DESCRIPTION

Disbursements processes payment for goods and services purchased on a Purchase Order (PO), (See APPM Section 2, Procurement Process).

POLICY

A Purchase Order , an invoice from the vendor, and acknowledgment of receipt via transaction 040 (TXN 04 in the Purchasing/Payables System), are required to pay a vendor for goods or services purchased via a PO. The original invoice resulting from a PO must be mailed by the vendor directly to Accounts Payable as indicated on the PO. Telephone inquiries from vendors on payment issues are referred to Disbursements. The invoice must match the PO, and must include the following information:

1. Quantity (if goods)

2. Description of goods or services

3. Price (unit price and extended price, if applicable)

4. Freight charges (if applicable)

5. Vendor name and remit to address

6. Payment terms (i.e., due date, applicable discounts)

Confirmation of receipt of goods or services must match the PO If the goods are delivered to Central Receiving, then generally, Central Receiving processes TXN 040.

If Disbursements has received the vendor invoices against a properly authorized PO and TXN 040 is not done, a notification is sent to the requisitioning department advising the department that the invoice will be paid in ten days unless the requisitioning department advises Disbursements otherwise.

To stop the vendor payment, the requisitioning department must contact Disbursements by telephone, followed by a confirmation memo within the ten-day limit set by Disbursements.

Note: If TXN 040 is not completed and the vendor is paid after notifying the department, any resulting liability to the University is the full responsibility of the requisitioning department.

Invoices with a unit price or quantity within the greater of 5% or $50 of the PO will be considered to match the PO. The account distribution for dollar amounts within these tolerances will match the PO. For instance, if the PO is distributed 75% to one account and 25% to another account, the dollar amount variance will be distributed the same way. If the tolerance is favorable both accounts will share proportionately in the lower amount and if the tolerance is unfavorable both accounts will share proportionately in the higher amount. Alternatively, if the PO has two lines (i.e. two items) with one line charged to one account and the second line charged to a different account, any dollar amount difference for each line will be contained to the account distribution for that line.