Receiving & Accounts Payable Welcome! We will begin promptly - PowerPoint PPT Presentation

Receiving & Accounts Payable • Welcome! We will begin promptly at 9:00 a.m. • Make sure your first and last name displays in the “Participant” list so we can mark your attendance. • Training handouts: https://go.iu.edu/buyhandouts • BUY.IU training site: https://trn.one.iu.edu • Click on the “BUY.IU TUIT” task tile. INDIANA UNIVERSITY

Receiving & Accounts Payable Office of Procurement Services INDIANA UNIVERSITY

Agenda • Invoice creation. • Receiving: what & when. • Break. • Logging a Receipt. • Activity 1. • Matching rules. • Invoice review. • Break. • Activity 2. • Locating Invoices. • Activity 3. • Wrap-up. INDIANA UNIVERSITY

Learning Objectives • Describe the different methods by which Invoices are created. • Log quantity and cost receipts on received orders as appropriate. • Define 2-way and 3-way matching and when each applies. • Describe when rejecting or cancelling an Invoice is appropriate. • Save document searches to locate invoices in various states such as paid, payable, or hold for receiving. INDIANA UNIVERSITY

Invoice creation

Invoice workflow Pass tolerances BUY.IU Invoice paired Invoice Supplier BUY.IU Payment to PO marked invoice Invoice generated “Payable” Matching submitted generated tolerances applied Invoice Fail reviewed, tolerances approved INDIANA UNIVERSITY

Digital Mailroom (DMR) • A third-party which receives and reviews supplier invoices. • Invoices sent to lockbox via mail or emailed to invoice@iu.edu. • Attempts to pair supplier invoice to corresponding purchase order. • Invoice first scanned by visual recognition software, then reviewed by staff. – Paired invoices are scanned and uploaded into BUY.IU. – Unpaired invoices forwarded to Accounts Payable for additional research. • Invoice Source = Digital Mailroom Import. INDIANA UNIVERSITY

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Electronic file • Invoice data file sent directly to BUY.IU which immediately generates BUY.IU invoices. • Used by Catalog suppliers such as Guy Brown, Dell, Fisher Scientific, etc. • No supplier invoice document in BUY.IU. • Must contact supplier directly with invoice questions. • Invoice Source = Electronic. INDIANA UNIVERSITY

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Supplier portal • Suppliers can submit invoices directly to BUY.IU using their portal. • BUY.IU Invoice generated immediately upon submission. • May or may not have supplier invoice document attached. Will appear if attached by supplier. • Invoice Source = Supplier Portal. INDIANA UNIVERSITY

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Manual entry • Accounts Payable staff can manually create BUY.IU Invoices as needed. • Used to reprocess invoices or in special situations. – Supplier invoice image attached. • Invoice states who manually entered the invoice from AP. ‒ Contact fmsaphlp@indiana.edu with questions. • Invoice Source = Manual. INDIANA UNIVERSITY

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Receiving: what & when

Receiving overview What is receiving? • The process of marking a good or service as complete based on the quantity or value of items/services accepted. How is this accomplished? • Via the logging of a Receipt document on the Purchase Order. • A Receipt represents what was received in that shipment. Who can log a receipt? • Any BUY.IU user with the Requestor role. INDIANA UNIVERSITY

Receiving overview cont’d What triggers receiving? • Invoice booking against a Purchase Order which requires receiving. • Receiving a good or service. Who is notified when receiving is required? • The individual listed in the “Prepared By” field of the Requisition. This individual is considered the Purchase Order owner. INDIANA UNIVERSITY

Types of receiving Quantity receiving Cost receiving • Used to log the number of • Used to log the value of goods goods or services received. or services received. • Used with one-time orders. • Used with Recurring orders • Used to log receipt of capital assets. INDIANA UNIVERSITY

When is receiving required? • It depends on a couple factors: – The type of Requisition, or order, placed. – The value of the order or invoice. INDIANA UNIVERSITY

One-time orders Orders less than or equal to $4,999.99: • Quantity receiving is not required. Orders greater than or equal to $5,000: • Quantity receiving is required and forced by BUY.IU. • Every Invoice, regardless of dollar amount, routes to Hold for Receiving workflow stop. INDIANA UNIVERSITY

Hold for Receiving stop • Invoice is held at this stop until Quantity Receipt which satisfies the Invoice is logged or 10 days before Invoice Due Date. • When deadline is reached, Invoice moves to Matching Exceptions workflow stop. This is referred to as Receiving Lead Time. INDIANA UNIVERSITY

Matching Exceptions stop • Hold for Receiving reflects a Completed status even though Receipt is incomplete. • Fiscal reviewers must verify Quantity Receipt logged prior to Invoice approval. INDIANA UNIVERSITY

Recurring orders Invoices less than or equal to $4,999.99: • Receiving is not required. Invoices greater than or equal to $5,000: • Cost receiving is required per Standard Operating Procedure. • Invoice routes to Recurring Payment Review workflow stop for fiscal review and approval. INDIANA UNIVERSITY

Recurring Payment Review stop Fiscal reviewers must verify Cost Receipt logged prior to Invoice approval. INDIANA UNIVERSITY

Subawards • Contract & Grant subawards are established as Recurring orders using commodity code ORA1. • Every Invoice, regardless of dollar amount, booked against a subaward Purchase Order requires Cost receiving. – Invoices route to Hold for Receiving workflow stop, then Matching Exceptions if Receiving Lead Time reached. INDIANA UNIVERSITY

Check Requests Generally, Check Requests do not require Receiving. • Exception: Purchases for Resale form. – When using this form, we are receiving goods in return. – Follows same guidelines as one-time orders. INDIANA UNIVERSITY

When is receiving required? Receiving Order type Receiving required? forced? One-time order ≤ $4,999.99 No. One-time order ≥ $5,000 Yes, regardless of Invoice value. Yes Recurring orders Yes, if Invoice value is ≥ $5,000. Subawards Yes, regardless of Invoice value. Yes Check Requests No, unless using Purchases for Resale ≥ $5,000. Yes INDIANA UNIVERSITY

Break INDIANA UNIVERSITY

Logging a Receipt

Overview • Receipts are initiated from the Purchase Order. – Open the Document Actions menu, then select the appropriate Receipt type. INDIANA UNIVERSITY

Activity 1 Logging Receipts

Question 1 In the Non-Catalog Orders class, you placed a one-time order with Pier Group for 13 Surface Pro 6 tablets. The order totaled $13,845. So far, your department has received one tablet. The remaining tablets are on backorder. Pier Group submits an invoice to DMR, totaling $1,065, which books against the Purchase Order. • Is a Receipt required in order to pay this Invoice? If yes, which type of Receipt: Cost or Quantity? – Yes – Quantity Receipt. – One-time order with a value greater than or equal to $5,000. INDIANA UNIVERSITY

Question 1 In the Non-Catalog Orders class, you placed a one-time order with Pier Group for 13 Surface Pro 6 tablets. The order totaled $13,845. So far, your department has received one tablet. The remaining tablets are on backorder. Pier Group submits an invoice, totaling $1,065, which books against the Purchase Order. Locate a Purchase Order from Pier Group and log a Quantity Receipt for one tablet. INDIANA UNIVERSITY

Activity 1: Log a Quantity Receipt Make sure you’re logged into TRN! https://trn.one.iu.edu “BUY.IU TUIT” task tile INDIANA UNIVERSITY

Question 2 In the Catalog Orders class, you placed an order with CDW-G for three Ethernet cables and one Microsoft docking station. The order totaled $171.76. The items have shipped and CDW-G already invoiced IU for the goods. • Is a Receipt required in order to pay this Invoice? If yes, which type of Receipt: Cost or Quantity? – No. – One-time order with a value less than or equal to $4,999.99. INDIANA UNIVERSITY

Question 3 You work in the Kelley School of Business on the Bloomington campus. Each year, your department establishes a Recurring order with a local Coca Cola distributor. The blanket order is used to purchase refreshments for student recruitment events throughout the year. Coca Cola submits an invoice, totaling $6,095, for payment and the Invoice books against PO0005155. • Is a Receipt required in order to pay this Invoice? If yes, which type of Receipt: Cost or Quantity? – Yes – Cost Receipt. – Invoice with a value greater than or equal to $5,000 booked against a Recurring order. INDIANA UNIVERSITY