Texas A&M International University

Accounts Payable Procedure Manual

Revised April 2, 2008

Maria Elena Hernandez
Business Manager

Table of Contents

      I.  Receiving of invoices

      II.  Processing invoices

      III.  Processing of statements

      IV.  Payment of invoices

      V.  Reports

      VI.  Recurring Payments

      VII.  Voucher Preparation

      VIII.  Voucher Disbursement

      IX.  Payee Identification Numbers

      X.  Payment Cancellation Voucher

      XI.  Types of Checks

      XII.  Manual Check Preparation

XIII.	Printing Famis Checks (Bank 00120) and NIH Checks (Bank 00026)

XIV.	Check Disbursement

XV.	Reimbursement Checks

XVI.	  Library Voucher Preparation

XVII.	  Expenditure Transfer Voucher (ETV)

XVIII.	  Void checks and vouchers

XIX.	  DHL Express and Federal Express

XX.	Transmontaigne

XXI.	  Procurement Card

XXII.	Reimbursements to Students

ACCOUNTS PAYABLE

     	The accounts payable clerk is responsible for the payment of all invoices with respect to debts incurred by the University.  To accomplish this, the following procedures are to be used:

		I. Receiving of invoices:

A. All invoices are received in the mailroom and forwarded to the business office.
B. The first sort is conducted by the Cashiering Area whom stamp all mail “date    
     received”. Invoices are then distributed to Accounts Payable clerks.
		
		II. Processing invoices: 			   	

The following steps are followed by the Accounting Assistants for invoice processing:
		    	A. Invoice validity - Each invoice is checked for accuracy in math and merchandise  
                             invoiced.
B. Vendor disputes - Each invoice should refer to a purchase order number per      
     procurement procedures.  If a purchase order is not reflected on the invoice, the          
     accounting assistant will review screen 285 in FAMIS. If unable to trace the   
     purchase order, vendor is called  for more information as to department or   
     name of person placing order.
C. Duplicate invoices - Our FAMIS system does not allow posting of duplicate invoice       
     numbers.  An error message appears stating this invoice number already exists.
D. Lost invoices - If original is not available, a format letter is mailed  
     and a phone call is made to the vendors to request an invoice. Acceptable forms 
     of replacement invoices include: a fax, e-mail, a copy.
			E. Filing - All communications or documentation is attached to the invoice.
		
		III. Processing of statements:
			 
                         The following procedures are followed for statements:
 A. Statement validity - the accounting assistants verify if amounts on statement have             
     already been paid by going to screen 350.
	                    B. Statement disputes - If paid, the date paid and the voucher and check # are written    
                             on the statement. If “Date paid” is old and statement is still showing amount  
                             pending, then the accounting assistants will verify status in screen 185   
                             If the check has cleared the bank, they will request a copy of canceled check 
                             from the reconciliations person. If the invoice was paid with a warrant, they will  
                             check status of warrant via Treasury Operations System Services.                                               
			 C. If check has not cleared the bank, they will ask the Director of Accounting to  
                              request a stop payment at  the bank. They will then void the old check via 
                              screen 191 and post a replacement “manual” check.  If warrant is still outstanding,  
                              payment cancellation will be done through Treasury Operations System Services 
                              and a replacement warrant is requested via online in USAS.
			 D. Filing - If amount shown on statement is still pending, then they will request an                                       
                              invoice.  The statements pending invoices are kept in “pending” file. Once the 
			      invoice is received, it will be processed for payment. All other statements are                                           
                              discarded once they have been cleared.
		
		IV. Payment of invoices:

A.	Posting invoices - the accounting assistants will enter the invoice information on 
screen 340.

                         B. Vendor - the vendor must match the invoice. If not, the accounting assistants will  
                               call the vendor and ask if the invoice information is correct. The accounting  
                               assistants will document, as per vendor if invoice is correct. They will make  
                               correction to match invoice. If invoice is incorrect, they will request a corrected 
                               invoice.

C.	Correct amount - the amount on invoice must equal the amount on our purchase 
       order.  Payment can be processed if difference on invoice is not more than $10.00.   
       If  amount is more than $10.00, then the accounting assistants  will e-mail the                                                
       buyer.  The buyer will inform the department of increase needed and get approval 
       via e-mail to increase the purchase order. Once the Purchase Order is increased, 
       payment can be processed. All invoices are entered as “final” or “partial” 
      depending if all the merchandise is being invoiced.

		V. Reports

A.	Types of reports - report FBMR009 and PBAR222  are printed on a weekly basis. FBMR009 lists all outstanding purchase orders, limited purchase orders and requisitions.  The PBAR222 shows all the purchase orders that have been received.

B.	Copies of reports - Each accounting assistant receives a copy of FBMR009, 
       pertaining to their particular duties  “L”s or “P”s. A copy of all “R”s also goes to   
       purchasing.  PBAR222 is reviewed by accounting assistant in Accounts Payable.  
       PBAR221, 222 and 223 will be reviewed by Accounting Manager.

	         VI. Recurring Payments:

		    a.  Armored truck services
		    b.  Utilities
	              c.  WCI
                    d.  Computer and printing usage to TAMU
		    e.  Grease traps cleaning
f.  Pest control
g.  Termite control
h.  Fire alarm testing
i.  Waste disposal
j.  Boiler inspections
k.  Custodial services
l.  Trash pickup
m.  Rental of storage containers
n.  Rental of uniforms
o.  Elevator maintenance
p.  Air filter installation
q.  Heat pumps maintenance
r.  Boilers maintenance
s.  Chillers maintenance
t.  Generators maintenance
	 
               VII. Voucher Preparation
  		
			A.  Requisition (on account) information is inputted into screen 104 which will   
                               produce a purchase voucher on the following working day or a Famis check  
                              depending on whether an educational or a local account is used.  

B. Voucher classification by amount and type of purchase are found in USAS 
Reference Guide.

                         C.  Cost center balances are maintained by Famis Accounting System for Fund 001 and 
                               231 as vouchers are inputted.

                               
                VIII. Voucher Disbursement

A.  Staple Payment Voucher with original and one invoice copy and file in “not paid”.  
                   B.  All vouchers with expenditure codes of 8000 are to be given to the property 
                         inventory person upon request along with copies of invoice, check, and purchase 
                         order (when pre-payments).     
C.	The only Vouchers that do not need backup are the vouchers for First Class mail. 
      Only backup is Purchase Order. 

              IX. Payee Identification Numbers
                
	        A.  All vouchers must contain a 14 digit number which may be obtained from Texas                                       
                                Identification Number System (TINS).  

B.	If the number can not be found in TINS, a W-9 must be filled out by the payee and forwarded to staff accountant.  If it is a Foreign Payee, the Comptroller's Office will give you a temporary I.D. Number.  For all new Payee numbers and temporary I.D. numbers, the staff accountant must setup on TINS. 

              X.	Payment Cancellation 
                        
		          A. Warrant  payment cancellation will be done through Treasury Operations System 
                               Services website and a replacement warrant is requested via online in USAS.

             XI. Types of Checks 

                            A.  Reimbursement check:  Accounts starting with 100000
                            
                            B.  NIH Checks: Accounts starting with 415000 and 420111
                            
                            C.  FAMIS Checks: All other accounts
       
                 XII. Manual Check Preparation

A.	 FAMIS and NIH  checks sometimes on emergency cases only can also                                   
       be done manually.
               
B.	Blank checks are obtained from vault.

C.	All manual checks must be obtained and logged out from Accounting                                                         
       assistant (disburser).

			    D. 	Check preparation
1.  Date 
2.  Amount 
3.  Payee - Vendor/person's name 
                		4. TAMIU order number (If no P.O., type "ON ACCT")
                                   5.  Invoice number

   XIII. Printing Famis Checks (Bank 00020) and NIH Checks(Bank 0026)    
            
A.	Both Famis and NIH checks are printed.  Laser check printing instructions.doc.
                
                                B.  Famis Daily Reports produce a Check Register, which must be checked to verify                                         
                                      beginning check number.

                                 C.  When printing checks, verify that the check number and date are correct, and  
                                       that the number printed agrees with the original check number.

D.	If problems arise when printing, stop printer immediately. Contact OIT help desk at x2310.
                                 
         XIV.  Check Disbursement

A.	Release original check to payee/vendor with a copy of invoice attached.  A print out with the check information and voucher number with a copy of the invoice is filed in numerical order.

      XV.	Reimbursement Checks

              A. Emergency payments for registration fees, Utility payments, quarterly payments
                                  made to TAMU and all pre-payment purchase orders.

              B.  Manual Reimbursement checks are posted on Screen 139 which will produce                              Reimbursement Vouchers (247).

    XVI.	Library Voucher Preparation

              A. Insure that all voucher amounts are correct and that they agree with invoices.

    B.	Post as per purchasing module 

                             C. Disbursement of Library Vouchers is the same as all other disbursements.

    XVII.  Expenditure Transfer Voucher (ETV) 

                           A.  To correct expenditure codes, fill out a State to State Transfer form   
                                  if the correction is for a voucher or a Local to Local Transfer Form  
                                  if the correction is a check.

                           B.  The corrections for both a voucher and check need to be posted both in Famis and 
                                 in USAS.

                           C.  To post the corrections in Famis, use Screen 141 for State to State changes ,  
                                 Screen 142, for Local to Local changes. To post the correction in USAS, first fill  
                                 out information on the Expenditure Transfer Voucher and on the batch
                                 header before posting. The information to fill out these forms 
                                 will come from Purchase Voucher and from check.  Instructions to fill out the  
                                 Expenditure Transfer Voucher are written on the back of attachment R.

E.	For USAS- enter "D", 50 enter. Remember increase by 1" only after you've entered both TC407 and TC408. Press F6 after every transaction. Press F9 to balance batch after all transactions are posted. Go to Link and enter 19 for press F7 to enter legal text.

		XVIII. Void checks and vouchers

			   A.  Post to screen 110 for checks 
			   B.  Post to screen 146 for vouchers
			   C.  Post to screen 137 for reimbursement checks
           		   D.  Must open batch to post on all screens

XIX.	DHL Express and  Federal Express

A clearing account (000400 for DHL Express and 000410 for Federal Express) has been set up to meet payment due dates. 

A.	DHL Express and Federal Express will send a periodic invoice to the university.
B.	Check is processed using the clearing account for full amount of invoice and mailed the next day.

C.	Each time a DHL or Federal Express package is sent out, the mailroom personnel will process a limited requisition “L”.

D.	After payment is processed to express company, the L requisition is processed to produce a check to reimburse the clearing account.  Local account numbers will produce a check and state funded account numbers will produce a voucher which will be received via direct deposit.  Disbursing clerk will give checks to cashiers with a check log to initiate receipts to reimburse the clearing accounts.  Direct deposits will be receipted to clearing account through a journal entry.

XX.	Transmontaigne

A.	Transmontaigne will send a monthly invoice to the university for fuel charges to university vehicles.

B.	Each department will submit original fuel receipts to the business office at the end of each month.  Receipts will be matched against invoice.

C.	An excel spreadsheet will be done to separate the charges for each vehicle.

D.	A voucher will be processed using screen 134 to pay the invoice in full using account numbers submitted by the departments previously.

E.	When the warrant is received by the university, it will be mailed to Transmontaigne with a copy of the invoice. 

XXI.	Procurement card

A clearing account (000825) has been set up to meet payment due date.  All efforts should be made to reimburse this clearing account before the end of the month.
Purchases under the amount of $2,000.00 are made by university departments and charged to their procurement cards.  

I.  JP Morgan Chase will bill the university on a monthly basis.

II   Check is posted for full amount of statement received from JP Morgan Chase.  This    will produce a FAMIS check the next day which will be mailed out.

III.   A list is made of all cardholders that appear on the current month JP Morgan Chase statement to keep track of what procurement card transaction logs (Purchasing department website) have been received.  This list will, also, be used to write the voucher number assigned when reimbursement to clearing account for this particular cardholder is made. This list is used for reconciliation purposes, too.

 IV. When a cardholder receives their individual statements from JP Morgan Chase, a procurement card log will be filled out that will reflect all charges appearing that month.   This log will have the account numbers that the department wants to use to pay for these charges. Each charge will have an account number.  Along with this log, the statement and all applicable receipts and invoices should be attached. 

 V.  Each charge will be reviewed and classified appropriately by expenditure codes.
 Totals are made for each account number and expenditure code per procurement card log.  Voucher or check is posted from these logs to reimburse the clearing account.

VI.	Local account number will produce checks.  State-funded accounts will produce vouchers which will be received via direct deposits.  Disbursing will give checks to cashiers along with a list of checks and totals to receipt to clearing account.  Direct deposits will be receipted to clearing account via journal entry.  

XXII.	Reimbursements to Students

As per our agreement with Higher One, student refunds shall be distributed through them. We will post the refunds to the students listed on the Purchase Order and they should receive their refund on the next refund day (Wednesday or Friday).  In the event that we should hold these monies for refunding on a future date, the department will need to notify our Bursar, Sofia Maldonado, of the intended disbursement date 2-3 days in advance.  
            For future disbursements, please provide Ms. Maldonado the same type of supporting documentation 2-3 days prior to disbursement so that her department can post the refunds to the student’s accounts.

STATE WARRANT DISBURSING PROCEDURE

A.	Verify all warrants against the Warrant Register which comes out in the USAS daily reports.  Write date received next to the appropriate warrant number.

B.	Verify all warrants against the Voucher Register which comes out in the FAMIS daily reports.  Write the date received, date mailed, and warrant number next to the appropriate voucher number.

C.	Photocopy all checks on legal size paper and cut to warrant size.
                Staple to back of appropriate voucher.

D.	Match voucher number on warrants to the original voucher.  Vouchers can be found in accounts payable (Outstanding Vouchers) or possibly with reconciliation.

E.	Note the following information on the voucher:  Received by, Date Received, Warrant Date, Warrant Number, and Date Warrant mailed.  
      
      F.       When steps A through E are completed.  Attach original invoice to the Payment Voucher and                     
                filed away.  Copy of invoice needs to be mailed along with the warrant to the address shown  
                on the invoice.
 
      G.      Prepare envelopes for warrants that must be mailed. Do not mail insurance and employee                           
               warrants. Only disburse them and call payroll for insurance payments and employees for  
                theirs.

       H.      For a 247 Payment Voucher, a Direct Deposit is made payable to TAMIU .  Follow steps A,  
                 B, and E.  Senior Staff Accountant will journalize and will give information to cashiers for 
                 receipting purposes.  		
  
         I.       Payments for vendors set up with direct deposits are sent electronically. 

PURCHASING MODULE

	A.	Invoices are posted on screen 340

	 	1.      Type in a valid purchase order number and invoice 
                         number on the Action Line.
		2.      Indicate invoice amount and date
		3       Type additional information in the available fields, as desired.
		4.	Press <enter>to create the invoice header.
		5.	Press F5. This will take to next screen needed to	
                          finish the posting of the invoice.

	B.	Screen 342-Invoice line create

		1.	Indicate the quantity of items invoiced.
		2.	If different from the purchase order, indicate unit price.
		3.	Press<enter>to record the invoice line information.    	 		   
                4. 	Press F5.

	 C.	Screen 344-Invoice Frt/Tax/Ins./Other items.

		1.	Type the type of extra charge to be added to the 	
			Invoice (F-freight, T-Tax, I-insurance, or O-other)
		2.	Indicate the dollar amount to be added to the invoice and a short 
                         description of this charge in the space provided.
		3.	Press<enter>to pull in the account information from the purchase order. 
                         You may change this information, if desired.
		4. 	Press <enter>to add the charge to the invoice.
		5.	Press F5.

	D.	Screen 345-Invoice Pending Voucher Create/Modify.
	
		1.	Enter 0 in Voucher field on the Action Line.
		2.	Indicate a Type on the field provided, either 1 for 	
			regular purchase voucher, 3 for Library voucher or ITV,
			or 7 for Revolving.
		3. 	Type in a USAS doc type in the field provided, usually
		          2, and press  “enter”.

                 
                 4.       All information will appear. You may modify as you see
   	                     fit and Press  “enter” again.
		 5.       Press F5.
		 6.       This will take you to the multiple screen.  You may any changes 
                           on account numbers or expenditure codes at this time, and Press “enter”.
		 7.       This will take you back to screen 345. If everything seems fine, Press F5.
	
      E.    Screen 346-Invoice document close.

		1.	Type a "Y" in the close document field.
		2.	Press<enter> to close the invoice. This will initiate a two-/three-way match.

	 F.	Modifying information.

		1.	You must go to screen 346 to re-open document. Type N in close document field.
		2.       Press “enter” to re-open invoice document.
		3.       Advance to any screen that might need modification and press “enter”.
		4.       If doing modification on screen 345, you must press F7 to rebuild the voucher
                          with new information.  	
		5.       Modifications can only be done on pending vouchers.

	  G.   Cancellation of invoice.

		1.       Screen 346 and enter "Y" on cancel invoice document field.
		2.       You must enter an explanation on the window that pop up.
		3.        Press <enter> twice.