AP BATCH & INVOICE REVIEW OCTOBER 2015
AGENDA AP Batch Process Budget Inquiry & Report for p-cards Purchasing Review AP Invoice Entry Substitute Vendors Credits Discounts Templates PO & Invoice Travel Invoices Specific Invoice Examples Common Mistakes Pointers/Tips Feedback/Questions
MATERIALS POE Processing Guide will review & placed revised copy on CLICK soon Invoice Processing Screen shots Templates Purchasing Easy Reference
INVOICE BATCH CREATION
INVOICE BATCH LIST
INVOICE BATCH WORKFLOW Validation Verifies all GL accounts have sufficient budget to cover invoices, verifies PO info, confirms all rules in NWS have been followed (example: use FA item with 506060 accounts, etc.) Edit Listing Report Detailed listing of all payment invoices in the batch; lists all invoice details vendor, invoice #, description, account number, etc. Approval POE Approval notifies Finance the batch is ready for review and has been approved by department
BATCH APPROVALS Your approval is a great spot to leave comments for Finance regarding your batch see below This note tells us that the original invoices will be delivered by 2pm - Notes can include how many original invoices are in transit to Finance, that you (POE) has approved, etc. - You can add notes after you click approve, when the following pop-up appears:
BUDGET INQUIRY Always remember to check GL account budgets BEFORE purchasing goods and services!!! Go to: Financial Mgmt > Inquiries > General Ledger > GL Accounts - Type the GL # in the account field or navigate to the appropriate Fund/Department/Account - To see un-posted detail, click the Budget Analysis Tab
BUDGET ANALYSIS Un-Posted Activity includes transactions that have been started, but not finalized (i.e. posted) such as: budget transfers, journal entries, POs, AP invoices. - Click the Unposted Activity button to see the invoices, POs, that are using budget, but not yet seen on the summary screen
BUDGET REPORT FOR PCARDS Use the Budget Performance Report to review all your account balances before entering pcard GL information - If an account does not have enough budget, do a budget transfer BEFORE the pcard data is entered - Run report for all your departments, all non-personnel accounts - Available budget is in the Budget-YTD Transactions column DOES NOT include unposted activity
PURCHASING REVIEW: QUOTES When and how many quotes??? - Quotes are REQUIRED for all processes, except for Sole sources, non-competitive negotiations, cooperative purchases and/or emergency purchases - How many quotes? Quoted Price # of Quotes/documentation $500 - $2,500 1 or more w/ telephone form or copy of quote $2,501 - $5,000 2 or more w/ telephone form or copy of quote $5,001 - $10,000 3 or more w/ written response(quote) from vendor $10,001 - $20,000 3 or more w/ written response(quote) from vendor AND narrative from Senior Manager $20,001 and up Bid Procedures
PURCHASING REVIEW: PO AUTHORIZATIONS Who approves the Purchase Orders? Cost Authorized by Under $5,000 Department (usually Senior Manager) $5,001 - $20,000 Purchasing Agent $20,001 - $25,000 Purchasing Agent & City Manager $25,001 and above Purchasing Agent, City Manager & BOC
PURCHASING REVIEW: PO EXCEPTIONS PO S ARE NOT NECESSARY WHEN: - Using procurement card, BUT quotation rules still effective - Purchasing goods/services less than $200 - Procuring the following types of goods/services: Travel advances/recs/per diem Cell phone payments Expense advances Dues to organizations Educational Costs Courier services Subscriptions to pubs Pmts to other govs Ins & Medical claims Utility payments Reimbursement of exp Refunds Newspaper ads/notices Registration fees
AP INVOICES: CHECK YOUR FOLDER! All invoices delivered to PO BOX 1180 or accounting@bgky.org will be placed in your Finance Scans folder daily REMEMBER TO CHECK YOUR FOLDER PERIODICALLY! - Recommended that larger departments should check this daily - Moved paid invoices to Paid or similar folder once you have entered into an Invoice Batch
AP INVOICE ENTRY Invoices are created from POs or by direct entry Company invoice info added to NWS invoice: - Vendor - Vendor Invoice - Description w/ customer # - Invoice Amount - Remittance Address - Invoice Date
AP INVOICE ENTRY Other invoice fields and when to use: Hold Payment Reason Do not use Manual Check Do not use Use Confirming EFT use for utility and other payments where the vendor directly debits the City s bank account - This MUST be setup through Finance and is rare - No check or eft payment is produced, only creates accounting entries to show the debit to the bank account EFT G/L Date must be date when funds are leaving bank acct, use billing date as the invoice date and the past due or draft date as the EFT GL date Check Sort Code Do not use Check Code Use ONLY if a separate check must be produced, only invoice with same Check Code will be paid on same check/eft
AP INVOICE ENTRY INVOICE ITEMS Item Use item for most purchases, FA items should only be used for equipment assets >$5,000 and land/buildings/improvements >$25,000 Description can be left blank if using only one item w/ little detail; if using multiple items, add specific item description for each Quantity usually 1, but can use more based on purchase Unit of Measure Each is most popular, use at discretion of POE Price per unit usually the entire item cost is here, unless using quantity > 1; for example, 5 cars purchased for $20,000 each would show Quantity of 5 and Price per unit of $20,000, not $100,000 G/L Account use account where purchase is budgeted DO NOT MODIFY (CHECK OR UNCHECK) any of the boxes below G/L Account (completes PO item, apply freight, create new asset, apply discounts, apply taxes, any 1099 info)
SUBSTITUTE VENDORS If you need to change a vendor after an invoice has been created, you have 2 options: 1. If a PO was used, use Change PO to add a substitute vendor - You will need to go through the approval process again to document the change in the PO 2. If it was a direct invoice, you must delete the invoice and reenter with the correct vendor
CREDITS ONLY ENTER CREDITS IN YOUR INVOICE BATCH WHEN: 1. You are paying the vendor an invoice greater than the credit 2. You are paying the vendor an invoice < the credit, but Finance confirmed another department is paying the vendor an invoice in the same week, so the total to pay is > credit amount The payments must be from the same bank account as the credit! Credits to Golf/Section 8/other grants must be matched against invoices to those! Examples: Credit is -$15, invoice to pay is $20, this is OK Credit is -$15, invoice to pay is $15 (or less), this is NOT OK Hold until invoices to pay total is > credit amount Contact Finance to find out if another department is paying this vendor in the same week
CREDITS: INVOICE ENTRY A credit invoice is paid exactly like a regular invoice, EXCEPT it is for a NEGATIVE amount ($-) REMEMBER THAT THE NET TOTAL PAID TO THE VENDOR MUST BE > $0, IT CANNOT BE $0 CREDIT THAT CANNOT BE TAKEN: CREDIT THAT CAN BE TAKEN:
TRADE-IN PURCHASES Trade-in s reduce the cost of buying a new piece of equipment, but must be accounted for in a specific way: - Enter Full Cost of Purchase EXCLUDING trade-in discount as one FA item - Enter additional item item with the discount amount as negative number - For example: New car cost is $20,000, trade-in allowance is $3,000 NWS Invoice FA item for $20,000 NWS Invoice item item for -$3,000
DISCOUNTS Discounts are free! - If your invoice offers a discount if paid before a certain date and you are able to do so, that the discount! - Enter the discounted price as the invoice total, in the example above you would create an invoice for $2,756.63 NOT $2,811.05 - Take the discount if the date is as early as Monday after we pay on Friday, or even Friday if we pay electonrically
AP TEMPLATES Templates are a great way to pay recurring invoices and/or POs How it works: - Detail for invoice(s) is entered as a template - When ready to pay, create your batch as usual, then click the Templates icon The invoice detail is automatically entered and you only have to update the date, invoice #, and amount (if necessary) - Can only be used for Non-PO purchases; such as utilities, small dollar (<$200), claims, refunds, reimbursements, etc. See previous slide with PO exemptions. - Invoices are created from your template & placed in AP Batch - Please delete old templates!
AP TEMPLATES How to create an AP template: 1. Go to Financial Mgmt > Accts Payable > Template Inv Batches 2. Click New at the bottom of the Template Invoice Batch List 3. Add a Description of the what the Template will be paying 4. To create the invoice detail, click New under Vendor Name 5. Enter Vendor, Invoice Description and Remittance Invoice Amount is optional 6. Click Save/New to enter additional invoices, or Save to close
PO TEMPLATES Same as AP Templates, except information for recurring POs will default rather than entering the info each time How it works: - Detail for PO is entered as a template - When ready to create PO, create PO as usual, then click the Templates drop down list & select your template The PO detail is automatically entered and you only have to update the amount (if necessary) - Can only be used for any PO that you routinely create great examples are for office supplies or any recurring PO - Pos are created from your template & placed in PO list - Please delete old templates!
PO TEMPLATES How to create an AP template: 1. Go to Financial Mgmt > Procurement > Purchasing > Template Purchase Orders 2. Click New at the bottom of the PO Template List 3. Enter PO information as usual and click Save 4. PO is now in the template list and be used to create POs
TRAVEL INVOICES Advances for per diem, hotel costs, etc. should be paid by POE s, not Finance - Travel advance requests and AP invoices are due FIVE (5) WORKING DAYS BEFORE DEPARTURE This allows time for the Travel request to be properly reviewed, approved, and queued for payment Advance requests received in less than 5 working days before departure will be held and paid the following week Travel invoices should be paid in a separate Invoice Batch
SPECIFIC INVOICE EXAMPLES Staples invoice number which one to use! DO NOT USE THE SUMMARY INVOICE #! - This invoice number is for all invoices sent for a particular day USE THE INVOICE # ABOVE THE ORDER INFORMATION
SPECIFIC INVOICE EXAMPLES EH Harris Invoice Number - Use the number labelled as Invoice No: - NOT NUMBER
SPECIFIC INVOICE EXAMPLES Land Shark Shredding invoice amt - Pay Invoice Total - DO NOT PAY the balance due in the red box
COMMON MISTAKES - Missing customer number this should be entered before the invoice description. - Wrong remittance address verify that the address on the company s invoice is the same address on your NWS invoice - Not taking discounts review your invoices carefully and use discounts when available! These are usually shown near the invoice amount due. This is free savings and will help your budget go farther! - No documents attached to invoice you are required to add documentation to ALL invoices in your batch! Most will already be scanned and in your Finance scans folder, but you are responsible for adding all others. - Review invoice total in NWS and confirm it matches total on company invoice! - Pcard GL Accounting errors with project & locations codes MUST USE 0000 if using location ex: 001-4121-0000-054-503020 Add leading 0 s to project & location codes NOT 57 0057 or 057
POINTERS/TIPS - CHECK YOUR FOLDER DAILY! - Run and review the edit listings before you approve and finalize your batch. - Amazon tax exemption program use for pcard purchases, go to account settings and add to your account. Contact Erin with any setup questions. USE ONLY FOR CITY OF BG PURCHASES, link to City of BG email, not personal. Employee MUST create new amazon login with City email - Send the original invoices you have or created (travel, reimbursements, etc.) to Finance as soon as your batch is complete.
QUICK REVIEW OF UPDATED FORMS Direct Deposit form Updated to reflect new procedure that all employee reimbursements will be paid to bank account listed as primary for payroll - ONLY for new direct deposits or changes made after 10/1/15 Travel form includes language on updated Personnel Policy that travel costs may be repaid to City if employee leaves employment within 52 weeks - Exemption for training required by City to keep job and/or where an employee is required to earn continuing education to keep certification - Senior Manager MUST confirm if each travel is subject to the policy
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