Get documents about "Accounts Payable Procedure Template
Description
Accounts Payable Procedure Template document sample
Document Sample
PURCHASING OVERVIEW 8.9
ROLES INITIAL APPROXIMATE RESOURCES: (ALL)
Initiators
Approvers
Receivers
OVERVIEW
This section outlines the Purchasing process and provides some definitions. Details will be discussed in the manuals specific to each process.
The system utilized by the University of South Florida for financial transactions and reporting is a software product developed and sold by
PeopleSoft, company owned by Oracle since 2005. FAST (Financial Accounting SysTem) is the USF acronym that designates this software as
implemented and used by the university.
In the FAST PeopleSoft environment all procedures will, in time, be automatic
FAST consists of a number of “modules,” designed to be used alone or in tandem, as needed. Purchasing (PO) is one such module. Other
modules also used by USF and implemented in July 2003 are:
• Accounts Payable (AP)
• General Ledger (GL)
• Budgets (BU)
• Asset Management (AM)
• Accounts Receivable (AR)
• Billing (BI)
• Grants Management (GM)
• Capital Construction – Project Costing (PC)
Working within the FAST framework are other important processes:
• Workflow - approval routing (WF)
• Commitment Control - budget checking (KK)
• Security
PURCHASING PROCESS & PAYMENT CONNECTION
Departmental Users currently use the online requisition functionality in the PeopleSoft Purchasing module to initiate a request for purchase. The
identification of where the expense should be charged is done on the requisition and will carry forward automatically through the Purchase Order
(PO) to the Receipt and then to the Voucher (as the system refers to the invoice as input by AP.)
Online Workflow approval and receiving processes will replace the manual signature approval. Once the requisition is approved, the system will
generate a purchase order (PO) which is the official authorization to purchase goods or services. There will be no automatic notification of the
requestor when the POs have been created or dispatched (printed.) The requestor/user will be responsible for monitoring their requisitions and
knowing when a PO has been generated and purchase authorized.
Updated 3/26/2007 Purchasing 8.9 --Overview Page 1 of 7
The vendors will be directed to send invoices directly to the Accounts Payable department for processing rather than to the requesting
departments. Authorization to pay will be confirmed via online receiving and acceptance of the goods or services by the departments.
Accounts Payable will enter the invoices from the vendors, as vouchers, into the PeopleSoft Payables system in the order they are received.
PeopleSoft will match the vouchers to the purchase orders and receipts. Any exceptions to the matching process (quantity or price variances)
over predefined tolerances will be routed via Workflow to the departments for review.
Once the vouchers are successfully matched, the PeopleSoft payables system will generate payments when due based on payment terms and
invoice dates. There will be no automatic notification of the user/requestor when invoices are entered and paid. The user/requestor will be
responsible for monitoring his/her requisitions and knowing when invoices are entered and paid.
In the near future USF will be adding the following modules:
• Travel and Expense (EX)
• Budget Analysis Reporting Tool a.k.a. “BART” (EPM)
The GEMS system (Global EMployment System) in Human Resources is also a PeopleSoft product.
The Purchasing manuals deal only with the procurement side of the financial processes in FAST.
DOCUMENTS STILL REQUIRED
Payment Request Form
Change Order Request Form
Updated 3/26/2007 Purchasing 8.9 --Overview Page 2 of 7
Purchasing to Accounts Payable process flow:
P O B a tc h P ro c e s s in g
A p p ro v a l
O n lin e R e q u is itio n P O S o u rc in g
(c o u ld b e m u ltip le le v e ls
(re q u is itio n m u s t h a v e a b u d g e t P O C a lc O rd e r P la c e d w ith V e n d o r A
d e p e n d in g o n th e n a tu re a n d
c h e c k s ta tu s o f V a lid ) P O C re a te
a m o u n t o f th e p u rc h a s e )
P O D is p a tc h
G oods/
S e rv ic e s
No A p p ro v e d ? Yes
In v o ic e
R e c o rd In s p e c tio n o f G o o d s in
In s p e c tio n R e c o rd R e c e ip t o f G o o d s in P S
P S P u rc h a s in g Yes
R e q u ire d ? P u rc h a s in g
(re q u ire d fo r c o n s tu rc tio n o n ly )
P la c e d in S e rv ic e
G oods/
Yes S e rv ic e s No
a c c e p te d ?
M a tc h in g
(c o m p a re s in v o ic e to P O , R e c ie p t In v o ic e E n te re d in to P S P a y a b le s B
R e tu rn to V e n d o r
No a n d w h e re a p p lic a b le In s p e c tio n )
(R T V )
No M a tc h e d ? Yes
R e tu rn fo r
C re d it o r R e tu rn B R o u te fo r E x c e p tio n H a n d lin g
E xc h a n g e
A v a ila b le fo r P a y m e n t P ro c e s s in g
E xc h a n g
e
A
G e n e ra l L e d g e r
E x p e n d itu re T ra n s fe rs
Updated 3/26/2007 Purchasing 8.9 --Overview Page 3 of 7
GLOSSARY
Approval (Requisition) - After a requisition is entered, Workflow will direct it through the system to the appropriate approvers.
Once it is approved, it will move through several processes and be built into a purchase order. The requisition will show a status
of “Approved” on the Maintain Requisition page and the user may be moved to the Requisition Inquiry page if they are not a
Purchasing Agent.
Encumbrance – An amount temporarily removed from budget based on a purchase order. It is recorded in Commitment Control
and reduces RSA. It is reversed by an Expense.
Expense – An amount permanently removed from budget due to a payment. It is recorded in Commitment Control and reduces
RSA.
LPO – Limited Purchase Order. A requisition that is less than $1000.00 and for a commonly approved type of supply or repair
can will automatically source into a purchase order without Purchasing review or approval. Placing the order is in the hands of the
department as a printed purchase order will not be mailed.
OCO (Operating Capital Outlay) – Purchases that add to the overall value of the university such as equipment or land acquisition.
Pre-encumbrance – An amount temporarily removed from budget based on a requisition. It is recorded in Commitment Control
and reduces RSA. It is reversed by an Encumbrance.
Purchase Order – Authorization to purchase goods or services.
Receipt/Receiving – Online acknowledgement of receipt and acceptance of goods or services.
Req_Approver – A Workflow role that acts as the first level of approval authority in the department. Most approvers have both this
role and that of Req_Manager. . In areas with two levels of approval, different users will have only one of these roles.
Req_Manager – A Workflow role that is the highest level of approval authority in the department/college. Most approvers have
both this role and that of Req_Manager. In areas with two levels of approval, different users will have only one of these roles.
Requisition - The online request for goods or services to be acquired from a supplier.
Rollup – In the “chart of accounts” several specific definitions of expenditures (expense accounts) are added together and form a
larger category of budget accounts. Those accounts are further added together into even larger categories. This “tree” structure
allows for various levels of budgeting and reporting. This is necessary because various agencies that provide funding, such as
the State Comptroller or the National Science Association, require different levels of accountability from the university.
Updated 3/26/2007 Purchasing 8.9 --Overview Page 4 of 7
RSA – “Remaining Spending Authority” or “Budget Balance” this is the amount available to spend in a particular budget category.
Route, Routing Chartfield, Workflow Route – The chartfield value that is used for approval routing on a particular requisition. For
a full explanation of Workflow routing in Purchasing, refer to “Purchasing Workflow” on the Fast Financial Webpage under
Business Procedures.
Sourcing – The group of processes that turn a requisition into a purchase order. They eliminate the pre-encumbrance and create
the encumbrance in Commitment Control.
Security Role – A role that determines what areas of the system a user can access and what they can do there. For example,
there is a Security Role of Requisition Approver (PO_REQAPPR.) If a requisition has been pushed into Workflow, user can
access the Approve Amounts screen and make changes to the Approval Action, comments, etc. But in addition to the security
role, a user must also have one of the Workflow routes for Req_Approver/Manager on the routing chartfield for that requisition.
Workflow – The process that “moves” requisitions through layers of approval until it is “sourced” to a purchase order. For a full
explanation of Workflow routing in Purchasing, refer to “Purchasing Workflow” on the Fast Financial Webpage under Business
Procedures.
CHARTFIELDS FOR “DUMMIES”
Chartfields are groups of numbers and/or letters that organize and define specific aspects of a financial transaction in the FAST
system. This breakdown of finances into categories allows the university to more efficiently record and report its transactions.
Each category has it’s own “field” on the “distribution” that defines the transaction in a code that is standardized so the system can
understand and organize it. The categories used in FAST Purchasing are defined in the chart below.
Updated 3/26/2007 Purchasing 8.9 --Overview Page 5 of 7
CHARTFIELD FIELD
AKA DEFINITION NOTE EXAMPLE
NAME DESIGN
The highest level and
General Ledger GL Unit official record of There is only one GL
5 characters USF01
Business Unit GL BU financial transactions in BU for USF
the system
The first breakdown of
TheTampa campus
transactions after the GL STP (St. Pete)
uses 2 OUs, TPA and
OU BU. They usually LKL (Lakeland)
Operating Unit 3 letters HSC for the Health
Oper Unit designate one of the SAR (Sarasota)
Sciences and TPA for
campuses or a large FPR (FIPR)
everything else
subdivision of a campus
USF obtains funding
from hundreds of
Designates the source 10000 (E&G)
reportable sources; FL
Fund of funding used in the 5 digits 21000 (State grant)
state budget, federal
transaction 03450 (Auxiliary)
grants, auxiliary
income, etc.
Although Purchasing
Defines a category of
uses only Expense
expenditure for
accounts, other 53000
Account Acct Purchasing such as 5 digits
accounts exist such as 63110
“Service Medical” or
Budget Accounts or
“Postage”
Revenue Accounts
Designates the USF There is a rough
DeptID department that will be correlation of 025500
Department ID 6 digits
Dept charged for the department number to 120100
expenditure college
This field is not used
for ‘official’ GL
A ‘free’ field that can be
reporting or Workflow.
defined as needed by PRO005
However it is a
Product Prod department who require 6 characters 000026
required field and
additional breakdown of 000000
must be filled out with
expenditures
zeros if it is not being
used
The employee id of the
Principal Investigator is
This designates a 0064414
Init usually the number
Initiative Research Overhead 7 characters R012355
RO used. This is required
allocation 0000000
field and must be filled
out with zeros if it is
Updated 3/26/2007 Purchasing 8.9 --Overview Page 6 of 7
CHARTFIELD FIELD
AKA DEFINITION NOTE EXAMPLE
NAME DESIGN
not being used
Both Grants and
PC BU Construction use the
Project Costing Specifies a particular USF01
PC Bus 5 characters same tables so a
Business Unit project costing type GRT01
Unit distinction is made
between them here
Grant projects use 10
numbers beginning
with the first digits of
Sepcifies a particular
10-14 the department id. 1201001400
Project Proj grant or construction
characters Construction projects PF143004700100
project
use up to 14
characters and begin
with “P”
A&E
Construction uses INFRASTRUCTUR
A further breakdown of familiar terminology E
1-16
Activity ID Act the project within the while Grants uses LAND
characters
project costing module allocation related 6414001241
names and numbers BUDGET
COSTSHARE
Designates allocation
Usually 2 letters PE10
Budget Reference Bud Ref information for 4 characters
followed by 2 digits GR06
Construction
Further refinement of SURV
Resource Type Res Type 5 characters Usually letters
Construction activity PARK
Resource Additional information ROADS
Res Cat 5 characters Usually letters
Category for Construction BLDG
Updated 3/26/2007 Purchasing 8.9 --Overview Page 7 of 7
Related docs
