CUSTOMIZATION TO MANAGE AP TRANSACTIONS AFTER THE AWARD END DATE

1. CUSTOMIZATION TO MANAGE AP TRANSACTIONS AFTER THE AWARD END DATE Research Administration Policy and Compliance Jesse Charlton March 2007

2. BACKGROUND • ISSUE • AP transactions may post to closed sponsored awards or to active sponsored awards after the award end date. The result is: • 1. The financial closeout of sponsored projects may be delayed because expenses are not complete. • Inappropriate transactions may charge to the PTA which have to be • moved. Additional effort is expended to reopen the award, move the transaction and close the award. • 3. Final sponsor financial reports /billings may need to be revised if AP transactions post to the award after the closeout is complete. • 4. OSR cannot meet its 90 day federal closeout deadline.

3. Background Why does this happen? 1. Requisitions/Purchase Orders are validated against the PTA when the Requisitions/POs are created. They are not validated again. 2. The expenditure item date (EID) is established when the Requisition/Purchase Order is created. It does not change. 3. Procurement does not close PO lines. The Customization The AP customization addresses these issues by managing invoices at the time they are matched to purchase orders. The customization looks at invoice date, process date, and the PO distribution line (PTA charged).

4. How The Customization Works • When an invoice is matched to a purchase order the following occurs: • VALIDATION EDITS • These edits check for valid PTA, award or project status, task chargeable, transaction controls, allowed cost schedule, start and end dates on award, project and task, etc.

5. How The Customization Works - continued (2) INVOICES (Other than Subcontract Invoices)

6. How The Customization Works - continued (3) SUBCONTRACT INVOICES (ET 54710 /54720)

7. How The Customization Works - continued • This customization will only allow users to change the PTA. • The invoice hold will not allow the purchase to post to the PTA. • When the invoice is put on hold, a notification is automatically sent to the PO originator, original approver and the PTA task manager or task manager and award manager if a legacy PO. This notification will include a link to instructions about how to respond. • Only a respondent with authority over the PTA is eligible to respond to the notification. However, this authority will not be systematically confirmed (initially). A notification is sent to the task manager of the new PTA as well as the PO originator, original approver and the task manager on the original PTA. • Any new PTA provided by the department will be validated by this process.

8. How The Customization Works - continued • Purchasing will have a customization that will allow them to process the existing PTA or new PTA. If the department provides a new PTA, the customization will close the existing PO line and create a new PO line. The EID date on the new PO line is the date the new PO line was created. This process will be replaced later by a web-based screen where the department can change the PTA themselves. • Departments will be responsible for clearing their AP suspense PTAs. They will clear transactions via ijournals.

9. Issues • Identifying all AP processes that are subject to the customization, for instance, Quick Match, PO Default, credit memos, debit memos, mixed invoices, invoice adjustments, etc. • Understanding how this process will work in a environment where funding, extensions, etc. are often delayed on sponsored projects. • Appropriate treatment of charges that are moved to another PTA or journaled out of the AP suspense PTA (cost sharing). • If the department chooses to journal the transaction back onto the sponsored project, the charge is under $1,000 and the PTA is not closed or otherwise not chargeable, the transaction can post without OSR’s knowledge.