Accounts Payable

Document Sample
Accounts Payable Powered By Docstoc
					Accounts Payable
Navigating the System

   Introduction
   Non-Resident Alien Info-Susan Caldwell
   Object Coding
   Purchase Order Payments
   Electronic Check Request
   Check Request Payments
   Travel
   Question & Answer Time!
Regulating Factors

   Federal                  State
   Internal Revenue         Board of Regents
    Service                  Department of
   US Treasury               Revenue
    Department (OFAC)         (Unclaimed
   Sarbanes-Oxley            Property)
    (internal controls)      State Accounting
                              Office (travel)
Internal Revenue Service

   1099 reporting          Accountable Plan
   Routine Payments        Employee/
   P-Card Payments          Independent
   IRS has identified       Contractor
    MCC Codes that          Honoraria
    must be reported.        Payments
                            Stipends
Federal Factors cont.

   U.S. Treasury               Sarbanes-Oxley
    Department Office            – Requires certification
    of Financial Asset             and attestation of a
                                   public company’s
    Compliance                     internal controls.
    – Specially Designated
      Nationals List
State of Georgia Regulating

   State Board of Regents
    – Delegates Procurement function
    – Procurement Dept. approves check requests as
      well as purchase orders.

   State Accounting Office
    – Travel Regulations

   Department of Revenue
    – Escheatment of Unclaimed Property
Payments to Foreign
Susan Caldwell
International Tax Coordinator
706-583-8193 fax 706-542-6779

   Visitor Payments (ie lecture, symposium)
    – Honoraria
    – Reimbursement of Expenses
   Other visa types
    – Reimbursement of Expenses
   J1 Scholar payments
    – Fellowships
    – Expenses
    – Honoraria
Honoraria Payment
for services
   B1/B2, WB/WT and J1 are the only visas
    permitted to receive Honoraria payment
    (exception EAD card)
   B1/B2 and WB/WT - 9/5/6 rule
   Payment subject to 30% withholding
   Determine the following:
    • Does the visitor have a US SS# or ITIN?
    • If yes – is the visitor from a treaty country?

9/5/6 Rule
The American Competitiveness Workforce Act ‘98

        Applies to B1/B2 and WB/WT visa
        “Usual Academic Activity”
        Payment for services will not exceed 9
         days at UGA
        Visitor has not accepted payment from
         more than 5 institutions or
         organizations in the previous 6 months
     Visitor does not have US
     SS#/ITIN or
     not from a treaty country
   Documentation for Honoraria Payment:
    – Copies of passport, I94 card, visa
    – Substitute Honoraria Form
    – 30% Federal Tax Withholding

      Tax Year End - Payment and Tax withholding will
      be reported on Form 1042S and sent to IRS and
      visitor for tax reporting
Visitor has a SS# or ITIN and
from a treaty country

    Procedure for treaty eligibility that would
     allow exemption from the required 30%
     federal tax withholding – PRIOR to
    –   Visitor must complete the UGA Tax
        Information Form for Internationals
    – The completed form along with copies of
        visitor’s passport, I-94 card and visa must be
        submitted to Susan Caldwell
Visitor has a SS# or ITN and
from a treaty country

  – Treaty eligibility will be determined and
    Form 8233 will be provided for the
    visitor to review and sign
  – Form 8233 is sent to IRS and UGA is
    required to wait 10 business days before
    processing check request

   This process may be completed in
   person or via fax
Visitor has a SS# or ITIN and
from a treaty country

   Documentation for check request:
    – Copies of passport, I94 card and/or visa
    – Substitute W8 Honoraria Form

    – UGA Tax Information Form
    – Form 8233 (provided by Susan Caldwell)
Reimbursement of Expenses
    Original Receipts
    Incurred during academic activity
    No ITIN or SS# required
    B1 and WB – no restrictions
    B2 and WT – 9/5/6 rule applies
    Visa fee not allowed – considered personal
    Meals – itemized and not to exceed UGA’s
     policy of $28 per day
Documentation for Reimbursement
of Expenses Payment

      Copies of passport, I-94 card and visa
      Original Receipts
      Reimbursable Expense Statement for
       Non resident aliens:
Reimbursement of Expenses
for other visa types
 – H1B not sponsored by UGA – reimbursement of
   expenses for an activity that is in the same field
   of employment
 – Job Interview
       Reimbursed expenses for job interview are not
        considered income
 – F1/J1 student – reimbursement of expenses may
   be taxable if the activity is to benefit the student
       i.e. – pay expenses for student to attend conference –
        taxable if the conference is to fulfill student’s academic
 – Business Purpose – benefits UGA then expenses
   fall under UGA’s accountable plan and is not
   taxable nor reportable
Visitors from Canada

    Passport not required
    Present purpose of visit
    Ask for I-94 card
    Documentation for payment –
     some type of Canadian
    Canadian Social Insurance Number
     is NOT a US Social Security
Non Employee Payments to
J1 scholar
 • Fellowship/Stipend: support given to scholar for
   study, training or research which does not constitute
   compensation for personal services
     No service is required to receive fellowship
      payment – there is no UGA benefit – if there
      is service, then payment is employment
     Payment is subject to 14% Federal
      Withholding unless specified by a treaty
      (must have US SS# or ITIN and from a treaty
    List of treaty countries:
Payment J1
   UGA Tax Information Form for
   Copies of passport, I94 card, visa, DS2019
   Form W8BEN (provided by Susan)
   USAID exception (per diems paid under
    USAID grants are exempt from federal tax
   Personal Exemption – may be able to
    reduce taxable amount by the current
    personal exemption
Reimbursement of
Expenses J1
   Providing a service – expenses fall under
    UGA’s accountable plan and are not taxable
   Documentation required:
    – Copies of passport, visa, I94 card, DS2019
    – Original receipts
    – Reimbursable expense statement for non
   Not providing a service – treat as fellowship
Honoraria to J1

   Payment for services
   Determine employee vs. independent
    contractor (questionnaire)
    – Time is not a factor
   Documentation required
    – Copies of passport, visa, I94 card,
    – Substitute Honoraria Form
Visitor Payments to J1
Scholar not Sponsored by
   Authorization Letter
    – A letter from Sponsor’s RO/DSO (OIE) allowing scholar to
      come to UGA for business purpose and receive payment
      for expenses and/or honoraria
   Reimburse Expenses
           If the visitor has a business purposes (i.e. lecture), then UGA
            will allow payment under the accountable plan
           Check request documentation:
              – Copies of passport, visa, I94, DS2019
              – Reimbursable Expense Form
              – Actual Receipts
              – Authorization Letter from Sponsor (DSO/RO)
Visitor Payments to J1
Scholar not Sponsored by
   Honoraria Payment (payment for
    – Payment will have 30% Federal Tax
      withheld (tax treaty not available due to
      time limitations and/or fixed base in US)
    – Check request documentation:
       Copies of passport, I94 card, visa, DS2019
       Authorization letter from Sponsor (DS0/RO)

       Honoraria Form
Object Coding
What are object codes?

   Object Code: A five digit code that
    identifies either balance sheet
    accounts, revenue sources, or
    expenditure classifications
   Used for reporting to the Board of
    – Continuous Audit
   1xxxx-Asset
   2xxxx-Liability
   3xxxx-Fund Balance
   4xxxx-Revenue
   5xxxx-Personal Services
   6xxxx-Travel
   7xxxx-Operating Expenses
   8xxxx-Equipment Purchases/Expenses
   9xxxx-Other
Travel Object Codes

   64100-Employee Domestic Travel
   64200-Employee Foreign Travel
   64107-Nonresident Alien Domestic
   64207-Nonresident Alien Foreign
   75210-Non-employee Reimbursable
Supplies & Expense-
   Cleaning materials
   Kits
   Lab supplies
   Uniforms
   Food (if the account allows for food to be
    (paper/pens/staplers/ink cartridges/toner)
Other Codes…

   71500-Repairs & Maintenance
    (janitorial/sanitation/pest control)
   71720-Electricity
   71750-Water
   72712-Conference & Workshop
   72732-Freight (UPS & Fedex)
   72725-Registration
   74200-Printing/Publications
Other Codes Cont.
   74300-Equipment with acquisition costs of
    $100.00-$2999.99 (ex. Chairs)
   74306-Computer & Computer Peripherals
    with costs of $100.00-$499.99
   74308-Equipment items with costs of
   74318-Electronic audio/visual/photographic
   74328-Computer & Computer Peripherals
    costing $500.00-$4999.99
Other Codes Cont.

   76910-Internet Charges
   76932-Cell Phone Charges
   84320-New or replacement equipment
    other than motor vehicles used on
    public roads or books with costs of
    $5000.00 or more
Per Diem Codes
   75111-Architect         75119-IT Consultant
   75112-Attorney          75110-Other Per Diems
   75113-Consultant        75170-Other Per Diems
   75114-Engineer           NRA
   75115-Physician         75210-Reimbursable
   75116-Interpreters       Expense
   75117-Vet               75220-Expense
   75118-Speakers          75227-Direct Expense
Where can I find a list of
Object Codes?
   The complete UGA Object Code list can be
    found on the Accounting website or at
   Include complete description on CR or PR so
    object code can be verified by T&E
   Use noun on description in electronic PR
Purchase Order
3 Way Match

   UGA requires a three way match
    process to facilitate PO payments.
   Purchase Order, Invoice, Receiving
   No receiving report on file=Eprove
What is eProve?

   eProve is used to forward invoices
    from Accounts Payable to departments
    for review.
   It is primarily used to request payment
    approval against purchase orders.
   It is also used to request information
    about invoices without a PO.
How do I get set up to
use eProve?
   Contact Brian Ellis at or
    (706) 542-2786.
   You will need to provide your name, email
    address, and the person you are replacing,
    if applicable.
   Register your preferred email address with
    the UGA MyID system by going to Click on the link
    “Faculty/Staff Email Address Registration.”
How do I access eProve?

   Login to the eProve system at
   You must use Internet Explorer to access
   Log in using your UGA MyID. If you email
    address is, your MyID is jdoe
    and has the same password as this account.
   If you do not know your MyID or password,
    you can access your account at
What should I do after I
log in to eProve?
   You will be able to view a list of invoices
    sent to you in the eProve system.
   You can view an image of each invoice
    including notes from Accounts Payable
    about the approval or information needed.
   Images can be manipulated for easier
    viewing. In addition, they can also be
   Reject any invoices that require research for
    an extended period of time and request that
    they be sent again at a later date.
Where can I go for more
help about using the eProve
   The Accounts Payable website located
    includes detailed instructions and
    troubleshooting tips.
   Contact Jennifer Oates in Accounts
    Payable via email at
   Contact Accounts Payable via
    telephone at (706) 542-2786.
Agreements over
Rendering of Advice Only
Setting up Consulting
Agreements under a
purchase order
   You must submit a purchase request for
    consulting whenever the total paid over the
    life of the contract will exceed $5,000.
   The purchase request should be submitted
    before any work is done.
   A sole source justification form will need to
    accompany your purchase request.
   Your purchase request should include
    separate line items for the amount to be
    paid for fees and reimbursable expenses.
Paying against Consulting
Agreements set up on PO
   Consultants should bill Accounts
    Payable directly.
   If you receive the invoice directly from
    the consultant, forward the invoice to
    AP with a signed coversheet.
   DO NOT submit a check request to
    accompany the invoice.
   Invoices must list fees and expenses
    as separate line items.
Consulting Agreements at
Year End
   Estimate the amount needed until
    June 30.
   Before May 1, contact Procurement to
    increase or decrease the order.
   After May 1, email
    directly for increases or decreases.
   The deadline to email changes to
    Accounts Payable is June 25 at 5 p.m.
Purchase Order Frequently
Asked Questions

You’ve probably heard this before
What is Liability?

   Liability accounts are used to hold
    funds encumbered in a previous fiscal
    year. Funding will remain available
    until the PO is paid or closed in some
    other way. When a PO is transferred
    to the liability account, a JV will
    appear on your status report for the
    full amount of the PO, and the order
    will no longer appear on your status
How can I get info about the
current status of a purchase
   You can see up-to-date information
    about the account number, current
    encumbered balance, total payments
    made to date, and total adjustments
    made to a purchase order using the EI
    function in the Financial Accounting
How can I get info about
amounts paid against a
purchase order?
   A list of payments made against a PO
    can be viewed using either the TE
    function in the IMS system or the
    Purchase/Check request search page
    on the Accounts Payable website.
Who do I contact if I need to
make changes to an existing
   To make changes to an existing PO,
    email the Procurement agent who
    issued the PO with detailed
    information about what should be
    changed. The name of the agent can
    be found on the front page of the PO.
    It is listed above the amount on the
    right side of the page.
How can I change the
encumbered amount for a
blanket PO?
   Before May 1st, you can make changes
    to blanket orders by contacting
    Procurement, as you would any order.
    After May 1st, you may email requests
    for increases/decreases to blanket
    PO’s directly to
    The deadline to make email requests
    for changes is June 25th at 5 p.m.
What should I do if I receive
an invoice for one of my
   Send the invoice to Accounts Payable
    with a signed coversheet requesting
    that it be paid against the PO. The
    coversheet must include a complete
Changing the Account
Number on a PO
   To change the account number that is
    encumbered on a PO, email Cecily
    Campbell (
   Reference PO number, current account
    encumbered and the account that you
    wish the PO to be encumbered against
Electronic Check
What you need to get
   UGA MyID & MyID password
   Contact Leslie Caldwell (
    for the account approval authorization
   Those who initiate a check request will not
    be able to approve the same request.
   Faxed Backup: 542-6925
E Check Unallowables

   Group travel
   Out-of-state employee travel
   Sub-contract payments
   Wire transfers
No Delete Function

   Electronic check requests cannot be
    deleted. If you have one that is
    rejected, you will need to modify the
    information and submit the request to
    cover another payment. You will only
    be able to have 5 check requests at
    the initial entry stage before you will
    not be allowed to create any others.
Check Request
Wire Transfers & Bank Drafts

   For Out-of-Country Payments Only
    – Bank name & address
    – Account number
    – Account name
    – Swift code or ABA#
    – Type of currency (foreign or US Dollars)

   Original Invoices
   Faxed copy only if over 30 days old
   FEI# to be included on invoice if
   Use remit to address as vendor
    address on check request

   Original signature if no invoice
   Date of service
   Current address
   Check appropriate box (US citizen,
    Resident alien, Non-resident alien)
Other Information…

   Always fill out contact information on
    the check request completely.
    – Name
    – Department
    – Phone Number
Social Security Numbers

   Correct numbers should be used
   If employee, last four digits only required
   No student ID numbers
   If no social security number is provided for
    a payment (services/research
    participant/etc.) it will be considered
    compensation and taxes will be withheld.
Cutoff Date

   All check requests to be charged
    against the FY07 budget must be into
    the Travel & Encumbrance section of
    Accounts Payable by the end of the
    working day on June 20, 2007.
Travel Portal

   Provides information regarding flights,
    hotels, travel agencies, airport parking,
    ground transportation, etc.
When to encumber

   Travel in excess of 50 miles of the
    state border
   Non-employee airfare being direct
    charged to UGA
Encumbered Travel

   New: Can encumber travel through
    Sept. 30, 2007 on this FY money.
   TA’s sent over now through June 30,
    2007 should be marked: “Charge to FY
    07” or “Charge to FY 08”
   Travel funds encumbered from state
    money at year end will roll into
Things to remember…

   Use the most advantageous form of
   When filling out your travel expense
    statement, use the revised form at:
    el_expense.pdf. This form contains
    the most up-to-date information.
Things to remember, cont.

   4 digit socials are required for employees.
   Full social must be provided for non-
    employee reimbursement.
   Per the Accountable Plan as documented by
    the Internal Revenue Service, you must
    adequately account for your expenses
    within a reasonable time. We request that
    you file reimbursements no later than 60
    days after they were paid or incurred.
Meals (Instate Travel)

   Daily Per Diem $28      High Cost Areas
   Breakfast $6             $36
   Lunch $7                Breakfast $7
   Dinner $15              Lunch $9
                            Dinner $ 20
                            Chatham, Cobb,
                             DeKalb, Fulton,
                             Glynn, Gwinnett
Out-of-State Meals

   Use federal per diem rate (less the $3
    federal incidentals allowance)
   The breakdown for the meal rate may
    be found at
Instate Lodging
   Use federal per diem website for Georgia.
   Georgia Green Hotels
   Should not be charged for county or municipal
    excise tax
   Hotel/motel tax-exemption form required when
   If lodging is direct billed to UGA, hotel/motel should
    not collect any taxes associated with the lodging.
Out-of-State Domestic
   Use federal per diem rates located at
   Obtain most reasonable lodging rates
Foreign Travel Per Diem

Exceeding Per Diems

   Receipts for meals not required; however,
    expenses that exceed limits should be
    explained & justified on the expense
   Lodging that exceeds the federal per diem
    rate by more than twenty-five percent
    should be explained and justified via memo
    and approved by the appropriate Dean or
Mileage Reimbursement

   $0.485 per mile (as of Feb. 1, 2007)
   $0.445 per mile (Jan. 1, 2006-Jan. 31,
   Deduct normal business miles traveled
    – Exceptions: weekends, holidays, miles to
      pick up extra passengers, mileage to
      obtain eligible meals
Group Travel
   Employee portions and non-employee
    portions must be submitted on two separate
    check requests.
   You must have a completed travel
    distribution form to accompany each of the
    check requests.
   Non-employees who are attending a
    conference/seminar/training and are not
    being paid for any services rendered do not
    have to provide socials. A list of
    participants should accompany the request.
Travel Regulations at UGA

   Provides in-depth review of travel
    regulations and group travel
   Tuesday, April 24, 2007 (9:00-12:00)
We’re Here To Help!
Year End Cutoff Dates

   Travel authorities with airfare direct
    charged to UGA must be in T&E by
    noon on June 8, 2007
   Travel reimbursements to be charged
    to the 2006-07 budget must be
    submitted to T&E by 5:00 on June 20,
Accounts Payable
Purchase/Check Request
   Located at
   Use your Financial Accounting System
    login (3 alpha characters followed by
    your 3 digit department number)
Travel Authority Lookup
   Use Financial Accounting system login to
Quarterly Newsletter

   In January 2006, Finance &
    Administration distributed it’s first
    quarterly newsletter, The Business Affairs
   It will advise policy and procedure
    changes, training opportunities, and
    much more!
   It is distributed on listserv and the latest
    edition is always available on the Finance
    & Administration website at

   Located at
   Finance & Administration Information
   Provides policy & procedure
   Provides answers to frequently asked
   Provides contact information
Help Us to Help You
Things you can do
Tips for expedient payments

   Give adequate descriptions on electronic
    purchase requests.
   Review check request documents for
    account number and appropriate signatures.
   Send check requests processing on
    restricted accounts to Contracts & Grants.
   Tell your runners to bring mail to Travel &
    Encumbrances, not ECD. There are no
    signs in our building that say ECD anymore.
What can we help you
Q&A Portion
Accounts Payable

   We’re on the web:
   Phone: (706) 542-2786
   Payment Section Fax: (706) 542-4944
   T&E Fax: (706) 542-6767
   Electronic Check Request Fax: (706)