ACCOUNTS PAYABLE / PURCHASING

FREQUENTLY ASKED QUESTIONS

For a PDF version of the Frequently Asked Questions click here. 

What is a requisition, purchase order, receiving report, and invoice? 

• A requisition is an internal document used to request and authorize the purchase of goods and services or request payment of invoices for goods and services.  Requisitions are initiated by a department.
• A purchase order is the document prepared from a requisition that is sent to a vendor requesting a product or service.  It includes item, quantity, price, discounts, vendor information, and ship-to information.  A purchase order is a legally binding document between the University and the Vendor.  Purchase Orders are initiated by Purchasing.
• The receiving report is the document sent to the department requesting goods and services ordered.  The University uses a copy of the purchase order for the receiving report.  This document serves as the authorization for payment of goods or services that have actually been received on a particular purchase order and is signed and submitted to Accounts Payable. 
• An invoice is a document sent by a Vendor to a Purchaser giving details of goods or services sold, their price, and the terms of payment.

 How should I submit my backup documentation for on-line requisitions?

** The on-line requisition number should be included on all backup documentation.  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.  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 information needs to be included in Document Text? 

All requisitions MUST include a business purpose.  Be sure the business purpose includes enough information that all required approvers are easily able to determine what they are being asked to approve; WHO, WHAT, WHERE, WHY, WHEN, AND HOW. Please be sure that you have answered the five (5) W’s for a request as follows:

·        Why: Why are you preparing a requisition? (i.e. business purpose)

·        Who: Who is the requisition for?  If the vendor is not in Banner, please indicate the name, address, and contact information of the vendor.  If the requisition is for reimbursement to a Truman employee, please use their Banner identification number as the vendor.

·        What:  What are you requisitioning?  i.e. service, supplies, equipment, reimbursement, non-employee contractual agreement services, etc.

·        When:  When is the service to be held, item to be received, date of travel or purchase made, and/or date of event, etc?

·        Where:  Where is the service to be performed, supplies or item to be delivered, destination of travel, etc?

·        How:  How is the purchase order to be submitted to the vendor? (i.e. fax, email, pickup, mail, etc)

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.

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 or computer peripheral and software is being purchased.  You may find these request forms at:  http://its.truman.edu/documentation/category.asp?autoId=14

The IT Services approval form must be received by Purchasing before the product can be ordered.  The requisition number must be written at the top of the IT Services form. 

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/ap/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.

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.   

What do I do with the receiving report? 

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.  Both of these documents must be received before payment can be processed.  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. 

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 money cannot be transferred 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 Maria, in Fixed Assets, at x7457 or marialin@truman.edu if you have any questions.

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 department requests that the product be tagged (see account 73405).

73405-General Equipment Less than $5,000 to Tag

If an individual piece of equipment greater than $1,000 but less than $5,000 may be tagged at the department’s discretion.  It is recommended that sensitive products costing more than $1,000 be tagged and expensed to account 73405.  Examples of sensitive products would include scientific equipment, musical instruments, projectors, etc.  In order to charge an expense to account 73405, funds would need to be transferred from operations into capital expenditures/equipment (73000) and account 73405 would be used when the requisition is prepared.  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/tax/business/faq/nonresident.htm.  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 x4158.  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

• Oversees the AP department’s operations (i.e. payment of invoices from University and Foundation budgets)
• Processes backcharges and accounting corrections
• Oversees purchasing card program
• Creates/reviews invoices to get reimbursed for grant expenses (handles post-award financial grant information)
• Oversees and assists with training for Web for Finance, e-Print, Grant PIs, and other Banner applications

Laura Thrasher-Accounts Payable

            Phone: x4458 and x4158           e-mail: lthrash@truman.edu

• Processes payment for all PO related expenses (i.e. equipment or supply purchases)
• Processes payment for non-PO related expenses (i.e. expense reports, requisitions not needing a PO, etc.)
• Processes payment for all foundation vouchers
• Updates faculty/staff direct deposit information for expense reimbursements, not payroll

Carolyn Wriedt-Accounts Payable

            Phone: x4289              e-mail: cwriedt@truman.edu

• Handles all aspects of the purchasing card
  • Send in the request form for a purchasing card or a change in purchasing card limits to Carolyn

• Purchasing card training (how to use it, on-line reallocations, etc.)
• Performs audits of purchasing card supporting documentation
• Updates access rights and trains users in Web for Finance and
• Processes recurring, monthly backcharges

 Terrie Howard-Grants Accountant (mornings)/Foundation Accountant (afternoons)

            Phone: x4664 (Grants) / x7405 (Foundation)            e-mail: thoward@truman.edu

• Creates invoices to get reimbursed for grant expenses (handles all post-award financial grant information)
• Trains new Grant PIs on basic grant policies and procedures

Purchasing:

 Kim Murphy - Supervisor of Purchasing

            Phone: x4326              e-mail: kmurphy@truman.edu

• Oversees the Purchasing department’s operations
• Projects – joint effort with Campus Planning
• Requests for Proposals (RFPs)- creates and maintains information until awarded
• Represents the University in negotiations and awarding contracts
• Assists with the procurement of leases, service contracts, and insurance for University
• Assigns online requisitions to Purchasing or AP

Lori Davenport  - Buyer

            Phone: x4159              e-mail: purchasingbuyer@truman.edu

• Generates purchase orders from online requisitions and vouchers

Ø       Prepares blanket purchase orders

• Makes procurement via P-Card when applicable
• Bids-Creates and maintains information until awarded
• Study Abroad travel arrangements

Linda Bondy – Purchasing Clerk (part-time)

            Phone: x4149              e-mail: busoffice2@truman.edu

• Generates purchase orders from online requisitions and vouchers

Ø       Prepares blanket purchase orders

• Makes procurement via P-Card when applicable