The Accounts Payable area processes invoices for purchase orders. We audit the invoice for accuracy of what was ordered and the price that is on the purchase order. After the invoice is entered, we file it in the University’s permanent files.
The department has the responsibility to notify the Purchasing department or Accounts Payable on changes to an open purchase order.
The department needs to notify the Purchasing department to cancel the Purchase order by using the Change/Follow Up/Returns form (FZAPOFU) to cancel the purchase order. When the department notifies the Purchasing department to cancel the purchase order, you will have to have them cancel the requisition at the same time.
If the purchase order has had an invoice paid on it, you will have to email Accounts Payable to close the purchase order by emailing email@example.com (Bob Anthrop).
By using the User Approval form (FOAUAPP), the department will review the invoice and determine if they want to approve the invoice for payment. The following instructions for reviewing the data and approving the invoice are:
Enter the User Approval form. Next Block button in the tool bar will bring the invoice documents that are in your invoicing queue.
To review the invoice information, click on the Detail button under the invoice you are reviewing. It will open the Invoice Approval Query form. The information on this form is the Invoice Document number, Credit memo indicator (Y for credit memo and N for invoice), vendor name, transaction date (date has to be in an open month), index and account code, amounts for this document. There may be more than one index and account code on an invoice. If the invoice is document accounting, use the scroll bar to the right of the accounting information. If the invoice is commodity accounting (Capital equipment purchases), use the scroll bar to the right of the line item information. With the type of accounting information that is on the invoice, the scroll bar will display all accounting distribution records one at a time.
If this is not enough information to know that you want to approve the invoice, click on the Document Query words under Options. It will open the Invoice/Credit Memo Query form (FAIINVE). The information on this form that is especially important to the approval process is: The transaction date must be in an open month, Credit Memo blank (not a credit memo) or has a check mark ( is a credit memo), Vendor invoice number. Click on the words Commodity Information under the Options. PO item number, Invoice item number, and Commodity Record Count (number of lines on this invoice), Commodity code and description, if you want to see the Purchase Order Item Text (the text the requisitioner entered), Invoiced and approved quantity and unit price, additional amount charged (if there is additional amount, there will be document test to tell you what the amount is for), Final Payment Indicator is blank (the quantity does not match what was ordered) or F for final payment on this line.
After reviewing all lines on the invoice, you should know if you want to approve the invoice, disapprove it, or let the invoice sit in your invoice queue.
To approve the invoice on the User Approval form, click the Approve button under the invoice you want to approve. Then a window will pop up that says Document is approved, you will click on the OK button and another window will pop up that says Document is approved, you will click on the OK button. At this time the invoice has been approved and it will disappear from the User Approval form.
To disapprove the invoice on the User Approval form, click the Disapprove button under the invoice you want to disapprove. A window will pop up that says Document is disapproved, after those words, please state a reason why you are disapproving the invoice. Click on the OK button. Another window will pop up that says Document is disapproved, click on the OK button. At this time the invoice has been disapproved and it will disappear from the User Approval form.
Reasons for disapproving an invoice include: some or all of the items are being returned, or the invoice quantities or unit prices are incorrect, or some or all of the items may be broken, or the transaction date is in a closed month. Do not disapprove an invoice if the only reason you don’t want to pay for the items is that you haven’t received the items on the invoice yet.
Do not disapprove an invoice if you have not received the items on the invoice, or you have not unpacked the merchandise. If you disapprove the invoice, Accounts Payable would return it to your invoicing queue.
If the department wants to return some or all of the items received, the Purchasing department can assist you with the return to the vendor.
All credit memos will be entered by Accounts Payable. The reason for this is so that the vendor will see on the check stub all documents that we are taking credit for. All invoices and credit memos from vendors will be entered. The department will have to approve all invoices and credit memos that pertain to a purchase order.
Encumbrances are the reserving of funds for a specific purchase order. The encumbrance is established when a requisition or a purchase order is approved. The encumbrance is reduced or eliminated when the requisition is transferred to a purchase order, or when a purchase order has an invoice approved, or when the encumbrance is cancelled.
How do you cancel an encumbrance? If the purchase order has had no payment activity, Purchasing will cancel it. If payments have been made on the purchase order, email firstname.lastname@example.org to cancel the encumbrance balance on a purchase order.
If the department wants to know the status of a purchase, the Document History (FOIDOCH) form will show you where your purchase is. You will be able to track it from the requisition, to the bid (if the items being purchased is put out on a bid to a number of vendors), to purchase order, to invoice, and to the check. From this form you can look at any of the documents, requisition, purchase order, invoice or check.
All purchase orders have no tolerance for quantity ordered. The quantity should match the purchase order. The exception is printed materials by a printing or publishing company. There is a standard 10% overrun on the printed material. On quote orders for invoicing that exceeds the purchase order, a letter will be sent to the vendor describing why we paid the invoice short.
Quote orders will have no overcharge for price. They will be paid per the purchase order and a letter will be sent to the vendor describing why we paid the invoice short.
All other types of purchase orders will have a price overcharge as long as the extended price does not exceed $50.00 per line. If the increase in price has an overall effect of increasing the extended price more than $50.00 per line, the department will be contacted by Accounts Payable so that the department can create the Change Order/Follow up/Returns (FZAPOFU) form for the increased unit price.
Freight is authorized for Accounts Payable to pay up to $75.00. If the freight is more than $75.00, Purchasing will be notified by the use of Change Order/Follow Up/Returns (FZAPOFU) form for their approval of the freight. If the purchase order is a quote order, the amount of freight in the additional amount field on the Commodity Records window of the purchase order is the total amount of freight that can be paid.
Fuel surcharge is a charge for increased fuel costs for the vendor. Accounts Payable can add up to $15 per invoice for fuel surcharges. Purchasing will have to approve any charges over the $15 per invoice for Accounts Payable to pay.
Departments will be contacted for approval to add other charges to an invoice. The department will have to send an email message to Accounts Payable authorizing us to add the charge to the invoice. Accounts Payable can add to the payments other miscellaneous charges that the vendors put on the invoices for a purchase order. Examples of some of the charges are special packaging charges (dry ice packing) or hazardous material charges.
If the department is told an item has to be substituted for another before it is shipped, the department will enter a Change Order/Follow Up/Returns (FZAPOFU) form to correct the purchase order. If they do want the substituted item, they will tell the vendor to cancel that item and then will enter a Change Order/Follow Up/Returns (FZAPOFU) form to cancel the item off the purchase order.
If the substitution is not known until the invoice is received in Accounts Payable, we will contact the department notifying them of the substitution. If the department determines that they do not want the substituted item, they will enter a Change Order/Follow Up/Returns (FZAPOFU) form to cancel that line on the purchase order and make arrangements with the vendor to return the substituted item.
To find a balance on any type of purchase order:
To find out if an invoice is a credit memo, you need to follow these steps:
This changes from time to time. Call extension 3520, and the person answering the phone will direct you to the correct Accounts Payable clerk.
See PO Tolerances, under Quantity Difference or Price Difference.
The invoice has to be processed in an open month. Once the preceding month is closed, no transactions with the transaction date of the preceding month will be processed. If you don’t approve the invoice before the month is closed, you will have to disapprove it and the Accounts Payable clerk will change the transaction date to the current month.