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Section 8 - Check Requests and Payables

Section 8.5 - Payment for Purchases

Date: 2/20/06 — Approved: Finance Board, editorial change 12/12/07

Payments for the purchase of goods or services are based on the vendor's proper bills and invoices, which reference a properly issued purchase order. Such payments are made when there is verification that the commodity or service has been received, are as specified on the order, and are in an acceptable condition. (See Section 8.3 – Check request receipt documentation and Section 7.4 – Cash Purchases for information regarding payments for goods and services not covered by a purchase order.)

RECEIPT OF GOODS

The issuing department has the responsibility to ensure goods and services ordered have been received prior to approving for payment. This confirmation of receipt should be noted on the invoice or receipt via a “received by” signature. This signature must be from someone separate than the budget manager that is approving the invoice for payment.

PAYMENTS FOR GOODS AND SERVICES

Invoices

Payments for goods and services procured on purchase orders are normally based on a proper invoice or bill from the vendor.

Payment document

For purposes of uniformity and data entry, a check request/payment document or approval on the actual invoice is used to code invoices for input into the Accounts Payable system for miscellaneous invoice or travel reimbursement payments.

Vendor monthly statements

Payments may not be made based exclusively on a vendor's monthly statement or other summary of amounts due.

Trade discounts

All trade discounts are treated as a reduction in the purchase price.

Cash discounts

Any cash discounts received for equipment and commodities are treated as an adjustment to the purchase price.

Freight charges

Freight charges billed as part of the vendor's invoice are treated as an adjustment to the purchase price. Freight charges paid directly to the carrier by the AS are treated as an expense and not as part of the cost of the item.

Rebates And Trade-ins

Stated on invoice

Rebates are normally not acceptable as part of a purchase agreement. However, invoices that include rebates are treated as an adjustment to the purchase price.

Separate remittance

Rebates or patronage refunds which are received in the form of checks or cash are deposited in the AS Cashier's office as miscellaneous AS income if the original payment was made from AS appropriated funds or if the original source of funds cannot be readily identified.

Promotional merchandise

Promotional merchandise must not be taken into consideration in the award of a contract or purchase order to a vendor. However, if promotional merchandise is sent to and received by an AS department, it is the property of the AS department paying for the original purchase and not the property of an individual employee.

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