Accounts Payable: Where is My Invoice

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Accounts Payable Where is My Invoice?

• Asger Pedersen, Manager, Accounts Payable
• Sandra Featherson, Associate Director of Controls
• July 2006

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Agenda

• Invoice Authorizations
• Invoice Processing
• Invoices Received in Department
• Invoices Received in Accounting
• New Data Warehouse Reports
• When to Use a Form -5
• FlexCard
• General Disbursement Information

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Invoice Authorizations

• LV Low Value (2500 or less)
• VB Vendor Blanket recurring goods or services
• SB Purchase Order (Usually items over 2500,
  unless restricted by Low Value Policy)
• KK Subcontract research related
• LB Library Acquisitions
• FM Facilities Management Purchase/Contract

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Invoice Processing Options

• Pre-Approval
• Special Method (Green Label)
• Signature Required (Yellow Label)
• Form 5

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Where Is My Invoice?

• Invoice Received in the Department
• Common Goods and Services
• Personal/Consulting Services
• KKs - Subcontracts
• Invoice Received in Accounting

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Invoice Received in the Department for Common
Goods and Services (Pre-approved)

• Invoices should be routed to Accounting
• Exception to Policy
• Invoices 2500 or less
• Low Value should be on invoice. Department
  obtains signature indicates Approved for
  Payment.
• Note Do not put just an Account number
• Invoices Over 2500
• Purchase Order Number should be on invoice.
• Department obtains signature indicates
  Approved for Payment.
• NOTE Accounting will not pay a vendor based on
  a statement.

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Invoice Received in the Department for
Personal/Consulting Services(Pre-approved)

• Invoices should be routed to Accounting
• Exception to Policy
• Invoices
• Department should indicate the contract number on
  the invoice, or attach a copy of the Letter of
  Agreement (as per Contract policies/procedures).
  Department obtains signature indicating Approved
  for Payment.

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Invoice Received in Department(Pre-Approved)

• Invoice is entered in the Accounts Payable System
  (APEX)
• Accounting generates separator sheet for
  auditing/scanning purposes
• Invoice is sent to Post Audit desk and authorized
  for payment
• Accounting staff scan the invoice
• Accounting files original invoice until no longer
  needed
• Department can view status and image using new
  Data Warehouse EZ Access Reports

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Invoice Received in DepartmentKKs Subcontracts

• Department obtains signature indicates
  Approved for Payment.
• Department routes to Accounting for payment
• Office of Research sends Accounting contract
  summary
• Processor maintains electronic file of each
  subcontract and all related payments
• Processor sets up a lien for the department
• Processor reviews invoice
• Reviews for approvals both department and
  Office of Research
• Reviews/reconciles lien balance
• Records each payment in file
• Enters invoice in Accounts Payable System (APEX)
• Invoice continues on in the scanning process

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Invoice Received in Accounting

• Invoices without purchase authorization number
  are returned to department/vendor
• Invoices with purchase authorization number
  delivered to appropriate AP Processor
• Purchase Authorization
• Low Value (LV)
• Vendor Blanket (VB)
• Purchase Order (SB)

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Invoices Received in AccountingLV Low Value

• Processor Reviews Invoice
• Confirms Low Value is on invoice
• Returns to Department if no LV
• Confirms total, including sales/use tax is 2500
  or less
• Enters invoice in Accounts Payable System (APEX)
• Confirms that Low Value Number is valid and for
  the correct department
• Accounting generates separator sheet for
  auditing/scanning purposes

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Invoices Received in AccountingLV Low Value

• Invoice is sent to Post Audit desk and authorized
  for payment
• Accounting staff scan the invoice
• Routes to Department with Green Label (Special
  Method)
• Department signs and retains as Office of Record
• Department can view status and image using new
  Data Warehouse EZ Access Reports

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Invoices Received in AccountingVB Vendor
Blankets

• Processor compares the invoice to the Vendor
  Blanket and reconciles
• Reviews for consistency/content related to
  service/price
• Reviews terms especially period of coverage
• Departments may need to extend the VB (or issue a
  new VB) contact Purchasing
• Departments should be monitoring amounts
• Enters invoice in Accounts Payable System (APEX)

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Invoices Received in AccountingVB Vendor
Blankets

• Accounting generates separator sheet for
  auditing/ scanning purposes
• Accounting staff scan the invoice
• Routes to Department Varies by Amount of
  Invoice
• 2500 or less Green Label (Special Method)
  Department sign and retain for Office of Record
  copy
• Greater than 2500 Yellow Label Department
  signs and return to Accounting
• Department can view status and image using new
  Data Warehouse EZ Access Reports

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Invoices Received in AccountingSB Purchase
Orders

• Processor compares the invoice to the Purchase
  Order and reconciles
• Quantity, unit price, extensions, totals
• Freight, FOB, sales/use taxes, discounts
• Verification of vendor name, address
• Establishes/removes liens
• Enters invoice in Accounts Payable System (APEX)
• Accounting generates separator sheet for
  auditing/ scanning purposes

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Invoices Received in AccountingSB Purchase
Orders

• Routes to department for signature with yellow
  label
• Department returns with signature and Accounting
  authorizes payment
• Accounting staff scan the invoice with signature
  as amendment to existing images
• Department can view status and image using new
  Data Warehouse EZ Access Reports

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When to Use a Form - 5

• Common Transactions
• Prepaying a vendor no invoice
• Memberships, honoraria, entertainment
• Employee reimbursements, cash advances
• Payments for independent personal services

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When to Use a Form 5Prepaying a Vendor - No
Invoice

• Examples Reservation Fee, Down Payment
• Department needs to prepare a Request for
  Delivery (RFD)
• Department submits the RFD with order form (if
  available), and appropriate Form -5 to Accounting
• Accounting processes the same method as Invoice
  Received in Department Pre-approved.

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When to Use a Form -5Memberships

• Membership to an organization
• May include periodical
• Social memberships (airline premier club, country
  clubs, etc) require exception approval
• Non-business purpose reported on W-2
• Department needs to complete Form-5 for
  Memberships
• Obtain appropriate signature from the person
  delegated Membership approval authority
• Include name of member, duration of membership,
  purpose
• Attach appropriate supporting documentation
  (invoice)
• Faculty Club departments can have memberships
  for business use. Paid on a Miscellaneous Form-5.

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When to Use a Form - 5Subscription Periodical
Only

• Department needs to prepare a Request for
  Delivery (RFD) and Miscellaneous Form -5
• Department attaches documentation and obtains
  required approval signatures
• Department submits the RFD with order form (if
  available), and Form -5 to Accounting
• Accounting processes same as Invoice Received in
  Department Pre-approved.

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FlexCard

• A Visa procurement card issued by U.S. Bank to
  UCSB employees who have authority to buy goods
  and services on behalf of their departments.
• The FlexCard is issued to an individual, not to a
  department, and the card and account number
  cannot be used by anyone other than the
  Cardholder.
• Payment liability rests with the University, not
  the Cardholder.
• The FlexCard is used for low value purchasing and
  current commodity restrictions apply.

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FlexCard

• Can be used with all merchants that accept the
  Visa card
• Internet purchases can be made without the need
  to use a personal credit card
• No delays on orders requiring pre-payment (i.e.,
  merchants that do not accept purchase orders or
  low value numbers)
• Merchant paid almost immediately (no invoices
  sent to Accounting, no paper checks issued)
• Reduces the need to use petty cash and/or
  employee reimbursements for miscellaneous
  purchases
• Transactions are automatically recorded in the
  FlexCard system and allocated electronically by
  the department to the appropriate
  account-fund-sub

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FlexCard

• To set up a FlexCard Program
• Visit the FlexCard website at
• http//www.busserv.ucsb.edu/purchasing/flex/index
  .htm

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General Disbursement Information

• The APEx Reference Number
• Cash Advances
• Check Disbursement
• Check Cancellations/Stop Payments
• Vendor Relations

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APEx Reference Number

• APExAccounts Payable Express, UCSBs system for
  processing payments
• The APEX Reference Number
• Your link to images in the Online General Ledger
  and the Data Warehouse
• On various labels affixed to invoices
• A column in the gl_detail table of the
  DataWarehouse
• 2003 04 BKS 06 0007, for example
• 200304year and month processed in APEX
• BKSprocessors initials or source of
  transactions, in this case the UCEN Bookstore
• 06 0007processed on the 6th day of the month,
  the 7th transaction of this particular BKS batch

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Cash Advances

• Use Appropriate Form-5
• Entertainment/Program Costs, Payments on Catering
  Contracts, Human Subjects, Special Orders,
  Subscriptions
• Advance payments should be avoided whenever
  possible
• Reconciliation with supporting documentation is
  necessary and should occur within 21 days of
  advance
• Appropriate approvals must be obtained before
  cash is advanced
• Payee is responsible for any loss of funds

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Check Disbursement

• A signed check may not be mailed or otherwise
  given to any person other than the payee.
• Checks should be released to the department
  initiating the request on an exceptional basis.
• Designated and authorized department employee
  must sign for checks.
• A check may not be given to a university employee
  who approved or caused its issuance.
• Separation of duties, internal control
• Upcoming Check Charges
• Data Warehouse EZ Reports

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Cancellations/Stop Payments

• Lost or stolen checks immediately call ext. 2945
  or Bernice Yost at ext. 4288
• Immediately return checks which cannot be
  forwarded to the payee
• Check cancellation returns funds to the budget
  charged and reduces chances of fraud
• Re-issuance of a stop payment check requires a
  sworn statement from the payee
• http//accounting.ucsb.edu/Forms/forms/10.pdf

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Vendor Relations

• Call A/P staff for help with
• Establishing credit, opening accounts, W-9
  certification, credit-holds
• Past due invoices, statements
• Terms, discounts, rebates
• Credit memos, refunds, off-sets
• Billing errors, adjustments

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Questions?