Procedure 20310: Invoice Payment
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Proceedure 20310: Invoice Payment
All invoice payments should be processed by the department using the HokieMart purchasing system. There are various payment forms available in HokieMart for departments to use to process payments. Invoices are received centrally in the Accounting Services section of the Controller's Office for orders placed using HokieMart. For payments where the department receives the invoice, the department should process the invoice in HokieMart using the proper form and send the invoice to the Controller's Office with the purchase order number written on the invoice. Please refer to: http://www.purch.vt.edu/Department/Procedures/Intro.html for an overview of HokieMart.
Procedure
Each department is responsible for determining its needs and for procuring goods and services in accordance with the Virginia Public Procurement Act and procedures established by the Department of Purchasing. The expenditure must be in support of the mission of the department. Each payment should have all information concerning the expenditure either attached in HokieMart to the purchase order or clearly stated on the requisition in HokieMart. This includes any documentation that is needed to justify the necessity of the expenditure.
The university is exempt from Virginia State Sales Tax. This includes items purchased using the university procurment card (pcard). Virginia Sales Tax Exemption forms can be obtained from Purchasing at 231-6221. Departments should work with vendors to make sure that sales tax is not improperly charged on invoices and pcard transactions.
The following list contains examples of expenditures that are considered improper uses of public funds. These lists are intended to provide general guidance to departments in judging the appropriate use of public funds. However, any expenditure may be questioned, even those that are not included on the following lists.
Employee personal expenses such as:
- Books for classes (unless they remain property of the University)
- Snacks for refreshments
- Baby sitting
- Non-business related newspapers or magazine subscriptions
- Personal articles that are lost or stolen
- Tuxedos or other formal wear
- Clothing (non-uniform) or repairs to clothing damaged in the work place
- Refrigerators, coffee makers, microwave ovens, and other appliances for employee use
Agency-Sponsored event expenses incurred that do not clearly support the agency mission such as:
- Retirement parties or employee going away parties
- Holiday decorations or parties
- Alcoholic beverages
- Charitable contribution
- Gifts and flowers
- Tuition, fees, room & board, other than those approved through the Personnel Office, the Financial Aid Office, or Sponsored Programs.
Guidelines for Payments
When the Controller's Office receives an invoice, the HokieMart purchase order will be reviewed in HokieMart and the HokieMart receiving report will be reviewed and compared to the invoice. Departments have the responsibility of timely completing receiving in HokieMart in order to aid the Controller's Office in payment of invoices.
If an encumbered order will be received in more than one shipment, this should be reflected on the HokieMart receiving report. Multiple receiving reports can be created in the HokieMart for purchase orders. Partial shipments should be processed for payment as soon as received unless the Purchase Order terms require the completed shipment be received before payment is made.
Funding for purchase orders are entered by the requestor in the HokieMart. Orders can be split funded and this information is interfaced to Banner to be used for payment when the invoice is processed. When a credit memo is to be used against a payment, be sure to include this information in the notes of the receiving report. Credit memos cannot be entered in the HokieMart. If a department receives a credit memo, reference the purchase order on the credit memo and send to the Controller’s Office for entry in the Banner Finance system..
If an invoice amount exceeds the original HokieMart purchase order, attach a note on the receiving report in HokieMart indicating the price change if the department is aware of it. Generally, if the invoice amounts are 10% greater than the prices reflected on the HokieMart purchase order, the Controller's Office will contact the department to receive approval for the increase in price.
Guidelines for Direct Pay
The Direct Pay form in HokieMart is used for all payments that are listed in the Direct Payment Policy 3220. The department must code the “payment category” field on the Direct pay form to document what direct pay or purchasing category authorizes the expenditure. Payments that fall outside of these categories should be placed in HokieMart on a Non Catalog form.
All prepayments must have an itemized original invoice, a registration form, or some other documentation to send to the vendor with the check. Prepayment requests that are sent to the Controller's Office without supporting documentation to send to the vendor will be held and the requesting department will be contacted to obtain the necessary documents. Prepayments can only be made in accordance with state mandated guidelines.
Interagency Transfer (IAT) Invoice
University departments may receive Interagency Transfer (IAT) Invoices from other state agencies. The department should enter the IAT in HokieMart as a direct pay and attach the IAT as support for the disbursement. The authorized payment category for these payments is described as “purchases from other governmental and public entities”. Please refer to the direct pay policy at http://www.vt.edu/administration/policies/3220.pdf for the authorized payment code.