1

Accounts Payable As-Is ProcessesMain Functional Areas

September, 2002

InvoicePayment Process

InvoicePayment Process

Stop Payment

Stop Payment

Vendor RelationsVendor

Relations

Pre-AuditPre-Audit 1099 Reporting

1099 Reporting

2

VPAM: Voucher Payment and Maintenance

BeginInvoice

AuditingInvoice

Auditing

Key Payment in VPAM

Key Payment in VPAM

Verify Payment

Verify Payment

Editing & Check

Printing

Editing & Check

Printing

Distribute Checks

Distribute Checks

Accounts Payable As-Is ProcessesInvoice Payment Main Processes

End

Return to Page 1

3

Accounts Payable As-Is Invoice ProcessesInvoice Auditing

Receive Invoice

from Vendor

BeginSort Invoice

in Alpha. Order

Has PO #?Match

Invoice with PO

Return Invoice to Vendor

OK to Pay?

Prepare & Distribute

Dispute Letter

Copy to Vendor Relations

Copy to VendorCopy to

Department

Distribute Invoice for Payment

Original to Be Filed with Voucher

Copy to Department

Copy to Vendor If 3 Copies Received

Manager Calculates

Interest

Stop

Returned Within

One Week?

Call Department

Route to Keying

Payment in Foreign Currency

?

Route Invoice to Manager

Route Invoice to

Dept.Route to Cash

Mgmt.

Return to AP Main Process

Yes

No

Yes

No

No

Yes

Yes

No

Negative Approval Less Than 30 Days

Positive Approval Less Than 30 Days

Over 30 Days and Interest >$5

Stop

Audit Invoice

Payment in International

Currency

4

Accounts Payable As-Is Invoice Processes Audit Invoice

BeginBlanket Order?

Verify Received Document Is An

Invoice

Verify Invoice Vendor Name

Agrees with PO Vendor Name

Verify Invoice Is Dated Post Order Date

Verify Order Ending Date

If blanket order is past ending date, use the 45-day rule if a new order number is not in the Purchasing System.

Verify Items Match with PO Work Copy &

Verify Prices

Yes

Verify Ship-To Address Agrees with PO Work

Copy

Match Invoice Items

with PO Work Copy

Verify Prices

Partial Shipment

?

Note Partial Shipment on

PO Work Copy

No

No

Yes

If Manual Written Invoice, Verify Extended

and Total Amounts

Deduct Sales Tax If Service Was Provided

in WI

Verify Freight Terms

Record on PO Work Copy Inv

#, Inv Date, Audit Date & Amount Over

$500

Mark Payment Type in Audit

Box in Green Ink (Final, Partial,

Misc.)

Class Code 3221, 3227 or 3228?

Route Invoice to

RSP

Class Code

4000s?

Route Copy of Invoice

to Property Control

Class CodesSplit?

Write Out Split Class Codes for

Keyers

Return to Invoice Auditing Sub-Main

Positive Approval

?

Apply Sticker on

Invoice

Record Inv # and Routing Date on PO Work Copy

Yes

NoYes

No

Yes

NoNo

Yes

Route Invoice to

Keyers

Return to Main Process

This diagram explains the invoice auditing process. The same process applies to the invoice auditing performed by “delegated” departments.

5

Accounts Payable As-Is Invoice Processes Key Invoices in VPAM

Receive Invoice from

Auditors

BeginProblems in Data Entry?

Return to AP Main Process

Receive Invoice from

Delegated Depts.

Key Invoices

into VPAM

Route Invoice to Auditor

System Generates Voucher,

Remittance Copy, Prelist in CARDS

Receive Invoice from Fin. Ops for

Internal Transfers

Note: •Except for internal transfers, there are no batch totals during data entry.

•A batch cover sheet is attached if it is received. No batch cover sheet is used for internal transfer batches.

Yes

No

Audit Invoice

6

Accounts Payable As-Is Invoice Processes Verify Payment

Begin

Data Entry

Correct?

Return to AP Main Process

Receive Vouchers, Remittance Copies,

Pre-list, Reports from DoIT

Lead Worker Matches Voucher

etc. to Documentation

Verifiers Check

Amount, Vendor & Address

Prepare Correct Slip &

Route to Keyer

Keyers Make Correction in

VPAM

Lead Workers Update

Changes in Pre-List

(CARDS)

Lead Workers

Check Batch Total

Corrections OK?

Investigate & Resolve

Select & Release in

TMNT

Release Job for

Overnight Process

Yes

No

No

Yes

Organize & Deliver Vouchers

to Fin. Ops

7

Accounts Payable As-Is Invoice ProcessesEditing & Check Printing

BeginReceive Reports

from DoIT

List Number Totals

Check Number Range

Daily Edit & Post Batch

Control Report

Transaction Count Table

Entry Change Report

Daily Edit & Post Transaction

Exceptions Listing

Correct Errors on 3270 EPCC Suspense File

Request DoIT Run Job 0421A

View Job Totals on

3270

Discrepancy Between

Req & PO Exceeds

$100?

Adjust Reqs. On

3270

Type 47 Errors?

Review Report

Investigate & Correct Errors on

EPRQCalculate &

Compare Totals

Return to AP Main Process

End

Totals Agree?

Request DoIT Run Job 0421F

Investigate & Correct Remaining

Errors

Fringe/OH Encumb. Errors.

Type 50s Transactions(No $ totals).

Yes

No

Yes

No

Yes

No

Load File to WisMART

State Treasury

Signs Checks

Major Transaction Types:•Budget: 20s•Revenue: 30s•Encumbrance & Reqs: 40s•Payment: 50s.

First 5-digit of a VO# is List #.

Batched by payment type & totals.

From Purchasing System.

Combination of UDDS, Activity & Class Codes.

8

Accounts Payable As-Is Invoice Processes Distribute Checks

Begin

Matched?

Return to AP Main Process

Receive checks from

State Treasury Sort Checks

Based on Voucher Batches

Match Check to Remittance

Copy

Stuff Envelopes

Sort Envelopes Based on

Distribution List

File Room Mails

Checks & Remittance

Copy

Fin. Ops Verifies

WisMART Transactions &

Totals

File Room Label

Voucher Box

File Room Attaches Edit

& Post Exception List

to Vouchers

File Room File

Vouchers

Route to Supervisor

Supervisor Investigates & Resolves

No

Yes

International, domestic, campus mail, courier pick-up, Canada, Mexico, oversized Envelope, over-stuffed Envelope, US mail pre-sorted, etc.

File Warrant Registry

9

Accounts Payable As-Is Processes Stop Payment

BeginCheck Mailed Out?

Receive Notification from

Dept. of Duplicate or

Wrong Payment

Prepare Stop Pay/Correction

Form

Pull Out Voucher, Check &

Remittance Copy

Route to Cash Management

Request Proof of Payment or Stop Pay from State Treasury

Check Stopped?

Vendor Relation Issues a

Credit Memo

State Treasury Reissues Check

to the Same Vendor

Route Check & Voucher

to Cash Management

Auditor Approves

Credit Memo

Keyers Apply Credit

Memo to Next Invoice

Vendor Relation

Requests a Refund Check From Vendor

No

No

Yes

Applied Within 6 Months?

No

Yes

End

Yes

Keyers notify vendor if applied credit amount is more than invoice amount. (Credit memo data is maintained in Excel.

On average, there are about 20 to 30 stop payments per week.

Payment Correction

Return to Page 1

10

Accounts Payable As-Is Processes Payment Correction Process

Begin

C.M Deposit

s Check

Yes

Deposit Check

Yes

Check deposited to contingent fund for the correct amount, to the Req. or PO for the difference.

Reissue Check from the

Contingent Fund for the Correct

Amount

Reissue for More Than

Original Amount?

No

C.M. Credits Req. or PO via DREV

A/P Reissue

Check via VPAM

End

C.M. Deposits

check

No

C.M. Credits Req. or PO via DREV

Reissue Check?

11

Accounts Payable As-Is Processes Payment in International Currency by Cash Management

AccountsPayable

Pre-Audit

Departments

Invoices receivedand batched for

one week

Will not be batched ifdepartment indicatesimmediate payment is

required

Go intoRuesch

WebPage

Enter vendor, country,amount and submit -

Automatically adds $5charge - quotes are good for

five minutes

Print Confirmationfor Records

Convertinvoice

amountsto USdollars

Copy for V-Pam

Copy forContingent Fund

Check for Ruesch- 2 lines of coding

One line of coding foramount of invoices

Second line of coding forcharges

Contingent Fund isreimbursed in normal way

To V-Pam

Writecheck tosend toRuesch

Report of V-PamTransactions

Report of DailyActivity

To BarbBausch

ToRuesch

ContingentFund

check Sentto Ruesch

ReportFiled inBinder

DraftsMailed

toVendors

Two checksresult from V-

Pam1 - Reimburse

ContingentAccount

2 - Deposit tocoding used in

ContingentFund

Draft or WireTransfer?

Drafts

Rueschdebits our

bankaccount &

wires funds

Wire Transfer

Return to AP Main Process

12

Accounts Payable As-Is Processes Vendor Relations Main Process

Begin

Receive from Vendor Past Due

Invoices, Statements,

Dispute Responses

Need Payback

or Credit?

Depts. Notify Problems with

Negative Approval Invoices or

Missing Payments

Depts. Or Vendor Notify Missing

Payments, Short Pays, Tax Not

Paid, etc.

Determine If Need A Credit

Memo or Payback Check

Verify with Original Voucher

Fill Out Payback Form Or

Credit Memo

Invoice Payment

Main Processes

Invoice Payment

Main Processes

Send Denial Letter to Vendor

File Copy of Letter with

Voucher

Past Due Invoice Process

Past Due Invoice Process

Statements Process

Statements Process

Dispute Response Process

Dispute Response Process

Adjust Incorrect Negative Approval

Adjust Incorrect Negative Approval

Need A Credit Memo or Payback Check

Does Not Need A Credit Memo or Payback Check

End

Yes

No

Return to Page 1

13

Accounts Payable As-Is Processes Vendor Relations – Statement Process

Begin

More Than

60 Days?

Return to Vendor Relations Main

Process

Check the Dates of Items

on the Statement

Return to & Request

Invoices from Vendor

Stop

Yes

No

14

Accounts Payable As-Is Processes Vendor Relations – Past Due Invoice Process

Begin Paid?

Return to Vendor Relations Main

Process

Pull Out Voucher

When Was

Paid?

Determine If Invoice

Paid

Verify Check # and Date

Notify Vendor of Payment

Yes

Stop

Over 30 Days

Less Than 30 Days

Valid PO# & Not in Dispute?

Invoice Payment

Main Processes

Invoice Payment

Main Processes

Return to Vendor

Prepare Form 15

Yes

Has Previous Dispute

Invalid PO#, Expired PO or

No PO

No

File Copy of Dispute Document

End

15

Accounts Payable As-Is Processes Vendor Relations – Adjust Incorrect Negative Approvals

Begin

Return to Vendor Relations Main

Process

Dept. Notifies

Incorrect Payment

Determine Required

Action

Stop Payment Process

Stop Payment Process

Determine Type of

Adjustment

Prepare Non-Salary Cash

Transfer Form

Route Form to Fin. Ops.

Stop Payment

Adjust Payment

Credit Memo or Pay Back

Transfer Between POs

Adjust POs in VPAM

Return to Key Payment in VPAM

This process is performed by Accounts Payable, Fin. Ops or Departments.

16

Accounts Payable As-Is Processes Vendor Relations – Dispute Response

Begin

Return to Vendor Relations Main

Process

Match Vendor Response to

Dispute Copy on File

Review Dispute and

Vendor Response

OK to Pay?

YesInvoice

Payment Main

Processes

Invoice Payment

Main Processes

Resolve with Vendor,

Purchasing & Dept.

Resolved?

Refer Dispute to Purchasing

& Dept.

No

No

Yes

17

Accounts Payable As-Is Processes Invoice Payment Additional Information

• Data Verification Against Purchasing System:

– Order #– Ship-To Address– Vendor Contact – Change Order Information– Item Description– Dates of Requisition Processing Statuses– Pricing on Contracts– Connection to VendorNet.

• List of Delegated Departments for Invoice Auditing:

– Chemistry– PSL– MDS– WDVL

• Data Verification Against Legacy Systems– INQR: EPRQ Data Display (PO Status,

class code, PO Types, Dept Coding, etc.)– INQP: PO Data– GENT: Transaction 48 inquiries (Inquire

PO# to get department contact person initials. Then though initials to get contact phone numbers.)

– INQC: to verify payment status on POs– INQV: To verify payment status on

vouchers.

Return to Page 1

18

Pre-AuditRequisition Auditing

Receive Requisitions from Dean’s

Office

Begin

OK?

Verify Class Code is

Appropriate for Item

Verify Description Is

Complete

Verify Accompanying Documentation

Verify Both Dept. & Dean’s

Approvals

Verify Req. Is for UW Business

Approve Requisitions

Return to Dean’s Office

Fund 133 Class Codes

4Ks, 2Ks, 3221, 3227 & 3228?

Route to RSP

RSP Reviews & Approves

Class Code4Ks?

Property Control Verifies

Req.

Property Control Returns

Req.

Postage Req.

Confirming Req w/ Invoice Attached(<$5,000)

Other Requisitions.

Create VO in VPAM

Route Reqs. To

Purchasing

Return to Procurement Main Process

No

Yes

Yes

No

Yes

No

Reference Original Equipment PO # and Property Control # if Purchase is a Component of Capital Equipment.

Editing & Check

Printing

Editing & Check

Printing

Verify VO Entry

OK?

Correct in VPAM

Distribute Checks

Distribute Checks

End

No

Yes

System Generates Voucher,

Remittance Copy, Prelist in CARDS

Route 4Ks & 2Ks to

Purchasing

Issue Other Reqs. Under

RSP Negotiated Contracts

End

19

Pre-AuditEmergency Transaction Processing

Dept. Prepares ET Request & Documentation

Begin

PO Required

?

Dean’s Office

Approves

Dean’s Office Enters

Req. in EPRQ

Dean’s Office Delivers Req. to Purchasing by

10am

Purchasing Date & Time Stamps the

Req.

Pre-Audit Picks up Req. from Purchasing

Requisition Auditing

Route to Purchasing

by 11am

Purchasing Creates PO

Route to AP Auditor

Invoice AuditingInvoice

Auditing

Route to Cash

Management

Cash Management Issues Check From Cont.

Fund

Any approval by RSP is routed by fax.

Checks for Pick Up

?

Deliver Check to Purchasing

Front Counter by 3pm

Mail ChecksEnd

Yes

No

Yes

No

Cash w/ Order?

Purchasing Mails PO

or Calls for Pickup

Yes

No

20

Pre-AuditDirect Charge Processes

This process applies to direct charges for:•Utilities•Freight (except FedEx)•Gas credit card•Newspapers•Subscriptions•Travel agency invoices•Memberships & Registrations•DOA general service billing.

Dept. Receives

Invoice from Vendor

Begin

Dept. Code Funding

Source on Invoice

Dept. & Dean’s Offices

Approve Invoice

Dean’s Office Route

Invoice to Pre-Audit

Pre-Audit Receives

Invoice from Vendor

Identify Which Dept.

Made the Purchase

Call Dept. to Get Funding

Source & Approval

Copy Invoice to

Dept.

Pre-Audit Verify the Amount Is

Correct

Editing & Check

Printing

Editing & Check

Printing

Verify VO Entry

OK?

Correct in VPAM

Distribute Checks

Distribute Checks

No

Yes

System Generates Voucher,

Remittance Copy, Prelist in CARDS

End

Create VO in VPAM

Verify Funding Code Is Correct

Check Appropriateness

of Purchase

VerifyPurpose ofBusiness

VerifyType of Travel

Expense

Fund 133 Class Codes

2000s?

Route to RSP

RSP Reviews & Approves

Yes

No

21

Pre-AuditDirect Charge Processes for FedEx Bills

BeginReceive Bills from FedEx

Check INQM or UNAM for Dept. Contact

Name

Funding Coded on

the bill?

Get Funding Source from

Dept. Contact Person

Code Funding on

the Bill

Batch Bills (100/Batch)

Calculate Batch Totals

Create VO in VPAM

from Contingent

Fund

Copy Bills

Once a Week

Highlight Funding

Source on the Bills

Create Transfer

Worksheet in Excel w/ Dept.

Funding Source Codes

Keyers Enter

Transfers in VPAM To replenish

contingent fund.

Contingent Fund Check to Vendor

Route Invoice Copy to

Dept.

Yes

No

End

Normally a week later.

22

Pre-AuditPayments to Individuals Report (PIR)

Begin

Individual or Dept. Prepares

PIR Form

Fund 133?

Dept. Approves PIR Form

Dean’s Office

Approves PIR Form

This process applies to payments to individuals for:•Scholarships•Travel expense•Research subjects•Speakers & other service providers.

Dean’s Office

Routes to Pre-Audit

Pre-Audit Routes to

RSP

RSP Approves & Returns

to Pre-Audit

Verify Dept. & Dean’s

Approvals

Verify Name & Address

Verify If Payee a US

Legal Resident

ForeignPayee or

US ResidentW/O SSN?

Calculate Tax Withholding

(Based on Treaty for

Foreigners)

Calculate Net Pay

Complete PIR Form

w/ Tax W/H Data

Complete Tax Calculation Sheet If It’s

Missing

Match Class Code w/ Payment Purpose

Verify Other Data OK?

Contact Dept. &

Correct PIR Form

Missing Signature

?

Return PIR Form to

Dept.

Key to VPAM

Editing & Check

Printing

Editing & Check

Printing

Distribute Checks

Distribute Checks

End Begin

Class Code determines following additional data needed:•Home address for 1099 reporting•SSN for tax reporting•Visa information•Copies of receipts•If UW employee, whether payment should be made via payroll, etc.

Yes

No

No

Yes

Yes

No

Taxable PaymentBased on

Class Code?

Yes

No

Yes

No

23

Pre-AuditTravel Expense Report (TER)

Begin

Individual or Dept. Prepares

TER Form

Fund 133?

Dept. Approves

TER Form

Dean’s Office

Approves TER Form

Dean’s Office

Routes to Pre-Audit

Pre-Audit Routes to

RSP

Yes

RSP Approves & Returns

to Pre-Audit

Verify Name & Address

Verify Funding

Code

Verify Nature of UW

Business

Verify Reported

Amounts & DatesMatch w/ Receipts

Verify Approvals & Totals

Missing ReceiptsOr Approvals?

Return toDept.

OK to Pay?

Contact Dept& Correct the

Form

Approve theForm

Key to VPAM

Editing & Check

Printing

Editing & Check

Printing

Verify VO Entry

OK?

Correct in VPAM

Distribute Checks

Distribute Checks

No

Yes

System Generates Voucher,

Remittance Copy, Prelist in CARDS

EndNo

This process applies to payments for reimbursable expenses to UW and non-UW employees.

Yes

No

Yes

24

Pre-AuditTravel Advance (TA) Initiation

Begin

Dept. Prepares

Request on TA Form

Fund 133?

Dept. Approves the Form

Dean’s Office

Approves the Form

Dean’s Office

Routes to Pre-Audit

Pre-Audit Routes to

RSP

Yes

RSP Approves & Returns

to Pre-Audit

Verify Reason for

TA

Verify Funding

Code

Verify SSN

Verify Contact Name

& Phone #

Verify Mail-to Address

Verify Amount <80% of

EstimatedExpense

Determine andRecord

Pay BackDate on the

Form

S/B less than 30 days of travel completion date.

MissingSignature

?

Return FormTo Dept.

OK toPay?

Key to VPAM to

Issue Check From Cont.

Fund

Contact Dept.& CorrectThe Form

End

Begin

Yes

No

Yes

No

No

Record TA inExcel

Worksheet

Travel AdvanceReplenishment

25

Pre-AuditTravel Advance (TA) Replenishment

EmployeeReports

Expense onTER Form

EmployeePut TA# On TER

Key TERTo VPAM

End

After TravelCompletes

Begin

Use cont. fund coding to offset original TA.

TA > Expense?

EmployeeSubmits

Personal Check for the

Difference

Pre-AuditRoute Check

To CM

CM DepositsCheck to

Cont. Fund

Check Submitted

?

Follow Up With Dean’s

Office

Check Submitted

?

Notify PayrollFor Payroll Garnishment

Pre-AuditRecord TA

ReplenishmentIn Excel

Worksheet

MonthlyReconcile

TA WorksheetWith

WISDM

No Yes

Yes

Yes

No

No

26

Pre-AuditNon-Travel Cash Advance Initiation

This process applies to advance payments for studies & research programs and for replenishment of petty cash.

Custodian: is anyone who is responsible for non-travel advance money or petty cash.

Begin

Dept. Prepares

Internal Req. & Custodial Agreement

Dept. Approves &

Enter Req. in EPRQ

Dean’s Office

Approves Req.

Custodian signs

Agreement

Over $5,000?

Dean’s Office Signs Agreement

Req. & Agreement Routed to Pre-Audit

Yes

No

Verify AllSignatures

Verify Funding

Code

Verify Custodial

Agreement

MissingDocument?

Call Dean’sOffice

Dean’s OfficeSubmitMissing

Document

OK?

Approve &File Copy

In fileRoom

ReturnDocumentsTo Dean’s

Office

RouteDocuments

To CashManagement

CashManagementReviews & Approves

CM Writes aCheck fromCont. Fund

ReplenishableReq?

CM DepositsCheck to

CustodianBank Account

CM RoutesCheck to

Custodian

Yes

No

Yes

No

YesNo

Begin

Non-Travel Cash Advance Replenishment

End

ReplenishableReq?

Custodian Request CM

to Open a Bank Account

27

Pre-AuditNon-Travel Cash Advance Replenishment

Begin

Dept. PreparesNon-Travel

Cash AdvanceAccounting

Form

After Expenditures Are Made

Custodian SignsThe Form &

SubmitsReceipts

Dept. Approves Dean’s Office

Approves

Form & ReceiptsRouted toPre-Audit

Verify Req.In INQR

Non-ReplenishableReq?

Req. Needs To Be

Closed?

Approve &Route to CashManagement

Yes

Yes

No

Verify Custodian,

Dept. & Dean’sSignatures

Verify Funding

Code

Verify Receipts

ApprovePayment

No

Enter PaymentIn VPAM

System Generates

Check

CM RecordsExp. To Req.

In EPRQ and toNon-Travel

Advance System(Close If Final

Payment)

CM Routes Form toAccountsPayable

AP EntersPayment In VPAM

System Generates

Check

CM DepositCheck to

Cont. Fund

File Room Sends Check to

Bank or Custodian

End

Zero $ Balance

Non-zero $ Balance

CM Closes Req. If All Money Is

Accounted For

Return to Page 1

28

1099, 1042S & Supplemental W2 ReportingQuick Book Process Overview

MDSNPayment

File(Legacy)

Other CampusesPayment

Files(SFS)

QuickFile Reports Edits & Fixes

Assign &Edit

1042S

PayrollFile

Print 1099& 1042S

EditedQuickFile

Tape FileTo IRS

SystemMerges With

W2 Files

W2: At Year-End

Year-End

Year-End

Monthly

Paid PIR Forms

Currently Not Being Done Monthly

End

Begin

29

1099, 1042S & Supplemental W2 ReportingAdditional Notes

• Payments are identified by the use of certain Class Codes (attached).

• W2 Identifier/Class Codes: 2110, 2125, 2126, 2162, 2164, 2262, 2264, 3161, 3163.

• 1042 Identifiers: – From PIR forms paid to non-US residents

– Adjust in QuickFile based on information from paid PIR forms

– Data edited in QuickFile: 1042S indicator (yes or no), 1042S income type, tax rate, exemption status and withhold taxes.

Return to Page 1