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Basics of Purchase Order Payments

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Presentation on theme: "Basics of Purchase Order Payments"— Presentation transcript:

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


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