Policies & Procedures


 

Section: ACT
Part: PRO
Statement No.: 3.0
Date: 07/01/08
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Encumbering a Purchase Order 

 

l.              The following are received from Purchasing:

 

      Purchase Requisition: Accounts Payable copy (white)

 

      Purchase Order: Accounts Payable copy (yellow)

 

2.             FRS encumbrances are entered using information on the purchase order. Vendors are input to the FRS system using the following standards.

 

a.             Vendor name is limited to 20 characters.

b.             Vendors commonly known by initials may be entered as such. 
               Ex. IBM CORP, NCR CORP

c.             The following abbreviations should be used in the vendor name:

      State                             Postal abbreviations (NC, SC, FL, etc.)

      ASSOC                        Association

      CORP                          Corporation

      CO                               Company

      CTR                             Center

      DEPT                           Department

      INC                              Incorporated

      LTD                             Limited

      SRV                              Service(s)

      UNC                            University of North Carolina

      UNIV                           University

      US                                United States

      &                                   and

d.           Government offices should begin with the State abbreviation. Ex. NC DEPT OF REVENUE, US DEPT OF DEFENSE

e.            Periods and commas should not be used in the vendor name.

                Ex. W H BROWNE

f.            No titles should be used in the vendor name. Ex. MS MR DR

 

3.            Batches are formed and a batch control sheet is prepared. The forms and batch control sheets are sent to data control for input to Financial Records System. An encumbrance may be entered into the FRS system directly from the purchase order. A batch control sheet is still required.

 

4.            The Accounts Payable copy of the purchase requisition and the Accounts Payable copy of the purchase order are filed in the open purchase order file until matched with an invoice and receiving report.

 

6.            Daily proofs are received for the previous day's encumbrance entries. Errors are corrected. CPTV corrects any errors concerning their accounts, other than data entry errors.

 

7.             Items are liquidated by the Accounts Payable system when invoices reference an existing purchase order and are paid by computer generated checks or manual checks.