Procurement Academy Payment Processing

1
Procurement Academy Payment Processing

• Making the Decision to Pay

2
AP and Disbursement Contacts

• Manager Pamela Hill Butler
• Accounts Payable OCB 1.160
• Cynthia Richmond (AP Lead)
• My Nguyen
• Priscilla Nicholson
• Lakeitha Spates
• Disbursement 9th floor UCT Medical School
• Cecilia Lim (Disbursement Lead)
• Gwendolyn Declouette
• Lisa Ward
• Leslie Phillips-Veals
• Carla Jennings located at Jesse Jones Library
• Janie Ruiz located at Jesse Jones Library

3
Methods of Payment

• NON-PO voucher exception process
• Departmental regular voucher entry to
  Disbursements
• UT Supply Mall
• POS - Buycard
• eShip global
• Late fees system generated from PO voucher
• PO Voucher entered by Accounts Payable
• Purchase orders SPL, CAT
• Validation of receipt of goods
• Three-way match process
• Purchase Order, Invoice, Receiver
• Electronic invoicing and FEDI payment for high
  volume vendors
• Travel and Expense Reimbursement
• Handled by Employee Reimbursement team Finance

4
Required documentation UTHSC-H PO Voucher

• Original Invoice
• Billing Address P.O. Box 20036, Houston, TX
  77225 Attn Accounts Payable
• Reference Purchase Order number on invoice
• Invoice date cannot precede the purchase order
  date
• Validation of receipt of goods or services
• In writing by user via email or cover letter
  attachment
• Electronically in FMS
• Systematic email to departmental buyer and
  requestor daily
• Payment within 30 days of receipt of Purchase
  Order invoice
• Vendor dispute information in writing on install,
  service, repair, missing shipments for invoices
  held over 30 days
• Credit invoice - verified for validity with the
  department and the vendor
• Note Utilize the current vendor database
  and/or existing contracts

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Required Documentation Non-PO

• Original supporting documentation for payment
  i.e. detailed invoice, order form, official
  function form, alcohol form, contract or
  agreement detailing terms negotiated.
• Enter description line on voucher use correct
  account codes
• Voucher valid budget checked for correct fund
  pool dept approvals
• Summary page (Use landscape print)
• Invoice information page - all voucher
  distribution lines
• Verify correct remittance address on payment page
• Written justification if PO or contract was not
  in place for after-the-fact purchases.
• Unauthorized Purchase Justification form and
  Reaffirmation Agreement for approval by AVP of
  Procurement on serious compliance violations
  where service has begun or has been rendered
  without a valid purchase order or contract in
  place.

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Typical Uses - Non-PO exception process

• Non-routine or non-recurrent in nature
• Official functions/sponsorships 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
• After-the fact or unauthorized purchases

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Reference Guide Not allowed on State Funds

• Expenses obtaining Visa
• Gifts/Flowers
• Indirect Costs
• Malpractice Insurance
• Membership Dues
• Parking contract
• Patient Care
• Patient Transportation
• Payment of Human Subjects
• Receptions and Meals
• Sales Tax Texas
• Uniforms/apparel

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Purchases not considered University Business

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

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 PO Voucher

• Target payment - 30 days invoice date to payment
  date
• AP recovery Audit 20K findings A1-33 Federal
  audit STATE Audit 99.9 compliance
• FY 08 early pay discounts effectively taken at a
  rate of 98.9 saving 163,022.97
• Late fees FY 08 1095.93
• FY 07 Voucher Entry 42,022 (avg 3418) FY 08
  Voucher Entry - 42,542 (avg 3545) xml 15,000

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Metrics Non-PO Voucher

• FY 08 Disbursements approved 21,552 vouchers (
  avg 1796) FY 09 15,591 ( avg 1732)
• FY 08 Central Med School Disbursement voucher
  entry was 37 of Non-PO vouchers approved
• Ongoing goal for entry date to payment date is 10
  days or less

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MSB Disbursement Voucher Entry by Fiscal Year
12

• Things to Remember about Payments
• PO number should be referenced on original
  invoice.
• One invoice per voucher
• Original invoice should be sent to AP for
  processing. Please do not send packing slips or
  statements.
• Select Amount Only for Blanket POs Do not
  select receiver required.
• Monitor blanket POs for fund availability
• Amount Only POs require Signature approval
  for payment of invoices.
• Three-way match process. (PO, invoice, validation
  of receipt) POs written as receiver required
  should be monitored for receiver to be entered
  when order/service is complete.
• Add line on PO for estimated shipping/freight
  charges. Item category code for 9999 sets 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 - system generated Non-PO
  voucher.
• 30 day payment term basis unless otherwise
  specified.
• Checks are mailed the same day they are
  generated.
• STATE fund 40000 cannot be used to pay for food
  items, sales tax or official functions

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• .cont. Things to Remember about Payments
• 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.
• Payments requiring deposits Enter a PO
• All prepayments require approval of the Manager
  of Accounts Payable. For deposit payments on
  official functions INCLUDE (1) a copy of the PO,
  (2) the executed contract indicating the amount
  of the deposit, (3) a copy of the executed
  official function form, (4) any executed sole
  source documentation and (5) executed alcohol
  approval form if applicable is.
• Final payment on PO - detailed invoice with
  balance due less deposit from supplier.
• Only Purchasing is granted permission to obligate
  the University in contractual agreements with
  suppliers.
• 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
• Contact Accounts Payable for PO invoice
  questions by vendor assignment
• Cynthia Richmond---- x4707 ------- E L,
  McKesson, Matheson, Majors
• My Nguyen------------- x4708 ------- A D
• Priscilla Nicholson-----x4718 ------- M R
• Lakeitha Spates--------x8131--------S Z
  Fisher, Invitrogen

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• Things to Remember About Non-PO Vouchers
• Original invoice or supporting document
  required.
• If original is not available include
  justification.
• 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 before
  submitted for approval.
• Include Landscape print of Summary Page and
  Invoice Information page with all voucher
  distribution lines shown and securely attached to
  the support.
• Paperwork submitted to UCT 9th floor attention
  Disbursements, Room 902.
• Individual Memberships pay and seek employee
  reimbursement.
• Only Institutional Membership dues approved by
  VP of Finance can be processed for direct payment
  to vendor on STATE or other funds. (1) Must be
  in the name of the institution and (2) include an
  institutional address. (3) Use code 67201.
• Use Code 67315 for coffee, coffee supplies or
  soda only, not official functions.

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• cont. Things to Remember About Non-PO
  Vouchers
• Catering for Business meetings etc is an official
  function. Use code 69308.
• Official functions DO NOT include, birthday
  parties and baby showers.
• Official functions greater than 2500 - process
  on PO.
• Official functions when a deposit is required
  process on PO.
• Official functions 2500 or less - process on
  Non-PO voucher.
• Gift limit is 60 for flowers/plants expressly
  for employee Bereavement and brief hospital stay
  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.
• Payment Requests for gifts in excess of 60 will
  need a justification.
• Exceptions to purchasing policy require
  justification for failure to follow purchasing
  procedure.
• Severe violations will be considered for
  processing after compliance met by completion of
  Unauthorized purchase justification form and
  reaffirmation agreement.
• Monitor pending vouchers. Query
  APX_NONPO_VCHR_PENDING_APPR.
• Vouchers older than 30 days from entry date will
  be deleted.

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Questions
17
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 for additional items
  against a purchase order and the purchase order
  is fully matched 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