Payment Request and Credit Memo Documents

EPIC

Charlie Sinex, Accounts Payable Manager, FMSSherry Kapperman, Transaction Analyst, FMS

Bobbie Sewell, Accounts Payable Manager, IUPUI

March 25, 2009

Main Content Area

• Payment Request• Routing• Delegate Roles• Actions

• Credit Memo• General Ledger• Extracting to PDP• Search Screen• IUIE Reports for AP documents overview

Payment Request Documents

Vendor Invoice to Vendor Payment

PREQ Flow AP Approval (APAD)

Sub-Account Manager Approval (ASAA)

•Image attached

Fiscal Officer Approval (AFOA)

Chart/Org Review (ACHA)

Tax Approval (ATAX)•Foreign Vendor•Employee

Required

Optional

Who can view the Invoice Image?

• Access to the image button depends on the accounting on the PREQ and in FIS• Fiscal Officers• Active PREQ delegates• Active ALL delegates

• Select other user groups – like AP, PUR, Internal Audit

• Electronic Invoices do not have an image attached• Image must be viewed through Internet Explorer

PREQ Document Routing

• (Required routing) Fiscal Officer routing: defined by FIS accounts and delegation (if any)

• (Optional routing) Sub-Account Approval rules and Chart/Org Review rules are set up in workflow

Workflow Action Lists – what to look for…

PREQ as shown in the action list…

• Auto-approvals show as “Acknowledge”

Route log information

• While in an Action List, select the icon:

• While in the EPIC document, select the link:

PRIMARY DELEGATE

FISCAL OFFICER

SECONDARY DELEGATE

Account Delegates

• To view delegates search FIS Inquiries/Reference Tables ‘Account Delegates’

Secondary PREQ delegate can filter the action list to review a PREQ

• Within the 2ndary PREQ’s workflow action list…

Secondary PREQ delegate can search by document number to review a PREQ

1

2

3

Secondary delegate can also search in EPIC; then link to the workflow document

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During Routing: Request Cancel

During Routing: Hold

EPIC Notes

• Notes are required for certain actions: ‘Hold’, ‘Remove Hold’, ‘Request Cancel’, ‘Remove Request Cancel’, and ‘Cancel’.

• Notes are a permanent audit trail. • When to NOT ADD A NOTE: do not add a

note to EPIC to document an SSN# or a Bank Account #.

Approving a PREQ, means…

• The goods or services have been satisfactorily delivered

• The proper accounts have been charged

• The payment amount is accurate and should be disbursed

Separation of duties – an internal control note…

• Appropriate separation of duties means that at least two people from the department have been involved in the process of creating a requisition, approving a requisition and approving a payment request.

Optional Routing

– Sub Account Manager approval

– Chart / Org Review approval

Tax Approval Routing

• Route level used when a vendor on the payment request is indentified as an employee, a foreign vendor, or a non-resident alien.

Special Disbursement :Wire Transfers (and Foreign Drafts)

• Disbursement is processed in FIS on a DV

• EPIC PO notes and EPIC Payment Request notes document the disbursement

• Note: Do NOT add bank account information to the EPIC or FIS notes screen.

Credit Memo Documents

Vendor Credit Memo

AP Approval (APAD)

•Image attached

Fiscal Officer receives an FYI in Action List

Complete (CMPT)

Who can view the Credit Memo Image?

• Access to the image button depends on the accounting on the CM and in FIS• Fiscal Officers• Active PREQ delegates• Active ALL delegates

• Select other user groups – like AP, PUR, Internal Audit

• Image must be viewed through Internet Explorer

Credit Memo as shown in the workflow action list…

General Ledger Transactions for AP Documents

PREQ GL entries and encumbrances book at AP Approval

• EncumbranceCredit encumbrance

Debit offset fund balance

• Expense and liabilityDebit expense object code

Credit liability object code

9892 EX FB 4100 EX EX

295.18

Account BL 10-232-00

295.18

9041 AC LI4100 AC EX

295.18

Account BL 10-232-00

295.18

Pairs of Balance and Object Type

Balance Type Object Type Description

EX – External Encumbrance

EX – Expense Expenditure

EX EX = Encumbrance Entry(Debit record at PO open.)

EX – External Encumbrance

FB – Fund Balance

EX FB = Encumbrance Offset(Credit record at PO open.)

AC – Actuals (Balance Sheet)

EX – Expense Expenditure

AC EX = Expense Entry(Debit record at PREQ AP Approve.)

AC – Actuals (Balance Sheet)

LI - Liability

AC LI = Liability Entry(Credit record at PREQ AP Approve.)

PDP GL entries at disbursement

• Cash and liability entries

Debit liability object code

Credit cash object code

Account BL 10-232-00

295.18

9041 AC LI 8000 AC AS

295.18

GL entries• At AP Approval (07/26/08) ‘PREQ’

• Fiscal Officer did not edit the accounts• At disbursement (08/11/08) ‘PDP’

Expense debit

Liability credit

Cash credit

Liability debit

Fiscal officers or FO PREQ delegates can edit accounting during routing … shown on next slide…

T-accounts for prior slide FO editsGL entry from AP Approve

FO edits – reverses original entry; books edit

4502 AC EX 9041 AC LI100.00 100.00

4502 AC EX50.00

9041 AC LI50.00

Account BL 2142652

Account BL 2142651 9041 AC LI50.00

Account BL 2142652

4502 AC EX50.00

Credit Memo at AP Approval

• EncumbranceDebit encumbrance

Credit offset fund balance

• Expense and liabilityCredit expense object code

Debit liability object code

9892 EX FB 4100 EX EX

295.18

Account BL 10-232-00

295.18

9041 AC LI4100 AC EX

295.18

Account BL 10-232-00

295.18

Credit Memos referencing…• …the payment request..will populate accounting from

the PREQ.

• …the purchase order…will populate weighted average accounting from all payments against the PO.

• …the vendor…accounting must be manually entered by AP.

Extracting Payments and Credits to PDP

PDP: Check or ACH ?

Pay dates and Disbursement

• DPTA and AUTO payment requests will extract based on the pay date

• DPTA payments - immediate pay functionality

Exceptions:

• payments on ‘Hold’

• outstanding Credit Memo which is greater than the sum of the payment requests

Pay dates and Disbursement (continued)• Conditions that prevent PREQs from reaching Auto

Approved status• PREQ is on ‘hold’ or ‘request cancel’• PREQ exceeds a defined dollar limit• PREQ contains at least one account that requires

positive approval• Vendor is Foreign (requires Tax review and approval)

• Vendor is Institution Employee (requires Tax review and approval)

Credit Memo bundling

• Bundling is based on • Processor campus• Vendor including division extension

• Example: Credits from vendor #123-0 will NOT bundle with payments to vendor #123-1

• Zip code on payment and credit memo

• Payments and credits will not extract for disbursement until a positive pay condition exist

• Credits disburse via check (not ACH)

Check versus ACH

• If an ACH record has been established for a vendor, the payment is eligible to disburse via ACH

• A check will print if the payment has• Immediate print• Attachment flag• Special Handling instructions• A credit memo

Reviewing PDP Payment Information• PREQs that have been extracted to PDP for

payment will display a button on the face of the PREQ:

• Linking to the PDP information provides a wealth of information…

EPIC Search for AP documents

Searches for PREQs and Credit Memos

• Searching on a specific PREQ#, CM# or the related Document ID is facilitated.

• A general search, for example on a vendor name, will require department users to enter a Chart / Org.

IUIE Reports

9041 reports have arrived…first published October, 2008

• 9041 Out of Balance• 9041 Payment Request – EPIC• 9041 Credit Memo – EPIC• 9041 FIS GL Detail Report

Pause for IUIE 9041 demo…

…continue slide show

IUIE - AP reports

• Master Catalog/Financial

Quick hints – select IUIE reports• PREQ Printout

o Nice print of PREQ on occasion that paper is needed; can input series of PREQ #s or PO#

• AP Hold Reporto Department can monitor HOLDS to prevent aging;

suggestion: create shortcut with “Last Update User Id” listing any user id that could place PREQ on hold

• Payment Request Accounting

• Credit Memo Accountingo Accounting reports facilitate study of accounting for

payments at the PO level and vice versa

IUIE Vendor ACH Lookup

• Allows user to query if vendor or payee has an active ACH record as of the end of business the prior day

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IUIE ACH Lookup parameters

• ACH Lookup

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Questions?

…are welcomed today or any day…

Charlie Sinex, 812-856-2268, csinex@indiana.edu

Sherry Kapperman, 812-855-7115, skapperm@indiana.edu

Bobbie Sewell, 274-5010, basewell@iupui.edu