Procedure: 6-101

Effective: July 2, 2001

Owner: Director of Procurement Services

Latest Revision: April 21, 2003

 

Preparing Payment Vouchers

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The section on travel reimbursements is currently being revised. In the meantime, please follow the procedures outlined in Travel Expenses Policy and on the Procurement Services web site.


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Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

Scope

This procedure covers the specific steps that must be taken by departments to submit a Payment Voucher to Procurement Services.

This document includes instructions for preparing Payment Vouchers in general as well as information on the following specific topics:

    • Demand Payments
    • High Risk Expenditures
    • Reimbursement for Travel Expenses
    • Reimbursing Departments through Vendor Paid Travel
    • Reimbursement for Meal Expenses
    • Petty Cash Vouchers and Reimbursements
    • Honoraria Payments
    • Paying for Contractual Teaching Services and Non-Teaching Academic Consulting
    • Payment in Foreign Currency
    • Payment to Foreign National Individuals

System References [Top]

The forms that need to be used when preparing particular types of Payment Vouchers are the following:

    • The Travel Workbook
    • Business Meal Certification for Non-Overnight Travel
    • Employee/Independent Contractor Classification Checklist for Demand Payments
    • Approving Contractual Teaching Services/Non-Teaching Academic Consulting Services
    • Approval for Honoraria
    • Petty Cash Fund Reimbursement Voucher

All required forms must be filled out according to the instructions provided on the most recent copy of the form itself. The most recent version of these forms may be obtained from the University Forms Directory or from the Procurement Services web site.

The Oracle Navigation instructions that correspond to this procedure are:

Policy [Top]

This procedure corresponds to, and should be read in conjunction with, the following general policies:

In addition, specific aspects of this procedure correspond to, and should be read in conjunction with, the following specific policies:

Responsibility [Top]

The departmental PO Purchaser is responsible for submitting Payment Vouchers.

In Procurement Services, the Invoice Processor is responsible for reviewing and approving Payment Vouchers.

Distribution [Top]

Ownership [Top]

Payment Vouchers are handled by Procurement Services. Please see the Procurement Services web site for contact information and news about any recent changes in policy and procedure affecting the processing of Payment Vouchers.

Procedure Steps [Top]

General Requirements

  • Payment Vouchers for Demand Payments that are not classified as High Risk can be processed entirely at the departmental level and will not be pre-reviewed by Procurement Services.

  • A separate Payment Voucher is required for each payee.

  • Paper Documentation -- Departments must prepare and submit Payment Vouchers and supporting documentation electronically in Oracle. Complete original paper documentation, however, is still required for all Payment Vouchers.

    For travel and petty cash reimbursement, the original paper documents with all appropriate signatures must be forwarded to Procurement Services. In other cases, the paper documents must be retained in departmental files for three years plus the current fiscal year.

    Departments are responsible for getting the appropriate signatures and maintaining a file in Voucher number order. These files must be made available when requested by Procurement Services for internal review or external audits.

  • The voucher number must be included on all standard forms or other paper attachments.

  • Oracle Supplier List -- Departments must make sure the vendor is in the Oracle Supplier List before submitting Payment Vouchers to Procurement Services.

    Procurement Services can only pay the exact amount entered on a Payment Voucher, so freight charges, if any, must be included in the total amount on a Payment Voucher.

    Departments are responsible for determining whether a payee is an employee or an independent contractor. The Employee/Independent Contractor Classification Checklist for Demand Payments form may be used to make this determination. This form must be signed by the Department Head.

    Departments are responsible for complying with all federal Immigration and Naturalization Service (INS) regulations when preparing payments to foreign vendors.

    Questions about how to process payments to foreign vendors should be referred to the University Payroll Office.

    Step-by-step instructions for preparing a Payment Voucher in Oracle may be found on the ISDS web site in Oracle Navigation under Payment Vouchers.

Preparing Specific Types of Payment Vouchers

  1. Demand Payments -- Payment Vouchers may be used to pay for goods and services up to the limits specified on the Goods and Services Procurement Guide.

  2. High Risk Expenditures -- A High Risk transaction is defined as anything costing $5,000 or more as well as specific types of goods and services in any amount.

    • All Payment Vouchers for High Risk goods and services will automatically be placed on hold in Oracle and will be reviewed in Procurement Services before payment is made.


  3. Travel Reimbursement -- The procedures for travel reimbursement are on the Procurement Services website.

  4. Reimbursing Departments through Vendor Paid Travel -- In some circumstances, Procurement Services may arrange for vendors or potential vendors to reimburse the University for travel expenses incurred by University employees to inspect or be trained on new equipment, to visit a site where goods or services can best be evaluated, or for some other purpose which is in the best interests of the University.

    • Employees must notify the applicable Vice President in writing at least one month in advance of such travel to ensure adequate time for review. The employee must provide the name of the vendor, the dates of the trip, and the estimated value of the trip. The employee must also explain the reason for the trip and the benefit of the trip to the University.

    • If pre-approved by the Vice President, the University employee may accept the trip. The traveler must seek reimbursement for travel expenditures from Procurement Services, following the same procedure outlined above under Travel Reimbursement. The traveler is bound by the same conditions and spending limits prescribed for regular travel on official University business as outlined in the procedure for Travel Reimbursement and in Travel Expenses -- Policy VI.G.1. Procurement Services will reimburse the traveler and then seek reimbursement from the vendor. Travelers may not seek reimbursement for travel expenses directly from the vendor.

  5. Reimbursement for Meal Expenses -- The procedures for business meal payment and reimbursement are on the Business Meals page of the Procurement Services website.

  6. Petty Cash Vouchers -- The procedures for replenishing a petty cash fund are on the Petty Cash Replenishment page of the Procurement Services website.

  7. Paying for Honoraria -- Departments must process honoraria as demand payments and fill out the Approval for Honoraria form.

    • This form requires the signature of the Department Chair or designee to indicate approval for the payment. If the amount of an honorarium exceeds $2,000, this form will also require the signature of the Dean or Vice President. If the recipient of an honorarium is a foreign national, he or she must sign this form to indicate what type of visa he or she holds.

    • Once completed, an electronic copy of the form should be saved to disk or to personal computer. The saved document must then be attached to the Payment Voucher in Oracle.

    • A paper copy of this form with the appropriate signatures must be kept on file in the department for three years plus the current fiscal year.

    • Foreign national recipients of honoraria should contact the University Payroll Office.

    • If reimbursement for travel expenses is sought, a separate Payment Voucher must be filled out and submitted. Please see the procedure for Travel Reimbursement.

  8. Authorizing Contractual Teaching Services and Non-Teaching Academic Consulting -- Departments must fill out the Approving Contractual Teaching Services/Non-Teaching Academic Consulting Services form.

    • This form must be signed by the payee, Department Head, and the Dean or Vice President.

    • Once completed, the form should be saved to disk or to personal computer. The saved document must then be attached to the Payment Voucher in Oracle.

    • A signed and dated original paper copy of this form must be kept on file in the department for three years plus the current fiscal year.

  9. Payment in Foreign Currency -- When a vendor requests payment in foreign currency, departments should be aware of the additional cost in processing a foreign payment. Therefore, departments should make sure the vendor will not accept payment in U.S. dollars before submitting the request for payment in foreign currency to Procurement Services.

    • In most instances a wire transfer will be used to process payment.

    • When preparing the Payment Voucher in Oracle, the departmental PO Purchaser should include an attachment indicating what specific foreign currency to use for payment as well as any banking information necessary to prepare a wire transfer of funds if that payment option is requested.

    • Procurement Services reviews and authorizes payments in foreign currency. Procurement Services will notify the Treasurer, and the Treasurer will prepare and send a wire transfer of funds.

    • Note: The actual payment amount will depend on the exchange rate at the time the payment is prepared.

  10. Paying Foreign Nationals and Non-Resident Aliens -- Departments are responsible for making sure all federal Immigration and Naturalization Services (INS) regulations are followed when preparing payment to foreign nationals or non-resident aliens.

    • Questions about how to process payments to foreign nationals or to non-resident aliens should be referred to the University Payroll Office.
 

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