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 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.