|Accounts Payable processes payments for Purchase Order and Non-Purchase Order transactions. When invoices are received from vendors, they are reconciled against the purchase order number for correct vendor name and remit address, items, price, quantity, and terms. If the invoice and Purchase Order match, the invoice is entered on-line in the Financial System to create a Voucher. The Voucher is scheduled for payment according to the terms listed on the invoice, Payment Request Form, Purchase Order (PO) or reimbursement request. In cases of conflict, the payment terms of the original, University authorization document takes precedence.|
The payment process involves many elements:
|•||Processing timely payments to vendors, verifying pricing and terms of the Purchase Order|
|•||Monitoring vendor statements and investigating invoicing or payment errors|
|•||Providing follow-up service on outstanding invoices to ensure payment in a timely fashion|
|•||Follow for receipt and processing of credit memos|
|•||Providing assistance and direction to departments in settling disputes with vendors arising from payment deductions|
|•||Resolving problems that may arise from payment deductions from vendor invoices|
|•||Researching returned checks|
|•||Referring disputes to appropriate University office or Contracting Officer when necessary.|
If a vendor charges inappropriate sales tax or freight, Accounts Payable will automatically deduct those charges when processing the Purchase Order Invoice. Accounts Payable will indicate a comment during voucher entry to note the discrepancy. The vendor is notified of these short payments with a brief comment on the check remittance advice.
If the University has overpaid an invoice, Accounts Payable requests and follows for receipt of a credit memo/check. If merchandise has been returned, the department must notify Purchasing. Purchasing will follow the vendor for receipt of a credit or check. Once the credit/check is received, Accounts Payable will process an adjustment which will credit the original department.
Restricted Fund Expenditures
All check requests being paid from any fund other than fund 1000 or funds 6100, 6100, or 6300 should be forwarded to the Contracts and Grants Manager (Restricted Funds Office, 201 Carter Drive), for authorization. That office will forward the requests to Accounts Payable for processing. Questions may be directed to that office at extension x2518.
New procedures are currently being developed. If there are questions regarding a utility billing, contact Accounts Payable or the Energy Manager, Greg Cuprak.
Payments to Individuals
It is extremely important that any payment for work done by a student or employee of the University be processed through Payroll (Human Resource Services) rather than through Accounts Payable. Federal guidelines for employer-employee verses contractual relationships must be applied. Payments in excess of $600.00 made to individuals through Accounts Payable are reported annually to the IRS on form 1099. There have been cases in the past in which the IRS has contacted students and employees to whom 1099’s were issued requesting that these individuals remit self-employment taxes. Failure to properly report these individuals as employees and remitting the appropriate portion of employer’s tax also puts the University at risk; the IRS tend to assess severe penalties and interest for failure to withhold and remit employment taxes for individuals the IRS considers to be employees. If you are unsure as to the proper handling of payments to be made to an individual, please call Cash Disbursements Manager at extension 5654.