Accounts Payable

1. Accounts Payable Processing an Invoice

2. Invoice received from vendor into Accounts Payable

3. Does the invoice have a purchase order number? Yes NO Processing Continues Processing Delayed

4. No purchase order on invoice • Delays in processing due to the time it takes to research invoices • Vendors and departments dissatisfied with Accounts Payable due to lengthy processing time

5. Are there enough funds in the purchase order to pay the invoice? Yes Processing Continues

6. Are there enough funds in the purchase order to pay the invoice? No What type of purchase order is it? • AA (Agreements > $1,000) Force pay only with Procurement and Departmental approval. • AC (Material / Equipment Purchases > $5,000) • AB (Bid Order) (Change Order) • AS & AG (Regular & Grant Standing Orders) • AO (Material / Equip < $500) Force pay only if within tolerance levels. • AT (Travel) • AF (Material / Equip < $5,000) • AX (Reimbursement) • AA (Agreements < $1,000)

7. Tolerance Levels Variance in purchase order and invoice dollar amount If the total of the invoice is: • $0.00 - $499.99 Force pay • $500.00 - $2,499.99 Force pay if the overage is equal to or less than 25% of the total encumbrance amount of the purchase order. • $2,500.00 Force pay if the overage is equal to or less than 10% of the total encumbrance amount of the purchase order. Exceptions: Order type AA when PO total is > $1,000; PO types AB, AC. Invoices falling under these exceptions must go through procurement and the department, so additional action can be taken on them.

8. Confused??? Examples • PO encumbered for $250 / Invoice $490 - (PO Type AS) Invoice is pushed through. • PO encumbered for $450 / Invoice for $575 - (PO Type AO) Invoice over tolerance level 450 x 25% = 562.50 • PO encumbered for $1,020 / Invoice for $1,050 - (PO Type AA) Signed contract required over $1,000 Change Order must be done by department * In order to force pay, line item descriptions must match but not the amounts. If there is a drastic difference between the invoice and the PO, the department should be contacted.

9. Invoice over Tolerance Levels • A copy of the invoice is returned to the department with an AP bump form. • Department must either: • Increase the purchase order • Open a new purchase order • Provide written authorization to force pay (must be signed off on by both department and accountant) • Issue a change order • Invoice copy and green copy of the AP bump form are returned to Accounts Payable with updated information • Original invoice matched to copy and processed

10. Change Orders In the following cases force payments are inappropriate and the department will have to issue a Change Order: • Invoice reflects a new line item not referenced on the original purchase order • Increase against a bid item (Order Type AB) • Increase against an item with pricing based upon a written quote (original encumbrance is greater than $5,000 - Order Type AC). • The change reflects an increase or a decrease to the encumbrance amount on the PO, and the original encumbrance amount on the PO together with any overage on the invoice(s) is greater than $1,000 (Order Type AA).

11. Receiving AB AC AF Checks will not cut for invoices with purchase order types AB, AC, AF until receiving is done.

12. Invoice Processed & Check Cut

13. How do you know if your invoice was entered? How do you know if the invoice vouchered? How do you know if the receiving has been done?`

14. Screen 284

15. Need Help??? Training is available Contact Dolores Parsons 5-0807

16. Accounts Payable Main Telephone 5-4710 Fax 5-4233 Jayne Krause 5-1424 Accounts Payable Supervisor Jennifer Bednar 5-0809 Assistant Accounts Payable Supervisor