supply Mall
• POS - Buycard
• eShip global
• Late fees system generated from PO voucher
• PO Voucher entered by Accounts Payable
• All payments against UTHSC purchase orders
• Requires validation of receipt of goods
• Three-way match process
• Purchase Order, Invoice, Receiver
• Electronic invoicing and FEDI payment in place
  for high volume vendors
• Travel and Expense Reimbursement
• Handled by Employee Reimbursement team Finance

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Required documentation UTHSC-H PO Voucher

• Original Invoices mailed by supplier or
  department to P.O. Box 20036, Houston, TX 77225
  Attn Accounts Payable
• Purchase order must be referenced on invoice and
  invoice date cannot precede the purchase order
  date
• Vouchers entered by Accounts Payable against
  UTHSC-H purchase orders
• Requires validation of receipt of goods or
  services
• In writing by user via email or cover letter
  attachment
• Electronically in FMS
• Matching error no receipt exists systematically
  generates email to departmental buyer and
  requestor daily
• Payment within 30 days of receipt of PO invoice
  or late fee assessed of 9.75
• Vendor dispute information in writing on install,
  service, repair, missing shipments to determine
  validity of late fee on invoices held over 30
  days
• Credit invoices must be verified for validity
  with the department and the vendor.
• DO NOT MAIL requests, prepayments or deposits on
  PO orders must be approved by the Manager of
  Accounts Payable and include necessary executed
  contract, agreement, official function, alcohol
  or sole source forms
• Note Utilize the current vendor database
  and/or existing contracts

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• Things to Remember about Accounts Payable
• Purchase order invoicing requires a PO number
  which should be referenced on original invoice.
• Original invoice should be sent to AP for
  processing. Please do not send packing slips.
• Blanket POs should be set as amount only.
  Please do not select receiver required for
  blanket orders.
• Signature approval is needed for payment of
  invoices on orders with no receiver required.
• The UTHSC PO process is a three-way match
  process. (PO, invoice, validation of receipt)
  POs written as receiver required should be
  monitored for receiver to be entered when
  complete.
• If there is an estimated shipping charge on a PO,
  the line should be added to the PO as estimated
  charges. Please set shipping line to amount only
  for multiple shipments with an estimated shipping
  charge.
• If notification is not received in AP regarding
  discrepancy on receipt of service/commodity, a
  late fee will be assessed for items paid after 30
  days of receipt of invoice.
• Late fee payments against PO invoices are system
  generated on a Non-PO voucher against the
  chartfield on the original voucher. The invoice
  prefix is LPF along with the associated invoice
  number of the original voucher.
• Invoice payments are generated on a 30 day
  payment term basis unless otherwise specified.
  Checks are mailed the same day they are generated

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• DO NOT MAIL REQUESTS must be pre-approved by
  the Manager of Accounts Payable. Please notate
  request in BOLD red letters - DO NOT MAIL with
  the name and phone number of contact to pick-up
  check. Checks for approved requests will be sent
  to the BURSAR 22nd floor for pick-up by contact
  person.
• POs requiring deposits
• All prepayments require approval of the Manager
  of Accounts Payable.
• For deposit payments on official functions or
  other, a copy of the PO, the executed contract
  indicating the amount of the deposit, a copy of
  the executed official function form, any executed
  sole source documentation and executed alcohol
  approval form if applicable is required.
• Final payment on the PO requires detailed invoice
  with balance due less deposit from supplier.
• FYI pointers
• Make sure annual blanket orders are monitored for
  availability of funds
• The PO date must always be prior to the invoice
  date for allowable payment against the purchase
  order
• When there is a receiver notice received, and
  payment shouldnt be made, notify AP.
• If an invoice is received in your department, you
  may check FMS to see if it has been paid, or send
  it to Accounts Payable, OCB 1.160
• Any questions about UTHSC-H PO invoices for
  Accounts Payable you may contact the following by
  vendor Cynthia Richmond---- x4707 -------G M
  Carolyn Mason-------- x4708 -------A E
  Crystal Morgan--------x4718 ------- N S Leslie
  Martinez--------x8131 ------- F, T-Z and Sigma

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Metrics PO Voucher

• AP recovery Audit in October 2006 yielded no
  findings for duplicates and overpayments to
  vendors for an 18 month period
• STATE Audit 99.9 compliance
• Since Nov 2006 early pay discounts effectively
  taken at a rate of 97 saving 134,863

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Non-PO exception process

• Non-routine or non-recurrent in nature
• Official functions/sponsorships under 2500 with
  no deposit (90 per person limit)
• Prepaid items (PO not accepted)
• Refunds to institutions
• Institutional memberships (approved list)
• Subscriptions
• Gift purchases (60 limit)
• Student reimbursement/payments
• Insurance
• Research subject incentive payments over 50
• After-the fact or unauthorized purchases
• Note Utilize the current vendor database and/or
  existing contracts

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Required Documentation Non-PO

• Voucher entry including description line with
  supporting documentation must be valid budget
  checked for correct fund pool
• Summary page (Use landscape print)
• Invoice information page with all voucher
  distribution lines
• Original supporting documentation for payment
  i.e. invoice detailing purchased commodity or
  service rendered, order form, official function
  forms, alcohol forms, contracts or agreements
  detailing terms of agreement etc.
• After-the-fact purchases require written
  justification if PO or contract was not in place
• Serious compliance violations where service has
  begun or been rendered without a valid purchase
  order or contract in place - require unauthorized
  purchase justification form for approval by AVP
  of Procurement

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Purchases not considered University Business

• Baby showers
• Birthday parties - cakes
• Holiday gifts/gift cards for employees
• Flowers for hospital stays

Refer to HOOP 2.11 for official function
guidelines and HOOP 2.31 Remember to (1) Use
good judgment. Ask how does this benefit UT? (2)
stay within 60 limit for gifts (3) 90 per
person limit for official functions (4) use
discretionary or gift funds only (5) document any
exceptions to limits and (6) ask questions if you
are unsure.
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Metrics Non-PO Voucher

• FY 07 Disbursements approved 22,445 ( avg 1900)
  avg 1644 FY08
• Medical School accounts for 41 of Non-PO vouchers

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• Things to Remember About Non-PO Vouchers
• One invoice per voucher entry
• Original invoice or supporting document required
  for all Non-PO vouchers
• If original is not available justification must
  be included regarding why the original is not
  available
• A valid description is required for each entry
• Payment terms should be due immediately
• Vendor code must correspond to the remittance
  address on invoice Check the payment page on the
  voucher for correct remittance
• Vouchers must have valid budget status on Budget
  Header and Non-prorated Budget status before
  paperwork is submitted for approval
• Paperwork submitted should include Landscape
  print of Summary Page and Invoice Information
  page with all voucher distribution lines shown
  and securely attached to the supporting documents
  for the voucher
• Paperwork should be submitted to UCT 9th floor
  attention Disbursements
• Checks generated are mailed the same day.
• DO NOT MAIL REQUESTS must be pre-approved by
  the Manager of Accounts Payable. Please notate
  request in BOLD red letters - DO NOT MAIL with
  the name and phone number of contact to pick-up
  check. Checks for approved requests will be sent
  to the BURSAR 22nd floor for pick up
• .

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• Only approved Institutional Membership (must be
  in the name of the institution) dues can be
  processed for direct payment to vendor on STATE
  or other funds. (HOOP 2.52) All others must seek
  reimbursement. Dues notification must include an
  institutional address. Use code 67201
• STATE funds cannot be used to reimburse or pay
  for food items or official function expenditures.
• Code 67315 cannot be used for Official function
  or food purchases other than coffee or coffee
  supplies.
• Catering for Business meetings etc is considered
  an official function. Use code 69308.
• Official functions DO NOT include, birthday
  parties and baby showers.
• Official functions in excess of 2500 should be
  processed on PO when a deposit is required. Also
  required is an official function form executed
  with all signatures prior to incurring expenses,
  original support and documentation, executed
  alcoholic beverage form if applicable, contract
  or agreement document from the supplier executed
  by Procurement contract administrator or Buyer
  II.
• Official functions less than 2500 may be
  processed on a Non-PO voucher with necessary
  supporting documents.
• Only Purchasing is granted permission to
  obligate the University in contracts or
  agreements with suppliers.

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• Exceptions to purchasing policy require
  justification as to why purchasing procedure was
  not followed for review and approval of the AVP
  of Procurement. Severe violations will be
  considered for processing only after compliance
  is met by completion of the Justification of
  Unauthorized Purchase form supplemented by the
  Unauthorized Purchase Reaffirmation agreement.
• Purchase of Gift cards for employees is
  expressly prohibited.
• Gift limit is 60 for flowers/plants expressly
  for Bereavement, recognition etc. on behalf of
  the University. Request for payment MUST include
  the name of the person to receive and a brief
  explanation regarding nature of the request in
  comments.
• Requests in excess of 60 will need a
  justification for signature approval by the AVP
  of procurement or VP of Business Affairs
• Run public query APX_NONPO_VCHR_PENDING_APPR on
  your userid to monitor your pending vouchers.
  Vouchers older than 60 days will be deleted.

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Quiz

• An administrator gives you a request to order 3
  books from Majors _at_ 32.00 each. How can this be
  taken care of?
• Your office is planning an annual holiday
  celebration at a local restaurant, estimated cost
  of 7,500. Alcohol will be served at the event.
  What method would you use for payment since the
  restaurants contract requires a 50 deposit
  prior to booking your date?
• Can your supervisor at the School of Nursing sign
  the restaurants contract to book the date? Why?
• If the vendor unexpectedly charges you Texas
  State Sales tax on a purchase order do you modify
  your order to pay it? Why?
• Jane wants to purchase flowers to send to Sally
  on a job well done for her annual review. Would
  this expense be considered official University
  business and allowable for payment on a Non-Po
  voucher?
• Cream, coffee and sugar were purchased for the
  department. Which chartfield should be utilized
  for payment?
• a. fund 40000 account code 69308
• b. fund 39102 account code 67315
• c. fund 39102 account code 69308
• d. fund 40000 account code 67315

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Quiz

• When an electronic email is received notifying
  you that receipt of items on a purchase order is
  needed . How would you handle it?
• a. contact Accounts Payable
• b. enter a receiver
• c. check status of items billed
• d. all of the above
• If you receive two invoices to the same vendor,
  can they be entered together on one voucher
  entry? Yes or No
• When entering vouchers for invoices, should you
  click on the payment tab of the voucher to select
  the correct address for payment? Yes or No
• If you receive an invoice against a purchase
  order and the purchase order is fully invoiced or
  closed, how should it be handled?
• a. contact Accounts Payable or buyer for
  guidance
• b. enter a Non-Po voucher with justification
• c. check receipt status of items/services billed
• d. all of the above

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Questions