Docstoc

Suppliers Invoices and Credit Notes

Document Sample
Suppliers Invoices and Credit Notes Powered By Docstoc
					Accounts Payable
New User Course Manual
                         Finance Training
Contents

1.     Accounts Payable overview.......................................................................................................3
2.     Entering a Batch...........................................................................................................................4
3.     Entering invoices that have no purchase order...................................................................6
4.     Matching an Invoice to a Purchase Order ............................................................................14
6.     Processing a purchase invoice where there is more than one rate of VAT................19
7.     Processing a purchase invoice from an EC Supplier.......................................................20
8.     The purchase of services from overseas .............................................................................22
9.     Paying an invoice from another department .......................................................................24
10. Other common invoice scenarios ..........................................................................................27
11. Entering Employee Expenses .................................................................................................29
12. Entering a Simple Credit Memo ..............................................................................................32
13. Matching Credit or Debit Memos to Invoices ......................................................................34
14. Finding Invoices and Balance Owed .....................................................................................37
15. Releasing Holds on Invoices ...................................................................................................38
16. Month-End Guidance .................................................................................................................40
Appendix A:            Invoice Types ...........................................................................................................43
Appendix B:            Pay Groups ...............................................................................................................44
Appendix C:             VAT Guidance .........................................................................................................45
Appendix D:            Reference Guides & further information...........................................................46




Accounts Payable Manual v7.6                                    04/05/2011                                                       Page 2 of 46
Finance Training
1. Accounts Payable overview
1.1      Overview
The Accounts Payable module of UFS deals with the payment of all suppliers, both
internally and externally, as well as payments to staff for expenses.
Departments are responsible for recording details of invoices received from suppliers
onto the system and matching them to purchase orders when appropriate. The
Accounts Payable Team based in the Finance Division at The Old Schools will
process the payment runs.
Invoices and credit notes entered onto the system can be matched where appropriate
to purchase orders, approved on line and will automatically reverse out the
commitment originally generated by the purchase order. The main processes involved
in Accounts Payable are discussed below.
1.2      Suppliers
Invoices can only be processed if they relate to a supplier already set up on CUFS.
Supplier set up is undertaken centrally.

1.3      Invoice Entry
All invoices are entered onto UFS using a batching system, with different batches for
different invoice types, e.g. external and internal suppliers. The header allows you to
set control totals and if these control figures do not correspond with the actual
amounts the system will highlight this.

1.4      Matching Purchase Invoices to Purchase Orders
All invoices relating to approved purchase orders must be matched successfully
before invoice approval and payment is possible. The system will place a hold on
invoices that fail the invoice matching tolerances (the system matches a purchase
order, a system receipt and an invoice if three-way matching was selected when the
Purchase Order was raised) and this will require action by accounts and/or buying
staff.

1.5      Approving Purchase Invoices
All invoices must go through two levels of approval before payment is possible. This
involves on screen checking by an individual who is set up with approval
responsibilities. To approve invoices you must have AP Invoice Manager
Responsibility and in order to have this responsibility on LIVE you must have
completed the on-line Secondary Invoice Approval training.

1.6      Entering and Approving Expenses
Staff expense claims will require a manually completed form. The details from this
form will then be entered on to the system and approved through the standard invoice
entry route. Modified payroll expenses will be entered into accounts payable from the
existing payroll system using an electronic link between the two systems.




Accounts Payable Manual v7.6           04/05/2011                             Page 3 of 46
Finance Training
Overview of Entering an External Supplier Invoice

                                 Navigate: Entry > Invoice Batches


   Enter control totals and the batch name using the standard naming convention
                               DEPT CODE/INITIALS/DD/MM/YR/UNIQUE REF


                                        Click on Invoices




             Matching to a PO?                                   Not matching to a PO?

 Select PO Default as invoice type, enter                 Keep invoice type as Standard
 the PO Number and click OK                               Enter Supplier name/number




     •    Enter the Invoice details: date, number, amount, VAT and description
     •    Review how payment will be made




             Matching to a PO?
                                                                 Not matching to a PO?
1. Click on Match
2. Ensure the PO number appears in                         1. Click on Distributions
   the Find Purchase Order window. If it
   doesn’t, enter it manually into the                     2. Enter the net amount of the
   Number field                                               item/s and specify tax code/s.
3. Click on Find
4. Tick the Match box for each line you                    3. Allocate to correct departmental
   wish to match.                                             GL account or grant.
5. If necessary, overtype the Qty and
   Unit Price fields to reflect what                       4. If the item is over £2,000, tick the
   appears on the invoice                                     Track as Asset box
6. Click the Match button
7. Click on Distributions
8. Review accounts charged to




     •    If the item is over £2,000, tick the Track as Asset box
     •    Click on Calculate Tax.
     •    Close the Distributions window.


 Validate the invoice by clicking Actions …1, tick the Validate box and click OK.

 Click on the Holds tab to ensure secondary approval hold is placed on the invoice.




Accounts Payable Manual v7.6                 04/05/2011                                   Page 4 of 46
Finance Training
2.       Entering a Batch

All invoices are entered onto the system in batches, even if it is only a batch of one
invoice. Different batches should be used for different types of invoices, e.g. sterling,
foreign invoices and credit notes.

 Responsibility: AP Invoice Entry/ Manager

 Navigate:         Entry       Invoice Batches




In the batch header most of the fields are optional but you must enter the following.

1. Batch Name                    Each batch should have a unique name. The standard
                                 naming convention for batches used University wide is
                                 DEPARTMENT CODE/YOUR INITIALS/DD/MM/YY/UNIQUE NUMBER
                                 e.g. AG/OJH/31/03/09/01


                                 This must be in upper case and this name will appear
                                 on your reports and will help you and others locate the
                                 batch online.

2. Control Count                 Enter the physical number of invoices that you are
                                 going to enter as part of this batch.

3. Control Amount                Enter the total gross value of all the invoices (i.e.
                                 inclusive of VAT) that you are going to enter as part of
                                 the batch

4. Save

5. Click on Invoices

         Control values are manually calculated before you start entering invoices into a
         batch. As invoices are entered, the system will compare the running totals with what
         has been entered initially as a control. This is the function of the Actual count/
         amount and the count/amount difference columns.

         If there is a discrepancy, the system warns you when you exit a batch but it does
         not prevent Approval and payment of the individual invoices within a batch. You can
         make a correction immediately, or you can adjust the invoice batch later.

Accounts Payable Manual v7.6               04/05/2011                               Page 5 of 46
Finance Training
3.       Entering invoices that have no purchase order

Each line in the Invoices window represents a separate invoice within the batch.
There are four stages involved in entering an invoice for which the system does not
have a purchase order.

  Transfer details             Review how the         Specify the charge
from the invoice to            invoice is to be       account/project that it      Validate
    the system                       paid             is to be allocated to



Step 1:           Transferring Invoice details to the System




1.    Accept ‘Standard’ as the Type               When entering a basic invoice select
                                                  Standard from the drop-down list.

                                                  See Appendix A for details of other types

2.    Enter either the Supplier Name              If you enter one of these identifiers the
      or number                                   system should default in the other field
                                                  for you.

3.    Check the Site                              This is where you the invoice payment
                                                  will be sent. If the site does not default
                                                  in, you must select the relevant site
                                                  from the list of options.

                                                  Check what is specified on the invoice




Accounts Payable Manual v7.6                  04/05/2011                               Page 6 of 46
Finance Training
4.    Enter the Invoice Date                 As per the invoice

5.    Enter the Invoice number               As per the supplier’s invoice.

                                             The system will warn you and will not
                                             accept duplicate invoice numbers for the
                                             same supplier.

6     Enter the Invoice Amount               This is the total amount of the invoice
                                             including tax.

7     Click in to the VAT amount field       Enter the VAT amount into the box that
                                             will pop up automatically. If no VAT
                                             has been charged on the invoice you
                                             must enter zero in this box.

                                             Do not include any amounts that are not UK
                                             VAT, e.g. an overseas tax.




8.    Review Cheque destination if           The default option S is for the cheque
      the supplier is not being paid         to be posted straight out to the supplier
      electronically (see Payment            by the Finance Division.
      Methods in the next section).
                                             Alternatively select D f the cheque
                                             needs to be returned to your
                                             department instead.

9.    Select Tax Name                        Pick the appropriate tax name from the
                                             list of values e.g. SR20%, EC20%, ME0%
                                             or NO-UK VAT

                                             see Appendix C for more guidance on VAT

10. Type in a Description                    Type in a description of the purchase.
                                             This field is vital for reporting purposes
                                             and is used in the Fixed Asset Module.




Accounts Payable Manual v7.6             04/05/2011                               Page 7 of 46
Finance Training
Step 2: Review how the invoice is to be paid

Continue on the same line but scroll along to the right.




6     Review the GL Date                    The system defaults in the current date.

                                            However, you may need to change this just after
                                            month end if you need to post the expenditure
                                            back into the previous accounting period. You
                                            have three working days at the beginning of
                                            every month to do this.

7.    Review the Payment Terms              This defaults in from the supplier set up and
                                            is normally End + 30 days. This means that
                                            the invoice will be paid at the end of the
                                            current month plus another 30 days

8     Review the Payment Method             The payment method cannot now be
                                            updated by departmental users from the
                                            default for that supplier. Many suppliers are
                                            paid electronically via BACS.

                                            Contact the AP Helpdesk if the method is not
                                            appropriate however, users still have the ability
                                            to change the Pay Group for the supplier if they
                                            wish.

9     Review the Payment Group              This field tells the system which payment
                                            run to include the invoice on. There are
                                            several types: for sterling supplier invoices
                                            the system default of ‘Supplier’ will normally
                                            default in.

                                            See Appendix B for more details on Payment
                                            Groups

                                            The default should not be changed without first
                                            taking advice from Accounts Payable
                                             email UFS_AP@admin.cam.ac.uk
                                            .
10    Consider the Pay Alone tick box       Only tick if you require a separate cheque
                                            for this particular invoice.

                                            If you want the cheque returned to your
                                            department to you will also need to change the
                                            Cheque destination field as mentioned
                                            previously.




Accounts Payable Manual v7.6            04/05/2011                                Page 8 of 46
Finance Training
Step 3: Specify where to charge the invoice

1     After clicking on the Distributions button at the bottom of the Invoices
      window you will see the following window displayed.




2     Complete the Amount field             Enter the VAT exclusive amount that you
                                            want to charge to a particular account or
                                            project

3     Complete the Tax Name field           From the List of Values select the code
                                            relevant for the item
                                            eg. SR20%, EC20%, ME0%, NO-UK VAT.

4     Enter the correct accounting          See the next pages for detailed steps on
      codes for these items in your         how to:
      department                                    Code to a GL charge account
                                                    Code to a Project account

5     Tick the Track as Asset box if        Assets are items such as equipment,
      you are buying an asset costing       machinery, furniture, vehicles that the
      over £2000                            University is likely to keep for more than a
                                            year.

                                            If in doubt it is better to tick the Track as Asset
                                            box than to leave it blank or contact the Fixed
                                            Assets helpdesk.

                                            If buying an asset from a research grant
                                            ensure that you complete the project
                                            information fields first and save before you
                                            tick the track as asset box. Otherwise when
                                            you Calculate Tax the asset ticks will be
                                            removed.



Accounts Payable Manual v7.6            04/05/2011                                  Page 9 of 46
Finance Training
6     Save

           To code the invoice against more than one GL charge account or project
                   simply repeat the process outlined in steps 2- 6 above.


7     Click on the Calculate Tax button   The relevant tax lines will be created - do
                                          not delete any tax lines with nil values.

                                          In certain scenarios these may require
                                          amending section ??? gives more details of
                                          these.


8                                         Check that the Invoice Total and Distribution
                                          Totals agree at the top of the screen.



9     Close the Distribution screen


You are now ready for Step 4 - Validating your invoice.




Accounts Payable Manual v7.6          04/05/2011                             Page 10 of 46
Finance Training
      To code an item to a GL Charge Account

a     In the Account field type U and
      then press the tab key.

b     Click OK to the Alias field
      message.

c     This will take you straight to the
      Accounting Flex field box.

      If you are unsure of any of the
      codes then click on the list of
      values for the relevant field and
      search for appropriate options


           •   department code                 Your two digit CUFS department code

           •   the cost centre                 Often these will have been hand written on
           •   the source of funds             the invoice by whoever has manually
                                               authorized the invoice to say that the goods
                                               or services have been received.

                                               If you still have doubts as to which cost centre or
                                               source of funds code to use please speak to
                                               either your head of accounts or the person who
                                               ordered the items.


           •   the transaction code            Use the list of values to find an appropriate
                                               transaction code to describe the items
                                               purchased. This will normally start with an
                                               ‘E’ or very occasionally a ‘F’.

d     Enter 0000 as the Spare code             The spare is always four zeros.

e     Click OK                                 You will return to the Distribution window.




Accounts Payable Manual v7.6               04/05/2011                                Page 11 of 46
Finance Training
       To code an item to a Research Grant/Project


a     Ensure that the account field is         The system will populate this later with a
      blank                                    ‘GL mapping’ code that summarises the
                                               Grants information and therefore this field
                                               must be blank for it to do this.

b     Scroll along to the right hand side
      of the line until you reach the
      Project field.

c     Enter the Project number that            This will start with your 2-letter department
      you wish to allocate the cost to.        code. You can either type it straight into the
                                               field or select it from the list of values.

                                               Often it will have been hand written on the
                                               invoice by whoever has manually authorized
                                               the invoice to say that the goods or services
                                               have been received.

                                               If you still have doubts as to which project to use
                                               please speak to either your head of accounts or
                                               the person who ordered the items.

d     Select the Task from the list of         This is linked to the Project you have
      values.                                  selected -select the appropriate one.

e     Click on the list of values in the       If there is only one award linked to that
      Award field.                             project it will default in, otherwise search the
                                               List of Values.

f     Complete the Expenditure Type            Select an appropriate category from the list
                                               of values.

g     Complete Expenditure                     This is your department - enter your 2-letter
      Organization                             department code in the field and press tab
                                               on the keyboard.

h     Enter Item date                          This is the date of expenditure. If nearing
                                               the end of the project ensure that you enter
                                               the date that the goods were delivered or
                                               services performed.

                                               In other cases the invoice date or today’s
                                               date will suffice.

i     Click on Save                            The GL grant mapping code will now
                                               populate into the Account field




Accounts Payable Manual v7.6               04/05/2011                                Page 12 of 46
Finance Training
Step 4: Validating your Invoice

1     Close out of the Distributions
      screen

2     Click on Actions… 1. button          The Invoice actions screen display

3     Click in the box for Validate.

4     Click OK

5     Invoice Status should be Needs
      Revalidation.




6     the Click Holds tab                  It should state Awaiting Secondary
                                           Approval.

                                           If there is a hold other than Awaiting Secondary
                                           Invoice Approval, please refer to the Releasing
                                           Holds section in the manual.




Accounts Payable Manual v7.6           04/05/2011                              Page 13 of 46
Finance Training
4. Matching an Invoice to a Purchase Order
When you enter a supplier invoice for which a CUFS purchase order was raised, you
should match it to the order to remove the commitment from your departmental
accounts.

Pre-requisites:

•          Your purchase order must have been generated on CUFS;
•          The purchase order must be approved and open;
•          The invoice must be for the same supplier and currency as the purchase order.


       Transfer
     details from        Review how       Match to the       Check Assets        Validate
    the invoice to      the invoice is        PO             and Calculate
     the system           to be paid                             Tax



 AP Invoice Entry/ Manager Responsibility

 Navigate:           Entry     Invoice Batches         Invoices


Step 1: Transfer invoice details to the system

1       In the invoices window, change
        the invoice type to PO Default

2       A small window will appear for        The system will insert the details of the
        you to enter your Purchase            relevant supplier from the purchase order.
        Order number
                                              When matching to an Internal Order please
                                              leave the type as Standard and follow the
                                              process detailed in section 9 instead.

3       Enter the following information       Following the same procedures as given in
        from the invoice:                     section 3 for a standard invoice.

        ~invoice number
        ~invoice date
        ~total invoice amount
        ~total VAT
        ~description




When matching an invoice to the order, there maybe times where the Track as Asset box is
already ticked. This will have been completed at the Purchasing stage.




Accounts Payable Manual v7.6              04/05/2011                           Page 14 of 46
Finance Training
Step 2: Review how the invoice will be paid

4     Review how the invoice will be       As per the guidelines given in section 2.
      paid:

      ~Cheque destination
      ~Payment terms
      ~Payment methods
      ~Pay Groups
      ~Pay Alone check box


Step 3: Match to the purchase order

5     Click on the
      Match button




6     Ensure that the
      PO number
      appears in the
      Num field.




7     Click on Find




Accounts Payable Manual v7.6           04/05/2011                            Page 15 of 46
Finance Training
8     The matching window will open.            This displays the item lines from the
                                                purchase order.

9     Tick the Match box for each
      order line that you wish to match
      to the invoice.

10    Compare against the invoice and           The default values are those from the order.
      amend if necessary:
                                                To match however, the quantities and
      ~Qty invoiced                             amounts must reflect what appears on the
      ~Unit price                               invoice; therefore you may need to
                                                overtype some of the fields here.




      Note:

      The item description field is not automatically visible in the matching window. Scroll
      across to the right to find it and drag it back over to left hand side of the window. You
      may find it easier to set up a folder so that the item description field always appears in
      view. Instructions can be downloaded from:

                 http://ufs.admin.cam.ac.uk/reference/quickref/general/folder_tools.pdf

11    Click the Match button .                  You will return to the invoice window ready
                                                for the next step.




Accounts Payable Manual v7.6                04/05/2011                                Page 16 of 46
Finance Training
Step 4: Check Assets and Calculate Tax

12      The system will have
        automatically created the item
        distributions for you, based upon
        what was entered on the
        purchase order.
                                                                                      The Invoice
        It will not have calculated VAT.                                             total inc VAT




                               Value excluding
                                VAT from the
                                     PO


13      Click on the Distributions button.            For each item that you have matched from
                                                      the purchase order the following details will
                                                      have been pulled through:

                                                      ~the original GL account/ project code
                                                      ~Tax name
                                                      ~item description.

        Buying a fixed asset?                         Tick the Track as Asset box

15      Save then click Calculate Tax.                If you fail to remember to click the Calculate
                                                      Tax button your distribution total will not
                                                      equal your Batch or Actual totals.

16      Check that the Invoice Total and
        Distribution totals now agree




        If you have Calculated Tax and the totals still don’t agree then this could be due to:

        ~the invoice relates to more than one order;
        ~there is an item on the invoice that wasn’t on the order e.g. a delivery charge
        ~there is a tax-rounding error
        ~the wrong VAT rate was used on the order
        ~some other mistake

17      Close the distributions window and validate the invoice in the normal way via
        Actions … 1

Accounts Payable Manual v7.6                     04/05/2011                            Page 17 of 46
Finance Training
5.       Processing an invoice where there is no VAT
         (but not including Internal invoices)
The process is essentially the same as that for a standard rated VAT invoice given
above except that you need to select a different VAT rate in the 'Tax Name' box.
When selecting the tax name, there is a variety to choose from, however, a new tax
name has been created which covers a number of tax codes.


                  NO UK VAT: EC0.0%
                               Exempt
                               Outside Scope
                               ZR0.0%
If it is a medical exempt item then please select ME0.0%.


In the Invoices screen…

a)    Enter the invoice Tax name as either:

      ~No UK VAT
      ~ME0.0%.

b)    Enter the 0.00 in the VAT amount box.


In the Distributions screen…

c)    Enter your item line as normal
d)    Ensure that you enter the correct VAT          If you have not completed this
      rate for each item in the Tax Name box.        information and ask the system to
                                                     either calculate the VAT or validate, it
                                                     will assume it is standard rated.

                                                     You can still click on the Calculate
                                                     Tax button although this is not required
                                                     as there is no tax to calculate.




.




Accounts Payable Manual v7.6            04/05/2011                                 Page 18 of 46
Finance Training
6.       Processing a purchase invoice where there
         is more than one rate of VAT

The process is essentially the same as that for standard rated VAT given previously

In the Invoices screen…

a)    Enter the invoice Tax name as
      SR20% if there is any standard rated
      VAT on the invoice

b)    Enter in the VAT amount box the total
      amount of VAT shown on the invoice.


In the Distributions screen…

c)    Enter your item lines as normal                    You will require at minimum a
                                                         separate item line for each different
                                                         tax type

d)    For each item line select the appropriate          As tax is calculated based on the
      VAT rate in the Tax Name box.                      information entered in the amount
                                                         and the tax name fields, it is
                                                         essential that this is correct.

e)    Click on the Calculate Tax button.




                           In this example there are two items; one attracting
                          standard rate VAT and one that does not. When the
                           Calculate Tax button is pressed, four tax lines are
                            produced; all showing the correct amount of VAT.




f)    Validate your invoice in the usual way
      and check holds.


Accounts Payable Manual v7.6                04/05/2011                              Page 19 of 46
Finance Training
7.       Processing a purchase invoice from an EC
         Supplier
Goods purchased within the EC are subject to special international rules set by the
government to ensure fair trade across all the EC member states.

When processing these invoices, we add a self assessed tax charge equivalent to
20% if we are buying items that would have been standard rated for VAT in the UK.
This is to ensure that there is no tax advantage in buying items from an EC supplier
rather than a UK supplier.

In the invoices screen…

2     Enter invoice header and invoice       Check that no foreign VAT is charged by the
      information as with a standard         supplier,
      invoice.
                                             e.g. a French supplier does not charge TVA
                                             (the French equivalent of VAT) on the
                                             invoice.

3     Check the Invoice Currency             Make sure that this reflects the currency on
                                             the invoice, if not change it.

4     In the tax name box enter the          The system may well put in EC20% for you
      appropriate EC VAT rate:               automatically. This is correct for the majority
                                             of these invoices.
      ~EC20%
      ~EC0%                                  However, select NO UK VAT if you are
                                             purchasing items that would have been zero
                                             rated in this country, e.g. books, periodicals.

                                             If the item is subject to medical exemption in
                                             this country select ME0.0% and process in
                                             the normal way.

5     Calculate what the VAT charge          EC20%: multiply the total of the invoice by
      would have been if you had                    20% (or 0.2).
      brought the items in the UK:
                                             EC0% : £0.00

6     Enter this calculated value into       NB.
      the VAT Amount field                   The invoice total should still be the amount
                                             shown on the invoice; not this amount plus
                                             the additional VAT charge.




Accounts Payable Manual v7.6             04/05/2011                             Page 20 of 46
Finance Training
In the Distributions screen…

7     Code the item line as normal, but          Reminder: If the item is not subject to UK VAT,
      select the correct EC rate in the          then you must select NO UK VAT as the tax
      Tax Name box.                              name unless it is medical exempt.

8     Click on the Calculate tax button.         The tax lines will appear, together with a
                                                 negative line called ‘Acquisition Tax’.

                                                 This line is necessary for the University VAT
                                                 calculation and should not be amended or
                                                 removed.




                                       The Acquisition tax line is created as
                                       a negative entry. This is correct and
                                       should not be amended or deleted.




9     Validate your invoice in the usual         The supplier will be paid as per the value of their
      way and check holds.                       invoice.

                                                 However, unless you have charged the items to
                                                 GL accounts/projects which are ‘VAT
                                                 recoverable’, the self assessed ‘tax’ will be an
                                                 additional cost to your department in the same
                                                 way that VAT is normally.
10




            If you have brought goods from the
            EC now send a copy of your
            invoice to the:
                     Tax Team
                     Finance Division
                     Greenwich House




Accounts Payable Manual v7.6                04/05/2011                               Page 21 of 46
Finance Training
8. The purchase of services from overseas
When a department buys a service from overseas (either from within the EC or
beyond) it will need to ‘self account’ for VAT at 20% on that service. A tax rate has
been created in CUFS to deal with this change. The following example illustrates how
the tax will apply.

    The Finance Division buys tax advice from a French tax advisor for £1,000. The French
    tax advisor is given our VAT number and therefore does not charge French VAT. The
    invoice is entered on to CUFS and the new tax code is chosen.

    This code generates two entries – one of which calculates a VAT amount (at 20% of the
    invoice value) to be paid to HM Revenue and Customs and the second an equivalent
    amount chargeable to the department (except where the charge is made against a VAT
    reclaimable account).

    The total cost to the department, assuming no reclaim, is £1,200. The payment to the
    supplier will be £1,000.

This process is essentially the same as buying taxable goods from the EC.

In the invoices screen…

1      Enter invoice header and invoice        Check that no foreign VAT is charged by the
       information as with a standard          supplier,
       invoice.
                                               E.g. a French supplier does not charge TVA
                                               (the French equivalent of VAT) on the
                                               invoice.

2      Invoice Currency                        Make sure that this reflects the currency on
                                               the invoice, if not change it.

3      Tax name                                Select the option ‘Services Tax’

                                               Unless it is one of the following purchases
                                               (made overseas) which are not liable to this
                                               charge, but will continue to attract local tax
                                               where applicable:

                                                    -   accommodation;
                                                    -   catering;
                                                    -   transport;
                                                    -   services relating to land;
                                                    -   hire of goods.

                                               Thus for these services you will still select the
                                               tax name NO UK VAT if the supplier hasn’t
                                               charged you VAT

4      Calculate what the VAT charge           Multiply the total of the invoice by
       would have been if the service          20% (or 0.2).
       had been provided the UK




Accounts Payable Manual v7.6               04/05/2011                                 Page 22 of 46
Finance Training
5     VAT Amount                              Enter this calculated value
                                              NB. The invoice total should still be the amount
                                              shown on the invoice; not this amount plus the
                                              additional VAT charge.




                                                                           Services Tax rate
                                                                           must be selected




6.    Click on either the Distributions
      or Match button as appropriate.

In the Distributions screen…

7     Tax Name                                Code the item line as normal, but select
                                              ‘Services tax’
                                              Reminder: If its one of the services listed in step
                                              4 then you would select NO UK VAT as the tax
                                              name.

7     Click on the Calculate tax              The tax lines will appear, together with a
      button.                                 negative line called ‘Serv_Offset Tax’.
                                              This line is necessary for the University VAT
                                              calculation and should not be amended or
                                              removed.




8     Validate your invoice in the usual      The supplier will be paid as per the value of
      way and check holds.                    their invoice.
                                              However, unless you have charged the items to GL
                                              accounts/projects which are ‘VAT recoverable’, the
                                              self assessed ‘tax’ will be an additional cost to your
                                              department in the same way that VAT is normally.




Accounts Payable Manual v7.6              04/05/2011                                    Page 23 of 46
Finance Training
9. Paying an invoice from another department
Overnight any printed sales invoices generated within the Accounted Receivable
module to another department are automatically transferred by UFS to the AP module
of the department they were addressed to.

Therefore Internal AP Invoices are already on the system -do not manually re-enter
them; you just need to locate them and specify which of your departmental accounts
you wish to charge the items to.

    NB.      This process should not occur if the Sales department is an Associated
             Body. Any invoice from an Associated body should be processed in the
             same way as external supplier invoice, as these are separate entities to the
             University.


Locate the Internal invoice within your AP module that corresponds with the
hard copy that you have just received in the post…
1         Navigate: Entry > Invoices             Enter the invoice number

2         Click on Find.                         This will take you into the relevant invoice.
                                                  If you cannot locate it, please contact the
                                                 Accounts Payable Helpdesk for further
                                                 assistance on (7)66888.


Review the Invoice and specify to which of your departmental accounts you
would like it charged to …

3         Review the invoice on the screen       Please leave the Invoice Type as Standard
                                                 even when matching it to a Purchase Order.

4         VAT amount                             Enter 0

5         Tax name.                              Select Internal

6         Invoice Description                    Update to something more meaningful.

7         Click on the Distributions             The AP Invoice will have automatically
          button.                                allocated the payment to a default account
                                                 code within your department.
                                                 NB, This default code is always wrong

8         Ensure that the cursor is in line 1,   This will automatically create a negative
          click on the Reverse 1 button at       value (shown in brackets) line.
          the bottom of the screen.




Accounts Payable Manual v7.6                 04/05/2011                                Page 24 of 46
Finance Training
9
                                                Manually enter a new line, allocating the
              If this invoice does not
                                                payment to the GL account code or project
              relate to a PO…
                                                of your choice.

                                                As there is no VAT attributed to internal invoices
                                                there is no need to click Calculate Tax in the
                                                distributions screen, however, if you wish to do
                                                so, the system will generate the tax lines for you
                                                but with a zero value.



             If this invoice relates to a       Then close down the distributions screen,
             PO…                                Click on Match and match as normal.

                                                Your account code will then pull through from
                                                your Purchase Order to the distribution screen
                                                and will not need to be amended unless you
                                                wish to use a different code.

              Is it an asset?                   Go back into Distributions and tick the
                                                Track as Asset tick box.


10. Validate and SIA the invoice as
    normal



Unprocessed Payments
All unprocessed internal trading invoices are monitored by the Finance Division. Periodically
you may be contacted by the Finance Division asking you to process all remaining internal
invoices. This is most likely to happen at year end.

Procedure for disputed items
Where disputes regarding price, quantity or quality cannot be resolved between the purchasing
department and the supplying department, arbitration will take place by the Central Accounting
section of the Finance Division.

The disputing department has the ability to place an AP invoice on hold. The Hold Name
‘Internal Dispute’ should be chosen from the List of Values.

•   In a situation where a sales invoice is in dispute, an additional hold can be put on the
    Accounts Payable invoice. Selecting the Holds button in the Invoices window can do this.




Accounts Payable Manual v7.6                04/05/2011                               Page 25 of 46
Finance Training
•   In the ‘Invoice Holds’ window an additional hold to the ‘Secondary Approval’ hold can be
    selected in the Hold Name field (i.e., Internal Dispute). The Hold Reason field will
    automatically be entered.

Monitoring will be performed by the Finance Division to ensure invoices are validly placed in
dispute. This would form part of their arbitration role and include the use of a central report
highlighting all unapproved purchase invoices which are on a dispute hold and are over 14
days old.




Accounts Payable Manual v7.6               04/05/2011                                Page 26 of 46
Finance Training
10. Other common invoice scenarios

13.1      Invoices with a trade discount
If you receive an invoice with a trade discount, the VAT shown on it would have been
calculated on the discounted amount. Therefore, there should be no difference
between the amount you would put in the Tax Amount box and the amount the
Calculate Tax button will produce in the Distributions screen. The only time you will
get a difference is if the trade discount was not taken into account on the purchase
order and hence when you match you will need to adjust on the distributions screen
the values pulled through to ensure that it agrees with the actual invoice.


13.2      Dealing with VAT rounding errors
In a small number of cases you may experience differences between the calculated
tax and the invoiced VAT when dealing with small monetary amounts, as the system
only works to 2 decimal places e.g. if you entered a standard rated item for £25.61 the
VAT would be £5.12. However, the system would round the VAT up, so you would
need to manually adjust one of the Tax lines to get the invoice and the distributions to
balance. Please overtype the highest value tax line.


13.3      Processing invoices that contain other taxes as well as VAT
Occasionally, an invoice may show another form of tax other than VAT such as
Insurance Premium Tax (IPT), import duty, foreign taxes or Airport Tax. These taxes
should not be included in the VAT boxes.

For example, if an invoice is received for insurance for £300 plus IPT of £15, in the
'Batch Header' screen, the value of the invoice should be shown as £315. In the
invoice screen the Tax name should be shown as NO UK VAT and the VAT amount of
zero entered into the Tax Amount box. In the 'Distributions' screen, the full value of
the invoice including IPT should be put into the item line and the Calculate Tax button
then clicked.

13.4      Common mistakes
Invoice           •   Always enter the VAT amount shown on the invoice in the
Screen                VAT Amount box

Distributions •       Once you have entered your item lines you will need to click
Screen                the Calculate Tax button.
              •       Tax lines will be created. If these do not equal the VAT
                      entered into the invoice screen, check no basic errors have
                      been made in the item lines. Should the items lines be
                      correct, amend the highest value VAT line to ensure the VAT
                      amount is correct. The Invoice total should then equal the
                      Distributions total. If a basic error has been made, manually
                      amend the item line and then manually amend the VAT line.
                      The Calculate Tax line does not work twice.




Accounts Payable Manual v7.6              04/05/2011                          Page 27 of 46
Finance Training
Tax Lines         •   When clicking the Calculate Tax button you may get more
                      than one tax line due to using different tax rates, and also due
                      to the different recovery rates of VAT those different
                      transactions attract. Even if you do not see a reason for a
                      particular VAT line to be present, do not delete the line.
                  •   You can only click on Calculate Tax once, therefore if you
                      subsequently notice an error in your item line, you will need to
                      manually adjust the VAT line, VAT will not be adjusted if you
                      click Calculate Tax again.




Accounts Payable Manual v7.6              04/05/2011                            Page 28 of 46
Finance Training
11. Entering Employee Expenses

Expenses claims are to be entered onto the system in the same way as external
suppliers’ invoices, as all members of staff are listed as ‘suppliers’.

    The rates of travel and subsistence allowances are available on the Finance
    Division’s website and are sent out to all Departments on an annual basis.

    All claims for reimbursement of personal expenses must be supported as
    appropriate by receipts or other evidence and calculated in accordance with the
    University travel and subsistence rates approved by the Finance Committee. The
    Head of Department is responsible for ensuring the accuracy of claims and for
    complying with the University travel regulations.

    Claims for reimbursement must be made on the official University claim forms,
    available from the Finance Division web site.


1      Start to enter the invoice as        Accept Standard as the Type
       normal.

2      Supplier                             Enter either the employee’s surname or
                                            their Employee number.
                                            To assist in the selection of the correct
                                            supplier, especially when entering
                                            expenses claims, additional fields are now
                                            visible:
                                                • supplier type;
                                                • employee number;
                                                • active employee.




3      Employee’s Site                      Select the site for the address that you wish
                                            CUFS to print out on the cheque remittance
                                            advice.
                                            As standard Finance will send all employee
                                            cheques back to the Department to distribute.




Accounts Payable Manual v7.6            04/05/2011                              Page 29 of 46
Finance Training
4       Invoice Date                        Enter the expenses claim date.

5       Invoice number                      Accept the default (today’s date) by using
                                            the [Tab] key to move to the next field
                                            NB. The system will not accept duplicate
                                            invoice numbers for the same supplier


6       Tax Name                            A rate of NO UK VAT should normally be
                                            chosen.
                                            See below if the claim includes a VAT invoice
                                            made out to the University


7       Description                         Complete appropriately

8       Click on the Distributions button   Allocate the total expense claim amount to
                                            the appropriate expense accounts.
                                            NB. Travel and subsistence transaction codes
                                            start ET??




9       Click on the Calculate Tax          The system will generate various tax lines
        button.                             depending on the relevant tax rate of the
                                            expenses.

10. Validate and SIA as normal.




        Where to find an employee’s number
    •    on an individual’s payslip
    •    via the CHRIS system
    •    running an Account Analysis report in the General Ledger for the Cost Centre-
         Source of Funds combination to where an individual’s salary is charged


    Claims including invoices
E.g. You have an expense claim of £145.00 made up of mileage at £25 and a hotel
      bill of £100 plus £20 VAT- the hotel bill is a valid VAT invoice made out to
      University of Cambridge.

          Enter £145.00 as the invoice amount with a 'Tax name' of 'SR20%'. In the Tax
          Amount box enter the VAT of £20.00. In the distributions screen, enter the

Accounts Payable Manual v7.6            04/05/2011                              Page 30 of 46
Finance Training
         hotel charge as an item at £100 with a tax name of SR20%. Enter the mileage
         as a separate item at £25 with a tax name of NO UK VAT. Click on Calculate
         Tax.




Visiting Lecturers/researchers
There are particular rules and potential tax implications that need to be considered
when reimbursing the travel expenses of visitors if they can be regarded as being
employed by the University by HMRC.


         If you have any queries regard this contact the Tax Team within the Finance
         Division with regard to whether the individual is classed as employed by the
         University or self employed. If classed as ‘employees’ contact Payroll as they
         will need to be paid via the Modified Payroll system. If not ‘employees’ they will
         need to be set up on CUFS as a supplier.



Students
Will also need to be added as suppliers before a payment can be made.




Accounts Payable Manual v7.6             04/05/2011                            Page 31 of 46
Finance Training
12. Entering a Simple Credit Memo

                                          Ensure that credit memos are in their own
1.    Start a new batch. Navigate
                                          batch and that all amounts are entered as
                Entry
                                          negative values.
                Invoice Batches




                                Note the amount
                                 is in negatives




2.    Click on the Invoices button

3.    Type                                Select Credit Memo from the list of values

4.    Invoice number                      Enter the Credit Memo Number from the
                                          supplier’s document.
                                          NB. The system will not accept duplicate
                                          ‘invoice’ numbers for the same supplier.

5.    Invoice Amount                      Enter the total value of the credit including
                                          tax as a negative figure.

6.    Tax Name                            Select the appropriate VAT code from the
                                          list of values

7.    Tax amount                          Enter the VAT amount from the credit note
                                          as a negative figure. If there is no VAT on
                                          the credit note enter zero in this box.
                                          Do not include any amounts that are not UK
                                          VAT, e.g. overseas tax, or duty.

8.    Description                         In the description, ensure a reference is
                                          made to the invoice number to which the
                                          credit relates if you are not matching it to
                                          original invoice.See the next section on how
                                          to match it to the invoice.
                                          NB. This field is vital for both reporting purposes
                                          and the Fixed Asset Module.

9.    Terms                               Change terms to Immediate.




Accounts Payable Manual v7.6          04/05/2011                                Page 32 of 46
Finance Training
10. Click on Distributions




11. Enter item amount as a negative.

12. Account/Project                       Ensure the credit is coded to the same
                                          account /grant as the original invoice.


13. Description                           Ensure a reference is made to the invoice
                                          number to which the credit relates.

14. Click on Calculate Tax                Ensure Invoice and Distribution totals agree.


15. Save and validate in the normal
    way




Accounts Payable Manual v7.6          04/05/2011                           Page 33 of 46
Finance Training
13. Matching Credit or Debit Memos to Invoices

Matching a credit note to an invoice on the system is usually undertaken to provide a
clear audit trail and to ensure that the credit is coded back to the same account that
the invoice was coded to. It also re-opens the relevant purchase order line if the
invoice was matched to a purchase order.

Matching credit notes to invoices on the system can be a difficult process if you are
not dealing with a simple, few line only invoice. Therefore, it is not recommended
unless you are likely to be re-invoiced for the goods and you wish to re-open your
purchase order so you can then match your newly received goods.

1.    Enter the batch header details and credit memo details in the same way as the
      section ‘Entering a simple credit note’ but do not click on Distributions

2.    Go to the Match button                 Select Invoice from the drop down menu
                                             attached to the match field.




3.    Enter the Invoice number you
      wish to match the credit note to
      and click Find.




Accounts Payable Manual v7.6             04/05/2011                         Page 34 of 46
Finance Training
4.    Check the Match tick box

5.    Enter the Credit Amount                   Input the gross amount (item plus tax) as a
                                                negative value.

6.    Click Distribute                          This allows you to select the individual
                                                invoice lines to which you wish to match
                                                your credit.

7.    Check the match tick box for              Input the relevant credit amounts again
      both the item line you wish to            working in negatives.
      credit together and its related tax
      line




Accounts Payable Manual v7.6                04/05/2011                           Page 35 of 46
Finance Training
      In the above example it is relatively simple to determine the related tax lines. However, if
      this is not the case the following procedure should be followed:

      •    Calculate the amount of tax relating to the credit. If only one item line is being
           credited, this will be the VAT amount from the credit note.
      •    Look for a corresponding tax line for this amount that has the same coding as the
           item line.
      •    If no such line exists, or, if this amount only partially covers the credit, you may need
           to return to the original invoice and use the Allocate facility or view the recovery rate
           in the distributions screen to determine which tax line is related to the credit you are
           trying to Distribute.

8.    Click on Match                             Once the matching process is complete you
                                                 will be returned to the invoice header screen
                                                 where you

9.    Save and validate in the normal            At this point you can return to the
      way.                                       distributions screen to review your entries if
                                                 you wish.




Accounts Payable Manual v7.6                 04/05/2011                                Page 36 of 46
Finance Training
14. Finding Invoices and Balance Owed

 AP Invoice Entry/Manager Responsibility

 Navigate:          Enquiry    Invoices


1.    You can enter
      multiple search
      criteria by entering
      information in one or
      more fields




2.    Click on the Find        You will be provided with a list of invoices that match the
      button                   criteria.



How to calculate the amount that your department currently owes to a
supplier

1     Enquiry>Invoices         Complete the Name field for the relevant supplier.

2     Click on Calculate Balance Owed.


3     Click on Calculate

      The system will
      calculate the amount
      owing to the supplier
      and provide you with
      the number of
      invoices that make
      up this amount.




4. If you wish to view the unpaid invoices, click on the Invoices button and you will
   be provided with a list on screen.


Accounts Payable Manual v7.6             04/05/2011                            Page 37 of 46
Finance Training
15. Releasing Holds on Invoices

There are many reasons why the system may put a hold on an invoice and prevent it
being approved for payment.

These can be split into four main                    Each has its own way of being dealt
types                                                with


    • The purchase order, the receipt
                                                     If there is a matching problem some of
      and the invoice do not match.
                                                     the holds will require you to go back
                                                     and correct a document (e.g. receipt
                                                     the goods) others need to be manually
                                                     released
                                                     NB. Before releasing holds you should
                                                     liaise with the person who placed the order
                                                     first and get authorization.


    • An individual somewhere has                    Find out why they have put it on hold.
      manually put a hold on paying
      this invoice for particular reason.

    • It is awaiting Secondary Invoice               This is normal and the hold will
      Approval (SIA).                                automatically be released once it has
                                                     been secondary approved.


Manually Releasing Holds on an invoice


        Select the invoice which has a
1
        hold(s) on it.

2                                               Review the holds that have been put in
        Click on the Holds button
                                                place for this invoice




Accounts Payable Manual v7.6                04/05/2011                              Page 38 of 46
Finance Training
        Is it a Quantity Received hold?      Check with the buyer whether the items
                                             have actually been received.

                                             Items received….
                                             Get them to receive the items within
                                             iProcurement. Once they have done this
                                             you can re-validate the invoice and the
                                             system will lift the hold.
                                             NB. If this is not done, the purchase order will
                                             remain open and commitments may stay on a
                                             grant.

                                             Items not received….
                                             Leave the invoice on hold and do not pay
                                             until the items are delivered.

                                             Its a service where we have to pay in
                                             advance (e.g. to attend a conference)…
                                             Manualy release the hold as detailed below

3       Click in the Release Name box        Pick the most appropriate release name
        next to a particular hold.           from the list of values and the system will
                                             automatically enter the Release Reason for
                                             you.
                      Alternatively

        Click on the Release 1 button        Again select from the list of options
                                             available.
                                             NB. The system will make a note every time
                                             you manually release a hold, and various reports
                                             can be obtained showing who has released what
                                             holds.

        Has an individual manually           To remove this, simply untick the hold box
        stopped payment by putting it on     and Save.
        hold within the schedule
        payments tab?



NB: Remember that the Secondary Approval hold is normal and will be released
automatically once your secondary approver has approved the invoice.




Accounts Payable Manual v7.6            04/05/2011                               Page 39 of 46
Finance Training
16. Month-End Guidance

         Validate all AP invoices for the month (this is ongoing).
         Review supplier statements and check all invoices are secondary approved/or
         current (i.e. not due for payment).
         Review employee expense claims/advances to ensure they are up-to-date and
         processed.
         Review credit card statements to supporting receipts/vouchers and journal
         expenditure from the department suspense account to relevant cost centre.
         Run Invoices on Hold (CAPSA) Report to list invoices placed on hold and then
         action all holds, as necessary.


Invoice on hold report

This report shows all the AP invoices on hold within your department listed by hold
name. These invoices will not be paid until the hold is resolved and/or overridden.

 AP Invoice Entry/Manager Responsibility

 Navigate:         Other       Requests      Run


1.    Click OK to a Single Request            The Submit Request screen displays.

2.    Enter Inv in the Name field and         A list of reports will display simply select the
      press Tab. .                            Invoices on hold report from the list and
                                              click OK

3.    Enter the required parameters           Leave fields blank when running report at
                                              year-end. But fields can be used when
                                              running the report as a house-keeping tool




4.    Click on Submit




Accounts Payable Manual v7.6              04/05/2011                              Page 40 of 46
Finance Training
Action points from this report

•   All invoices on this report should be investigated. Once all holds have been
    released, the report should be run again to ensure all invoices are processed prior
    to the financial year end.

•   Where the holds are valid and current, efforts should be made to enable the
    invoice to be released from hold.
•   Holds for any other reason are to be released to enable the invoice to be paid or
    the invoice should be cancelled.

The following are some of the most common holds found on invoices within Accounts
Payable.

Hold Name               What does it             How did I get it?            Over ride?
                        mean?
Credit Note             Your invoice is on       Someone in your              Yes you can manually
                        hold awaiting a           department has manually     over ride this hold
                        credit note               put this hold on your
                                                  invoice
Internal Dispute        Internal Trading         Someone in your              Yes you can manually
                         Invoice that is         department has manually      over ride this hold
                         being disputed          put this hold on your
                                                 invoice
Qty Rec.                The quantity you         Maybe you have only part-    Need to receive the
                        have been billed         received this order. Or      goods on the system if
                        for on your              some items have been         the receipt has been
                        invoice exceeds          sent back.                   overlooked. Get a credit
                        the quantity you                                      note if goods sent back
                        have received on                                      or no longer required.
                        the system                                            You can manually over
                                                                              ride this hold.
Tax Difference          The tax name on          Either the wrong tax name    You will need to check
                        your PO is               was entered on the PO or     and amend the invoice
                        different to that        the invoice                  distributions. You can
                        on your invoice                                       manually over ride this
                                                                              hold.
Tax Amount              Tax amount               You may have needed to       Check tax figures. You
Range                    varies from that        manually adjust the VAT       can manually override
                         expected                                              this hold
Price                   The price of the         Either the wrong price was   Check with the Buyer
                        invoice is different     entered onto the PO or the   and/or Supplier. You can
                        or exceeds the           invoice is wrong.            manually over ride this
                        price that was on                                     hold.
                        the PO
Qty Ord                 The quantity that        Was the invoice for          Check with the Buyer.
                         you have been           several PO’s and only        Match against other PO’s
                         billed for on the       been matched to one?         if necessary. You can
                         invoice exceeds         The original PO may have     manually over ride this
                         the quantity that       been incorrect.              hold.
                         was originally
                         ordered.

Accounts Payable Manual v7.6                   04/05/2011                          Page 41 of 46
Finance Training
Final Matching          There is a Final        You ticked the Final Match    Contact The Accounts
                        Match hold on           box in the Match screen.      Payable Helpdesk. This
                        this invoice                                          hold can not be over
                                                                              ridden.
Secondary               The invoice is          Someone in your               Secondary Approve the
Approval                 awaiting               department has completed      invoice for payment. This
                         secondary              the primary approval.         hold can not be over
                         approval                                             ridden.
Tax Variance            There is a              It may be that not the        Amend the distribution
                        problem with the        entire invoice is taxable.     lines accordingly and
                        tax distribution        Or that the tax amount         then over ride the hold.
                        lines, which do         was different on the PO.
                        not calculate
                        correctly
Dist Variance           Your invoice            Either the invoice amount     You must amend the
                         distribution lines     has been incorrectly          distribution lines so that
                         do not total the       entered or you have           the invoice amount and
                         invoice amount         calculated the distribution   the total of the
                         that you have          lines wrongly. The            distribution lines are
                         entered.               distributions may have        equal. This hold can not
                                                been wrong on the PO.         be over ridden.




Accounts Payable Manual v7.6                  04/05/2011                           Page 42 of 46
Finance Training
Appendix A: Invoice Types

When processing invoices there are various invoice types:

•   Standard invoice defaults in automatically and this is to be used to enter an
    invoice from a supplier for whom a CUFS purchase order was not raised.

•   Credit memo -select this to enter credit notes received from a supplier.

•   Debit memo - this is an invoice you generate to send to a supplier representing a
    credit amount that the supplier owes to you. A debit invoice can represent a
    quantity credit or a price reduction.

•   Expense report - The University do not use this type.

•   PO Default – this should be selected if you want to match an invoice to a
    purchase order.

•   Quick match – also used when matching an invoice to a purchase order, but
    should only be used when you know that the invoice and the purchase order
    match exactly.

•   Mixed - The University do not use this type.

•   Prepayment – this is where you pay an advance to a supplier or employees
    before you receive the invoice/claim form.




Accounts Payable Manual v7.6           04/05/2011                              Page 43 of 46
Finance Training
Appendix B: Pay Groups

Supplier                   This is the main pay group for the standard weekly supplier
                           payment run. It is split into two Payment methods; either
                           cheque or BACS (Electronic).

                           BACS payments are sent directly to the supplier’s bank
                           account. A remittance advice will be sent via e-mail to the
                           supplier listing all the invoices the payment relates to. Payment
                           Terms “End of Month + 30 days” and Payment Method of
                           “Electronic” cannot be changed. If there is a valid reason for
                           wanting to pay the supplier on different terms, you must contact
                           the AP helpdesk.

                           If the payment method defaults in as Check (American spelling),
                           this means that we do not currently have the supplier’s bank
                           account details on file and therefore they will be paid by
                           cheque.

Internal                   This is purely for internal trading purposes and should only
                           appear on screen when dealing with an invoice from another
                           University department, e.g. Department of Plant Sciences.

Employee                   The Employee pay run reimburses staff expenses and provides
                           staff advances in relation to expenses. This payment run is
                           made every Monday. All employee pay group cheques are
                           returned to the department.


If you require a single cheque for a particular invoice you must also tick the pay alone
tick box on that line.

NB: The tick box is vital as the payment process is not sub-ledger secure. If another
department has entered an invoice on the account you are wishing to pay, and only
the pay group has been selected then x number of invoices will be amalgamated into
one cheque. The AP department will be unable to return the cheque to your
department.

Citibank                          The University currently has 3 bank accounts (sterling,
                                  US Dollars and Euro). All other foreign payments are
                                  made via Citibank. If you require a foreign payment to be
                                  made (other than EUR or USD) you must select this pay
                                  group; otherwise CUFS will not select the invoice(s) for
                                  payment. All Citibank, USD and EUR cheques are
                                  returned to the department.

Citibank Library                  This is specifically for the University Library.

Euro and US Dollar                Use the Supplier pay group for Euro and USD cheques
                                  (non-Citibank).




Accounts Payable Manual v7.6               04/05/2011                                Page 44 of 46
Finance Training
Appendix C:                     VAT Guidance

Reclaims of VAT by the University

Normally a business that is VAT registered can:

  Reclaim from Revenue                                 the purchases it is making relate to
  and Customs the VAT that          as long as         the VATable supplies (or sales) that
  it has been charged by its                           the business provides to its
  suppliers                                            customers.

Many of the services that the University supplies to its various customers are not
Vatable supplies (eg we make medically exempt, exempt or outside the scope sales)
and therefore we are not able to reclaim much of the VAT that we have been charged
by our suppliers.

In order to reclaim as much VAT as we possibly can, the Tax Team within the Finance
Division have set up, on UFS, various VAT tables and VAT recovery rules that are
linked behind the scenes to every account code and research grant. Each of these
rules specifies whether the University can reclaim from HM Revenue and Customs
none, all, or a percentage of the VAT they have been charged.

Any VAT that cannot be reclaimed is absorbed by the department as an additional
cost of purchasing the item and therefore the system automatically codes it to the
same account as the item itself.

Therefore when looking at your distributions you will see one of three possibilities:

    •    If the university can not reclaim the VAT it will be coded back to the
         department, the same code as the item line.

    •    If the university can reclaim the VAT it will be coded to the VAT reclaim
         account U.00.0000.0000.VCBA.0000.

    •    If the University can reclaim only part of the VAT it will be coded in part to the
         VAT reclaim account and in part to the same code as the item line.


Zero Tax Lines
Sometimes the percentage of VAT that can be reclaimed is so small that although the
recoverable VAT line is displayed the amount to be recovered is less than 1p and
hence not recorded. In this instance you will still get a second Tax line (the
recoverable VAT line) but the monetary value will be zero. Do not delete this line.




Accounts Payable Manual v7.6              04/05/2011                              Page 45 of 46
Finance Training
Appendix D: Reference Guides & further information

                               ACCOUNTS PAYABLES HELPDESK

                               Telephone: (7)66888
                               Email: UFS_AP@admin.cam.ac.uk


                               REFERENCE GUIDES

         The following reference guides are available for you to view or print;

         •   Processing a purchase invoice where there is prompt discount available

         •   Processing a VAT only invoice

         •   Scheduling payments

         •   Entering prorated freight and miscellaneous charges

         •   Getting a list of invoices in date order

         •   Processing an Internal Trading Invoice

         •   Entering an Invoice

         •   Invoices on Hold

         •   Matching an Invoice to a Purchase Order

         These guides and further detailed information can be found via:

         http://ufs.admin.cam.ac.uk/reference/quickref/


         FINANCE TRAINING

         Information on all finance courses available can be found via:

         http://www.admin.cam.ac.uk/offices/finance/training/




Accounts Payable Manual v7.6              04/05/2011                              Page 46 of 46
Finance Training

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:8/18/2011
language:English
pages:46
Description: Suppliers Invoices and Credit Notes document sample