Procurement and Payment Basics Training

Report
Last updated January 2014
Compliance
 Importance of compliance
 Allowable/Non-allowable
Make a purchase
 VCU procurement methods
 Payment process
 Delegated authority
 Ordering through eVA
 eVA access
 Vendor contracts for review
 Ordering with a P-card
 Existing contracts
 SWaM & sustainability
 Contract administration
Pay a vendor
 Payment responsibilities
 Types of payment
 Payment process
 Vendor prepayments
 Petty cash
 Receiving
 Search tools
Employees are responsible for knowing and complying with established
University and State policies and procedures related to:
•
•
•
•
•
•
Creating/approving requisitions and/or purchase orders
Completing receiving reports
Requesting/approving a direct payment
Requesting/approving a travel reimbursement
Authorizing/making corporate card charges
Approving another employee’s P-card transactions
*See Learn about Compliance for more
You are responsible for proper purchasing planning.
Tip – Start early!
It’s important to give yourself enough time to ensure you:
1. Get the necessary internal approval(s)
2. Allow for administrative/procurement lead-time
3. Allow for vendor delivery lead-time
Failure to plan does not constitute an emergency or sole source procurement.
All supporting documentation must be factual .
It also becomes public information.
Vendors routinely review contract files to make sure VCU conducted
the procurement fairly, ethically, and consistent with procedures.
Falsifying any documentation is a serious breach of policy
• Ex: Providing non-factual documentation supporting a
purchase transaction
• Ex: Altering/creating vendor invoices
• Ex: Improper Banner Receiving of goods/services/ etc.
Failure to comply may result in revocation of the
employee’s system access to eVA and/or corporate
card privileges, even for a first offense.
Deliberate or recurring noncompliance may
constitute cause for disciplinary action up to and
including termination.
A “Business Related Expenditure” is an expenditure that is directly related
to the operation of a functional area in the fulfillment of its stated mission or
objective as part of the University.
Check out the Allowable Expenditures Chart for the proper funding sources
(state, grant, local) and level of approver for specific purchases.
What can you not purchase?
 Personal expenditures
 Gifts for employees’ family or relatives
 Items not retained by the university
All purchases
must have a
business
purpose.
See the Non-Allowable Expenditures Chart for a complete list.
Make a purchase
 VCU Procurement Methods
 Payment process
 Delegated authority
 Ordering through eVA
 eVA access
 Vendor contracts for review
 Ordering with a P-card
 Existing contracts
 SWaM & sustainability
 Contract administration
The procurement method used to procure a desired good or
service is dependent upon:
1. Total dollar amount
1.
- Under 10K
- Over 10K
2. Availability/practicality of competition
3. Type of good
1. - Professional service
2.
- Non-professional service
VCU systems
for purchasing
• eVA – The system used to place the order
• Banner – The system used to receive the order
1.
2.
3.
4.
5.
6.
7.
8.
9.
Mandatory Sources
Delegated Purchasing Authority (Purchases up to $10,000)
Contract Purchases
Demand Payment (exceptions to normal competitive requirements)
Competitive Purchases between $10,001-$50,000
Competitive Purchases over $50,001
Sole Source
Emergency Purchase
Surplus Inventory
See Understand the Procurement Methods for guidelines on each
1. Identify the business need
2. If under $10K, utilize Delegated Purchasing Authority to purchase
If over $10K, Procurement Services must approve the purchase
3. Vendor fulfills order
4. Department completes Receiving in Banner
5. Vendor submits invoice to Accounts Payable
6. Accounts Payable pays vendor
Departments are granted delegated purchasing authority for approving the
purchase of goods/services provided the price is fair and reasonable up to
$10,000.
You must document that your goods/services will cost under $10K.
Types of appropriate documentation:
 Quote
 eVA Punch Out Catalog
 Published Price
If your order is under $10K
order through eVA.
Vendor SetUp
Search for vendor in eVA to determine if vendor is registered
in the eVA system. Ensure vendor is set up in Banner.
Contract
Review
If applicable, send vendor contract to Procurement for review
and signature. If applicable, send vendor sales tax exempt
form.
Create PO
Create PO in eVA, verify that status is “Ordered,” and send PO
number to vendor to include on final invoice.
Banner
Integration
eVA transmits PO to Banner automatically, so that the order is
recorded in VCU’s financial system.
Receive in
Banner
Once the goods/services are fulfilled, you must Receive in
Banner
Vendor SetUp
The vendor search (FTMVEND) is used to find out if a vendor has
been created in Banner. If the vendor is not found in Banner, submit a
W-9 form via email to Vendor Create at [email protected]
Purchase
Order
Allow at least 48 hours for Vendor Create to process the W-9 request
and then check back in Banner for the V#.
Banner
Integration
Contract
and taxes
Receive in
Banner
Vendor Create will verify if the information provided on the w-9 form
matches the IRS systems.
Do not assume that an eVA-registered vendor will automatically be
created in Banner.
Vendor SetUp
Contract
Review
When a vendor requests that the University agree to their contract
terms and conditions, the contract must be sent to Purchasing for
appropriate review and signature. Allow 10 days to process.
1. Departments should make changes necessary to conform to
2.
Banner
Integration
3.
Contract
and taxes
Receive in
Banner
their particular business needs.
Send contract to [email protected]
•
include the PR# from eVA in subject line
•
if contract is a hotel contract, add “Hotel” to subject
•
include dates of service and index code in the body
Indicate if you require an original signed contract to be returned
through campus mail – include PO Box. You will only receive a
scanned copy if no indication of need for original.
Do not approve the PO until you have received the reviewed contract.
Obtaining eVA access requires a help desk ticket by FA or supervisor.
FAs or supervisors will need to use help desk tickets
to notify Procurement of the following:
 Changes to existing eVA accounts
 Notification of employee leaving the
department
 Notification of employee terminating
employment with VCU
The employee will need to successfully complete the eVA system
test for his/her specific role – enterer, approver, receiver.
Purchase Order Categories
eVA requires a purchase order category be assigned for all orders placed.

R01 – self registered Vendor

R01 – state-entered Vendor

X02 – un registered Vendor (exempt categories)
A full list can be found at View Exemptions List
The “New” button should only be used for un-registered vendor information (not to be used to
correct, add, edit or remove information about self registered or state entered Vendors)

All other codes are assigned by University Purchasing buying staff
Orders placed in eVA over $100,000 will require an additional
higher-level approver designated by the Dean.
To remember when using the system

Shipping and Freight charges on punch out catalog orders will automatically be paid when
the Vendor invoices. Do not create a separate shipping/freight line.

If an order has the “Bypass ERP Integration” box selected in eVA, the order will not
transmit to Banner until the next day. The “Bypass ERP Integration” box should only be
selected when instructed to do so by Procurement Services staff.

If order fails the eVA/Banner Integration, users should utilize error messages to determine
the correction required - Resolve eVA Integration Error Messages

The “include comments/attachments on purchase order” box should not be selected
unless the comments are to be viewed by the vendor. Once the box has been checked to
include comments, they cannot be changed or deleted.

The “Copy” & “Edit” buttons must be used to add additional lines to your eVA requisition.

The “Add Items” button should not be used because it will generate multiple EPs or PCO
numbers for one order.

All change orders without receiving or invoicing in Banner will process through
integration same day.

Change orders should not be completed for changes to the vendor, index code,
or account code on existing line items. These require a new order to be create.
The price, quantity and item description are the only items that should be
changed on a change order.

When a line needs to be deleted from an order
in eVA, do not delete the line. Zero out the
dollar amount, so that the order will transmit
to Banner correctly.

Any receiving or invoicing activity on a
purchase order will result in the change order
being processed through the batch interface,
which takes 2 days to transmit to Banner.
If your order is under $5K
pay with a department P-Card
Unless on the eVA exempt list, P-card orders must still be entered into
eVA. Since we are a state-agency, we are required to enter 80% of VCU’s
orders through eVA. To meet this requirement, VCU must enter P-card
orders into the system.
•
eVA does not send the P-card Order (PCO) to Banner, like it
does with regular POs, since Accounts Payable does not
pay the P-card bill.
•
The department must reconcile the monthly P-card bill to
ensure that the proper index codes are charged.
•
When a P-card expires or a new card is received the card
information will need to be updated in eVA.
The following goods have mandatory contracts in place for ease of ordering
and for price discounts:
 Office Supplies
 Stationery
 Virginia Correctional Enterprises for furniture over delegated authority
 VITA (designated contracts)
If your goods/services are not covered by a mandatory contract, search for
an existing cooperative contract.
 VASCUPP
 State of Virginia
Tip: Search using
 VCU University Contracts
different keywords
Once you find a contract, contact vendor for quote.
SWaM Purchases
 SWAM stands for Small, Women-Owned, and
Minority Business
 DMBE (Department of Minority Business
Enterprise) is the agency that certifies SWAM
businesses
 Attempt to obtain at least 1 quote from a
SWaM vendor
 Retain quote in department with fiscal files
Sustainability
 Identify opportunities to reduce environmental impact
 Recycled paper is required and recycled toner is
encouraged
Departments’ responsibilities after signing a contract:
1.
Follow-up
If contractor is untimely in sending goods or completing services, notify in
writing
2.
Receipt of goods/services
Ensure the individual receiving is fully informed of contract terms
3.
Over-shipments/Overruns
Reject over-shipments and notify contractor. Overruns for printing are
acceptable up to 10%.
4.
Lost or damaged shipments
Report to vendor immediately
5.
Inspection, acceptance, and on-going monitoring
6.
Rejection
Reject whenever the goods or services do not meet the contract terms .
“Complaint to Vendor Form” may be used.
7.
Cancellation and changes to POs/Contracts
Coordinate with buyer
8.
Contract Administration Action Plans (CAAPs)
Required for all contracts over $750K
Pay a vendor
 Payment responsibilities
 Types of payment
 Payment process
 Vendor prepayments
 Petty cash
 Receiving
 Search tools
Ensure prompt and accurate payment
 Invoices should be mailed directly to AP by the vendor unless
electronic invoicing methods are established for the vendor.
 Prompt Pay time begins from the date the invoice is received in AP.
 Charges must match, line for line, the items on the PO. Use a Change
Order to process variances.
 All payments will be issued 30 days from receipts of invoice in AP OR
from receipt of goods, whichever is later – unless payments have been
prearranged to be made with a Commercial Card.
Contact the AP Manager if invoice appears to be invalid or altered
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
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Regular Vendor Payments
Petty Cash Reimbursements
Sub-Awards
Honorariums
Predoctoral and Postdoctoral Payments
Awards and Prizes
Legal Fees
Immigration and Citizenship
Revenue Refunds
Independent Contractors
Stipends
Preceptors
*See Pay an Individual or Pay a Vendor for specific guidelines on
each type of payment
1. Determine if vendor participates in the Electronic Invoice System. If
vendor does not participate, vendor mails invoice to AP with PO
number referenced. Check Electronic Invoice Vendors list.
2. If vendor mails invoice to department, scan a copy to
[email protected] with PO number referenced. Only one invoice
per email. Do not send paper copy to AP if this method used! This email
address is for internal VCU departments only (not for vendors).
3. Invoices without PO numbers referenced are returned. Invoices are
date stamped when received by AP to ensure compliance with Prompt
Pay Act.
3 Necessities for invoice to be paid
1) Approved PO in Banner
2) Receiving Completed in Banner
3) Valid Invoice Posted & Matched
Vendor Prepayments
Vendor prepayments are generally
not allowed to prevent loss of funds to
VCU if good/service is not received.
Few Exceptions:
 Subscriptions
 Conference Registrations
 Membership Fees
If prepayment is accepted, create
order in eVA and pay with P-Card if
possible. The payment will be made
immediately.
Petty Cash
Use of petty cash not
recommended option.
 Applies to purchases less than
$25
 Receipts required
 To replenish Petty Cash fund,
send Direct Pay form to AP
The Receiving function is an important and necessary control in ensuring
funds are expended appropriately.
Receivers should view and inspect all items to verify receipt. If the Receiver
is not certain of receipt, supporting documentation such as an email from the
employee (other than the Approver) who did verify receipt must be obtained.
A packing slip or email from the individual that received the merchandise or
service should be included in department files.
Important Tips!
 Receiving needs to be completed as soon as the merchandise or service
have been delivered or completed.
 Not Receiving in a timely manner will delay payment to the Vendor.
 Verbal requests to Receive are not sufficient.
Receiving should not be prompted by an
invoice from the vendor.
FOIDOCH
Use the Order Query screen (FOIDOCH) to find
out if a purchase order has been received,
invoiced or paid.
Search with the PO numbers assigned by eVA.
Do not type the EP prefix, only the number.
Please follow these procedures prior to
contacting Procurement Services for status
updates.
Specific step-by-step instructions for using FOIDOCH can be found at
View Purchase Order, Receiving, & Payment Information in Banner
FAIVNDH
Vendor Payment History (FAIVNDH) is a record of all payments
made to a vendor by fiscal year. This form shows pending payments
as well as payments that have been completed.
This form is good for looking at payments to individuals or for direct
pays.
Banner Inquiries for quick reference:
 FOIDOCH – Document History
 FAIVNDH – Vendor Payment History
 FGIENCD – Detail Encumbrance Activity
 FTMVEND – Banner Vendor Lookup for DUNS#
The Receiving Required Report is located in the SAS Web Studio under the
Finance folder. This report will show departments the purchase orders that
have been invoiced in Banner that do not have a corresponding receiving
report completed in Banner required to generate a payment.
To access the report
1.
Log into myVCU portal
2. Under General Resources click on “VCU Reporting Center”
3.
Select the “Finance” folder
4. Scroll down and select “Receiving Required”
5.
Key in one of the codes requested in order to access your department
orders
6. Search in Banner using different information obtained from the report
 Fiscal Administrators receive a weekly report that is automatically
generated to identify any invoices that have been keyed by AP but
missing a Receiver.
 Report is much like the SAS report mentioned on previous slide and
can replace the manual process if desired.
The report will continue to include items not Received until the receipt
has been entered or the invoice has been removed from Banner if
entered in error.
Congratulations!
You have completed the on-line Procurement and Payment Basics Training.

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