Payments to Individuals (P2I) in eProcurement *Michelle 6/19/2018 Payments to Individuals (P2I) in eProcurement Procurement Services Fall 2013 *

Course Description This course describes the Payments to Individuals (P2I) functionality in eProcurement It demonstrates how departments create and submit payment requests to pay individuals for honoraria, royalties, awards/prizes, Non-UW Scholarships, services, associated expenses, and performers All payments that would formerly have been paid via check request

Introduce yourself! Name? Department? Level of familiarity with eProcurement? Level of familiarity with current check request process? What are you hoping to take away from today’s class? 3

What is Payments to Individuals? Payments to Individuals (P2I) is a new form in Ariba used for making payments to an individual for: Honoraria Royalties and associated payments Awards or Prizes Non-UW Scholarships Services Expenses Associated with Honoraria or Services Performers Replaces the paper Check Request form for the above Ask audience if they have experience with eProcurement or eTravel

What P2I is not! Not intended to pay individuals for goods (i.e. purchasing artwork) Not intended to pay companies Not intended to pay Foreign Nationals Cannot be used to pay employees Exception: royalties UWMC – Check with your Administrator prior to using P2I Important to know: If the individual has an active vendor number, use Non-PO Invoice. Payments to companies should go through Non-PO Invoice. Note that the preferred ordering method for companies is Non-Catalog Ordering. Student employees should be paid through Student Fiscal Services. Wire transfers will still need to go through a manual process

eProcurement Module Comparison Order Method Dollar Limit (per order) Notes/Restrictions/Exceptions eProcurement Catalog No dollar limit None other than within your department Non-Catalog Ordering <$10,000 Used to place order for goods not available in eProcurement hosted or punch out catalog. See exceptions list. (Goods not yet ordered) Non-PO Invoice Used to pay for goods or services already received, when the department did not use eProcurement to place the order. See exceptions list. eReimbursement <$3,500 Used to reimburse UW employees only. See exceptions list. eTravel See Travel website Used to pay Travel expenses of UW Employees or Visitors Payments to Individuals (P2I) ** **Note: For payments above $10,000, Central Office will be added to the Approval Flow.

Benefits of P2I Paper reduction with the elimination of many check requests, helping the UW reach the state paper reduction goal of 30% Encrypted tax ID numbers Information is more secure than the traditional check request process sent through mail or email Better visibility to department approvals, work flow, and status Supplier registration form not required Ariba document retention of six years allows budget reconcilers to always have access to the source documentation

How to Create a P2I Payment Common Actions for all Payment Types

Create a Payment to Individual From the Ariba Home tab, click CreatePayment to Individual Select Payment to Individual Under configure Tabs demo Revert Tabs to Default Settings XP on the remittance and in MyFD – also search by XP ID in Ariba Create one XP per expense type (One for Honoraria, one for expenses).

Section 1 - Title Page Title - Provide a meaningful title for your department Citizenship Status - Choose the citizenship status of the payee (individual who is being paid) IMPORTANT – foreign nationals cannot be paid through this module at this time. See Global Operations Support page for details: http://f2.washington.edu/fm/globalsupport/ Make sure to flag the payee’s citizenship type correctly because of tax implications Type of Payment – Select type of payment you are making to the individual IMPORTANT – select the appropriate payment type, this dictates how the payment is reported on the 1099 MISC tax form Complete Questions – differs by payment type Citizenship Status field: Not based on individual’s address but citizenship type. Resident Aliens with a TIN number can be paid through this module. Depts should set up a system of identifying if someone is a foreign national. Ex: Ask in advance if the individual has a SSN or TIN

Section 1 - Title Page Select Citizenship Select Payment Type XP on the remittance and in MyFD – also search by XP ID in Ariba You can create a tab for P2I in Ariba by clicking the down arrow to the right of the Configure Tabs area. Click Add New Tab. Name your tab and click OK. Add the content you want to display. 11

Section 1 - Payee Information Tax ID number SSN or EIN Must be 9 digits, no dashes Confidential, encrypted Payee name – just the name, no titles (i.e.. Dr., Mr., etc.) Permanent address Must be the home address of the payee for 1099 reporting purposes Cannot be department mailing address Remit note – 40 character area to identify payment Prints on check stub sent to individual

Section 1 - Title Page Encrypted for security Enter Payee Home Address XP on the remittance and in MyFD – also search by XP ID in Ariba Remit notes: Limited to 40 characters. Example: Speaker fee for UW Financial Conf Note to print on check stub to identify payment 13

Section 2 - Add Items Business Purpose - Explain how the purchase is for UW business (for audit purposes) Amount - Enter the amount to be paid to the individual Can exceed $10,000 – Central Office will be added to approval flow Choose Budget Number Account Code is hard-coded based on type of payment Task/Option/Project codes are optional fields Click Add to add the item Business Purpose = Explain how the purchase is for UW business for audit purposes.

Section 2 - Add More Items Users can add additional items by completing section 2 again and clicking Add Users can edit items by clicking [select] on the right of the item Users can copy and edit the items already added This feature can be used to split accounting charges based on dollar amount Once all items are added and editing complete, click Next

Section 2 – Add Items Add purpose, amount, and budget Click Add Copy item to split budget by dollar amount Click Select when item needs changes

Section 3 – Summary Review payment for accuracy Add any comments Click Add Attachments to upload scanned invoice for service payments DO NOT include personal information like bank account details or address information in either the comments field or on the attachments DO NOT attach either the 1631 or 1632 forms Important to know: This is an open access system, meaning anyone with UW Net ID access to eProcurement (Ariba) will be able to see the comments and attachments

Section 3 - Add Comments / Attachments Enter comments Upload scanned attachments (or invoices for services)

Approval Flow Funding Approvers are added to Approval Flow based on ASTRA role Compliance Approver is available but not required Buyer (central office) added for payments over $10,000 TIN Matcher (central office) to match all taxpayer numbers against IRS records for accuracy If the taxID/TIN does NOT match, the P2I will be rejected back to the preparer with notes. The P2I will have to be recreated with the correct tax information.

Approval Instructions P2I Submitted Email sent to Approver Approver clicks email link or logs in to P2I ID# in Ariba Review P2I form and click Approve or Deny Provide Comment (if desired) and click OK Read perjury statement and click OK Once the P2I is submitted, an email notification request is automatically sent to the approver Contains a direct link to approve the request Approver can click the link to view the request and approve it or deny it Optionally, the approver can: Login to eProcurement from the Procurement Services home page using the Click to Access UW eProcurement quick link On home page, look under To Do section Click on the P2I ID (XP#) or Title link under To Do Review and click Approve or Deny Provide comment and click OK The preparer cannot approve their own P2I’s. The Approver and Compliance Approver must be a different person.

Approval Perjury Statement Approvers (the required funding approver and the optional compliance approver if there is one) will be prompted to confirm the perjury statement

How to Create a P2I Payment Actions by Payment Type

Honoraria Date of Activity – Payment should not be created more than two weeks in advance of the activity date 1631 questions built in Note: Cannot be used for current UW employees. Courtesy & affiliate appointments don’t count as employees Travel related to Honoraria should go through eTravel Date no more than 2 weeks in advance What is an honoraria? Payment to a guest speaker 1631 Form – important questions built-in. Honorarium examples: -guest lecture -grand rounds -colloquium *presentation-oriented, invitational event* Personal services are not considered honoraria Answer former 1631 questions

Royalties Used for copyright or patent payments Used for rights to use/license fees to photographers for use of their photos Date of activity No 2-week payment processing restriction as with Honoraria Enter the date makes the most sense for the payment (i.e. – date photographer provided the photo and rights to use the photo) If a photographer takes photos for the school, this is classified as a service 24

Answer Employment / Student questions Award / Prize Used to pay awards and prizes for Non-UW Employees Student Awards and Prizes Can be used for UW Students only if there is no stipulation on how funds are to be used by the student Examples of this type are awards or recognition for a special achievement such as winning a judged competition Scholarships or fellowships to UW Students must go through Student Fiscal Services See http://f2.washington.edu/fm/tax/fed-taxes/student-prizes-and-awards Student Employees If award is related to employment position, pay through Payroll If award is related to student role, you can pay through this module (mark no for UW employee) Answer Employment / Student questions

Non-UW Scholarship Used to pay scholarships or “stipends” to non-UW students or non-UW employees Examples: Department awarding scholarship to student attending a different school Paying a Non-UW individual for participating in a training or conference What is a stipend? A payment that is made to an individual to support a training or learning experience. For a payment to be considered a stipend, certain criteria must be met. Stipends are not considered wages if they are payment for a training or learning experience and not a payment for services rendered See Stipend Payments for more information How do I pay a stipend to a UW employee or student? Employee stipends can be paid through Payroll Generally, employee stipends are not considered taxable wages Student stipends should be paid through Student Fiscal Services Student stipends will be reported at year end on a 1098-T tax form 26

Services Used to pay personal services, excluding honoraria Examples: Consulting, Design, Analyzing, Editing/Reviewing, Strategic planning Must attach invoice from individual for services provided Date no more than 2 weeks in advance Answer former 1632 questions Check requests did not allow services. We wanted to include services in this module to give campus a way to pay services without having to go through the supplier registration process. Payment should not be processed (XP created) more than 2 weeks in advance of date of activity. If activity spans over multiple days – enter the last date of the last day of the activity. 1632 Form – important questions built-in. Does individual currently work for UW – if current employee, cannot use this module to pay them. NOTE: courtesy and affiliate appointments in HEPPS do not count. Those individuals are not considered employees of the UW. Some logic built into system to help identify questionable classifications 27

Associated Expenses Expenses associated with services provided to the UW, for which the individual is being paid Note: any expenses paid will be reported as income on Form 1099 MISC Can be used to make payment of expenses including travel and incidentals. If the payment is only for travel, use eTravel. Do not attach receipts Return receipts to individual for tax reporting purposes Date of activity – use date of activity with which the expenses are associated 28

Performer To pay for artistic performances to UW Students and Non- UW Individuals Examples: Musical performances Dance recital Note: Not intended for groups, current UW employees or Foreign Nationals Date no more than 2 weeks in advance Payment should not be processed (XP created) more than 2 weeks in advance of date of activity. If activity spans over multiple days – enter the last date of the last day of the activity. 1632 Form – important questions built-in. Does individual currently work for UW – if current employee, cannot use this module to pay them. NOTE: courtesy and affiliate appointments in HEPPS do not count. Those individuals are not considered employees of the UW. Some logic built into system to help identify questionable classifications Answer former 1632 questions

Lab 1: Create an Honoraria Payment Duration: 10 minutes Objectives: Learn how to create a P2I payment for Honoraria Practice working in P2I

Lab 2: Create a Services Payment Duration: 10 minutes Objectives: Learn how to create a P2I payment for Services with multiple line items Practice split budgets

Best Practices Create only one form per payment type Set up a system within your department to ask up front if the individual is a foreign national If an individual already has a vendor number, use Non- PO Invoice to make the payment If service invoice includes travel as a line item, no need to create two forms. Lump into total with the service fees. If invoice includes expenses as a line item, two separate P2I requests are required Do not upload 1631 or 1632 forms

Where to Get More Information email pcshelp@uw.edu Procurement Customer Services Phone 206-543-4500 Procurement Services P2I Web Page University Scanning Policy http://f2.washington.edu/fm/ps/tools-for-reconciling/scanning/ariba

In this course, we covered…. How to create and submit a ‘Payment to Individual’ to pay an individual for services provided to the University of Washington

Thank you! You will receive a post-course survey from a member of the Procurement Customer Services team We ask kindly for your feedback to help enhance future trainings