Policies & Procedures


 

Section: ACT
Part: PRO
Statement No.: 3.1
Date: 07/01/08
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Invoice Processing

 

1.            Accounting receives a copy of the Accounts Payable copy of the purchase requisition and purchase orders. These are filed in the open Purchase Order file until invoice and receiving reports are received.

 

2.            When the invoice and receiving reports are received, the purchase order, requisition, receiving report, invoice, and invoice coding sheet are matched and stapled together (invoice package). In the case of a partial liquidation, the purchase order and the purchase requisition are kept in the open file until the order is complete.

 

3.            The following information on the invoice is verified.

 

      Vendor Name - name of vendor the check is payable to

      Street - vendor remit to address

      City/State/Zip Code - vendor remit to address

      Description- 13 spaces available for description of the charge

      Purchase Order Number - PO number

      Liquidation Code - partial or full liquidation (no amount is placed in this field)

      Account Number - 6 digit SL or GL account

      Object Code - sub code

      Discount Amount - net amount (cash discount taken if applicable)

      Use Tax - use tax applicable to the charge if any

      Amount to Pay- amount of the check

      Requesting Department Original Signature on Invoice: Such signature indicates items invoiced have been received, inspected, and fulfill the department’s needs and are eligible for payment.  Should discrepancies exist, the department should note these items on the invoice.

 

4.            Use tax is calculated for the invoice and recorded on the invoice coding sheet (see PUR Pol. 15.0).

 

5.            Invoices are batched, a batch control sheet is prepared and the batch is entered in the Accounts Payable System Batch Control log. The invoices and batch control sheets are forwarded to Data Control for processing.

 

6.            Data Control enters the invoices into the Accounts Payable system by entering the data verified in step 3 and calculated in step 4. Vendors names are input using the same vendor standards used to input the purchase order (see ACT Pro 3.0).

 

7.            For manual checks, (capital improvement and endowment funds), the check is typed and an FRS disbursement form, including the encumbrance number to be liquidated if applicable is completed. The checks are batched, and entered into the Batch Control Log. The checks and batch control sheet are sent to Data Control for processing.

 

8.            The invoice and accounts payable copies of the purchase requisition and purchase order are filed in the paid voucher files in voucher number sequence in Accounting.