Accounting Policies (APPR18)

OVERVIEW

This procedure provides guidelines for processing invoices which meet the following criteria - payments which occur at regularly scheduled intervals and the payee, payment amount, and accounting distribution remain constant. It is applicable to both purchase order and non-purchase order payments. Examples include rent, lease, and contract payments. It is assumed that budget availability was previously checked by department personnel during the purchasing process.

REQUIRED FORMS

Invoice Approval Form (IAF)

Direct Pay Request (DPR)

Confirmation Memo

PROCESSING STEPS

If an approved purchase order or direct pay request meets the criteria for a recurring payable, the Accounts Payable Processor will establish a recurring payable on the Financial System. The benefit to the department is that they will not need to send a memo or direct pay request each month or each interval requesting payment. The benefit to the vendor is that they will get their check on the same day each month. The benefit to accounts payable is that after the first invoice is input, no additional data entry is necessary the rest of the fiscal year unless a change order to the purchase order has been processed.

Once a recurring payable is established, the department contact will receive a confirmation memo indicating the purchase order number, vendor name, and internal invoice number or "I" number. The confirmation memo provides instructions to monitor recurring payables.

If any aspect of the recurring payment changes during the fiscal year, (i.e. a change order is posted to the purchase order), it is necessary for the department to contact the Accounts Payable Processor to modify the recurring payable.