Presentation on theme: "Purchasing Card Workshop Presenter: Jennifer Montgomery February 25, 2009 1:00-4:00pm."— Presentation transcript:
Purchasing Card Workshop Presenter: Jennifer Montgomery February 25, :00-4:00pm
The Purchasing Card The Purchasing Card is used by employees to purchase goods directly from suppliers that are priced below the delegated purchasing limit. The Purchasing Card Program simplifies the purchasing process and helps reduce the volume of purchase vouchers. The Purchasing Card Program also reduces the volume of employee reimbursements.
Cardholder Responsibilities The cardholder is responsible for the security of the purchasing card and the purchases made with it. The purchasing card may not be used to avoid or bypass appropriate purchasing or payment processes. The purchasing card is not for personal use or travel expenses. It is the cardholders responsibility to allocate charges to the proper account and expense code on SDOL.
Cardholder Responsibilities cont. The cardholder must ensure that receipts are obtained for all purchases. The System Office is a state agency and should not be charged sales tax. When charging membership fees, please refer to the approved list of professional organizations at acct/documents/TAMUSMembershipFees.pdf. acct/documents/TAMUSMembershipFees.pdf The organization must be on the approved list before renewing the membership. The purchasing card must be returned to the Program Coordinator upon transfer or termination.
Purchasing Card Timeline Cardholder identifies need for purchase and gathers data needed to complete the purchase. Cardholder verifies franchise, sales tax and Vendor on Hold Status:
Purchasing Card Timeline cont. Contact your bookkeeper for an L-Doc. All purchases on the card still require funds to be encumbered. Goods are purchased or ordered and charged to the purchasing card. The cardholder records the purchase in the purchasing card transaction log. The goods are shipped, received or invoiced.
Purchasing Card Timeline cont. The cardholder allocates the charge to the appropriate account and expense code on Smart Data On-Line (SDOL). Once notified by the Program Coordinator the current billing cycle has ended, the cardholder reconciles the transaction log to the account activity on SDOL. The department manager reviews purchases and approves on SDOL and/or the transaction log & reconciliation form.
Purchasing Card Timeline cont. The reconciliation form, transaction log and supporting documentation are submitted to the assigned bookkeeper. Please include original receipts. The bookkeeper reviews packet and prepares an L-Doc for any charges allocated to a state account. After review, bookkeeper submits packet to Program Coordinator for processing.
Common Issues Documents Not Submitted On Time Once the logs are submitted to the bookkeeper, the process is far from over. After the logs are sent to the bookkeeper, they are reviewed by Accounts Payable, and then a file is created and sent to FAMIS Production before the end of the month. Your timely submission of the logs is appreciated.
Common Issues cont. Receipts Missing Cardholder should ensure receipts are obtained for all purchases. The receipts should be attached to the transaction log before submitting to the bookkeeper. If a receipt is missing, please attach a statement explaining why the receipt is missing. This statement is required to be signed by the cardholder and the transaction log approver. Keep in mind, purchase card records are subject to audit so it is important all documentation is submitted to the Business Office.
Common Issues cont. Charges/Credits Not Explained If an undocumented charge or credit appears on your purchasing card, the cardholder should research the item and document all information. If there is no information for the charge, the cardholder should dispute the item. The Business Office can assist with reporting disputed items, but it is the cardholders responsibility to identify these charges initially.
Common Issues cont. Business Meal Information Include all business meal information with the receipt or on the transaction log. The online information is helpful but not required. Additionally, the retention period for the online information is only 18 months whereas the SO retention period is 3 years plus the current year. It is crucial the 5 Ws appear with the receipt or the log. Again, purchasing card information is subject to audit.
Common Issues cont. Transaction Log Incomplete Please include the account number to which each charge on the card will be allocated. The information is online but it is required on the log. The expense code should also be referenced on the transaction log. The transaction log has been revised to help address this issue.
Common Issues cont. Billing Cycle vs. Date Range It is very important the card activity is pulled by billing cycle, not by a range of dates on SDOL. Pulling the information by a range of dates can cause the transaction log to be incomplete and the reconciliation form to be incorrect.
Common Issues cont. Allocate to Correct Object Codes It is important to allocate each charge to the correct object codes. Each charge may require further breakdown. For example, if one of the charges is for toner cartridges and pens, then the transaction will need to be split. The split would allow the amount for toner cartridges to be allocated to 4020 Computer Consumables and the amount for pens to be allocated to 4010 Office Supplies. Allocating the entire charge to 4010 is not correct.