Accounting Policies (APPR17)

OVERVIEW

This procedure provides guidelines for processing invoices when exception processing occurs due to tolerance errors. The financial system checks for invoices input for payments on purchase orders payments which exceed the tolerance guidelines either in units invoiced or the cost of the unit.

REQUIRED FORM(S)

Invoice Approval Form (IAF)

Purchase Order Change Order Form (Purchasing Manual Section 7, Standard Forms)

PROCESSING STEPS

During invoice payment, the financial system will identify tolerance errors. The Accounts Payable Processors determine, based upon pre-established guidelines, whether to override the tolerance situation and continue processing the invoice or to stop processing the invoice and request the department to modify the purchase order. The Accounts Payable Processor will request the department to modify the purchase order by sending the IAF and invoice to the department with the "Process Change Order" box checked.

The department then analyzes the purchase order to determine how much to increase the units and/or the unit cost or add a commodity for this invoice and all future invoices through the end of the fiscal year. The department completes the "Purchase Order Change Order Form" (see Purchasing Manual, Section 7 Standard Forms), and sends it through the normal approval process. The Controllers Office will forward the "Purchase Order Change Order Form" to the Purchasing Department for processing.

After the "Purchase Order Change Order Form" has been posted, Accounts Payable can resume processing the invoice as discussed in APPR 02.