Accounts Payable As-Is Processes Main Functional Areas

September, 2002

Invoice Payment Process

Stop Payment

Vendor Relations

Pre-Audit

1099 Reporting

Accounts Payable As-Is Processes Invoice Payment Main Processes

VPAM: Voucher Payment and Maintenance

Begin

Invoice Auditing

Key Payment in VPAM

Verify Payment

Editing & Check Printing

Distribute Checks

End

Return to Page 1

Accounts Payable As-Is Invoice Processes Invoice Auditing

Begin Receive Invoice from Vendor Has PO #?

Yes

Sort Invoice in Alpha. Order Copy to Vendor Relations Copy to Vendor Copy to Department

Match Invoice with PO

Audit Invoice

No
Return Invoice to Vendor Original to Be Filed with Voucher Copy to Department Copy to Vendor If 3 Copies Received

Stop

Stop

Prepare & Distribute Dispute Letter

No OK to Pay?

Distribute Invoice for Payment

Yes

Payment in International Currency

Negative Approval Less Than 30 Days

Over 30 Days and Interest >$5

Route Invoice to Manager

Positive Approval Less Than 30 Days

Route Invoice to Dept. Returned Within One Week?

Route to Cash Mgmt.

Return to AP Main Process

Route to Keying

Payment in Foreign Currency ?

Manager Calculates Interest

No

Call Department

Yes

This diagram explains the invoice auditing process. The same process applies to the invoice auditing performed by delegated departments.

Accounts Payable As-Is Invoice Processes Audit Invoice

Verify Received Document Is An Invoice Verify Invoice Vendor Name Agrees with PO Vendor Name Verify Invoice Is Dated Post Order Date Blanket Order? No Yes

If blanket order is past ending date, use the 45-day rule if a new order number is not in the Purchasing System.

Begin

Verify Order Ending Date

Note Partial Shipment on PO Work Copy

Yes

Partial Shipment ?

Verify Prices

Match Invoice Items with PO Work Copy

Verify Items Match with PO Work Copy & Verify Prices

No Verify Ship-To Address Agrees with PO Work Copy If Manual Written Invoice, Verify Extended and Total Amounts Deduct Sales Tax If Service Was Provided in WI Mark Payment Type in Audit Box in Green Ink (Final, Partial, Misc.) Route Invoice to Keyers
Return to Main Process Return to Invoice Auditing Sub-Main

Verify Freight Terms Record on PO Work Copy Inv #, Inv Date, Audit Date & Amount Over $500

Route Copy of Invoice to Property Control

Yes

Class Code 4000s? No Class Codes Split? Yes

No

Class Code 3221, 3227 or 3228?

Yes Route Invoice to RSP

No Write Out Split Class Codes for Keyers

No Positive Approval ? Yes Apply Sticker on Invoice Record Inv # and Routing Date on PO Work Copy

Accounts Payable As-Is Invoice Processes Key Invoices in VPAM

Note: Except for internal transfers, there are no batch totals during data entry. A batch cover sheet is attached if it is received. No batch cover sheet is used for internal transfer batches.

Receive Invoice from Auditors

Begin

Receive Invoice from Delegated Depts.

Key Invoices into VPAM

Problems in Data Entry?

Yes

Route Invoice to Auditor

No System Generates Voucher, Remittance Copy, Prelist in CARDS

Receive Invoice from Fin. Ops for Internal Transfers

Audit Invoice

Return to AP
Main Process

Accounts Payable As-Is Invoice Processes Verify Payment

Receive Vouchers, Remittance Copies, Pre-list, Reports from DoIT Lead Worker Matches Voucher etc. to Documentation Verifiers Check Amount, Vendor & Address

Begin

Lead Workers Update Changes in Pre-List (CARDS)

Keyers Make Correction in VPAM

Prepare Correct Slip & Route to Keyer

No

Data Entry Correct?

Yes
Lead Workers Check Batch Total Release Job for Overnight Process Organize & Deliver Vouchers to Fin. Ops

Corrections OK?

No

Investigate & Resolve

Select & Release in TMNT

Yes Return to AP
Main Process

Accounts Payable As-Is Invoice Processes Major Transaction Types: Editing & Check Printing Budget: 20s
First 5-digit of a VO# is List #. Batched by payment type & totals. Begin Receive Reports from DoIT From Purchasing System. Revenue: 30s Encumbrance & Reqs: 40s Payment: 50s.

List Number Totals

Check Number Range

Daily Edit & Post Batch Control Report

Transaction Count Table

Entry Change Report Discrepancy Between Req & PO Exceeds $100? Yes

Combination of UDDS, Activity & Class Codes.

Daily Edit & Post Transaction Exceptions Listing

Review Report

Type 50s Transactions( No $ totals).

No

Correct Errors on 3270 EPCC Suspense File

No

Type 47 Errors? Yes Investigate & Correct Errors on EPRQ

Fringe/OH Encumb. Errors.

Adjust Reqs. On 3270

Request DoIT Run Job 0421A

End

View Job Totals on 3270

Calculate & Compare Totals

Totals Agree? Yes Request DoIT Run Job 0421F

No

Investigate & Correct Remaining Errors

Load File to WisMART

State Treasury Signs Checks

Return to AP Main Process

Accounts Payable As-Is Invoice Processes Distribute Checks

Receive checks from State Treasury Begin
Fin. Ops Verifies WisMART Transactions & Totals

Sort Checks Based on Voucher Batches

Match Check to Remittance Copy

Matched?

No

Route to Supervisor

Yes
File Room Label Voucher Box File Room Mails Checks & Remittance Copy Sort Envelopes Based on Distribution List

Stuff Envelopes

Supervisor Investigates & Resolves

International, domestic, campus mail, courier pick-up, Canada, Mexico, oversized Envelope, overstuffed Envelope, US mail pre-sorted, etc. File Room Attaches Edit & Post Exception List to Vouchers

File Room File Vouchers

File Warrant Registry

Return to AP
Main Process

Accounts Payable As-Is Processes Stop Payment

Begin
Receive Notification from Dept. of Duplicate or Wrong Payment Check Mailed Out? Yes Request Proof of Payment or Stop Pay from State Treasury Auditor Approves Credit Memo Keyers Apply Credit Memo to Next Invoice Vendor Relation Issues a Credit Memo State Treasury Reissues Check to the Same Vendor No Prepare Stop Pay/Correction Form Pull Out Voucher, Check & Remittance Copy

On average, there are about 20 to 30 stop payments per week.

Route to Cash Management

No

Check Stopped?

Yes

Keyers notify vendor if applied credit amount is more than invoice amount. (Credit memo data is maintained in Excel. Yes

Route Check & Voucher to Cash Management

Payment Correction

Applied Within 6 Months? No Vendor Relation Requests a Refund Check From Vendor

End Return to Page 1

Accounts Payable As-Is Processes Payment Correction Process

Begin

Reissue Check?

Yes

Reissue for More Than Original Amount? Yes

No

C.M Deposit s Check

Check deposited to contingent fund for the correct amount, to the Req. or PO for the difference.

No C.M. Deposits check

Deposit Check

C.M. Credits Req. or PO via DREV

C.M. Credits Req. or PO via DREV

Reissue Check from the Contingent Fund for the Correct Amount

A/P Reissue Check via VPAM

End

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Accounts Payable As-Is Processes Payment in International Currency by Cash Management

Accounts Payable PreAudit Departments

Invoices received and batched for one week

Will not be batched if department indicates immediate payment is required

Two checks result from VPam 1 - Reimburse Contingent Account 2 - Deposit to coding used in Contingent Fund

Convert invoice amounts to US dollars

Go into Ruesch Web Page

Enter vendor, country, amount and submit Automatically adds $5 charge - quotes are good for five minutes

To VPam

Print Confirmation for Records

To Ruesch

Copy for V-Pam Copy for Contingent Fund Check for Ruesch - 2 lines of coding One line of coding for amount of invoices Second line of coding for charges

Draft or Wire Transfer?

Wire Transfer Write check to send to Ruesch Contingent Fund is reimbursed in normal way Contingent Fund check Sent to Ruesch

Drafts

Ruesch debits our bank account & wires funds

Report of V-Pam Transactions Report of Daily Activity

To Barb Bausch

Return to AP Main Process

Report Filed in Binder

Drafts Mailed to Vendors

11

Accounts Payable As-Is Processes Vendor Relations Main Process

Begin

Receive from Vendor Past Due Invoices, Statements, Dispute Responses

Depts. Notify Problems with Negative Approval Invoices or Missing Payments

Depts. Or Vendor Notify Missing Payments, Short Pays, Tax Not Paid, etc.

Determine If Need A Credit Memo or Payback Check

Need A Credit Memo or Payback Check

Verify with Original Voucher

Does Not Need A Credit Memo or Payback Check

Need Payback or Credit? Adjust Incorrect Negative Approval Yes Fill Out Payback Form Or Credit Memo Invoice Payment Main Processes End

No

Send Denial Letter to Vendor

Past Due Invoice Process

Statements Process

Dispute Response Process

Return to Page 1

File Copy of Letter with Voucher

12

Accounts Payable As-Is Processes Vendor Relations Statement Process

Begin

Check the Dates of Items on the Statement

More Than 60 Days?

Yes

Return to & Request Invoices from Vendor

No

Stop

Return to Vendor Relations Main Process

13

Accounts Payable As-Is Processes Vendor Relations Past Due Invoice Process

Begin

Determine If Invoice Paid

Paid? No

Yes

When Was Paid?

Less Than 30 Days

Over 30 Days

Pull Out Voucher

Verify Check # and Date

Stop

Notify Vendor of Payment

Valid PO# & Not in Dispute?

Has Previous Dispute

Return to Vendor

File Copy of Dispute Document

Return to Vendor Relations Main Process

Yes
Invoice Payment Main Processes

Prepare Form 15

End

14

Accounts Payable As-Is Processes Vendor Relations Adjust Incorrect Negative Approvals

Begin

Dept. Notifies Incorrect Payment

Determine Required Action Adjust Payment Determine Type of Adjustment Transfer Between POs Prepare NonSalary Cash Transfer Form

Stop Payment

Stop Payment Process

Credit Memo or Pay Back

Return to Vendor Relations Main Process

This process is performed by Accounts Payable, Fin. Ops or Departments.

Route Form to Fin. Ops.

Adjust POs in VPAM

Return to Key Payment in VPAM

15

Accounts Payable As-Is Processes Vendor Relations Dispute Response

Match Vendor Response to Dispute Copy on File Review Dispute and Vendor Response

Begin

OK to Pay? No Resolve with Vendor, Purchasing & Dept.

Yes

Invoice Payment Main Processes

Resolved ? No Refer Dispute to Purchasing & Dept.

Yes

Return to Vendor Relations Main Process

16

Accounts Payable As-Is Processes

Invoice Payment Additional Information

Data Verification Against Purchasing System:
Order # Ship-To Address Vendor Contact Change Order Information Item Description Dates of Requisition Processing Statuses Pricing on Contracts Connection to VendorNet.

Data Verification Against Legacy Systems

INQR: EPRQ Data Display (PO Status, class code, PO Types, Dept Coding, etc.) INQP: PO Data GENT: Transaction 48 inquiries (Inquire PO# to get department contact person initials. Then though initials to get contact phone numbers.) INQC: to verify payment status on POs INQV: To verify payment status on vouchers.

List of Delegated Departments for Invoice Auditing:

Chemistry PSL MDS WDVL

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Pre-Audit Requisition Auditing

Begin Receive Requisitions from Deans Office Verify Class Code is Appropriate for Item Verify Description Is Complete Verify Accompanying Documentation Verify Both Dept. & Deans Approvals

Return to Deans Office

No

OK? Yes

Verify Req. Is for UW Business

Return to Procurement Main Process

Route Reqs. To Purchasing

Other Requisitions.

Approve Requisitions

Postage Req. Verify VO Entry System Generates Voucher, Remittance Copy, Prelist in CARDS Create VO in VPAM Confirming Req w/ Invoice Attached (<$5,000) No

Fund 133 Class Codes 4Ks, 2Ks, 3221, 3227 & 3228? No

Yes

Route to RSP RSP Reviews & Approves

Class Code 4Ks? Yes Property Control Returns Req. Property Control Verifies Req. Route 4Ks & 2Ks to Purchasing
Issue Other Reqs. Under RSP Negotiated Contracts

OK? No Correct in VPAM

Yes

Editing & Check Printing

Distribute Checks

End
Reference Original Equipment PO # and Property Control # if Purchase is a Component of Capital Equipment.

18
End

Pre-Audit Emergency Transaction Processing

Deans Office Enters Req. in EPRQ Deans Office Delivers Req. to Purchasing by 10am Purchasing Date & Time Stamps the Req.

Begin

Dept. Prepares ET Request & Documentation

Deans Office Approves

Purchasing Creates PO

Route to Purchasing by 11am

Yes

PO Required ?

Requisition Auditing

Pre-Audit Picks up Req. from Purchasing

No

Any approval by RSP is routed by fax. Cash Management Issues Check From Cont. Fund

Cash w/ Order?

Yes

Route to AP Auditor

Invoice Auditing

Route to Cash Management

No

Deliver Check to Purchasing Front Counter by 3pm

Yes

Checks for Pick Up ? No

Purchasing Mails PO or Calls for Pickup

End

Mail Checks

19

Pre-Audit Direct Charge Processes

Dept. Receives Invoice from Vendor

Dept. Code Funding Source on Invoice

Dept. & Deans Offices Approve Invoice

This process applies to direct charges for: Utilities Freight (except FedEx) Gas credit card Newspapers Subscriptions Travel agency invoices Memberships & Registrations DOA general service billing.

Deans Office Route Invoice to Pre-Audit Pre-Audit Verify the Amount Is Correct Copy Invoice to Dept. Verify Funding Code Is Correct

Begin Pre-Audit Receives Invoice from Vendor Identify Which Dept. Made the Purchase Call Dept. to Get Funding Source & Approval

Verify VO Entry

System Generates Voucher, Remittance Copy, Prelist in CARDS Yes

Create VO in VPAM

Verify Type of Travel Expense

Verify Purpose of Business

Check Appropriateness of Purchase

No

Fund 133 Class Codes 2000s? Yes

OK? No Correct in VPAM

Route to RSP

Editing & Check Printing

Distribute Checks

End

RSP Reviews & Approves

20

Pre-Audit Direct Charge Processes for FedEx Bills

Begin

Receive Bills from FedEx

Funding Coded on the bill ? Yes

No

Check INQM or UNAM for Dept. Contact Name

Get Funding Source from Dept. Contact Person

Code Funding on the Bill

Normally a week later.

Batch Bills (100/Batch)

Once a Week

Calculate Batch Totals

Create Transfer Worksheet in Excel w/ Dept. Funding Source Codes

Route Invoice Copy to Dept.

Highlight Funding Source on the Bills

Copy Bills

Contingent Fund Check to Vendor

Create VO in VPAM from Contingent Fund

Keyers Enter Transfers in VPAM

End To replenish contingent fund.

21

Pre-Audit Payments to Individuals Report (PIR)

Individual or Dept. Prepares PIR Form Deans Office Approves PIR Form Deans Office Routes to Pre-Audit

This process applies to payments to individuals for: Scholarships Travel expense Research subjects Speakers & other service providers.

Begin

Dept. Approves PIR Form

Fund 133? No

Yes

Pre-Audit Routes to RSP

Calculate Tax Withholding (Based on Treaty for Foreigners)

Yes

Foreign Payee or US Resident W/O SSN? No

Verify If Payee a US Legal Resident

Taxable Yes Payment Based on Class Code? No Match Class Code w/ Payment Purpose

Verify Name & Address

Verify Dept. & Deans Approvals

RSP Approves & Returns to PreAudit Contact Dept. & Correct PIR Form

Calculate Net Pay

Verify Other Data

OK? Yes

No

Complete Tax Calculation Sheet If Its Missing

Complete PIR Form w/ Tax W/H Data

Class Code determines following additional data needed: Home address for 1099 reporting SSN for tax reporting Visa information Copies of receipts If UW employee, whether payment should be made via payroll, etc.

Key to VPAM

No

Missing Signature ? Yes Return PIR Form to Dept.

End

Distribute Checks

Editing & Check Printing

Begin

22

Pre-Audit Travel Expense Report (TER)

Individual or Dept. Prepares TER Form Dept. Approves TER Form Deans Office Approves TER Form Deans Office Routes to Pre-Audit

This process applies to payments for reimbursable expenses to UW and non-UW employees.

Begin

Fund 133?

Yes

Pre-Audit Routes to RSP

Verify Approvals & Totals

Verify Reported Amounts & Dates Match w/ Receipts

Verify Nature of UW Business

Verify Funding Code

Verify Name & Address

RSP Approves & Returns to PreAudit

Return to Dept.

Missing Receipts Yes Or Approvals? No OK to Pay? No OK? Contact Dept & Correct the Form Approve the Form Key to VPAM No Correct in VPAM Yes Yes System Generates Voucher, Remittance Copy, Prelist in CARDS

Verify VO Entry End

Editing & Check Printing

Distribute Checks

23

Pre-Audit Travel Advance (TA) Initiation

Begin

Dept. Prepares Request on TA Form

Dept. Approves the Form

Deans Office Approves the Form

Deans Office Routes to Pre-Audit

Fund 133? No

Yes

Pre-Audit Routes to RSP

Verify Mail-to Address

Verify Contact Name & Phone #

Verify SSN

Verify Funding Code

Verify Reason for TA

RSP Approves & Returns to PreAudit

Verify Amount < 80% of Estimated Expense

Determine and Record Pay Back Date on the Form

Missing Signature ? No

Yes

Return Form To Dept.

Begin

S/B less than 30 days of travel completion date.

OK to Pay? No

Yes

Record TA in Excel Worksheet

Key to VPAM to Issue Check From Cont. Fund

Travel Advance Replenishment

Contact Dept. & Correct The Form

End

24

Pre-Audit Travel Advance (TA) Replenishment

After Travel Completes Employee Reports Expense on TER Form Employee Put TA# On TER Key TER To VPAM Use cont. fund coding to offset original TA.

Begin

Monthly Reconcile TA Worksheet With WISDM

Pre-Audit Record TA Replenishment In Excel Worksheet

No

TA > Expense ?

Yes

Employee Submits Personal Check for the Difference Pre-Audit Route Check To CM Check Submitted ? No

CM Deposits Check to Cont. Fund

Yes

End

Follow Up With Deans Office

Yes

Check Submitted ? No Notify Payroll For Payroll Garnishment

25

Pre-Audit Non-Travel Cash Advance Initiation

Begin
Custodian Request CM to Open a Bank Account Replenishable Req?

This process applies to advance payments for studies & research programs and for replenishment of petty cash. Custodian: is anyone who is responsible for non-travel advance money or petty cash.

Dept. Prepares Internal Req. & Custodial Agreement

Dept. Approves & Enter Req. in EPRQ

Deans Office Approves Req.

Custodian signs Agreement

Over $5,000? No

Yes

Deans Office Signs Agreement

Call Deans Office

Yes

Missing Document?

Verify Custodial Agreement

Verify Funding Code

Verify All Signatures

Req. & Agreement Routed to Pre-Audit

No Deans Office Submit Missing Document Yes Approve & File Copy In file Room Route Documents To Cash Management Cash Management Reviews & Approves CM Routes Check to Custodian CM Writes a Check from Cont. Fund

OK? No Return Documents To Deans Office

No

Replenishable Yes Req?

End Begin

Non-Travel Cash Advance Replenishment

CM Deposits Check to Custodian Bank Account

26

Pre-Audit Non-Travel Cash Advance Replenishment

Dept. Prepares Non-Travel Cash Advance Accounting Form Custodian Signs The Form & Submits Receipts

Begin

After Expenditures Are Made

Dept. Approves

Deans Office Approves

CM Closes Req. If All Money Is Accounted For

CM Records Exp. To Req. In EPRQ and to Non-Travel Advance System (Close If Final Payment) Non-zero $ Balance

Approve & Route to Cash Management

Yes

Non-Replenishable Req? No Req. Needs To Be Closed?

Verify Req. In INQR

Form & Receipts Routed to Pre-Audit

CM Routes Form to Accounts Payable

Yes

No

Verify Custodian, Dept. & Deans Signatures

Verify Funding Code

Zero $ Balance AP Enters Payment In VPAM File Room Sends Check to Bank or Custodian System Generates Check Enter Payment In VPAM

Approve Payment

Verify Receipts

System Generates Check

CM Deposit Check to Cont. Fund

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1099, 1042S & Supplemental W2 Reporting Quick Book Process Overview

MDSN Payment File (Legacy) Monthly

QuickFile Begin

Reports

Edits & Fixes

W2: At Year-End

Other Campuses Payment Files (SFS)

Assign & Edit 1042S Currently Not Being Done Monthly Edited QuickFile

Paid PIR Forms

Payroll File

Print 1099 & 1042S

Year-End

End

Tape File To IRS

System Year-End Merges With W2 Files

28

1099, 1042S & Supplemental W2 Reporting Additional Notes Payments are identified by the use of certain Class Codes (attached). W2 Identifier/Class Codes: 2110, 2125, 2126, 2162, 2164, 2262, 2264, 3161, 3163. 1042 Identifiers:
From PIR forms paid to non-US residents Adjust in QuickFile based on information from paid PIR forms Data edited in QuickFile: 1042S indicator (yes or no), 1042S income type, tax rate, exemption status and withhold taxes.

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