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Accounts Payable Process

Accounts Payable Process

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Accounts Payable As-Is Processes Main Functional Areas

September, 2002

Invoice Payment Process

Stop Payment

Vendor Relations


1099 Reporting


Accounts Payable As-Is Processes Invoice Payment Main Processes
VPAM: Voucher Payment and Maintenance


Invoice Auditing

Key Payment in VPAM

Verify Payment

Editing & Check Printing

Distribute Checks


Return to Page 1


Order Copy to Vendor Relations Copy to Vendor Copy to Department Match Invoice with PO Audit Invoice No Return Invoice to Vendor Original to Be Filed with Voucher Copy to Department Copy to Vendor If 3 Copies Received Stop Stop Prepare & Distribute Dispute Letter No OK to Pay? Distribute Invoice for Payment Yes Payment in International Currency Negative Approval Less Than 30 Days Over 30 Days and Interest >$5 Route Invoice to Manager Positive Approval Less Than 30 Days Route Invoice to Dept. Returned Within One Week? Route to Cash Mgmt.Accounts Payable As-Is Invoice Processes Invoice Auditing Begin Receive Invoice from Vendor Has PO #? Yes Sort Invoice in Alpha. Return to AP Main Process Route to Keying Payment in Foreign Currency ? Manager Calculates Interest No Call Department Yes 3 .

Partial. use the 45-day rule if a new order number is not in the Purchasing System. Misc. Audit Date & Amount Over $500 Route Copy of Invoice to Property Control Yes Class Code 4000s? No Class Codes Split? Yes No Class Code 3221. Begin Verify Order Ending Date Note Partial Shipment on PO Work Copy Yes Partial Shipment ? Verify Prices Match Invoice Items with PO Work Copy Verify Items Match with PO Work Copy & Verify Prices No Verify Ship-To Address Agrees with PO Work Copy If Manual Written Invoice. Accounts Payable As-Is Invoice Processes Audit Invoice Verify Received Document Is An Invoice Verify Invoice Vendor Name Agrees with PO Vendor Name Verify Invoice Is Dated Post Order Date Blanket Order? No Yes If blanket order is past ending date.This diagram explains the invoice auditing process. Verify Extended and Total Amounts Deduct Sales Tax If Service Was Provided in WI Mark Payment Type in Audit Box in Green Ink (Final.) Route Invoice to Keyers Return to Main Process Return to Invoice Auditing Sub-Main Verify Freight Terms Record on PO Work Copy Inv #. 3227 or 3228? Yes Route Invoice to RSP No Write Out Split Class Codes for Keyers No Positive Approval ? Yes Apply Sticker on Invoice Record Inv # and Routing Date on PO Work Copy 4 . Inv Date. The same process applies to the invoice auditing performed by ³delegated´ departments.

‡A batch cover sheet is attached if it is received. Ops for Internal Transfers Audit Invoice Return to AP Main Process 5 . No batch cover sheet is used for internal transfer batches. Remittance Copy. Receive Invoice from Auditors Begin Receive Invoice from Delegated Depts. Prelist in CARDS Receive Invoice from Fin.Accounts Payable As-Is Invoice Processes Key Invoices in VPAM Note: ‡Except for internal transfers. there are no batch totals during data entry. Key Invoices into VPAM Problems in Data Entry? Yes Route Invoice to Auditor No System Generates Voucher.

Remittance Copies.Accounts Payable As-Is Invoice Processes Verify Payment Receive Vouchers. Pre-list. to Documentation Verifiers Check Amount. Ops Corrections OK? No Investigate & Resolve Select & Release in TMNT Yes Return to AP Main Process 6 . Vendor & Address Begin Lead Workers Update Changes in Pre-List (CARDS) Keyers Make Correction in VPAM Prepare Correct Slip & Route to Keyer No Data Entry Correct? Yes Lead Workers Check Batch Total Release Job for Overnight Process Organize & Deliver Vouchers to Fin. Reports from DoIT Lead Worker Matches Voucher etc.

Begin Receive Reports from DoIT From Purchasing System. Adjust Reqs. Batched by payment type & totals. No Correct Errors on 3270 EPCC Suspense File No Type 47 Errors? Yes Investigate & Correct Errors on EPRQ Fringe/OH Encumb. On 3270 Request DoIT Run Job 0421A End View Job Totals on 3270 Calculate & Compare Totals Totals Agree? Yes Request DoIT Run Job 0421F No Investigate & Correct Remaining Errors Load File to WisMART State Treasury Signs Checks Return to AP Main Process 7 . ‡Revenue: 30s ‡Encumbrance & Reqs: 40s ‡Payment: 50s. Daily Edit & Post Transaction Exceptions Listing Review Report Type 50s Transactions( No $ totals). List Number Totals Check Number Range Daily Edit & Post Batch Control Report Transaction Count Table Entry Change Report Discrepancy Between Req & PO Exceeds $100? Yes Combination of UDDS. Errors.Accounts Payable As-Is Invoice Processes Major Transaction Types: Editing & Check Printing ‡Budget: 20s First 5-digit of a VO# is List #. Activity & Class Codes.

Mexico. campus mail. overstuffed Envelope. etc. Ops Verifies WisMART Transactions & Totals Sort Checks Based on Voucher Batches Match Check to Remittance Copy Matched? No Route to Supervisor Yes File Room Label Voucher Box File Room Mails Checks & Remittance Copy Sort Envelopes Based on Distribution List Stuff Envelopes Supervisor Investigates & Resolves International.Accounts Payable As-Is Invoice Processes Distribute Checks Receive checks from State Treasury Begin Fin. File Room Attaches Edit & Post Exception List to Vouchers File Room File Vouchers File Warrant Registry Return to AP Main Process 8 . courier pick-up. domestic. oversized Envelope. Canada. US mail pre-sorted.

Yes Route Check & Voucher to Cash Management Payment Correction Applied Within 6 Months? No Vendor Relation Requests a Refund Check From Vendor End Return to Page 1 9 . (Credit memo data is maintained in Excel. Check & Remittance Copy On average. of Duplicate or Wrong Payment Check Mailed Out? Yes Request Proof of Payment or Stop Pay from State Treasury Auditor Approves Credit Memo Keyers Apply Credit Memo to Next Invoice Vendor Relation Issues a Credit Memo State Treasury Reissues Check to the Same Vendor No Prepare Stop Pay/Correction Form Pull Out Voucher.Accounts Payable As-Is Processes Stop Payment Begin Receive Notification from Dept. Route to Cash Management No Check Stopped? Yes Keyers notify vendor if applied credit amount is more than invoice amount. there are about 20 to 30 stop payments per week.

M.Accounts Payable As-Is Processes Payment Correction Process Begin Reissue Check? Yes Reissue for More Than Original Amount? Yes No C. Credits Req. or PO via DREV C. Deposits check Deposit Check C.M. to the Req. or PO for the difference. Credits Req. or PO via DREV Reissue Check from the Contingent Fund for the Correct Amount A/P Reissue Check via VPAM End 10 .M. No C.M Deposit s Check Check deposited to contingent fund for the correct amount.

country.Deposit to coding used in Contingent Fund Convert invoice amounts to US dollars Go into Ruesch Web Page Enter vendor.2 lines of coding One line of coding for amount of invoices Second line of coding for charges Draft or Wire Transfer? Wire Transfer Write check to send to Ruesch Contingent Fund is reimbursed in normal way Contingent Fund check Sent to Ruesch Drafts Ruesch debits our bank account & wires funds Report of V-Pam Transactions Report of Daily Activity To Barb Bausch Return to AP Main Process Report Filed in Binder Drafts Mailed to Vendors 11 .quotes are good for five minutes To VPam Print Confirmation for Records To Ruesch Copy for V-Pam Copy for Contingent Fund Check for Ruesch .Accounts Payable As-Is Processes Payment in International Currency by Cash Management Accounts Payable PreAudit Departments Invoices received and batched for one week Will not be batched if department indicates immediate payment is required Two checks result from VPam 1 .Reimburse Contingent Account 2 . amount and submit Automatically adds $5 charge .

Accounts Payable As-Is Processes Vendor Relations Main Process Begin Receive from Vendor Past Due Invoices. etc. Determine If Need A Credit Memo or Payback Check Need A Credit Memo or Payback Check Verify with Original Voucher Does Not Need A Credit Memo or Payback Check Need Payback or Credit? Adjust Incorrect Negative Approval Yes Fill Out Payback Form Or Credit Memo Invoice Payment Main Processes End No Send Denial Letter to Vendor Past Due Invoice Process Statements Process Dispute Response Process Return to Page 1 File Copy of Letter with Voucher 12 . Short Pays. Tax Not Paid. Notify Problems with Negative Approval Invoices or Missing Payments Depts. Or Vendor Notify Missing Payments. Statements. Dispute Responses Depts.

Accounts Payable As-Is Processes Vendor Relations ± Statement Process Begin Check the Dates of Items on the Statement More Than 60 Days? Yes Return to & Request Invoices from Vendor No Stop Return to Vendor Relations Main Process 13 .

Accounts Payable As-Is Processes Vendor Relations ± Past Due Invoice Process Begin Determine If Invoice Paid Paid? No Yes When Was Paid? Less Than 30 Days Over 30 Days Pull Out Voucher Verify Check # and Date Stop Notify Vendor of Payment Valid PO# & Not in Dispute? Has Previous Dispute Return to Vendor File Copy of Dispute Document Return to Vendor Relations Main Process Yes Invoice Payment Main Processes Prepare Form 15 End 14 .

Accounts Payable As-Is Processes Vendor Relations ± Adjust Incorrect Negative Approvals Begin Dept. Ops. Route Form to Fin. Ops or Departments. Notifies Incorrect Payment Determine Required Action Adjust Payment Determine Type of Adjustment Transfer Between POs Prepare NonSalary Cash Transfer Form Stop Payment Stop Payment Process Credit Memo or Pay Back Return to Vendor Relations Main Process This process is performed by Accounts Payable. Adjust POs in VPAM Return to Key Payment in VPAM 15 . Fin.

Yes Invoice Payment Main Processes Resolved ? No Refer Dispute to Purchasing & Dept. Purchasing & Dept.Accounts Payable As-Is Processes Vendor Relations ± Dispute Response Match Vendor Response to Dispute Copy on File Review Dispute and Vendor Response Begin OK to Pay? No Resolve with Vendor. Yes Return to Vendor Relations Main Process 16 .

) INQP: PO Data GENT: Transaction 48 inquiries (Inquire PO# to get department contact person initials. Dept Coding. ± ± ‡ List of Delegated Departments for Invoice Auditing: ± ± ± ± Chemistry PSL MDS WDVL Return to Page 1 17 . PO Types.Accounts Payable As-Is Processes Invoice Payment Additional Information ‡ Data Verification Against Purchasing System: ± ± ± ± ± ± ± ± Order # Ship-To Address Vendor Contact Change Order Information Item Description Dates of Requisition Processing Statuses Pricing on Contracts Connection to VendorNet. ‡ Data Verification Against Legacy Systems ± ± ± INQR: EPRQ Data Display (PO Status. etc.) INQC: to verify payment status on POs INQV: To verify payment status on vouchers. class code. Then though initials to get contact phone numbers.

& Dean¶s Approvals Return to Dean¶s Office No OK? Yes Verify Req. Verify VO Entry System Generates Voucher. Remittance Copy. 3221. Approve Requisitions Postage Req. Route 4Ks & 2Ks to Purchasing Issue Other Reqs. To Purchasing Other Requisitions. 2Ks. Prelist in CARDS Create VO in VPAM Confirming Req w/ Invoice Attached (<$5. Under RSP Negotiated Contracts OK? No Correct in VPAM Yes Editing & Check Printing Distribute Checks End Reference Original Equipment PO # and Property Control # if Purchase is a Component of Capital Equipment.Pre-Audit Requisition Auditing Begin Receive Requisitions from Dean¶s Office Verify Class Code is Appropriate for Item Verify Description Is Complete Verify Accompanying Documentation Verify Both Dept. Property Control Verifies Req. 18 End . Is for UW Business Return to Procurement Main Process Route Reqs.000) No Fund 133 Class Codes 4Ks. 3227 & 3228? No Yes Route to RSP RSP Reviews & Approves Class Code 4Ks? Yes Property Control Returns Req.

in EPRQ Dean¶s Office Delivers Req. Begin Dept. Prepares ET Request & Documentation Dean¶s Office Approves Purchasing Creates PO Route to Purchasing by 11am Yes PO Required ? Requisition Auditing Pre-Audit Picks up Req.Pre-Audit Emergency Transaction Processing Dean¶s Office Enters Req. Cash Management Issues Check From Cont. from Purchasing No Any approval by RSP is routed by fax. Fund Cash w/ Order? Yes Route to AP Auditor Invoice Auditing Route to Cash Management No Deliver Check to Purchasing Front Counter by 3pm Yes Checks for Pick Up ? No Purchasing Mails PO or Calls for Pickup End Mail Checks 19 . to Purchasing by 10am Purchasing Date & Time Stamps the Req.

Verify Funding Code Is Correct Begin Pre-Audit Receives Invoice from Vendor Identify Which Dept. to Get Funding Source & Approval Verify VO Entry System Generates Voucher. Code Funding Source on Invoice Dept. Prelist in CARDS Yes Create VO in VPAM Verify Type of Travel Expense Verify Purpose of Business Check Appropriateness of Purchase No Fund 133 Class Codes 2000s? Yes OK? No Correct in VPAM Route to RSP Editing & Check Printing Distribute Checks End RSP Reviews & Approves 20 .Pre-Audit Direct Charge Processes Dept. Dean¶s Office Route Invoice to Pre-Audit Pre-Audit Verify the Amount Is Correct Copy Invoice to Dept. Made the Purchase Call Dept. Remittance Copy. & Dean¶s Offices Approve Invoice This process applies to direct charges for: ‡Utilities ‡Freight (except FedEx) ‡Gas credit card ‡Newspapers ‡Subscriptions ‡Travel agency invoices ‡Memberships & Registrations ‡DOA general service billing. Receives Invoice from Vendor Dept.

Highlight Funding Source on the Bills Copy Bills Contingent Fund Check to Vendor Create VO in VPAM from Contingent Fund Keyers Enter Transfers in VPAM End To replenish contingent fund. Batch Bills (100/Batch) Once a Week Calculate Batch Totals Create Transfer Worksheet in Excel w/ Dept. Contact Name Get Funding Source from Dept.Pre-Audit Direct Charge Processes for FedEx Bills Begin Receive Bills from FedEx Funding Coded on the bill ? Yes No Check INQM or UNAM for Dept. Contact Person Code Funding on the Bill Normally a week later. 21 . Funding Source Codes Route Invoice Copy to Dept.

whether payment should be made via payroll.Pre-Audit Payments to Individuals Report (PIR) Individual or Dept. Begin Dept. Key to VPAM No Missing Signature ? Yes Return PIR Form to Dept. Prepares PIR Form Dean¶s Office Approves PIR Form Dean¶s Office Routes to Pre-Audit This process applies to payments to individuals for: ‡Scholarships ‡Travel expense ‡Research subjects ‡Speakers & other service providers. & Dean¶s Approvals RSP Approves & Returns to PreAudit Contact Dept. & Correct PIR Form Calculate Net Pay Verify Other Data OK? Yes No Complete Tax Calculation Sheet If It¶s Missing Complete PIR Form w/ Tax W/H Data Class Code determines following additional data needed: ‡Home address for 1099 reporting ‡SSN for tax reporting ‡Visa information ‡Copies of receipts ‡If UW employee. Approves PIR Form Fund 133? No Yes Pre-Audit Routes to RSP Calculate Tax Withholding (Based on Treaty for Foreigners) Yes Foreign Payee or US Resident W/O SSN? No Verify If Payee a US Legal Resident Taxable Yes Payment Based on Class Code? No Match Class Code w/ Payment Purpose Verify Name & Address Verify Dept. End Distribute Checks Editing & Check Printing Begin 22 . etc.

Missing Receipts Yes Or Approvals? No OK to Pay? No OK? Contact Dept & Correct the Form Approve the Form Key to VPAM No Correct in VPAM Yes Yes System Generates Voucher. Prelist in CARDS Verify VO Entry End Editing & Check Printing Distribute Checks 23 . Prepares TER Form Dept.Pre-Audit Travel Expense Report (TER) Individual or Dept. Approves TER Form Dean¶s Office Approves TER Form Dean¶s Office Routes to Pre-Audit This process applies to payments for reimbursable expenses to UW and non-UW employees. Begin Fund 133? Yes Pre-Audit Routes to RSP Verify Approvals & Totals Verify Reported Amounts & Dates Match w/ Receipts Verify Nature of UW Business Verify Funding Code Verify Name & Address RSP Approves & Returns to PreAudit Return to Dept. Remittance Copy.

Begin S/B less than 30 days of travel completion date. Fund Travel Advance Replenishment Contact Dept. Prepares Request on TA Form Dept. & Correct The Form End 24 . Approves the Form Dean¶s Office Approves the Form Dean¶s Office Routes to Pre-Audit Fund 133? No Yes Pre-Audit Routes to RSP Verify Mail-to Address Verify Contact Name & Phone # Verify SSN Verify Funding Code Verify Reason for TA RSP Approves & Returns to PreAudit Verify Amount < 80% of Estimated Expense Determine and Record Pay Back Date on the Form Missing Signature ? No Yes Return Form To Dept.Pre-Audit Travel Advance (TA) Initiation Begin Dept. OK to Pay? No Yes Record TA in Excel Worksheet Key to VPAM to Issue Check From Cont.

Begin Monthly Reconcile TA Worksheet With WISDM Pre-Audit Record TA Replenishment In Excel Worksheet No TA > Expense ? Yes Employee Submits Personal Check for the Difference Pre-Audit Route Check To CM Check Submitted ? No CM Deposits Check to Cont. Fund Yes End Follow Up With Dean¶s Office Yes Check Submitted ? No Notify Payroll For Payroll Garnishment 25 . fund coding to offset original TA.Pre-Audit Travel Advance (TA) Replenishment After Travel Completes Employee Reports Expense on TER Form Employee Put TA# On TER Key TER To VPAM Use cont.

in EPRQ Dean¶s Office Approves Req. Custodian signs Agreement Over $5.Pre-Audit Non-Travel Cash Advance Initiation Begin Custodian Request CM to Open a Bank Account Replenishable Req? This process applies to advance payments for studies & research programs and for replenishment of petty cash. & Custodial Agreement Dept. & Agreement Routed to Pre-Audit No Dean¶s Office Submit Missing Document Yes Approve & File Copy In file Room Route Documents To Cash Management Cash Management Reviews & Approves CM Routes Check to Custodian CM Writes a Check from Cont. Dept. Fund OK? No Return Documents To Dean¶s Office No Replenishable Yes Req? End Begin Non-Travel Cash Advance Replenishment CM Deposits Check to Custodian Bank Account 26 .000? No Yes Dean¶s Office Signs Agreement Call Dean¶s Office Yes Missing Document? Verify Custodial Agreement Verify Funding Code Verify All Signatures Req. Prepares Internal Req. Custodian: is anyone who is responsible for non-travel advance money or petty cash. Approves & Enter Req.

Pre-Audit Non-Travel Cash Advance Replenishment Dept. Needs To Be Closed? Verify Req. & Dean¶s Signatures Verify Funding Code Zero $ Balance AP Enters Payment In VPAM File Room Sends Check to Bank or Custodian System Generates Check Enter Payment In VPAM Approve Payment Verify Receipts System Generates Check CM Deposit Check to Cont. To Req. Fund Return to Page 1 End 27 . If All Money Is Accounted For CM Records Exp. Prepares Non-Travel Cash Advance Accounting Form Custodian Signs The Form & Submits Receipts Begin After Expenditures Are Made Dept. In EPRQ and to Non-Travel Advance System (Close If Final Payment) Non-zero $ Balance Approve & Route to Cash Management Yes Non-Replenishable Req? No Req. Approves Dean¶s Office Approves CM Closes Req. In INQR Form & Receipts Routed to Pre-Audit CM Routes Form to Accounts Payable Yes No Verify Custodian. Dept.

1042S & Supplemental W2 Reporting Quick Book Process Overview MDSN Payment File (Legacy) Monthly QuickFile Begin Reports Edits & Fixes W2: At Year-End Other Campuses Payment Files (SFS) Assign & Edit 1042S Currently Not Being Done Monthly Edited QuickFile Paid PIR Forms Payroll File Print 1099 & 1042S Year-End End Tape File To IRS System Year-End Merges With W2 Files 28 .1099.

exemption status and withhold taxes. 2264.1099. ‡ 1042 Identifiers: ± From PIR forms paid to non-US residents ± Adjust in QuickFile based on information from paid PIR forms ± Data edited in QuickFile: 1042S indicator (yes or no). 1042S income type. 3163. 2162. 2262. 2125. 1042S & Supplemental W2 Reporting Additional Notes ‡ Payments are identified by the use of certain Class Codes (attached). ‡ W2 Identifier/Class Codes: 2110. tax rate. 2126. Return to Page 1 29 . 3161. 2164.

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