"This section outlines the procedure for issuing a payment"
UC Davis Policy and Procedure Manual Chapter 330, Financial Management and Services Section 40, Disbursement Procedures Date: 5/31/02 Supersedes: 8/1/97 Responsible Department: Accounting and Financial Services Source Document: UC Accounting Manual Chapter D-371-36, Disbursements: Invoice Processing I. Purpose This section outlines the procedure for issuing a payment for a vendor invoice and describes the use of the UC Davis Financial Information System (DaFIS) Direct Charge document. II. Procedure for Payment of External Vendor Invoice A. The department shall: 1. Approve a DaFIS Vendor Invoice for payment after: a. Ascertaining that the external vendor's original invoice shows the vendor's name and payment address. In the absence of preprinted stationery, the vendor's handwritten signature must appear on the original invoice. b. Verifying that materials cited have been received and accepted free of damage and that the invoice has been price checked against the relevant purchase order. In addition, the specific items below must be verified for all types of purchase orders: PO/DPO/DROnumber Vendor name Quantity Specifications/description Unit price Discount terms FOB point c. Resolving problems concerning the external vendor's invoice at the departmental level. Invoice discrepancies for orders released by the Purchasing Department must be forwarded to the buyer if resolution was not obtained by the department. 2. Enter the approved DaFIS document number on the external vendor's invoice and forward it to Accounting & Financial Services. B. Accounting & Financial Services shall: 1. Verify the DaFIS Vendor Invoice on either a preaudit or sample postaudit basis, depending on the type of purchase, by comparing it with the original procurement document. The specific items listed below will be reviewed on the selected samples for the types of purchase orders indicated. (Refer to Section 350-21 for descriptions of departmental purchase delegations.) Purchase order number All types of purchase orders Vendor name All types of purchase orders Quantity Specific purchase orders 1 of 3 Section 330-40 5/31/02 Specifications Specific purchase orders Unit price Specific purchase orders Discount terms All types of purchase orders FOB point Specific purchase orders, purchasing blanket orders, and agreement purchases 2. Verify that appropriate approvals have been obtained for those types of procurement requiring higher level approval (e.g., membership, entertainment expenses). 3. Issue the check to the vendor. a. Vendor checks are issued based on the vendor's payment terms. b. Vendor checks are generally mailed to the payee. A department wishing to send correspondence or similar material to the vendor may indicate on the DaFIS Vendor Invoice document that there is an attachment, then forward the material, marked with the approved DaFIS document number, to Accounting & Financial Services, which will include it with the check. c. A check cannot be given to any person other than the payee unless specific written instructions to do so have been received from the payee. Such instructions should accompany the original document supporting the issuance of the check or may be presented when a person picks up the check. Note: The payee cannot authorize that the check be given to the individual who approved the payment. d. Persons picking up a check at Accounting & Financial Services must present identification and sign a receipt for the check. III. Procedure for Payment Using DaFIS Direct Charge Check Request A. A DaFIS Direct Charge document may be used in the absence of an external vendor's invoice to request Accounting & Financial Services issue a check for the following types of payments: 1. Reimbursement of petty cash funds. (Refer to Section 330-45.) 2. Payment of an honorarium to a non-University employee. (Refer to Section 380-76.) Note: Honoraria or additional compensation may be paid to University employees under certain conditions. Upon receipt of preapproval from the appropriate higher-level authority (e.g., Provost's Office, Human Resources, Graduate Studies) an On-line Payroll Time Reporting System (OPTRS) one-time payment (EDFT screen) may be entered into the Payroll/Personnel System (PPS). The approval date and name of the authorizing individual shall be included in the Post-Authorization Notification (PAN) comments. 3. Payment of association membership dues. (Refer to Section 330-75.) 4. Payment of fee refunds. 5. Payment of insurance premiums other than staff benefits. Insurance premium forms should be marked with the approved DaFIS document number and forwarded to 2 of 3 Section 330-40 5/31/02 Accounting & Financial Services, and the DaFIS Direct Charge document should indicate "attachment." The forms will be forwarded to the payee along with the check. 6. Payment of registration fees. Registration forms should be marked with the approved DaFIS document number and forwarded to Accounting & Financial Services, and the DaFIS Direct Charge document should indicate "attachment." The forms will be forwarded to the payee along with the check. B. The DaFIS Direct Charge document serves as documentation supporting the payment; a detailed explanation of the circumstances requiring issuance of a check must appear in the Notes field on the document, including references to forwarded material and, in the case of refunds, citing the cash receipt number(s) that recorded the initial payment. C. The account manager's approval authority must conform to the authorized approval level for the type of payment requested. (Refer to Section 330-10 for detailed information concerning delegation of approval authority.) D. Departments initiating a DaFIS Direct Charge document are responsible for entering on the form the payee's taxpayer information (Social Security) number and home address whenever the payment may be reportable for income tax purposes. Types of payments requiring taxpayer identification numbers are fees for services (e.g., fees of architects, consultants, physicians) and honoraria. IV. Further Information Further information may be obtained from Accounting & Financial Services at (530)757-8570. V. Reference Accounting Manual Chapter D-371-36, Disbursements: Invoice Processing (http://www.ucop.edu/ucophome/policies/acctman/). 3 of 3