1. Basics of Purchase Order Payments
Andrea Lee, Accounts Payable Manager
Tammy Strom, Assistant Director Operations

2. Overview: Responsibility When to use a Purchase Order (PO)
Purchase Order process
Tips when setting up a Requisition
Reviewing Payment Requests (PREQs)
Reports and tools
Great Tutorials on UAccess Learning
FSO Classes - Expenditure Training Class, Travel Policy, International Payments, PACs Training

3. Using a Purchase Order Financial Services Manual 9.10
Purchasing Policy Manual 2.2 and 3
Amount over $10,000.00
Recurring payments
Pre-payment
Shop Catalogs / AZ BuyWays
Punch out Vendors
Einvoicing
Financial Services Manual - Requisitions and Reimbursement Policy 9.10
Purchasing Policy Manual Requisition, 3 – Purchase Order
10,000+
$10,000 or less -P-Card, or Arizona BuyWays (exceptions/restrictions Policy)
Pyramiding – small dollar amounts repeatedly
Easier to process – one REQ – AP creates PREQs
Prepayments - As a rule, payment will not be made before goods or services are received.– less than $10,000 on PCard
Buyways – punch out vendor –
easiest form of purchasing – system creates REQ
einvoicing (Thermo Fisher, Dell, Office Depot VWR, Sigma Aldrich…)
Electronic file feed – one to one match
If you see initiator of PREQ is KFS (einvoice – no paper invoice)

4. Purchase Requisition Flow
Dept. creates Requisition (REQ)
Purchase Requisition Flow
PACs reviews REQ and creates Purchase Order (PO)
Goods / Services Received
Payment is Disbursed
Invoice Received in
FSO- AP
Create Vendor – ICON W9
Requisition established to pay for products or services on PO
Requisition approved by dept routes to PACS for review/approval - PO creation.
PO created - vendor receives notice of the PO
Good shipped to UA or Services performed - vendor sends an invoice to AP.
AP processes the invoice for payment on a Payment Request (PREQ) that is routed to the UA department’s Fiscal Officer.
Once PREQ is approved, payment is disbursed through AP.
Accounts Payable Creates PREQ
Dept. reviews and approves PREQ

5. Creating and Managing Purchase Orders (PO)
How go about setting up a Requisition
In UAccess Home – now go to ORDERS
Or type Requisition

6. Setting Up your Requisition
Business Purpose
Auto Approval
Receiving Required
Positive Approval Required
Tutorials on UAccess Learning – creating requisition
Receiving Required – if want proof of receiving before paid
PREQs will not in action lists until items received
AP courtesy notification
- if checked receiving required
- Consider if action that want – receive every small dollar purchase
Payment Request Positive Approval Required –if no action, auto approve on due
- Good for grants/ specific funding, large projects,
NOTE: If attach Invoice to REQ – be sure to SEND TO AP

7. Setting Up your Requisition
Wilma Wildcat
Item Types –what Paying for
Quantity Taxable –unit of measurement = tangible products
Service Tax Exempt – most services
Service with Quantity Taxable– parts that are taxable
Service with Quantity tax exempt – UOM for non-taxable srvc (labor hrs)
Quantity Tax Exempt –items – regulated chemicals in research – AZ5000
Service Taxable – service with parts in lump sum
NOTE REQ if Tax Exempt
Quantity, Description - details tell which line - otherwise please understand if AP Contact
Accounting Lines - Required Chart of Acct (UA), Account Number, Obj code
Sub account / Sub object code - work with FA
Types of POs – Blanket (unspecified amount or quantity),Encumbered, unencumbered

8. Where’s My PO?
wildcat
Note DOC Number and REQUISITION NUBMER

9. Where’s My PO?

10. Purchase Order Amendments (POA)
Amend button on PO
PO must be open and in final status
All PREQs must be in final status and paid
Refresh Account Summary
Calculate / Save / Submit
POA –change account, price, quantity, adding and inactivating line items…
Only amend if PO in Final Status and Open
Inactivating line items will remove the encumbrance on them
Changes impact dollar - refresh
Calculate / Save / Review and submit
By Ensuring good PO – help prevent delays

11. Receiving Search ‘Receiving’ Select ‘Receiving’ on the PO
As FO, Business Managers, Dept reps – responsibility to ensure receive products/service paying for
Good quality – receipt appropriately
receiving hold up payment process
receiving -PREQ will not appear in action list until completed
AP tries to assist/contact -adding notes to PO
Two ways to get to get to - Main Menu Search or Bottom of PO
Need PO Number and Vendor Date = Date received
Here you can see that the PO shows Receiving Required
NOTE – New – can do receiving for POs that did not have receiving initially set up on them
Nothing shows on PO that indicates receiving done

12. Line Item Receiving Corrections to Receiving
Need PO Number and Vendor Date = Date received
New buttons – load QTY and Clear Quantity
Add Unordered Items – this is adding to your PO, and although allows document to be created – doesn’t route – don’t use
Quantity Received full quantity received
Quantity Returned– receiving doc – has to be accounted for in the quantity recvd
Damaged goods need to be noted (included in qty received as well)
Once Received – PREQs will appear in Action List
NEW – Corrections button once Receiving done – can change receiving doc if incorrect
Corrections to Receiving

13. Invoices Received in FSO
University of Arizona – Accounts Payable
1303 E University, Box 5
Tucson, AZ 85719
Valid invoice
University Business
On the PO and enough funding
Sales, Use Tax and 1099 Reporting
Remit address and payment method
Object codes
PO invoices all to AP directly - address and listserv
- prevent delays from being sent all over campus
- prevent lost invoices
- allows for AP to work ASAP
Ensure vendors have PO number – valid information (many times see PO – UA/person’s name)
How many - West Press / Target Interior
Imagine if invoice come in with no info
AP Review of invoice and set up Payment Request
Valid Invoice
- Billing UA
- States who we are paying
- Itemize what we are paying for
- Current Charges
- Remit – store location, central bilking, headquarters
If there’s not enough funding – AP contact for PO Amendment

14. GLs and Expensing Funds
PREQ Created - Funds pulled
Funds disbursed once PREQ is Finalized
‘Acknowledge’ holds up disbursement
Review Action Lists
BEING Good Fiscal Officers and Business Reps you are – probably monitoring your Accounts
Once PO created – funds reserved
PREQ Created – funds committed extracts from dept account
Moves to Liability account, but waiting for approval
Due date – payment will disburse
NOTE – Seasoned with UA heard that no hold on payments
INCORRECT – ‘Acknowledge’ – PCArd, wires and drafts
Work Action List
AP Liability
Account
Department
Account

15. Working your Action List
RECEIVED PREQs now in Action List
BIG TIP - all docs - work action lists – docs waiting on you /dept
As indicated PREQs/DV will not pay until Final Status
Ensure that you have delegators if you won’t be here
AP will also add notes to edocs when there are clarifying items that are requested
PREQ has ability to say ‘Read Notes’

16. Navigating through a PREQ
What to look at when reviewing PREQ in action list
Business representatives, FO, Managers, Accountants… responsibility to ensure proper payments/reporting
Document Overview
- PO related to invoice
- NOTE Initiator KFS – this is einvoicing
- Explanation – AP placed brief description - not on this one as Einvoice
Payment Request Detail (SET UP FROM YOUR REQ)
Receiving Required
Use Tax Indicator (sales and use tax training)
Payment Request Positive Approval Required

17. Navigating through a PREQ
What to look at when reviewing PREQ in action list
Vendor Detail
Who we are paying
Remit address for checks
Payment terms (30 if none on invoice)
NEW – ACTIVE ACH – only appears while enroute

18. Navigating through a PREQ
IF Looking for payment info for customer – at your finger tips
Invoice info
Invoice number
PO number
When an invoice is scheduled to pay and the payment method (A = ACH / Check, C = Credit Card)
Process Items
PO Line Item totals = Totals encumbrance for full PO
Encumbrance being relieved for PO (+ current PREQ)
Items – line being used on PO
What is being paid for on this PREQ
Quantity, Cost, Tax, Description…

19. Navigating through a PREQ
Under all of your lines – Additional Charges – Freight, shipping/handling, misc
Vendor Remit amount, Tax, Grand Total
Remit differ from total if Use Tax payment -to the State vs pay goods to the vendor

20. Navigating through a PREQ
Account Summary Tab
Chart – UA
Account Number – what was selected on PO (ensure it is active)
Object Code – AP reviews to ensure appropriate, but work with FA
If additional information is set up on the PO it is placed here (sub account / Obj code)
View Related Documents
- Any related doc gotten to from here, REQ, PO , any Payment Request related to this PO – Click on link to get to
Links for Related Docs

21. Navigating through a PREQ
IF Looking for payment info for customer – at your finger tips
Invoice info
Invoice number
PO number
When an invoice is scheduled to pay and the payment method (A = ACH / Check, C = Credit Card)
Process Items
Total encumbrance for PO
Items – line being used on PO

22. Navigating through a PREQ
Transfer Object
Codes
Credits and Debits
GL Pending Entries
PENDING – only have data here when doc first created – once created pulling – good to review to see Credits and debits
Images Tab – download invoice and pertinent data
- only those created and route log see
- If there is no image, look to see if the creator is KFS – einvoice vendor – no image

23. Navigating through a PREQ Select People / Groups to Route To
Read & Add Notes
Notes and Attachments
- add any requests, pertinent info related to doc
- additional financial documents attach
- no security sensitive data
NOTE : ON REQ if adding invoice to NOTES, please send to AP, as we look at REQ when processing payments
AD Hoc
- Sending on to other groups for FYI, Approval, Acknowledge
Select People / Groups to Route To

24. Navigating through a PREQ
Route Log
Initiator –incase questions
When doc was created
Pending Action Request – who document is waiting for, In action list to Approve
Future Action Request – who else the doc will need to route to

25. Approving PREQ Hold Request and Remove Cancels Account Delegate
Release of Encumbrances
HOLD – reviewer needs more time
In action list FO or delegate
Initiator and FO notified
PREQ will not auto approve
Stays in action list until approved/disapproved
Removed only by person who placed on PREQ or AP Management
Cancel – damaged, not received, incorrect Amounts (overage disapprove)
Only enroute in action list
Select request cancel button – removes option to approve
AP Action list to cancel the PREQ
To remove – select remove request cancel
Account Delegate
PREQ created – Amounts committed
Last invoice – AP close PO – releases encumbrance
Once PO closed it releases encumbrances

26. Auto Approval Wait A minute – my invoice paid and I didn’t approve it
Remember Auto Approval – see Action Taken
FYI to approvers
When payment date reached and no action taken

27. UAccess Analytics Open Encumbrance Report
Dashboards > Financial > Central Accounts Payable > Purchasing / AP Tab - Open Encumbrance Report
Hid some of the columns so you can see
- create date
- finalized date
- Fiscal Year
PO Number
Vendor
Organization Code
PO End Date
PO Open Amount
Outstanding Encumbrance
Account number

28. Additional Helpful Resources
Accounts Payable
Financial Management
Procurement Contracting
Policies
AP Listserv:
Invoice Listserv:
FSO Customer Service: (520)
Accounts Payable Site
General Information for UA Vendors
Einvoicing Information
Invoice Number Guidelines
Independent Contractor Guidelines…
Financial Management Site
Fund Accountants
Object Codes
Procurement Contracting Site
Financial Services Manual
Purchasing Manual
In Person Classes and Tutorials - FSO Operations is developing just in-time online training, please keep an eye out for

29. Recap: Responsibility When to use Purchase Order
Purchase Order process
Requisition and PREQ Tips
Reports and tools
What did we cram into our heads

30. Questions
Survey