ACCOUNTS PAYABLE / PURCHASING
FREQUENTLY ASKED QUESTIONS
What is a requisition, purchase order, receiving report, and invoice?
How should I submit my backup documentation for on-line requisitions?
** The on-line requisition number should be included on ALL backup documentation (ex. quotes and IT peripheral e-mails). When submitting hardcopies of backup documentation, please do not print off the requisition and attach your backup information. Simply write the requisition number at the top of the backup documentation in order to save paper costs.
Please note the method by which the backup documentation is being submitted in the document text of the online requisition. The on-line requisition must be approved and the backup documentation must be received prior to a requisition being processed by Accounts Payable or Purchasing. **
Methods for submitting backup documentation:
· E-mail to procurement@truman.edu and include the on-line requisition number in the subject line of the e-mail.
· Fax the backup documentation to x7337 and write the on-line requisition number at the top of the backup documentation.
· Hand-deliver the backup documentation to the inbox in MC 106 and write the on-line requisition number at the top of the backup documentation.
· Campus mail to MC 106 to Accounts Payable/Purchasing; write the on-line requisition number at the top of the backup documentation. Please note this method should not be used if an order is needed quickly.
What documents are required by Purchasing/Accounts Payable to process a requisition?
Required documents may include the following: quotes (should include shipping, if applicable), subscription form, membership form, license information, maintenance form, artwork, advertisement copy, list of names for a group meal, IT Service software and IT Service peripheral request forms, etc.
What is a Business Purpose?
The business purpose is a brief and concise explanation of why the purchase or travel is necessary to conduct University business. Missing information causes delays in approving and processing your requisition.
Please keep in mind the following information when writing your valid business purpose:
A business purpose should include a brief, clear explanation of why the purchase or travel is necessary to conduct University business.
In general, the business purpose should be clear enough that any person outside the University, such as our annual external auditors and state auditors, could read it and have no question about the validity of the business expense.
For the purchase of goods or services, the business purpose is not merely a re-statement of what is being purchased, but should indicate the intended purpose/use of the expense.
The business purpose should provide answers to: WHO, WHAT, WHY, WHEN, WHERE
ü Who incurred and/or benefitted from the expense
§ Give the name(s) of the person(s) and their organization and/or department involved in the activity. For example, if reimbursement is related to a business meal, the WHO component would be a list of the attendees and their affiliation to Truman.
ü What is the expense
§ Describe the expenditure.
ü Why this is a valid, university business expense (involves purpose of expense, necessity of expense, and/or how it is consistent with the University’s mission)
§ Describe the benefit to Truman. For example, does it further ongoing research or teaching efforts?
ü When the goods should be received/services performed; when the expense was incurred (if not easily apparent from receipts)
§ Indicate the date or inclusive dates the activity took place. Specific dates are also part of the item descriptions, and dates included in the Business Purpose can be more general (the entire trip, for instance, instead of the date of each meal).
ü Where the expense will be/was incurred
§ Give the location of the activity: to/from destinations, restaurant name and city, or other appropriate information.
Examples of acceptable business purpose:
Example for travel expense report where each expense is identified in expense report: “Travel Expenses for Professor John Doe, 5-2-11 to 5-4-11, to attend National Academic Writing Conference in Chicago, IL for professional development in teaching Communication courses”
“Lodging at Holiday Inn for Professor John Doe, 5-2-11 to 5-4-11, to attend National Academic Writing Conference in Chicago, IL for professional development in teaching Communication courses”
“Conference registration for Professor John Doe, to attend National Academic Writing Conference in Chicago, IL for professional development in teaching Communication courses 5-3-11 to 5-4-11”
“Professional membership subscription to National Association of College and University Business Officers (NACUBO) for all supervisors in Business Office (7 staff-names on attached invoice), in order to stay current on job-related topics; subscription runs from July 1, 2010 to June 30, 2011”
“Crickets to feed reptiles used for observational research by students in Biology classes; crickets to be ordered as needed during FY11.”
“Tests and Forms to be used throughout 2010-2011 academic year by student clinicians, in Communication Disorders Dept, during diagnostic sessions and/or therapy sessions with clients in the Speech and Hearing Clinic.”
Examples of unacceptable business purpose:
“lodging at conference”
“conference registration”
“professional membership subscription”
“educational supplies: food for reptiles”
“educational supplies: tests and forms”
Documentation for Meal Expenses
The list
of items below is necessary backup documentation for any reimbursement request
of business meal expenses (while traveling or on-campus). This
documentation also needs to be attached to any requisitions to outside vendors,
such as Sodexo:
Original receipt or invoice from the vendor and amount per
participant; an itemized receipt should be submitted, along with
the credit card charge receipt, whenever possible;
if a charge is made for items other than food and beverages (ex.
room rental), the receipt must show that this is the case.
If the meal/event is set up in advance through a purchase order,
the expected attendance should be included with the requisition, but followed by
the actual attendance after the event, prior to the payment being issued.
What if there are not enough lines in the on-line requisition page to enter the items being purchased?
The on-line requisition system only allows for the entry of five (5) items. If there are more than five (5) items to be purchased; one of two methods may be used.
· Enter one line for the total cost of the purchase and then list the individual items in an excel spreadsheet. The excel spreadsheet is to be submitted by any one of the backup documentation methods listed previously.
· Include a listing of these items in Item Text within the on-line requisition. These instructions are available in TruView at: http://businessoffice.truman.edu/ap/Training/TruView%20Finance.asp
When is IT Services approval required to purchase a product?
IT Services approval is required when a computer, computer peripheral, or software is being purchased. The IT Services approval e-mail must be received by Purchasing before the product can be ordered. The requisition number must be written at the top of the IT Services e-mail.
What is the bid limit?
The total requisition amount that must be bid through Purchasing has been increased from $3,000 to $5,000. Departments are encouraged to continue informal bids for total requisition amounts less than $5,000. Purchasing will be conducting training sessions for departments interested in this process for requisitions that total $3,000 to $5,000. Departments should not place orders; orders will be placed by Purchasing.
Requisitions over $5,000 are bid through Purchasing unless the price is obtained from a state contract or other approved contract in force. Departments should attach to the requisition as much information as possible to assist purchasing in preparing the bid document.
What is a Form W-9? When is this form needed?
The Form W-9 (an IRS form) is required from a taxpayer who is a U.S. person (including a resident alien) to obtain their TIN (tax identification number), certain certifications and claims for exemption. This form must be obtained from most vendors and should be updated when a vendor's address or name changes. A W-9 is needed for the Business Office to set up new vendors in the University’s financial system. Form W-8, instead of a W-9, is required when paying a foreign vendor. If you know that a vendor is new, the process can be expedited if you request a Form W-9 from the vendor at the time you request your information. Form W-9 is located: http://businessoffice.truman.edu/forms/index.asp
Why do I need a purchase order for hotel lodging when they will direct bill us?
Direct bill means that the hotel will send an invoice for payment and doesn’t require payment up front. The hotel must have a purchase order number to reference on the invoice sent to the University.
Who do I call to inquire about the status of a requisition or purchase order?
First, please check the on-line Banner system to make sure the requisition has been completed and approved. If you know the purchase order has been completed (i.e. have receiving report) then you may contact the vendor directly to check the status of the products, equipment, or service requested. Otherwise, you may contact Accounts Payable or Purchasing at the numbers available at the bottom of this document.
How can I request a change/correction in an accounting string?
Complete the information on the request accounting change form. Click here for the form.
Where do I pick up a purchase order?
Departments will be notified by Purchasing when a purchase order is ready to be picked up. All purchase orders to be picked up are located at the Business Office MC 106.
How does the negative receiving process work?
Invoices less than $1,000 that match the terms of the purchase order will be paid, without a receiving report from the department, approximately 30 days from receipt of the invoice or per vendor discount terms, unless Accounts Payable is advised by the department not to pay. This applies to both University and Foundation purchase order payments.
The negative receiving process will not be used for the
following:
1) Invoices of $1,000 or more.
2) Expenses charged to an equipment/capital expenditure account, excluding 73201 (Library Acquisitions). Equipment/capital expenditures start with 73xxx. Equipment/capital expenses will still require receiving information be e-mailed/campus mailed by the department to Accounts Payable.
3) Expenses charged to external grant funds (ex. NSF, MFH, DOE, etc) will still require the department to submit receiving information. These are expenses with a fund number that begins with 2. Grant funded expenses will still require receiving information be e-mailed/campus mailed by the department to Accounts Payable.
4)
If an invoice exceeds 20%, or over $500, of the
initially approved purchase order amount, then, regardless of funding source,
receiving information will need to be e-mailed/campus mailed by the department
to Accounts Payable and Purchasing will have to do a change order.
How will this affect you at the department level?
If you submit a requisition for an order that is not being paid from
grant funds or being charged to a 73xxx account (equipment/capital expenditure),
the purchase order will be processed as usual. Then, you will receive what
looks like a receiving report. However, there will be a clause at
the bottom of the page that states: “Department
Note: Negative Receiving Applies.” If the invoice
meets the terms stated above, Accounts Payable will process payment to the
vendor without the department submitting receiving information. No action will
be required by the department unless contacted by Accounts Payable.
If you do not receive a product/service in a timely manner of the
purchase order being issued, or if you receive defective merchandise, please let
us know and we will postpone payment.
Sign the receiving report and return a copy to Accounts Payable once the goods and/or services are received. You should keep a second copy for your records. Write the date that the goods and/or services were received on the receiving report. Instead of returning the signed receiving report, you may email procurement@truman.edu to confirm receipt of goods or services. Be sure to include the purchase order number and date of receipt in the email.
What do I do if I receive an invoice or a statement from a vendor for a purchase order?
Vendors should be sending invoices to the Business Office. If you receive an invoice at your office address, do not assume that the vendor also sent a copy to the Business Office. Please forward invoices to MC 106 Accounts Payable or contact Laura at x4458.
Why hasn’t a vendor received payment?
There could be multiple reasons. Perhaps Accounts Payable hasn’t received an invoice or a receiving report. Contact Laura at x4458 with any questions.
When do I use paper requisitions?
Paper requisitions should only be used when the funding source is a grant, capital project, agency fund, or Foundation fund. For all other funding sources, requisitions are submitted using the on-line requisition system.
When would an on-line budget transfer be required?
A budget transfer would be needed if there wasn’t enough money available in overall operations categories (71-Supplies, 72-Other Expense, 74-Communications, & 77-Travel).
A budget transfer would also be required if you are purchasing a piece of equipment and didn’t have budget available in the 73 Capital Expenditures category. When purchasing a piece of equipment, be sure to transfer the total acquisition cost which includes the purchase price, shipping, handling, delivery charges, warranty costs, and installation fees.
Within the salary accounts, departments are typically only responsible for monitoring the budgets for accounts 61219 Overtime and 61301 Student Employment. The other salary expenses are primarily 'fixed' costs and/or covered by a pooled budget.
A paper budget transfer should only be used for revenue transfers to operations (ex. fundraising revenue transfer to operations) or transfers between Foundation funds. Revenue funds cannot be transferred by departments using the online budget transfer form. The paper form is found at: http://businessoffice.truman.edu/forms/index.asp .
How do I know if a product is considered equipment?
The following information explains when items are considered equipment so departments will better understand when they need to transfer money from operations into capital expenditures/equipment (73000). Contact Barb Newcomer, in Fixed Assets, at x4150 or busoffice1@truman.edu if you have any questions regarding if something should be categorized as equipment.
73101-General Equipment $5,000 & Over
This account is for individual equipment items with an original acquisition cost of $5,000 or more with a useful life of at least one year. The original acquisition cost includes the purchase price, shipping, handling, delivery charges, warranty costs, and installation fees. If the equipment is less than $5,000 then it is expensed to account 71111 (General Equipment less than $5,000) unless the Business Office or the department requests that the product be tagged (see account 73405).
73405-General Equipment Less than $5,000 to Tag
If the cost of an individual piece of equipment is less than $5,000 it may be tagged at the discretion of the Business Office or the department. It is recommended that sensitive products be expensed to account 73405. Examples of sensitive products would include scientific equipment, musical equipment, projectors, TVs in high traffic areas, etc. In order to charge an expense to account 73405, money would need to be transferred from operations into capital expenditures/equipment (73000), and account 73405 would be used for the account when the requisition is processed. The original acquisition cost includes the purchase price, shipping, handling, delivery charges, warranty costs, and installation fees.
73105-Computer Equipment $5,000 & Over
This account is used for computer equipment that is $5,000 or more. The original acquisition cost for computers includes: the computer and the cost of associated components including the monitor, keyboard, speakers, integral software, and any other components purchased with the computer, shipping, handling, delivery charges, warranty costs, and installation fees. In order to charge an expense to account 73105, money would need to be transferred from operations into capital expenditures/equipment (73000) and account 73105 would be used when the requisition is prepared.
73403-All Computer Equipment under $5,000
All computer equipment must be tagged regardless of the cost and should be charged to this account when it is less than $5,000. Netbooks should be charged to account 73403 because these are considered computers. The original acquisition cost for computers includes; the computer and the cost of associated components including the monitor, keyboard, speakers, integral software, and any other components purchased with the computer, shipping, handling, delivery charges, warranty costs, and installation fees. All laser printers would also be charged to this account and considered computer equipment. In order to charge an expense to account 73403, money would need to be transferred from operations into capital expenditures/equipment (73000) and account 73403 would be used when the requisition is prepared.
What is a Non-Employee Contractual Agreement form and where can I find it?
This form should be used in formalizing arrangements for services for non-employees. An Agreement for Non-Employee Contractual Services would be required for speakers, lecturers, honorarium referees, etc. President’s Staff approval is required. The form may be found at: http://businessoffice.truman.edu/forms/index.asp.
Note: The University has to remit a 2% entertainment tax to the State of Missouri for all nonresident entertainers and for some speakers. Additional information regarding Missouri's 2% Nonresident Entertainer's tax may be found at: http://dor.mo.gov/faq/business/nonresident.php. Please contact Accounts Payable if you have a question.
Where do I find a travel expense reimbursement form?
For non-employees to be reimbursed, the Non-Employee Expense Reimbursement paper form should be used. Departments may obtain new forms by contacting Accounts Payable at x4458. A non-employee is anyone that is not paid from Truman’s payroll.
Truman employees should use the Travel Expense Reimbursement form located in TruView under the Employee tab. Instructions for completing the Travel Expense Reimbursement form are also available in TruView or by going to this page: http://businessoffice.truman.edu/ap/Training/TruView%20Finance.asp
After the Travel Expense Reimbursement form is completed it must be printed out, signed, approved, and submitted to Accounts Payable for reimbursement. The form is not currently integrated with the Banner financial system.
What is the current mileage reimbursement rate? Where can I find the University’s travel policy?
The current reimbursement rate is 50 cents per mile. The University’s current travel policy is available at: http://businessoffice.truman.edu/ap/p&p/new%20travel.asp
How do I sign up to receive my expense reimbursements by direct deposit?
Log onto TruView, click on the Employee tab, and click on Provide Direct Deposit Info for AP Reimbursement under the My Payroll Information channel.
Who do I need to talk to about payments for items received on a purchase order, reimbursement payments, and P-card purchases?
Purchase order payments: Laura at x4458
Reimbursement payments: Laura at x4458
P-Card purchases: Carolyn at x4289
What products can be purchased using the University P-Card?
Many of your routine purchases can be made using the p-card. For specific allowable and excluded charges, as well as complete program guidelines, please see the p-card manual at: http://businessoffice.truman.edu/ap/pcard/pcardcoverpage.asp.
How long do I keep copies of my financial records such as P-Card information and requisition/purchase order information.
P-Card Documentation, Travel Reimbursements, Requisitions/Purchase Orders: The Business Office recommends these records be kept for two years. This includes the current year and one (1) prior fiscal year. This would mean that FY08 records (July 1, 2007-June 30, 2008) could be destroyed July 2009. Departments may desire to keep records for a longer period of time for reference purposes. Grant records must be kept for at least three years after the final report has been submitted.
Can a student organization use Truman’s tax ID?
No, but if there is a national organization, the national office should be contacted because they might have a tax ID number that can be used by the local organization.
What are the check run dates?
Checks are processed by Accounts Payable on Wednesday and Friday of each week. Checks are mailed the next business day unless special instructions are provided by the department in the document text of the requisition.
In order to better assist you, this is a reminder of who to contact in the Accounts Payable and Purchasing departments, based on your needs. However, if someone is not available, please feel free to contact another member of the department for assistance.
Accounts Payable:
Angela Carron-Supervisor of Accounts Payable and Grants
Phone: x4157 e-mail: acarron@truman.edu
Laura Thrasher-Accounts Payable
Phone: x4458 e-mail: lthrash@truman.edu
Carolyn Wriedt-Accounts Payable
Phone: x4289 e-mail: cwriedt@truman.edu
Terrie Howard-Grants Accountant (mornings)/Foundation Accountant (afternoons)
Phone: x4664 (Grants) / x7405 (Foundation) e-mail: thoward@truman.edu
Purchasing:
Kim Murphy - Purchasing Supervisor
Phone: x4326 e-mail: kmurphy@truman.edu
Lori Davenport - Buyer
Phone: x4159 e-mail: purchasingbuyer@truman.edu
Ø Prepares blanket purchase orders
Linda Bondy – Purchasing Clerk (part-time)
Phone: x4149 e-mail: busoffice2@truman.edu
Ø Prepares blanket purchase orders