Invoices - Entering Vendor Invoices

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Scope

This procedure covers entering invoices from vendors.

System References

Invoices - Entering Invoices Not Matched to Purchase Orders NAV5504U ( in review)

Invoices - Matching Invoices to Purchase Orders [NAV5503U]

Invoices - QuickMatch NAV5507U (in review)

Policy

Invoices are entered by the AP Invoice Processor.

Vendor information in the database is maintained by the Vendor File/1099 Coordinator who cannot process vouchers or issue vendor payments

Invoices for new vendors will remain on payment hold until the AP Vendor File/1099 Coordinator ensures all vendor information is received and valid, and removes the payment hold.

The Prompt Payment Act (Code of Virginia, Article 2.1) requires that all state agencies pay at least 95% of all invoices in 30 days. Agencies must report their prompt pay status to the State Comptroller on a quarterly basis.

The University's standard payment terms:

are 30 days from receipt of a valid invoice or receipt of goods or services, whichever is later.
are always "Net 30" unless the Director of Procurement Services establishes a pre-agreed-upon contract with a vendor.
are established by the Vice President for Budget and Management in accordance with the state's Prompt Payment Act
are reflected on every payment, unless pre-agreed upon terms are established by a contract
can be changed only with the appropriate approvals
always take precedence over the terms reflected on the vendor's invoice

Vendor invoices reflecting prices that exceed purchase order prices will not be paid and will be placed on hold, except for invoices that fall within University tolerances.

Tolerances will be established by the Director of Procurement Services.

Proof of delivery documents, for example, supplier packing lists or purchase receipt tags, are filed and maintained by the receiver; they are not forwarded to the accounts payable department for filing and reference.

Purchase orders are issued for all restricted items and for purchases not listed on the demand payment list.

Financial liability is recognized at the time payment is approved; that is, inventory and departmental accounts are debited at the time Accounts Payable enters and approves the invoice. The process charges the departmental account for the payment and credits the accounts payable liability account.

Invoices are processed daily in the order in which they (or other requests for payment) are received. Invoices are paid on the system-calculated due date. The accounting entry to reduce accounts payable liability and cash accounts is made at that time.

Responsibility

The AP Invoice Processor is responsible for entering supplier invoices.

Distribution

Director of Procurement Services

AP Administrator

AP Invoice Processor^*

Ownership

The Director of Procurement Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is initiated by receipt of vendor invoices.

Vendor invoices are received in the Accounts Payable mail and are forwarded by the mail clerk.

AP Invoice Processor

1. Determine whether invoice matches to a purchase order.

If the invoice matches to a Purchase Order, the P.O. number should be on the invoice.

If the invoice matches to a purchase order, goto task #2. Otherwise, goto task #3.

2. Enter information from invoice.

Payables
N ® Invoices ® Entry ® Invoices
Invoices

Refer to Invoices - Matching to Purchase Orders [NAV5503U].

Goto task #4.

3. Enter all information from invoice, including PTAEO information.

Refer to Invoices - Entering Invoices Not Matched to Purchase Orders NAV5504U (in review).

4. Determine if a discrepancy exists related to approval.

If discrepancy exists related to approval, goto task #5. Otherwise, goto task #7.

5. Place invoice on appropriate hold.

6. Give problem invoices to mail clerk with instructions to make two copies, return one copy to invoice processor, and send one copy to originator.

End of activity.

7. Approve invoice.

System tolerances will be validated during approval.

8. Record IS Voucher Number on the paper invoice.

9. Record Delivery Location on the paper invoice.

10. Forward the paper invoice to the mail clerk.

The mail clerk will file the documentation.

Goto Invoices - Resolving Invoice Holds [PRO5506U], as needed.

End of activity.

Invoices - Entering Vendor Invoices: Flowchart

Effective: 05/18/09