1
Accounts Payable As-Is ProcessesMain Functional Areas
September, 2002
InvoicePayment Process
Stop Payment
Vendor Relations
Pre-Audit 1099 Reporting
2
VPAM: Voucher Payment and Maintenance
Begin Invoice Auditing
Key Payment in VPAM
Verify Payment
Editing & Check
Printing
Distribute Checks
Accounts Payable As-Is ProcessesInvoice Payment Main Processes
End
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3
Accounts Payable As-Is Invoice ProcessesInvoice Auditing
Receive Invoice
from Vendor
BeginSort Invoice
in Alpha. Order
Has PO #?Match
Invoice with PO
Return Invoice to Vendor
OK to Pay?
Prepare & Distribute
Dispute Letter
Copy to Vendor Relations
Copy to VendorCopy to
Department
Distribute Invoice for Payment
Original to Be Filed with Voucher
Copy to Department
Copy to Vendor If 3 Copies Received
Manager Calculates
Interest
Stop
Returned Within
One Week?
Call Department
Route to Keying
Payment in Foreign Currency
?
Route Invoice to Manager
Route Invoice to
Dept.Route to Cash
Mgmt.
Return to AP Main Process
Yes
No
Yes
No
No
Yes
Yes
No
Negative Approval Less Than 30 Days
Positive Approval Less Than 30 Days
Over 30 Days and Interest >$5
Stop
Audit Invoice
Payment in International
Currency
4
Accounts Payable As-Is Invoice Processes Audit Invoice
Begin Blanket Order?
Verify Received Document Is An
Invoice
Verify Invoice Vendor Name
Agrees with PO Vendor Name
Verify Invoice Is Dated Post Order Date
Verify Order Ending Date
If blanket order is past ending date, use the 45-day rule if a new order number is not in the Purchasing System.
Verify Items Match with PO Work Copy &
Verify Prices
Yes
Verify Ship-To Address Agrees with PO Work
Copy
Match Invoice Items
with PO Work Copy
Verify Prices
Partial Shipment
?
Note Partial Shipment on
PO Work Copy
No
No
Yes
If Manual Written Invoice, Verify Extended
and Total Amounts
Deduct Sales Tax If Service Was Provided
in WI
Verify Freight Terms
Record on PO Work Copy Inv
#, Inv Date, Audit Date & Amount Over
$500
Mark Payment Type in Audit
Box in Green Ink (Final, Partial,
Misc.)
Class Code 3221, 3227 or 3228?
Route Invoice to
RSP
Class Code
4000s?
Route Copy of Invoice
to Property Control
Class CodesSplit?
Write Out Split Class Codes for
Keyers
Return to Invoice Auditing Sub-Main
Positive Approval
?
Apply Sticker on
Invoice
Record Inv # and Routing Date on PO Work Copy
Yes
No Yes
No
Yes
No No
Yes
Route Invoice to
Keyers
Return to Main Process
This diagram explains the invoice auditing process. The same process applies to the invoice auditing performed by “delegated” departments.
5
Accounts Payable As-Is Invoice Processes Key Invoices in VPAM
Receive Invoice from
Auditors
BeginProblems in Data Entry?
Return to AP Main Process
Receive Invoice from
Delegated Depts.
Key Invoices
into VPAM
Route Invoice to Auditor
System Generates Voucher,
Remittance Copy, Prelist in CARDS
Receive Invoice from Fin. Ops for
Internal Transfers
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.
Yes
No
Audit Invoice
6
Accounts Payable As-Is Invoice Processes Verify Payment
Begin
Data Entry
Correct?
Return to AP Main Process
Receive Vouchers, Remittance
Copies, Pre-list, Reports from
DoIT
Lead Worker Matches Voucher
etc. to Documentation
Verifiers Check
Amount, Vendor & Address
Prepare Correct Slip &
Route to Keyer
Keyers Make Correction in
VPAM
Lead Workers Update
Changes in Pre-List
(CARDS)
Lead Workers
Check Batch Total
Corrections OK?
Investigate & Resolve
Select & Release in
TMNT
Release Job for
Overnight Process
Yes
No
No
Yes
Organize & Deliver Vouchers
to Fin. Ops
7
Accounts Payable As-Is Invoice ProcessesEditing & Check Printing
BeginReceive Reports
from DoIT
List Number Totals
Check Number Range
Daily Edit & Post Batch
Control Report
Transaction Count Table
Entry Change Report
Daily Edit & Post Transaction
Exceptions Listing
Correct Errors on 3270 EPCC Suspense File
Request DoIT Run Job 0421A
View Job Totals on
3270
Discrepancy Between
Req & PO Exceeds
$100?
Adjust Reqs. On
3270
Type 47 Errors?
Review Report
Investigate & Correct Errors on
EPRQCalculate & Compare
Totals
Return to AP Main Process
End
Totals Agree?
Request DoIT Run Job 0421F
Investigate & Correct Remaining
Errors
Fringe/OH Encumb. Errors.
Type 50s Transactions(No $ totals).
Yes
No
Yes
No
Yes
No
Load File to WisMART
State Treasury
Signs Checks
Major Transaction Types:•Budget: 20s•Revenue: 30s•Encumbrance & Reqs: 40s•Payment: 50s.
First 5-digit of a VO# is List #.
Batched by payment type & totals.
From Purchasing System.
Combination of UDDS, Activity & Class Codes.
8
Accounts Payable As-Is Invoice Processes Distribute Checks
Begin
Matched?
Return to AP Main Process
Receive checks from
State Treasury Sort Checks
Based on Voucher Batches
Match Check to Remittance
Copy
Stuff Envelopes
Sort Envelopes Based on
Distribution List
File Room Mails Checks
& Remittance
Copy
Fin. Ops Verifies
WisMART Transactions &
Totals
File Room Label
Voucher Box
File Room Attaches Edit
& Post Exception List
to Vouchers
File Room File
Vouchers
Route to Supervisor
Supervisor Investigates & Resolves
No
Yes
International, domestic, campus mail, courier pick-up, Canada, Mexico, oversized Envelope, over-stuffed Envelope, US mail pre-sorted, etc.
File Warrant Registry
9
Accounts Payable As-Is Processes Stop Payment
BeginCheck Mailed Out?
Receive Notification from
Dept. of Duplicate or
Wrong Payment
Prepare Stop Pay/Correction
Form
Pull Out Voucher, Check &
Remittance Copy
Route to Cash Management
Request Proof of Payment or Stop Pay from State Treasury
Check Stopped?
Vendor Relation Issues a
Credit Memo
State Treasury Reissues Check
to the Same Vendor
Route Check & Voucher
to Cash Management
Auditor Approves
Credit Memo
Keyers Apply Credit
Memo to Next Invoice
Vendor Relation
Requests a Refund Check From Vendor
No
No
Yes
Applied Within 6 Months?
No
Yes
End
Yes
Keyers notify vendor if applied credit amount is more than invoice amount. (Credit memo data is maintained in Excel.
On average, there are about 20 to 30 stop payments per week.
Payment Correction
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10
Accounts Payable As-Is Processes Payment Correction Process
BeginC.M
Deposits
Check
Yes
Deposit Check
Yes
Check deposited to contingent fund for the correct amount, to the Req. or PO for the difference.
Reissue Check from the
Contingent Fund for the Correct
Amount
Reissue for More Than
Original Amount?
No
C.M. Credits Req. or PO via DREV
A/P Reissue
Check via VPAM
End
C.M. Deposits
check
No
C.M. Credits Req. or PO via DREV
Reissue Check?
11
Accounts Payable As-Is Processes Payment in International Currency by Cash Management
AccountsPayable
Pre-Audit
Departments
Invoices receivedand batched for
one week
Will not be batched ifdepartment indicatesimmediate payment is
required
Go intoRuesch
WebPage
Enter vendor, country,amount and submit -
Automatically adds $5charge - quotes are good for
five minutes
Print Confirmationfor Records
Convertinvoice
amountsto USdollars
Copy for V-Pam
Copy forContingent Fund
Check for Ruesch- 2 lines of coding
One line of coding foramount of invoices
Second line of coding forcharges
Contingent Fund isreimbursed in normal way
To V-Pam
Writecheck tosend toRuesch
Report of V-PamTransactions
Report of DailyActivity
To BarbBausch
ToRuesch
ContingentFund
check Sentto Ruesch
ReportFiled inBinder
DraftsMailed
toVendors
Two checksresult from V-
Pam1 - Reimburse
ContingentAccount
2 - Deposit tocoding used in
ContingentFund
Draft or WireTransfer?
Drafts
Rueschdebits our
bankaccount &
wires funds
Wire Transfer
Return to AP Main Process
12
Accounts Payable As-Is Processes Vendor Relations Main Process
Begin
Receive from Vendor Past Due
Invoices, Statements,
Dispute Responses
Need Payback
or Credit?
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
Verify with Original Voucher
Fill Out Payback Form Or
Credit Memo
Invoice Payment
Main Processes
Send Denial Letter to Vendor
File Copy of Letter with
Voucher
Past Due Invoice Process
Statements Process
Dispute Response Process
Adjust Incorrect Negative Approval
Need A Credit Memo or Payback Check
Does Not Need A Credit Memo or Payback Check
End
Yes
No
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13
Accounts Payable As-Is Processes Vendor Relations – Statement Process
Begin
More Than
60 Days?
Return to Vendor Relations Main
Process
Check the Dates of Items
on the Statement
Return to & Request
Invoices from Vendor
Stop
Yes
No
14
Accounts Payable As-Is Processes Vendor Relations – Past Due Invoice Process
Begin Paid?
Return to Vendor Relations Main
Process
Pull Out Voucher
When Was
Paid?
Determine If Invoice
Paid
Verify Check # and Date
Notify Vendor of Payment
Yes
Stop
Over 30 Days
Less Than 30 Days
Valid PO# & Not in Dispute?
Invoice Payment
Main Processes
Return to Vendor
Prepare Form 15
Yes
Has Previous Dispute
Invalid PO#, Expired PO or No PO
No
File Copy of Dispute Document
End
15
Accounts Payable As-Is Processes Vendor Relations – Adjust Incorrect Negative Approvals
Begin
Return to Vendor Relations Main
Process
Dept. Notifies
Incorrect Payment
Determine Required
Action
Stop Payment Process
Determine Type of
Adjustment
Prepare Non-Salary Cash
Transfer Form
Route Form to Fin. Ops.
Stop Payment
Adjust Payment
Credit Memo or Pay Back
Transfer Between POs
Adjust POs in VPAM
Return to Key Payment in VPAM
This process is performed by Accounts Payable, Fin. Ops or Departments.
16
Accounts Payable As-Is Processes Vendor Relations – Dispute Response
Begin
Return to Vendor Relations Main
Process
Match Vendor Response to
Dispute Copy on File
Review Dispute and
Vendor Response
OK to Pay?
YesInvoice
Payment Main
Processes
Resolve with Vendor,
Purchasing & Dept.
Resolved?
Refer Dispute to Purchasing
& Dept.
No
No
Yes
17
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.
• List of Delegated Departments for Invoice Auditing:
– Chemistry– PSL– MDS– WDVL
• 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.
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18
Pre-AuditRequisition Auditing
Receive Requisitions from Dean’s
Office
Begin
OK?
Verify Class Code is
Appropriate for Item
Verify Description Is
Complete
Verify Accompanying Documentation
Verify Both Dept. & Dean’s
Approvals
Verify Req. Is for UW Business
Approve Requisitions
Return to Dean’s Office
Fund 133 Class Codes
4Ks, 2Ks, 3221, 3227 & 3228?
Route to RSP
RSP Reviews & Approves
Class Code4Ks?
Property Control Verifies
Req.
Property Control Returns
Req.
Postage Req.
Confirming Req w/ Invoice Attached(<$5,000)
Other Requisitions.
Create VO in VPAM
Route Reqs. To
Purchasing
Return to Procurement Main Process
No
Yes
Yes
No
Yes
No
Reference Original Equipment PO # and Property Control # if Purchase is a Component of Capital Equipment.
Editing & Check
Printing
Verify VO Entry
OK?
Correct in VPAM
Distribute Checks
End
No
Yes
System Generates Voucher,
Remittance Copy, Prelist in CARDS
Route 4Ks & 2Ks to
Purchasing
Issue Other Reqs. Under
RSP Negotiated Contracts
End
19
Pre-AuditEmergency Transaction Processing
Dept. Prepares ET Request & Documentation
Begin
PO Required
?
Dean’s Office
Approves
Dean’s Office Enters
Req. in EPRQ
Dean’s Office Delivers Req. to Purchasing by
10am
Purchasing Date & Time Stamps the
Req.
Pre-Audit Picks up Req. from Purchasing
Requisition Auditing
Route to Purchasing
by 11am
Purchasing Creates PO
Route to AP Auditor
Invoice Auditing
Route to Cash
Management
Cash Management Issues Check From Cont.
Fund
Any approval by RSP is routed by fax.
Checks for Pick Up
?
Deliver Check to Purchasing
Front Counter by 3pm
Mail ChecksEnd
Yes
No
Yes
No
Cash w/ Order?
Purchasing Mails PO
or Calls for Pickup
Yes
No
20
Pre-AuditDirect Charge Processes
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.
Dept. Receives
Invoice from Vendor
Begin
Dept. Code Funding
Source on Invoice
Dept. & Dean’s Offices
Approve Invoice
Dean’s Office Route
Invoice to Pre-Audit
Pre-Audit Receives
Invoice from Vendor
Identify Which Dept.
Made the Purchase
Call Dept. to Get Funding
Source & Approval
Copy Invoice to
Dept.
Pre-Audit Verify the Amount Is
Correct
Editing & Check
Printing
Verify VO Entry
OK?
Correct in VPAM
Distribute Checks
No
Yes
System Generates Voucher,
Remittance Copy, Prelist in CARDS
End
Create VO in VPAM
Verify Funding Code Is Correct
Check Appropriateness
of Purchase
VerifyPurpose ofBusiness
VerifyType of Travel
Expense
Fund 133 Class Codes
2000s?
Route to RSP
RSP Reviews & Approves
Yes
No
21
Pre-AuditDirect Charge Processes for FedEx Bills
Begin Receive Bills from FedEx
Check INQM or UNAM for Dept. Contact
Name
Funding Coded on
the bill?
Get Funding Source from
Dept. Contact Person
Code Funding on
the Bill
Batch Bills (100/Batch)
Calculate Batch Totals
Create VO in VPAM
from Contingent
Fund
Copy Bills
Once a Week
Highlight Funding
Source on the Bills
Create Transfer
Worksheet in Excel w/ Dept.
Funding Source Codes
Keyers Enter
Transfers in VPAM To replenish
contingent fund.
Contingent Fund Check to Vendor
Route Invoice Copy to
Dept.
Yes
No
End
Normally a week later.
22
Pre-AuditPayments to Individuals Report (PIR)
Begin
Individual or Dept. Prepares
PIR Form
Fund 133?
Dept. Approves PIR Form
Dean’s Office
Approves PIR Form
This process applies to payments to individuals for:•Scholarships•Travel expense•Research subjects•Speakers & other service providers.
Dean’s Office
Routes to Pre-Audit
Pre-Audit Routes to
RSP
RSP Approves & Returns
to Pre-Audit
Verify Dept. & Dean’s
Approvals
Verify Name & Address
Verify If Payee a US
Legal Resident
ForeignPayee or
US ResidentW/O SSN?
Calculate Tax Withholding
(Based on Treaty for
Foreigners)
Calculate Net Pay
Complete PIR Form
w/ Tax W/H Data
Complete Tax Calculation Sheet If It’s
Missing
Match Class Code w/ Payment Purpose
Verify Other Data OK?
Contact Dept. &
Correct PIR Form
Missing Signature
?
Return PIR Form to
Dept.
Key to VPAM
Editing & Check
Printing
Distribute Checks
End Begin
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.
Yes
No
No
Yes
Yes
No
Taxable PaymentBased on
Class Code?
Yes
No
Yes
No
23
Pre-AuditTravel Expense Report (TER)
Begin
Individual or Dept. Prepares
TER Form
Fund 133?
Dept. Approves
TER Form
Dean’s Office
Approves TER Form
Dean’s Office
Routes to Pre-Audit
Pre-Audit Routes to
RSP
Yes
RSP Approves & Returns
to Pre-Audit
Verify Name & Address
Verify Funding
Code
Verify Nature of UW
Business
Verify Reported
Amounts & DatesMatch w/ Receipts
Verify Approvals & Totals
Missing ReceiptsOr Approvals?
Return toDept.
OK to Pay?
Contact Dept& Correct the
Form
Approve theForm
Key to VPAM
Editing & Check
Printing
Verify VO Entry
OK?
Correct in VPAM
Distribute Checks
No
Yes
System Generates Voucher,
Remittance Copy, Prelist in CARDS
EndNo
This process applies to payments for reimbursable expenses to UW and non-UW employees.
Yes
No
Yes
24
Pre-AuditTravel Advance (TA) Initiation
Begin
Dept. Prepares
Request on TA Form
Fund 133?
Dept. Approves the Form
Dean’s Office
Approves the Form
Dean’s Office
Routes to Pre-Audit
Pre-Audit Routes to
RSP
Yes
RSP Approves & Returns
to Pre-Audit
Verify Reason for
TA
Verify Funding
Code
Verify SSN
Verify Contact Name
& Phone #
Verify Mail-to Address
Verify Amount <80% of
EstimatedExpense
Determine andRecord
Pay BackDate on the
Form
S/B less than 30 days of travel completion date.
MissingSignature
?
Return FormTo Dept.
OK toPay?
Key to VPAM to
Issue Check From Cont.
Fund
Contact Dept.& CorrectThe Form
End
Begin
Yes
No
Yes
No
No
Record TA inExcel
Worksheet
Travel AdvanceReplenishment
25
Pre-AuditTravel Advance (TA) Replenishment
EmployeeReports
Expense onTER Form
EmployeePut TA# On TER
Key TERTo VPAM
End
After TravelCompletesBegin
Use cont. fund coding to offset original TA.
TA > Expense?
EmployeeSubmitsPersonal
Check for theDifference
Pre-AuditRoute Check
To CM
CM DepositsCheck to
Cont. Fund
Check Submitted
?
Follow Up With Dean’s
Office
Check Submitted
?
Notify PayrollFor Payroll Garnishment
Pre-AuditRecord TA
ReplenishmentIn Excel
Worksheet
MonthlyReconcile
TA WorksheetWith
WISDM
No Yes
Yes
Yes
No
No
26
Pre-AuditNon-Travel Cash Advance Initiation
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.
Begin
Dept. Prepares
Internal Req. & Custodial Agreement
Dept. Approves &
Enter Req. in EPRQ
Dean’s Office
Approves Req.
Custodian signs
Agreement
Over $5,000?
Dean’s Office Signs Agreement
Req. & Agreement Routed to Pre-Audit
Yes
No
Verify AllSignatures
Verify Funding
Code
Verify Custodial
Agreement
MissingDocument?
Call Dean’sOffice
Dean’s OfficeSubmitMissing
Document
OK?
Approve &File Copy
In fileRoom
ReturnDocumentsTo Dean’s
Office
RouteDocuments
To CashManagement
CashManagementReviews & Approves
CM Writes aCheck fromCont. Fund
ReplenishableReq?
CM DepositsCheck to
CustodianBank Account
CM RoutesCheck to
Custodian
Yes
No
Yes
No
YesNo
Begin
Non-Travel Cash Advance Replenishment
End
ReplenishableReq?
Custodian Request CM to Open a Bank
Account
27
Pre-AuditNon-Travel Cash Advance Replenishment
Begin
Dept. PreparesNon-Travel
Cash AdvanceAccounting
Form
After Expenditures Are Made
Custodian SignsThe Form &
SubmitsReceipts
Dept. Approves Dean’s OfficeApproves
Form & ReceiptsRouted toPre-Audit
Verify Req.In INQR
Non-ReplenishableReq?
Req. Needs To Be
Closed?
Approve &Route to CashManagement
Yes
Yes
No
Verify Custodian,
Dept. & Dean’sSignatures
Verify Funding
Code
Verify Receipts
ApprovePayment
No
Enter PaymentIn VPAM
System Generates
Check
CM RecordsExp. To Req.
In EPRQ and toNon-Travel
Advance System(Close If Final
Payment)
CM Routes Form toAccountsPayable
AP EntersPayment In VPAM
System Generates
Check
CM DepositCheck to
Cont. Fund
File Room Sends Check to
Bank or Custodian
End
Zero $ Balance
Non-zero $ Balance
CM Closes Req. If All Money Is
Accounted For
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28
1099, 1042S & Supplemental W2 ReportingQuick Book Process Overview
MDSNPayment
File(Legacy)
Other CampusesPayment
Files(SFS)
QuickFile Reports Edits & Fixes
Assign &Edit
1042S
PayrollFile
Print 1099& 1042S
EditedQuickFile
Tape FileTo IRS
SystemMerges With
W2 Files
W2: At Year-End
Year-End
Year-End
Monthly
Paid PIR Forms
Currently Not Being Done Monthly
End
Begin
29
1099, 1042S & Supplemental W2 ReportingAdditional 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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