Efficient Accounts Payable Processes and Procedures
Streamline your accounts payable functions with detailed guidelines on vendor invoices, payments, cabinet level approvals, handling of independent contractors, and managing invoices for direct payments. Learn about the essential steps, requirements, and best practices to ensure timely and accurate processing of invoices and payments.
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Accounts Payable Vendor Invoices Receiving Prompt Pay
Vendor Invoices/Payments Purchase Orders (PO) Enter into eVA Receiving required in Banner Forward invoices to Accounts Payable Accounts Payable will extract from the PO to process payment Direct Pays Entered directly into Banner No eVA entry required Forward invoices to Accounts Payable Direct Pay/Check request
Cabinet Level Approval Purchase Payment Request Form Until further notice all purchases and/or payments, (purchase orders, direct pays, travel reimbursement and non-travel reimbursements) regardless of fund source (state, local, foundation, agency 8xxx), require Cabinet level approval prior to completion. Review by the Cabinet member is facilitated through submitting the Purchase/Payment Request Form. Once approved or denied, you will be notified with next steps on how to make the purchase or payment, including reactivation of your charge card if needed.
Independent Contractors The Independent Contractor Questionnaire (ICQ) is an online within form SharePoint. The form is completed prior to enlisting the services of an individual. Finance and HR will review the form to determine if the individual you wish to hire should be compensated as an independent contractor or employee.
Invoice for Direct Pay Request Form The Invoice for Direct Pay Request Form (FAAINVE) is used ONLY for three types of payments: An Honorarium Non Employee Cash Awards University Refunds *The Invoice for Direct Pay Request Form does NOT need to be completed for any other kind of payment.
Invoices and Receiving of Goods/Services All invoices must to be date stamped when the invoice first arrives on campus Receiving in Banner is the date you received the goods/service (the date in Banner will default to the current date so be sure to enter the date the goods/services were actually received) If the invoice is for a service, use the final service date If the invoice is for a ongoing maintenance agreement or subscription, use the date the invoice was received (because these kinds of payments are due in advance of the service) If invoices are in dispute, the receive date in Banner will be the date the dispute was resolved Forward all invoices to Accounts Payable as soon as possible so we can meet the Virginia Prompt Pay requirements. DO NOT HOLD onto invoices!
ePayables (virtual payments) The University of Mary Washington offers an electronic payment option to all vendors and suppliers through Bank of America s ePayablesvirtual card solution. Vendors who are registered and participating in the ePayables program will receive Net 16 payment terms. Advantages of ePayables Less exception handling Increased security Requires no change to current invoicing procedures Expedited receipt of cash Increased efficiency Environmentally friendly Note: The standard merchant credit card processing fees will apply
How to Determine Due Date Look at the date you received the invoice You would have date-stamped the invoice or you would have hand-written the date on the invoice (when you first received the invoice) If receiving is required, receive in Banner using the date the goods/services were received Reference the Prompt Pay Due Dates to determine the date the invoice is due and the date the invoice needs to arrive in Accounts Payable (so Accounts Payable has time to meet the Virginia Prompt Pay due date)
Virginia Prompt Pay Act The term Prompt Pay refers to the timely payment of goods and services. The Virginia Prompt Pay Act states that invoices must be paid 30 days from the date UMW receives the invoice or goods/services, whichever is later. The Code of Virginia, Section 2.2-4350, requires State agencies and institutions to pay 100% of their invoices subject to the Prompt Payment Statutes by the "required" payment due date. Higher Education Institutions subject to State management standards are considered to be in compliance with the prompt payment standard if they have achieved at least a 95% prompt payment rate. Agencies and institutions that do not achieve at least 95% compliance may be targeted for assistance and/or preparation of a workplan to improve compliance.
