Accounts Payable Processing an Invoice

Invoice received from vendor into Accounts Payable

Does the invoice have a purchase order number? Processing ContinuesProcessing Delayed

No purchase order on invoice Delays in processing due to the time it takes to research invoices Vendors and departments dissatisfied with Accounts Payable due to lengthy processing time

Are there enough funds in the purchase order to pay the invoice? Processing Continues

No Are there enough funds in the purchase order to pay the invoice? What type of purchase order is it? AB (Bid Order) AC (Material / Equipment Purchases > $5,000) Force pay only with Procurement and Departmental approval. AA (Agreements < $1,000) AO (Material / Equip < $500) AS & AG (Regular & Grant Standing Orders) Force pay only if within tolerance levels. AT (Travel) AX (Reimbursement) (Change Order) AF (Material / Equip < $5,000) AA (Agreements > $1,000)

Tolerance Levels Variance in purchase order and invoice dollar amount If the total of the invoice is: $ $ $ $2,499.99Force pay if the overage is equal to or less than 25% of the total encumbrance amount of the purchase order. Force pay $2,500.00Force pay if the overage is equal to or less than 10% of the total encumbrance amount of the purchase order. Exceptions: Order type AA when PO total is > $1,000; PO types AB, AC. Invoices falling under these exceptions must go through procurement and the department, so additional action can be taken on them.

Examples PO encumbered for $250 / Invoice $490 - (PO Type AS) Invoice is pushed through. PO encumbered for $450 / Invoice for $575 - (PO Type AO) Invoice over tolerance level 450 x 25% = PO encumbered for $1,020 / Invoice for $1,050 - (PO Type AA) Signed contract required over $1,000 Change Order must be done by department * In order to force pay, line item descriptions must match but not the amounts. If there is a drastic difference between the invoice and the PO, the department should be contacted.

Invoice over Tolerance Levels Department must either: A copy of the invoice is returned to the department with an AP bump form. Increase the purchase order Original invoice matched to copy and processed Open a new purchase order Issue a change order Invoice copy and green copy of the AP bump form are returned to Accounts Payable with updated information Provide written authorization to force pay (must be signed off on by both department and accountant)

In the following cases force payments are inappropriate and the department will have to issue a Change Order: Invoice reflects a new line item not referenced on the original purchase order Increase against an item with pricing based upon a written quote (original encumbrance is greater than $5,000 - Order Type AC). Increase against a bid item (Order Type AB) The change reflects an increase or a decrease to the encumbrance amount on the PO, and the original encumbrance amount on the PO together with any overage on the invoice(s) is greater than $1,000 (Order Type AA).

Receiving Checks will not cut for invoices with purchase order types AB, AC, AF until receiving is done.

How do you know if your invoice was entered? How do you know if the receiving has been done?` How do you know if the invoice vouchered?

Need Help??? Training is available Contact Dolores Parsons

Accounts Payable Main Telephone Fax Jayne Krause Accounts Payable Supervisor Jennifer Bednar Assistant Accounts Payable Supervisor