Accounts Payable

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Accounts Payable

• Processing an Invoice

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Invoice received from vendor into Accounts Payable
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Does the invoice have a purchase order number?
Yes
NO
Processing Continues
Processing Delayed
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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

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Are there enough funds in the purchase order to
pay the invoice?
Yes
Processing Continues
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Are there enough funds in the purchase order to
pay the invoice?
No
What type of purchase order is it?
Force pay only with Procurement and Departmental
approval.

• AA (Agreements gt 1,000)

• AC (Material / Equipment Purchases gt 5,000)

• AB (Bid Order)

(Change Order)

• AS AG (Regular Grant Standing Orders)

• AO (Material / Equip lt 500)

Force pay only if within tolerance levels.

• AT (Travel)

• AF (Material / Equip lt 5,000)

• AX (Reimbursement)

• AA (Agreements lt 1,000)

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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 gt
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.
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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.
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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

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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).

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Receiving
AB
AC
AF
Checks will not cut for invoices with purchase
order types AB, AC, AF until receiving is done.
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Invoice Processed Check Cut
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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?
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Screen 284
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Need Help???
Training is available
Contact Dolores Parsons
5-0807
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Accounts Payable
Main Telephone 5-4710
Fax 5-4233
Jayne Krause 5-1424
Accounts Payable Supervisor
Jennifer Bednar 5-0809
Assistant Accounts Payable Supervisor