1. Procurement and Payment Basics
Office of Procurement Services
Procurement and Payment Basics
Last updated August 2016

2. Agenda Compliance Pay a vendor Importance of compliance
Allowable/Non-allowable
Make a purchase
VCU procurement methods
Payment process
Delegated authority
Ordering through eVA
eVA access
Vendor contracts for review
Ordering with a P-card
Existing contracts
SWaM & sustainability
Contract administration
Pay a vendor
Payment responsibilities
Types of payment
Payment process
Vendor prepayments
Petty cash
Receiving
Search tools

3. Compliance outlined in Procurement Services
Employees are responsible for knowing and complying with established University and State policies and procedures related to:
Creating/approving requisitions and/or purchase orders
Completing receiving reports
Requesting/approving a direct payment
Requesting/approving a travel reimbursement
Authorizing/making corporate card charges
Approving another employee’s P-card transactions
*See Learn about Compliance for more

4. Planning is part of compliance
You are responsible for proper purchasing planning.
Tip – Start early! It’s important to give yourself enough time to ensure you:
Get the necessary internal approval(s)
Allow for administrative/procurement lead-time
Allow for vendor delivery lead-time
Failure to plan does not constitute an emergency or sole source procurement.

5. Importance of factual documentation
All supporting documentation must be factual . It also becomes public information. Vendors routinely review contract files to make sure VCU conducted the procurement fairly, ethically, and consistent with procedures.
Falsifying any documentation is a serious breach of policy
Ex: Providing non-factual documentation supporting a purchase transaction
Ex: Altering/creating vendor invoices
Ex: Improper Banner Receiving of goods/services/ etc.

6. Consequences of non-compliance
Failure to comply may result in revocation of the employee’s system access to eVA and/or corporate card privileges, even for a first offense.
Deliberate or recurring noncompliance may constitute cause for disciplinary action up to and including termination.

7. Allowable/Non-allowable Expenditures
A “Business Related Expenditure” is an expenditure that is directly related to the operation of a functional area in the fulfillment of its stated mission or objective as part of the University.
Check out the Allowable Expenditures Chart for the proper funding sources (state, grant, local) and level of approver for specific purchases.
What can you not purchase?
Personal expenditures
Gifts for employees’ family or relatives
Items not retained by the university
See the Non-Allowable Expenditures Chart for a complete list.
All purchases must have a business purpose.

8. Agenda Make a purchase VCU Procurement Methods Payment process
Delegated authority
Ordering through eVA
eVA access
Vendor contracts for review
Ordering with a P-card
Existing contracts
SWaM & sustainability
Contract administration

9. Procurement Methods
The procurement method used to procure a desired good or service is dependent upon:
Total dollar amount
- Under 10K - Over 10K
Availability/practicality of competition
Type of good
- Professional service
- Non-professional service
VCU systems
for purchasing
eVA – The system used to place the order
Banner – The system used to receive the order

10. Procurement Methods Mandatory Sources
Delegated Purchasing Authority (Purchases up to $10,000)
Contract Purchases
Demand Payment (exceptions to normal competitive requirements)
Competitive Purchases between $10,001-$50,000
Competitive Purchases over $50,001
Sole Source
Emergency Purchase
Surplus Inventory
See Understand the Procurement Methods for guidelines on each

11. Overview of the purchasing process
Identify the business need
If under $10K, utilize Delegated Purchasing Authority to purchase
If over $10K, Procurement Services must approve the purchase
Vendor fulfills order
Department completes Receiving in Banner
Vendor submits invoice to Accounts Payable
Accounts Payable pays vendor

12. Delegated Purchasing Authority
Departments are granted delegated purchasing authority for approving the purchase of goods/services provided the price is fair and reasonable up to $10,000.
You must document that your goods/services will cost under $10K.
Types of appropriate documentation:
Quote
eVA Punch Out Catalog
Published Price
If your order is under $10K order through eVA.

13. Delegated Purchasing Authority: Ordering through eVA
Search for vendor in eVA to determine if vendor is registered in the eVA system. Ensure vendor is set up in Banner. If applicable, send vendor contract to Procurement for review and signature. If applicable, send vendor sales tax exempt form. Create PO in eVA, verify that status is “Ordered,” and send PO number to vendor to include on final invoice. eVA transmits PO to Banner automatically, so that the order is recorded in VCU’s financial system. Once the goods/services are fulfilled, you must Receive in Banner
Vendor Set-Up
Contract Review
Create PO
Banner Integration
Receive in Banner

14. Ensure vendor is created in Banner & eVA
The vendor search (FTMVEND) is used to find out if a vendor has been created in Banner. If the vendor is not found in Banner, submit a W-9 form via to Vendor Create at Allow at least 24 hours for Vendor Create to process the W-9 request and then check back in Banner for the V#. Encourage Vendors to self register in eVA. If the Vendor refuses and there is no other source the Vendor will need to be created in eVA by Vendor Create as a state entered Vendor, allow 48 hours for these request to be approved by eVA. Vendor Create will verify if the information provided on the w-9 form matches the IRS systems.
Vendor Set-Up
Purchase Order
Banner Integration
Contract and taxes
Do not assume that an eVA-registered vendor will automatically be created in Banner.
Receive in Banner

15. Submit a vendor contract for signature, if applicable
When a vendor requests that the University agree to their contract terms and conditions, the contract must be sent to Purchasing for appropriate review and signature. Allow 10 days to process.
Departments should make changes necessary to conform to their particular business needs.
Send contract to
include the PR# from eVA in subject line
if contract is a hotel contract, add “Hotel” to subject
include dates of service and index code in the body
Indicate if you require an original signed contract to be returned through campus mail – include Box #. You will only receive a scanned copy if no indication of need for original.
Vendor Set-Up
Contract
Review
Banner Integration
Contract and taxes
Do not approve the PO until you have received the reviewed contract.
Receive in Banner

16. Requirements for eVA access
Obtaining eVA access requires a help desk ticket by FA or supervisor.
FAs or supervisors will need to use help desk tickets to notify Procurement of the following:
Changes to existing eVA accounts
Notification of employee leaving the department
Notification of employee terminating employment with VCU
The employee will need to successfully complete the eVA system test for his/her specific role – enterer, approver, receiver.

17. Ordering in eVA
Purchase Order Categories eVA requires a purchase order category be assigned for all orders placed.
R01 – self registered or state entered Vendor
X02 – (exempt categories) A full list can be found at View Exemptions List
All other codes are assigned by University Purchasing buying staff
Orders placed in eVA over $100,000 will require an additional higher-level approver designated by the Dean.

18. Ordering in eVA – system tips
To remember when using the system
If an order has the “Bypass ERP Integration” box selected in eVA, the order will not transmit to Banner until the next day. The “Bypass ERP Integration” box should only be selected when instructed to do so by Procurement Services staff.
If order fails the eVA/Banner Integration, users should utilize error messages to determine the correction required - Resolve eVA Integration Error Messages
The “include comments/attachments on purchase order” box should not be selected unless the comments are to be viewed by the vendor. Once the box has been checked to include comments, they cannot be changed or deleted.
The “Copy” & “Edit” buttons must be used to add additional lines to your eVA requisition.
The “Add Items” button should not be used because it will generate multiple EPs or PCO numbers for one order.

19. Change Orders in eVA
All change orders without receiving or invoicing in Banner will process through integration same day.
Change orders should not be completed for changes to the vendor, index code, or account code on existing line items. These require a new order to be created. The price, quantity and item description are the only items that should be changed on a change order.
When a line needs to be deleted from an order in eVA, do not delete the line. Zero out the dollar amount and the quantity needs to be at least 1, so that the order will transmit to Banner correctly.
Any receiving or invoicing activity on a purchase order will result in the change order being processed through the batch interface, which takes 2 days to transmit to Banner.

20. Ordering with a Purchasing Card (P-card)
If your order is under $5K pay with a department P-Card
Unless on the eVA exempt list, P-card orders must still be entered into eVA. Since we are a state-agency, we are required to enter 80% of VCU’s orders through eVA. To meet this requirement, VCU must enter P-card orders into the system.
eVA does not send the P-card Order (PCO) to Banner, like it does with regular POs, since Accounts Payable does not pay the P-card bill.
The department must reconcile the monthly P-card bill to ensure that the proper index codes are charged.
When a P-card expires or a new card is received the card information will need to be updated in eVA.

21. Search for an existing contract
The following goods have mandatory contracts in place for ease of ordering and for price discounts:
Office Supplies
Stationery
Virginia Correctional Enterprises for furniture over delegated authority
VITA (designated contracts)
If your goods/services are not covered by a mandatory contract, search for an existing cooperative contract.
VASCUPP
State of Virginia
VCU University Contracts
Tip: Search using different keywords
Once you find a contract, contact vendor for quote and include
contract number on requisition.

22. Strive for SWaM and Sustainability
SWaM Purchases
SWAM stands for Small, Women-Owned, and Minority Business
DMBE (Department of Minority Business Enterprise) is the agency that certifies SWAM businesses
Attempt to obtain at least 1 quote from a SWaM vendor
Retain quote in department with fiscal files
Sustainability
Identify opportunities to reduce environmental impact
Recycled paper is required and recycled toner is encouraged

23. Contract Administration
Departments’ responsibilities after signing a contract:
Follow-up If contractor is untimely in sending goods or completing services, notify in writing
Receipt of goods/services Ensure the individual receiving is fully informed of contract terms
Over-shipments/Overruns Reject over-shipments and notify contractor. Overruns for printing are acceptable up to 10%.
Lost or damaged shipments Report to vendor immediately

24. Contract Administration (cont…)
Inspection, acceptance, and on-going monitoring
Rejection Reject whenever the goods or services do not meet the contract terms . “Complaint to Vendor Form” may be used.
Cancellation and changes to POs/Contracts Coordinate with buyer
Contract Administration Action Plans (CAAPs) Required for all contracts over $750K

25. Agenda Pay a vendor Payment responsibilities Types of payment
Payment process
Vendor prepayments
Petty cash
Receiving
Search tools

26. Primary responsibility of Accounts Payable is to pay bills…
Ensure prompt and accurate payment
Invoices should be mailed directly to AP by the vendor unless electronic invoicing methods are established for the vendor.
Prompt Pay time begins from the date the invoice is received in AP.
Charges must match, line for line, the items on the PO. Use a Change Order to process variances.
All payments will be issued 30 days from receipts of invoice in AP OR from receipt of goods, whichever is later – unless payments have been prearranged to be made with a Commercial Card.
Contact the AP Manager if invoice appears to be invalid or altered

27. Types of Payments Regular Vendor Payments Petty Cash Reimbursements
Sub-Awards
Honorariums
Predoctoral and Postdoctoral Payments
Awards and Prizes
Legal Fees
Immigration and Citizenship
Revenue Refunds
Independent Contractors
Stipends
Preceptors
*See Pay an Individual or Pay a Vendor for specific guidelines on each type of payment

28. Vendor payment process
Determine if vendor participates in the Electronic Invoice System. If vendor does not participate, vendor mails invoice to AP with PO number referenced. Check Electronic Invoice Vendors list.
If vendor mails invoice to department, scan a copy to with PO number referenced. Only one invoice per . Do not send paper copy to AP if this method used! This address is for internal VCU departments only (not for vendors).
Invoices without PO numbers referenced are returned. Invoices are date stamped when received by AP to ensure compliance with Prompt Pay Act.

29. Ensure vendor gets paid
3 Necessities for invoice to be paid
Approved PO in Banner
Receiving Completed in Banner
Valid Invoice Posted & Matched

30. Vendor Prepayments and Petty Cash
Vendor Prepayments Vendor prepayments are generally not allowed to prevent loss of funds to VCU if good/service is not received.
Few Exceptions:
Subscriptions
Conference Registrations
Membership Fees
If prepayment is accepted, create order in eVA and pay with P-Card if possible. The payment will be made immediately.
Petty Cash
Use of petty cash not recommended option.
Applies to purchases less than $25
Receipts required
To replenish Petty Cash fund, send Direct Pay form to AP

31. Receive in Banner
The Receiving function is an important and necessary control in ensuring funds are expended appropriately. Receivers should view and inspect all items to verify receipt. If the Receiver is not certain of receipt, supporting documentation such as an from the employee (other than the Approver) who did verify receipt must be obtained. A packing slip or from the individual that received the merchandise or service should be included in department files.
Important Tips!
Receiving needs to be completed as soon as the merchandise or service have been delivered or completed.
Not Receiving in a timely manner will delay payment to the Vendor.
Verbal requests to Receive are not sufficient.

32. Receive in Banner (cont…)
Receiving should not be prompted by an invoice from the vendor.

33. Search for a PO in Banner
FOIDOCH Use the Order Query screen (FOIDOCH) to find out if a purchase order has been received, invoiced or paid. Search with the PO numbers assigned by eVA. Do not type the EP prefix, only the number. Please follow these procedures prior to contacting Procurement Services for status updates.
Specific step-by-step instructions for using FOIDOCH can be found at View Purchase Order, Receiving, & Payment Information in Banner

34. Look up vendor payment history
FAIVNDH Vendor Payment History (FAIVNDH) is a record of all payments made to a vendor by fiscal year. This form shows pending payments as well as payments that have been completed. This form is good for looking at payments to individuals or for direct pays.
Banner Inquiries for quick reference:
FOIDOCH – Document History
FAIVNDH – Vendor Payment History
FGIENCD – Detail Encumbrance Activity
FTMVEND – Banner Vendor Lookup for DUNS#

35. Look up orders that have not been Received
The Receiving Required Report is located in the SAS Web Studio under the Finance folder. This report will show departments the purchase orders that have been invoiced in Banner that do not have a corresponding receiving report completed in Banner required to generate a payment.
To access the report
Log into myVCU portal
Under General Resources click on “VCU Reporting Center”
Select the “Finance” folder
Scroll down and select “Receiving Required”
Key in one of the codes requested in order to access your department orders
Search in Banner using different information obtained from the report

36. Weekly Receiving Report
Fiscal Administrators receive a weekly report that is automatically generated to identify any invoices that have been keyed by AP but missing a Receiver.
Report is much like the SAS report mentioned on previous slide and can replace the manual process if desired.
The report will continue to include items not Received until the receipt has been entered or the invoice has been removed from Banner if entered in error.

37. Congratulations!
You have completed the on-line Procurement and Payment Basics Presentation.