PURCHASING ACCOUNTS PAYABLE & CREDIT CARDS

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 2 Purchasing Vendors Purchase requisitions Purchase Orders Goods Receipt GRIR Clearing Account

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 3 PURCHASING Vendors Procedure Existing vendors New Vendor Request Form RMIT employees are paid through payroll

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 4 Purchasing Purchase Requisition Procedure Correct authorisation Quotation and tender policy Legible and complete

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 5 Purchase Requisition

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 6 Purchasing Purchase Orders Raised by Purchasing section on receipt of requisition that conforms to policy & procedures System generated sent to requester when PO created Will be faxed to vendor if requested on requisition Can be viewed in SAP with transaction ME23N

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 7 Purchasing Goods Receipt By authorised users Entered into SAP on receipt of goods or services GR document number to be clearly identified on invoice Invoice forwarded to Accounts Payable By Purchasing Section Invoice forwarded to Purchasing Section clearly marked as received with name and signature. Entered into SAP by Purchasing Section and passed to Accounts Payable

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 8 Purchasing GRIR clearing account If the purchase order line item has a single account assignment (i.e. 1 internal order or 1 asset), the expense is recognised at goods receipt. The SAP postings in this case is a credit to the GRIR account and a debit to the expense. This is then cleared by entry of the invoice where the SAP posting is a debit to the GRIR account and a credit to the vendor. If the purchase order line item has multiple account assignments (i.e. more than 1 internal order or asset) the expense is not recognised until the invoice is processed. With advance payments against a purchase order the entry of the invoice will debit the GRIR account. The expense will be recognised on goods receipt and the GRIR account cleared.

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 9 Accounts Payable Purchase Order Invoices Non Purchase Order Invoices Payment Campus Travel

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 10 Accounts Payable Purchase Order Invoices Procedure Only original invoices will be processed Invoice value must be within the lesser of 10% or $100 of the purchase order value. If not, will be returned for purchase order amendment to be processed. NB: There is no tolerance on quantity. Scanned copies of processed invoices can be found on the I: drive I: > fin_ops > AP Invoices Invoices are sorted by SAP document #

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 11 Accounts Payable Non Purchase Order Invoices Procedure Only original invoices will be processed Still subject to Quotation and Tender policy

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 12 Accounts Payable Payment Approved invoices are paid 30 days from date of invoice. Cheque payments are made on Wednesday. EFT payments are made on Thursdays. Only invoices entered into SAP up to the preceding Friday are included in these payment runs. To ensure invoices are included in weekly payment runs they need to be in Accounts Payable by 5.00pm the preceding Thursday.

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 13 Accounts Payable Campus Travel All invoices post 11/11/2008 are processed centrally from file delivered by Campus Travel. advice is sent to all Finance staff when the upload is completed Copies of the invoices included in the upload are placed on the I: drive and can be accessed via following path: I: > Entire Group > Campus Travel Invoices > Year > Month The year and month are when the invoices are loaded into SAP. They are in invoice # order.

RMIT University©2009 Financial Services / Fin. Operations / Purchasing & AP 14 Credit Cards Policy & Procedure Only current application forms will be processed. All expenses must be acquitted in iCMS within 45 days (e.g. March expenses must be acquitted by 14/05/2009). $2,000 transaction limit ($5,000 for P Card holders) except for travel fares and accommodation.