BYU Procurement Card Services

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BYU Procurement Card Services
Approver Training Winter, 2006
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Procurement Card Administrators
Steven V. Sorenson 2-4055
steve_sorenson_at_byu.edu Maryanne Draney
2-4702 maryanne_draney_at_byu.edu
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Purchasing Card - Basics

• Corporate Liability, Corporate Pay. (No personal
  credit affect, and BYU pays the bill!)
• BYUs preferred method of payment for
  transactions up to 2,000 (If over 2,000, no can
  do!)
• Up to 20,000/mo. credit limit
• Electronic reviews approvals (This assures
  adequate control over the process!)
• Email notification of transactions
• Electronic processing via PaymentNet

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Approver Training Objectives

• Cardholder Duties in PaymentNet
• Review Transactions
• Allocate Charges
• Record Utah State Sales Tax
• Insert Transaction Notes
• Dispute Capabilities
• Card Usage
• Responsibilities of Cardholder Approver
• Advanced issues
• Questions?

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World-wide Access!
www.PaymentNet.com Enter your personalized
information Org. ID US63200 (Identifies
BYU) User ID Route Y NetID Pass Phrase
4u2change (lower case)
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Approvers Due Diligence

• Cardholder fulfills duties timely
• Reviews supporting documentation (complete,
  accurate, reasonable)
• Understands business purpose and assumes dual
  responsibility of transaction w/ cardholder
• Transaction complies with policy
• (Can professionally challenge transaction if
  necessary, or notify Treasury Services or
  Internal Audit)
• Approves each transaction timely in PaymentNet
  (amount, account codes, sales tax, notes)

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Click on PaymentNet to view transactions
Reset Pass Phrase do not SHARE!
Watch here for important messages from Program
Administrators!
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Transaction List
To review a transaction, click on any part of the
trans. to go to the transaction detail record.
The Transaction List screen will automatically
display. The most recent transactions are
displayed at the top. You can sort many columns
by clicking the heading, once for ascending,
again for descending.
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Transaction Detail Record
The transaction detail record shows the default
chartblock (speedtype, account, subclass).
Change it where needed. It can be split between
several chartblocks. Include trans. notes,
click Reviewed and SAVE to save changes to
this detail record!
Descriptive transaction notes are required, and
are provided to assist the approver BYU to
understand the business nature of the transaction.
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Transaction Notes

• Transaction notes are REQUIRED
• Provide sufficient note detail so your approver
  and administrators understand the transaction,
  its business nature and purpose, etc. (For
  meals, federal requirements also include
  documented business purpose and names of those
  hosted)
• Remember, your approver assumes dual
  responsibility for this transaction!

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Utah State Sales Tax

• Utahs tax rate 6.25 (Restaurants 7.25)
• BYU speedtype 11890096 account 1200
• If purchase is made from Utah, and merchandise is
  shipped to Utah, and sales tax is charged, almost
  100 of the time it is Utah sales tax and is
  refundable!
• If physically out of state while making purchase,
  any sales tax paid is not refundable, and if
  charged is part of the purchase price.
• Tax is not to be calculated unless invoice
  specifies sales tax is included in total!

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If sales tax is included on your receipt, click
the use sales tax calculation button. It
will prompt you for the tax. Note all Utah
restaurants, grocery and super stores charge
sales tax!
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Since BYU is only tax exempt in the state of
Utah, state/zip information (built for Church) is
n/a for BYU. Enter Utah sales tax in the
Estimated Sales Tax box. This amount will show
on your Trans. List screen and will be deducted
from the transaction total when posted to BYUs
G/L.
Insert transaction note, and SAVE!
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Sales Tax Split Transactions

• If you split the transaction between multiple
  chartblocks (speedtype, account, subclass) and
  Utah sales tax was charged, one row in the
  PaymentNet split must be for Utah sales tax!
• Speedtype 11890096 Account 1200
• DO NOT USE THE ESTIMATED SALES TAX FIELD ON SPLIT
  TRANS!

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You can SPLIT the transaction total between up
to TEN chartfields (speedtype, account,
subclass). If, as in this case, sales tax was
charged, it must be a ROW in the split, charged
to 11890096-1200. Otherwise it will not be
deducted from your split transaction. SAVE split!
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Transaction List
Vendor forwarded sales tax shows in Sales Tax
Amount while cardholder entered Sales tax is in
either Est. Sales Tax or included in Split
fields!
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Electronic Dispute

• PaymentNet enables cardholders to dispute
  transactions online, where you
• Disagree with a posted transaction
• Disagree with the transaction amount
• You should first try to seek resolution with the
  vendor. However if satisfactory results are not
  obtained, or the vendor is not cooperative
  Dispute!

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Electronic Dispute
After contacting the vendor (telephone usually
provided!) click Dispute. There is a fee assessed
to the vendor, so use good judgement.
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You must select a reason for disputing the
transaction. Provide additional information
(names, explanations, etc.) to enable JPMC to
process the dispute on your behalf. BYU does
not pay for timely-disputed transactions!
Cardholder will need to print, sign and fax a
provided form to JPMC launching the dispute.
Click Save button!
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A yellow square indicates a dispute has been
Initiated
A red square indicates JPMC has received and is
Disputing the transaction on behalf of BYU.
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CVV2 Validation Code
xxxx xxxx xxxx xxxx
Visa has a fraud prevention tool called the
CVV2, (Card Verification Value Service ).
Vendors will frequently ask for this number to
validate that the card is in your possession and
the card account is legitimate.
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Purchasing Restrictions

• Restrictions on Card
• Transactions exceeding maximum limits
• Chained, stacked, combined transactions
• Blocked merchant category codes (MCC)
• (See next slide for examples)
• Personal purchases (OF ANY KIND)
• 1099 Independent Contractor Pmts / Wages
• Hazardous materials
• Federal or state surplus property

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Blocked MCC Codes

• BYUS P-card platform automatically blocks
  certain MCC codes. These merchant transactions
  will always decline. These include
• Travel, Gas Transportation expenses
• Jewelry Stores, Precious Stones Metals
• Banking Financial Services
• Leather Goods, Furriers, Fur Shops
• Pawn, Antique, 2nd Hand, Rare Items Shops
• If you have legitimate needs in these areas, you
  must call Steve or Maryanne to temporarily remove
  the restriction.

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Documentation andRecord Retention

• Documentation (original supporting receipts,
  notes, etc) retained by department, furnished to
  approver
• Facilitates proof of purchase warranty issues
• Retain documentation for 3 years plus the current
  year (Research grants must maintain for life of
  grant plus 3 years)
• Expect periodic reviews by Administrators,
  Auditors, etc.

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Cardholder Responsibility

• Use card within policy
• Review each transaction in PaymentNet timely
  (amount, accounting codes, sales tax, notes)
• Provide supporting documentation to Approver
• Retain documentation
• Allow periodic audits reviews

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Approvers Due Diligence

• Cardholder fulfills duties timely
• Reviews supporting documentation (complete,
  accurate, reasonable)
• Understands business purpose and assumes dual
  responsibility of transaction w/ cardholder
• Transaction complies with policy
• (Can professionally challenge transaction if
  necessary, or notify Treasury Services)
• Approves each transaction timely in PaymentNet
  (amount, account codes, sales tax, notes)

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Review Approval Cycle

• BYUs billing cycle is the 25th of the month
  (weekends holidays exceptions)
• Transactions should be approved weekly, as
  reviewed and approved transactions can be swept
  to the G/L weekly.
• All transactions thru the 25th will be swept into
  G/L accounts listed in PaymentNet on last
  business day of the month, at 430.
• Cards where transactions not REVIEWED / not
  APPROVED within 30 days following end of Billing
  Period may be TURNED-OFF!

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Violations Experiencing

• The following have been observed, and may result
  in the loss of card use
• Chaining Splitting transaction gt 2,000 into
  two or more transactions
• Stacking Using two cards for a purchase gt
  2,000
• Personal Transactions
• Missing Receipts
• Reviews Approvals by same person (using shared
  logins)
• Not Recording Utah Sales Tax
• Not Reviewed, not Approved
• Meals not within BYU policy

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Included in Advanced Training Presentation

• Creating Queries
• Export Files
• Reports
• E-Statements
• Cardholder Profile

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Questions ?