1. Transactions Business Purposes What should be included First Characters iOU Dates Taxes Purchase Orders

2. Business Purposes – What to Include Who – Person including title. Ex: Alex Aiken, Professor of Computer Science What – Description of the item(s) in question When – The date of the actual transaction itself Where – Vendor city and state Why – Most important. Not just why it was bought but why it benefits a specific project and why it is allowable

3. Business Purposes – First Characters The first 30 characters are what show on the expenditure statement. PCard uses 10 for vendor name leaving only 20. Avoid starting business purposes with ‘To reimburse’ or ‘Purchase of’ or similar. Condense! iOU & Pcard transactions will bring in the date and expenditure type automatically. Focus on items not captured by the system such as item, conference name, traveler name, etc.

4. Business Purposes – First Characters Example of first characters Expenditure Date Why Important – auditors, expense review.

5. iOU - Dates PCard populates this for you, however iOU does not. Date on both the front page and the line item page needs to reflect the expense. For travel it is the last day of the trip. Why Important – auditors, expense review.

6. Taxes PCard system is not only a clearing tool for expenses, it is a tax reconciliation tool. Stanford pays 9.25% on all goods used in Santa Clara and San Jose counties. Online vendors need tax applied too!

7. End Route

8. Purchase Order Approvals For equipment: Check title vesting and allocate tax accordingly. Use the correct expenditure types to denote title vesting. Follow-up on equipment PO’s to ensure tax is done properly. Review prior approval requirements, gain approval if needed. For Subawards: Use the correct expenditure types for the first $25k and all expenses thereafter. Applies to setting the PO up and the approval of invoices. Always check with your PI before creating or changing a subaward PO allotment. Before submitting and approving an invoice check to be sure there are funds still available on the PO.

9. How to Review & Approve Begin with business purpose. Does it meet all the criteria? Open attached backup. Look at the transaction line by line and associate with receipts. Was the correct expenditure type used? Is the amount correct? Was there any alcohol? Are the dates correct? Is this allowable on this award? If travel: Check dates of airfare against conference, is it reasonable (or did they go on vacation too?). Check for Fly America Act compliance. Check seat selection (e.g. economy, business, first). Check hotel folio for other expenses like movie rentals or alcohol. Ensure expenditure item date on iOU is the last date of the trip and does it match the business purpose? Are taxes right (in PCard)?

10. Resources Fingate Controllers Office Site A-21 A-110 ERA http://fingate.stanford.edu/staff/taxcompliance/sales_use_tax.html#goods_services http://fingate.stanford.edu/staff/reimburse/res_jobaid/guide_write_iOU_busPurpose. html http://fingate.stanford.edu/staff/reimburse/res_jobaid/guide_write_iOU_busPurpose. html