IPVN and Management Summary Policy Changes Effective December 6, 2004, Global Accounts Payable will be making significant policy changes to the IPVN notice and the Management Summary Report. See below for details:

SUMMARY OF CHANGES

Current Policy New Policy Effective December 6, 2004

Management Summary Reports

Manager required to sign, date and retain MSR along with keeping evidence reviewed with the requester for 9 months.

Managers will no longer be required to sign, date, and retain. However, managers still have the responsibility to review the expenses:

If concur with expense, no action required.

If do not concur or have questions, they will contact the requester who received the IPVN for resolution.

IPVN Requester required to sign and date the IPVN either hardcopy or electronically.

Retain IPVN and supporting documentation for 9 months

Maintaining proof of verification for all invoices may not be cost efficient considering the flucutation in invoice volumes across all functions or departments. Management may therefore define and document local process parameters or clip levels for maintaining proof of verification. These parameters or clip levels should be based periodic analysis of invoice volumes and spending, and should ensure that proof of verification is maintained for the largest amount of spending driven

Requestors will no longer be required to sign and date the IPVN. However, they must act on the IPVN prior to payment and maintain satisfactory documentation for 12 months (e.g., the IPVN with appropriate backup like a bill of lading, time sheets, etc) to demonstrate the invoice amount is correct and the goods/services were satisfactorily received.

Change to 12 months.

Clip Level Analysis has been removed. Requesters must maintain proof of verification on all IPVNs.

by the fewest number of invoices.

DETAIL OF CHANGES

Invoice Payment Verification Notice: (IPVN Recipients Responsibility) When the Accounts Payable location receives an invoice that is both purchase order based and a non receivable (e.g., not stock receipted in a central receiving system), it sends an IPVN to either the individual who requested the goods or services or to the initiator of the requisition. For the A/P CAAPS system it cannot separate receivable and non receivable, thus for all PO based invoices an IPVN will be sent to either the requester or the initiator.

Recipients of IPVNs are required to do the following: 1. Verify both: a. the goods or services related to the invoice were satisfactorily received. b. the invoiced amount is correct.

2. Maintain satisfactory documentation to demonstrate that the above requirement was completed by the IPVN response due date. Approved documentation can be maintained in two ways: a. Electronically - file the IPVN in a Lotus Notes folder along with soft copy supporting documentation (e.g., packing slips, bills of lading, time and attendance sheets). The retention period must be set for at least 12 months. b. Hard copy - retain the IPVN together with supporting documentation used in the validation for a period of at least 12 months.

3.a. If the invoice is correct then no further action is necessary.

3.b. If the invoice is either incorrect, or satisfactory receipt of goods has not occurred, then notify A/P based on the instructions in the IPVN. A/P will either withhold payment (e.g., reject the payment by returning the invoice to the supplier), or either setup a claim with the supplier or request a credit note from the supplier, if payment was already made.

Management Summary Report: (Managers Responsibility) At least monthly, A/P will send Management Summary reports to either the managers of requesters who received IPVNs or to the Cost Center managers whose Cost Center is being charged. The report notifies management of the expenses associated with the IPVNs. If management concurs with the expenses no further action is required. If they do not concur, or if further information associated with the expenses is needed, then they should contact the IPVN recipient referenced in the Management Summary report.

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