East Tennessee State University
Financial
Procedures
FP - 5
RECEIPT OF MATERIAL AND
PAYMENT OF INVOICES
CONTENTS:
I. RECEIPT OF MATERIAL
II. GENERAL POLICY REGARDING PAYMENT OF INVOICES
III. DEPARTMENTAL RESPONSIBILITY IN PROCESSING PAYMENTS
IV. APPROVAL OF AN INVOICE FOR PAYMENT
A. Central Receiving
University Purchase Orders
and Procard orders specify the location to which orders are to be
delivered. University Purchase Orders will normally be delivered to Central
Receiving. Procard orders may be delivered to Central Receiving or directly to the
department.
When deliveries are made to
Central Receiving, employees of Central Receiving will:
1. Compare the number of cartons or packages with the shipping documents.
2. Inspect for visible damage; note damages on the shipping document and obtain the delivery driver's signature.
3. Compare the delivery to the purchasing information and make appropriate entries into the FRS Purchasing System regarding purchase orders.
4. Prepare delivery sheets.
5. Deliver the material or equipment to the appropriate department, and obtain a signature from the person accepting the delivery.
B. When deliveries are made
to the department, employees of the department will:
1. Compare the material or equipment received with the ordering records immediately upon receipt for conformity as to the specifications and quantity. The date received, quantity and condition of the items should be noted on the ordering records.
2. Report any deviation from specifications, shortages, damages, etc. to the purchasing agent in writing. The purchasing agent will initiate the communications with the vendor, except for apparent damage in transit, in which case the department should contact Central Receiving, who will file the proper claims with the vendor and shipper.
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II. GENERAL
POLICY REGARDING PAYMENT OF INVOICES
A. In order to make payment
to an outside vendor, the Accounts Payable Section of the Financial Services Office
must have the original invoice. If the original is not received, the
requisitioner must make a statement to that effect on the invoice copy and
certify that the invoice has not been previously processed for payment.
Accounts Payable cannot pay a monthly statement unless supported by original
copies of delivery tickets supporting the amount of the statement. The invoices
must not be approved and sent to Accounts Payable for payment until all of the
items covered by the invoice have been received in good order.
B. Vendors have the right to
expect prompt payment by the University after delivery. Each department head is
responsible to insure that invoices are promptly processed for payment. Should
an invoice not be within 30 days of receipt, the University may be required to
pay interest at 1 1/2% per month which will be charged to the requisitioning
department.
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III.
DEPARTMENTAL RESPONSIBILITY IN PROCESSING PAYMENTS
There are three methods for
making payments to vendors. The departmental responsibilities are detailed for
each of the methods below.
A. Pre-Approval of Invoices
Purchases made by purchase
order generally will not receive a copy of the invoice. The Financial Services
Office will ensure that the material has been received, and that the quantity
and price on the invoice match that of the PO. Once this match has been
established, the Financial Services Office will consider the invoice to be
pre-approved and will make payment on the appropriate date. It is the
department’s responsibility to ensure that the material is as ordered and is in
good working order. Any problems with an item should be reported to Purchasing
immediately. Purchasing will freeze the purchase order until the issue can be
resolved. This procedure will not be used for the following types of invoices:
subscriptions or copiers with varying charges to several departments.
B. Invoices on which
departmental approval is required
The invoice must be compared
to the notation made on the purchase order at the time of delivery to insure
that the material has been received (See paragraph I.B. above). At the same
time the unit price must be verified.
Extensions and additions on
all invoices must be verified. If errors are noted, the purchasing department
must be contacted for instructions in handling.
The requisitioner must affix
his/her signature of approval on the invoice. Initials, rubber stamp or other
facsimile is not permitted. If the purchase order number does not appear on the
invoice, it must be written in a conspicuous place. If the invoice is not
covered by a purchase order, the account number to be charged must be indicated
directly on the invoice.
C. Payment For Procurement
Card Transactions
The department user will
receive a monthly summary statement from the bank that issues the procurement
card. Any discrepancies are handled between the departmental purchaser and the
vendors. If a particular transaction is in dispute, the departmental purchaser
is to communicate directly with the bank. All procurement card records are to
be maintained in the department.
Accounting will pay the bank
on a monthly basis for all procurement card transactions, except those
transactions in dispute.
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IV.
APPROVAL OF AN INVOICE FOR PAYMENT
Approval of an invoice for
payment certifies to the Financial Services Office that:
A. The merchandise or service
has been received, is acceptable and is in conformity to the purchase order,
B. That the account charged
is the proper one and that funds are available to cover the expenditure.
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Original
effective date: April 9, 1982
Revised: October 1, 1987; October 16, 2000; October 1, 2001; November 20, 2003;
February 22, 2010
Last review: November 20, 2003
Web page last updated 2/22/2010