1. 1 Purchase Card Cardholder Training Trainer - Neal Currier

2. 2 Training Outline Part A What you can buy with a Purchase Card What you can’t buy with a Purchase Card How you use the Purchase Card What records do you need to keep What conditions are there on the use of the card Part B Value Added Tax Part C On line Banking Part D Compliance Part E Key Points of Contact

3. 3 Using your Purchase Card Part A

4. 4 What You Can Buy With a Purchase Card Items previously purchased via Petty Cash Emergency purchases and repairs Non contracted goods & services Low value, one off purchases Examples of the types of expenditure accepted on your Purchase Card include: Taxis, car parking, coach, local train & air travel (You must refer to Travel Page on People Solutions for guidance before using your Purchase Card ) Civic catering & catering for meetings only after investigating any ‘in house’ facilities first. Subsistence (if paid by purchase card you must NOT claim again through payroll) (You must refer to Travel Page on People Solutions for guidance before using your Purchase Card ) Trips to theme parks, cinemas or theatre and works of art Stamps, publications, external course fees, books and subscriptions Vehicle tax & vehicle maintenance

5. 5 Contracted Items (except in emergencies) – Corporate Procurement Services on 0121 464 8000 can verify what is a contracted item. Cash withdrawals/cash back are not permitted under any circumstances Goods or services for your own personal use Goods or services for other directorates Items from merchant categories you are blocked from using Booking Hotels & accommodation (You must refer to Travel Page on People Solutions for guidance) Note Your manager will have approved the merchant categories & spend limits for your card. These can be amended by the Line Manager emailing the Purchase Card Administrator with the request. Suppliers may not fall under the category that you expect. What You Can’t Buy With a Purchase Card

6. 6 How You Buy Using a Purchase Card A)Buying goods in person from the supplier The card is a Visa Credit Card acceptable where the Visa sign is shown When paying use the PIN and chip facility wherever possible Check the amount being charged is correct Enter the PIN number as securely as possible Obtain a receipt from the supplier, including a VAT receipt where necessary Never give your PIN number to the supplier, never write it down, the PIN can be changed at an ATM, never use the same number as your own cards. Never let your card out of your sight Note If, inadvertently, you make a personal transaction, inform your Line Manager immediately it becomes apparent & re-imburse BCC promptly.

7. 7 How You Buy Using a Purchase Card B) Buying over the phone or by the internet When buying you may need to quote: 1.Company details e.g. company name - BCC - company billing address – 67 Sutton New Road, Erdington, Birmingham, B23 6QT and your delivery address 2.Your name as displayed on the card 3.Card number (16 digits) 4.Card expiry date (4 digits) 5.Card Security code (3 digits on reverse of card) Give a clear description of the goods and services Agree pricing (net amount, gross amount and VAT amount - inclusive of any carriage charges) Obtain delivery date Agree delivery location

8. 8 Internet Purchases You must get written authorisation from your manager to make a purchase over the internet as per the ‘Internet Use Policy ‘ “2.3 Internet users must not enter into contractual obligations on behalf of the City over the Internet, unless the transaction is formally authorized in writing by their line manager having acted in accordance with the approved corporate procedure.” You must only use reputable companies with a UK address. Read the ‘Internet Use Policy’ & ‘Internet Use Code of Practice’ for general guidelines. Remember that internet use is monitored ‘Internet Monitoring Standard’ All these documents are found in the ‘PSPG’ - type in search box – ‘ Internet use policy’ * PSPG available via Lotus Notes, Inline or Voyager Portal

9. 9 Records You Need To Keep You must obtain a receipt for all purchases Delivery Notes where applicable. If you are purchasing on behalf of someone else, wherever possible/practical you should get the request in writing or by email Note Keep all documentation safe, attached to the Transaction Log Keep secure or destroy, any paperwork (but NOT receipts or Vat Invoices) that contain card numbers or card security details.

10. 10 Transaction Log

11. 11 Reconciling Your Transactions Always update the Transaction Log with the relevant information, as you purchase and review throughout the month. (Within 3 – 5 working days) Once a month you will receive a statement of your transactions. This will be posted to you or you can download it from the online banking system You must check each transaction on the statement to your Transaction Log Retain any receipts which do not appear on the statement (as they should be on your next statement), a purchase can take up to 5 working days to appear on your statement Query any transactions for which you have no receipt, record or recollection Complete the Transaction Log, signing and dating it to confirm you have checked and agreed the statement to your receipts. Remember to complete a NIL return for no purchases if applicable The Transaction Log can be printed off from Inline. (Type Purchase Cards in search box, select Purchase Cards - BCC)

12. 12 Pass the statement, original receipts and Transaction Log to your manager, who must check all the receipts agree to the statement. Having approved the authenticity and accuracy of the purchases, your manager should also sign and date the Transaction Log to evidence their approval. You must retain your statements, original receipts and transaction log for a minimum of 6 years (HM Revenue and Customs Regulations) Your statements, original receipts and transaction log records may be subject to inspection at any time and must be provided, upon request, for inspection by Audit or Accounts Payable Reconciling Your Transactions (Line Managers responsibilities)

13. 13 What Conditions Are There On The Use Of a Purchase Card? Specific rules for you the cardholder Only you may use the card Monthly card limit set at time of application Single transaction limit set at time of application Merchant category groups blocked as agreed at time of application but all cards are blocked for cash transactions You must treat the Purchase Card with the same caution as if it were your own personal card and keep it secure at all times If the card is lost or stolen you should contact the Bank immediately (24/7 phone number 0870 6000 459 or +44 1423 700545 from outside UK) The card will be cancelled, then inform the Purchase Card Administrator. Note 1)Never give the card details over the telephone to anyone other than a bona fide company – no person or organisation will contact a cardholder asking for card details but there are fraudsters who may try to obtain your details in this way. 2) Whilst the Purchase Card is embossed with the cardholders name, the account & therefore the liability is BCC’s. Consequently there is no impact on the cardholders personal credit status.

14. 14 What Conditions Are There On The Use Of a Purchase Card? Change of circumstances: Contact the Card Administrator with any changes in circumstances that will impact on the use of the card including 1.Changing Directorate (default fund centre) 2.Leaving The goods are wrong / faulty: Contact the supplier to arrange a credit/exchange – record credits in the same way as the original purchase. If unresolved, refer to your Line Manager Item appears on statement but the goods have not been received: Contact the supplier to obtain proof of delivery Check receipts as name above shop door can be different to the name that appears on the statement If unresolved, refer to your Line Manager

15. 15 Contact The Purchase Card Administrator If: Your Line Manager should email if your card has been blocked, due to the category or spend limits, with the amendments that are required Your name, job, manager or directorate changes You or your authorising manager leaves BCC If your card is damaged or faulty and you have already contacted the bank to obtain a replacement.

16. 16 Part B Value Added Tax

17. 17 Value Added Tax General rules about getting receipts/invoices It is important to obtain a valid receipt/invoice when making purchases. This is because the City Council can recover all VAT on the purchases it makes, providing it satisfies the requirements of Her Majesty’s Revenue and Customs (HMRC). However in order to do this you need to obtain a valid VAT receipt/invoice. HMRC specify the requirement of VAT receipts/invoices. Where possible you should ensure the VAT receipt/invoice includes a breakdown of the goods and services and the VAT amount, although we appreciate this may not always be possible.

18. 18 Value Added Tax Specific issues - Obtaining receipts/invoices Petrol If you are buying petrol for council vehicles or equipment, in addition to the transaction receipt, you must ask for a VAT receipt/invoice. Petrol stations do not usually offer VAT receipts/invoices unless they are asked for. Value for money Remember, if you cannot get a VAT receipt/invoice you will not be able to recover any of the VAT incurred. So even if something seemed like good value, if you can’t recover the VAT it may prove more expensive. Bear this in mind when purchasing from small retailers who maybe cannot provide VAT receipts/invoices.

19. 19 Value Added Tax Internet purchases When you purchase over the internet you often receive an email to confirm the purchase. This is not however a VAT receipt/invoice. In addition to the confirmatory email you should also ask for a receipt/invoice, which must comply with HMRC VAT rules and regulations. A company has to be VAT Registered if it has a turnover of over £67,000 pa. IMPORTANT Cardholders are required to assign the VAT in Dcal to ALL purchases made from none Purchase Card capable suppliers regardless of the VAT status. Cardholders should be aware that they are in breach of BCC’s Financial Procedures (PSPG) when failing to comply with this process. Persistent failure to comply will result in the cancellation of the card.

20. 20 HMRC Guidelines On VAT Receipts/Invoices If the individual supply is £250 or less (including VAT), the receipt/invoice should include: The company name, address and VAT registration number; The date of supply (tax point); A description which identifies the goods or services supplied; and For each VAT rate applicable, the total amount payable, including VAT and the VAT rate charged, shown in sterling. Please note that till receipts from larger retailers may contain this information.

21. 21 HMRC Guidelines On VAT Receipts/Invoices If the individual supply exceeds £250 you should request a Full VAT receipt/invoice. A Full VAT receipt/invoice should include the following: The company name, address and VAT registration number; The date of supply (tax point); Date of issue (if different to the time of supply); Your name and address; The type of supply; and A description which identifies the goods or services supplied. For each description, the receipt/invoice must show: the quantity of goods or extent of the services; the change made, excluding VAT; the rate of VAT; the total charge made; the rate of any cash discount offered; each rate of VAT charged and the amount of VAT charged at each rate and shown in sterling; and the total amount of VAT charged, shown in sterling.

22. 22 Examples of VAT-able and Non-VAT-able supplies VAT Non-VAT PetrolPublic Transport – zero rated Luxury foods (incl bottled water)Basic food (groceries) – zero rated Hot foods (takeaway, restaurant)Books and Newspapers – zero rated DVDsGift vouchers Toys and gamesStamps - exempt Adult ClothingChildren's clothing – zero rated Leisure activities (theatre cinema, bowling, theme parks) Legal documents (car tax) – non business Courses provided by the commercial sectorCourses provided by the public sector Fixtures, fittings and equipment Car parking Repairs

23. 23 Part C On Line Banking Dcal

24. 24 Overview Dcal is a web-based application linked to the NatWest purchasing card scheme providing card holders the ability of administering their account electronically. The application allows card holders to: Assign VAT to transactions (Mandatory), except Level 2 & 3 transactions which have Vat assigned automatically by the Vat capable supplier Review card transactions (Mandatory). This charges the budget on voyager and leads to payment at the bank. Change Cost Centre and G/L Account codes where necessary Split transactions for multiple cost allocations where necessary Run transaction reports where necessary Dcal provides BCC with a direct interface to Voyager and a reporting tool for all of the purchasing card transactions.

25. 25 User Name and Passwords Username and password will be given to you by the Purchase Card Administrator. The first time you log onto Dcal you will be asked to change the password and validate it. The new password entered must be a combination of upper and lower case, alpha and numeric characters and must be a minimum of 8 characters in length. Example; Samp1e01 (this is a sample password only). If you forget your password, email the Scorpion Administrator requesting to be reset, do not use the Reset Password button within the Dcal System.

26. 26 Logging into Dcal To log into Dcal: 1.Open the internet explorer 2.In the address field type www.dcalonline.com The Dcal login screen is displayedwww.dcalonline.com 3.Click Start Login Process ( DO NOT CLICK ‘CHOOSE A LANGUAGE’) 4.Enter username (click next) 5.Enter password (click next) 6.Answer security question (click submit) Note – If you forget your username/password DO NOT click on the blue/purple questions? on these pages. Email the ‘Scorpion Administrator’ requesting to be reset & unblocked. You should get a response within 24 hours

27. 27 Logging into D Cal

28. 28 Alerts Screen If on login Dcal has alerts for you, the application window is displayed. This is the alerts screen and indicates any changes to the application that you need to know. Click on the ‘Transaction’ button to proceed.

29. 29 E Statement Screen If Dcal has no alerts to issue to you, the E-Statement screen is displayed. The E-Statement screen is where details of the transactions that have occurred on your card within the current billing period are displayed. Click on the ‘Transaction’ button to proceed.

30. 30 Transactions Screen

31. 31 Transactions Screen Scroll sideways to check budget codes Check you are in the current period Check you are in New/Imported

32. 32 1 - Assigning VAT & Review Click on Tax button to clear VAT Tick box next to amount to be cleared

33. 33 Transactions Screen

34. 34 Review Screen Click on Review Button

35. 35 Review Screen

36. 36 Transactions Screen 2 – Change budget code, Assign VAT & Review Click Assign CAC’s to change budget code Tick box next to item to be cleared

37. 37 Changing the Budget Code Type in Subjective required Click Filter

38. 38 Changing the Budget Code If correct click in this box Click Submit or Submit & Close

39. 39 Transactions Screen Assign VAT as before

40. 40 Review Screen

41. 41 Review Screen

42. 42 Transactions Screen 3 - Split Transaction & Review Tick box again Click Split to create split lines

43. 43 Adding Split Lines to Transactions Enter number of lines required Then click on Create Split Lines

44. 44 Adding Split Lines to Transactions

45. 45 Transactions Screen

46. 46 Review Screen

47. 47 There are 3 ways to review a payment 1.Budget/Cost Codes correct, Vat allocation and review. This will cover the majority of payments 2. Budget/Cost Codes to be amended, vat allocation, review 3.Split the transaction, vat allocation, amend budget code if necessary, review. Note All transactions must have the Vat assigned, codes checked and amended where necessary, and transaction reviewed within 3-5 working days. Cardholders should be aware that they are in breach of BCC’s Financial Procedures (PSPG) when failing to comply with this process. Persistent failure to comply will result in the cancellation of the card.

48. 48 Check the budget codes first On the transaction screen, scroll right passed the yellow columns. Check the GL Account Code is correct Check the Cost Centre Code is correct Check the Fund is correct. Make a note of the lines that are incorrect.

49. 49 Assigning Tax to VAT Based Transactions 1.Select the transaction to allocate VAT to. 2.In the functionality panel click Tax. 3.The VAT based tax codes panel opens. 4.Select the tax code to apply. 5.In the functionality panel click on Assign & Calculate to close the window and apply the tax rate and tax code to the transaction(s). The original tax amount and original net amount are recalculated. 6.For foreign currency transactions click Assign Tax Code Only to close the window and apply the tax rate and tax code to the transaction(s) this does NOT recalculate the original tax amount and original net amount for the transaction. 7.Click Close in the functionality panel to close the window without updating the transaction. 8.VAT will be calculated automatically in Dcal for all Level 2 & 3 VAT enabled supplier transactions.

50. 50 1 - Assigning VAT & Review Click on Tax button to clear VAT Tick box next to amount to be cleared

51. 51 How to Review Transactions 1.Select the line(s) you wish to Review 2.In the functionality panel click Review 3.You will then be asked if you want the status of the transactions to be reviewed – Click yes. 4.You will be told that the transaction was successful – click OK.

52. 52 Review Screen Click on Review Button

53. 53 Review Screen

54. 54 Changing the Budget Code 1.In the main Process Transactions screen, select the check box of a transaction whose budget code you want to change. 2.Changing a subjective code. In the functionality panel click Assign CAC. On the pop up screen that appears, ensure Level 1 is set, and then type in the appropriate GL Account and click on Filter. This will filter out all but your code. Select this and then click on Submit and Close. The code will change. 3.Changing a cost centre code. In the functionality panel click Assign CAC. On the pop up screen that appears, ensure Level 2 is set, and then type in the appropriate Cost Centre and click on Filter. This will filter out all but your code. Select this and then click on Submit and Close. The code will change. 4.Changing a fund code. In the functionality panel click Assign CAC. On the pop up screen that appears, ensure Level 3 is set. Select correct fund and click filter, click Submit and Close. The codes will change.

55. 55 Transactions Screen 2 – Change budget code, Assign VAT & Review Click Assign CAC’s to change budget code Tick box next to amount to be cleared

56. 56 Changing the Budget Code Type in Subjective required Click Filter

57. 57 Changing the Budget Code If correct click in this box Click Submit or Submit & Close

58. 58 Adding Split Lines to Transactions 1.In the main Process Transactions screen, select the check box of a top line transaction. 2.In the functionality panel click Split. 3.The Split dialog box is displayed with information from the top line transaction including the Merchant Name, Original (Source) Amount, Exchange Rate (only displayed for foreign transactions), Billing Amount, Tax Receipt Amount, Net Amount, Tax Rate and Tax Code. This information is used as a reference when applying the split information and is static and non-editable. 4.Enter the number of split lines required. 5.Select a format for the split by choosing the 'Billing Amount Split' or 'Percentage Split' radio buttons. 'Billing Amount Split' is set as the default on entering the screen.

59. 59 Adding Split Lines to Transactions 6.Click Create Split Lines. 7.On submission, the required number of split lines is displayed in the main panel. By default the new split lines have a default description applied. E.g. Split 1, Split 2, Split 3 etc. You may edit the default descriptions. 8.Depending on the choice of radio buttons, the 'Billing Amount' or 'Percentage' columns are editable form fields. Enter the relevant amounts in the fields. 9.When working in the billing amount or percentage split mode, enter values in the form fields. The last split line form field is none editable and shows the remainder of the total as other split line values are entered. 10.Only when the split line totals matches the billing total or 100% will the other values (original, billing amount, tax amount, net amount be calculated, 'Submit' and 'Submit & Close') button become active allowing the user to save the split lines to the main Process Transactions screen. Percentage amounts are restricted to two decimal places.

60. 60 Adding Split Lines to Transactions 11.VAT, where applicable, should be assigned at this point. Select the rows you have just split, click on the Tax button, select the correct rate and code, and click on Assign and Calculate. 12.Click Submit. The dialog box closes and the split fields are applied in the main Process Transaction screen. 13.Split lines take all default budget codes from the top line. Budget codes can only be changed in the main screen and not within the split transaction screen. 14.When all the tax codes in the split lines are all the same then the top line tax code is the same. If there are is a mixture of tax rates then the top line displays MIXED. 15.In the main Process Transaction screen, a scissors icon denotes a new split line. 16.Credit transactions can be split. Credit transactions are denoted by a minus sign. In the split screen split the transaction as normal. A minus sign is not needed before the amount. 17.Deselect the row.

61. 61 Transactions Screen 3 - Split Transaction & Review Tick box again Click Split to create split lines

62. 62 Adding Split Lines to Transactions Enter number of lines required Then click on Create Split Lines

63. 63 Adding Split Lines to Transactions

64. 64 Useful information To view previous expenditure, enter dates required, change the Trans Status to ALL, click FILTER (far right hand side of the screen level with the dates) Review all items weekly (Within 3 – 5 working days) The accounting period is always the 4 th of one month to the 3 rd of the next. All payments showing up to the 4 th must be cleared by the 6 th of the month. When accessing Dcal on 4 th, 5 th, 6 th to clear the previous months transactions, change the From date to the 4 th of the previous month & click FILTER (far right hand side of the screen level with the dates) You can view this months Reviewed items, change the Trans Status to Reviewed, click Filter Annual leave - try not to purchase goods within 1 week prior to going on leave if the leave is over the period end. Sick leave – make sure that journals are operated where necessary.

65. 65 Transactions Screen

66. 66 E Statement Screen

67. 67 Transactions Screen On line help

68. 68 Reports Reports should be run at the end of each cycle (i.e. 3rd of the month) and checked against your budgetary control statements and your bank statement. Two reports are available to card holders: Cost Allocation Report. This report shows the budget code that each of your transaction has been coded to. Cardholder transaction report. This report details the transaction made during the last reporting period.

69. 69 How to Run a Report 1.Click on Run Reports. 2.Click on Radio button to select the report to run.

70. 70 How to Run a Report 4.The Report Details panel opens. 5.Edit the run details as required by inserting the dates. 6.Click on Run Reports.

71. 71 How to Run a Report 7.Click OK to run the report. Wait while the report runs Click on Download Reports

72. 72 How to Download Reports 1.Click on the radio button of the report to download. 2.Click Download pdf.rtf.xls Report. 3.Download the report to a folder on your computer to save it, or if you want to print it click Open, click Print then Exit without saving. Only reports in the status 'Ready' or 'Downloaded/Viewed' can be downloaded.

73. 73 Transactions Screen To Logout - Make sure Trans Status is on New/Imported - Click on logout

74. 74 Part D Compliance

75. 75 Compliance Rules 1.Purchase goods which are non contract and usually under £500 2.Purchase goods only for which you have been given authority by your manager 3.Retain receipts and transaction log for audit inspection for 6 years 4.Apply VAT, amend budget codes where necessary & review transactions within Dcal weekly 5.Ensure you do not claim for any of these goods via Payroll etc etc Cardholders & managers should be aware that they are in breach of BCC’s Financial Procedures (PSPG) when failing to comply with this process. Persistent failure to comply will result in cancellation of the card and may result in disciplinary action.

76. 76 e-CataloguePurchase Orderp-CardPO-Exempt When All regular spendAll regular spend where the items are not on the e- Catalogue  Value < £500  No contract  Emergency  Instead of using Petty Cash ONLY where PO exemptions are in effect (see approved list on Inline) Order through Voyager Direct to Supplier via: –Internet –Fax –Telephone –Face-to-Face Direct to Supplier via: –Fax –Telephone Approval through VoyagerGoods receipt in Voyager when value > £500 within 3 working days Review in D.Cal within 5 working days  Invoice approval via Voyager Worklist within 3 working days  Use of p-Card where appropriate avoiding a low-value paper invoice Why  Compliance: – Purchase Order – On contract  Value For Money  Accurate tracking of : –Budget Commitment –Areas of Spend  Order from approved Suppliers – minimum risk: – Financial – Operational – Reputational  Fixed price  Standard product  Compliance: – Purchase Order – Buy On contract  Value For Money  Accurate tracking of : –Budget Commitment –Areas of Spend  Order from approved Suppliers – minimum risk: – Financial – Operational –Reputational  Compliance  Replaces PO for low value, non contract spend  Value For Money  Accurate tracking (via D.Cal) of: –Budget Commitment –Areas of Spend – VAT recovery  Reduced supplier queries  Minimises cost of invoice processing  Timely Supplier Payment (within four days)  Guaranteed for goods over £100 CPS have agreed that the categories on the exemption list can be bought without a purchase order One of these processes is required for ALL spend

77. 77 Part E Contacts

78. 78 Key Points of Contact Neal Currier 464 9681 or Ann Wakeman 675 0283 for help or general enquiries, amendments to Card Transaction Limits or Categories please email Lisa Lyttle 675 4643 Email ‘Scorpion Administrator’ to Reset ID & unblock in Dcal Telephone NatWest bank with PIN number or card declined problems 0870 909 3702 Telephone NatWest bank if card lost or stolen – 0870 6000 459 Contact Leigh Nash with VAT Queries 0121 303 2691, complex VAT queries ONLY Enquiries regarding what are contracted goods ring Corporate Procurement Services 0121 464 8000. ( Corporate Express Help Line 331 3555 for specific Stationery enquiries)

79. 79 Purchase Card Cardholder Training Trainer - Neal Currier