Accounts Payable

Accounts Payable jbarber32 Tue, 09/04/2012 - 16:01

Accounts Payable Processing

Accounts Payable Processing
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:38
Policy No
5.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidelines on the Accounts Payable processes and payments for the Institute, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement

Accounts Payable is responsible for the processing of all Institute payments, other than student financial aid/awards and employee payments for salary/wages.

Scope

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting payments to Accounts Payable for the Institute.

Procedures
4.1 Payments  
Trade Vendor Payment for Goods/Services

Invoices are to be sent with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Non-PO Payments All requests that do not require a purchase order are to be submitted via the Institute’s Financial System along with supporting documentation justifying the payment.
Recurring Payment for Stipends, Non-GT Students Supplier invoice requests to be submitted for three payments or less. Recurring supplier form (Workday Recurring Form) to be submitted for three or more recurring payment requests of the same amount and emailed to apinvoices@gatech.edu
Wire Transfer Payment

Wire transfers are restricted to international payees. Invoices with purchase orders are to have the banking information on the invoice.

The wire payment form is to be submitted with a supplier invoice request (SIR) for non-PO payments.
4.2 Reimbursements  
Reimbursements and Refunds for Employees

Employees claiming reimbursement for expenses incurred on behalf of the Institute are to submit an expense report via the Institute’s Financial system.

Reimbursements and Refunds for Non-Employees Departments are to submit an expense report for non-employees via the Institute’s Financial system.
Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Editorial updates to align with Workday

02/2011

Accounts Payable

New Policy

Document Management and Archive Retention

Document Management and Archive Retention
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:44
Policy No
5.5.4
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidance on retention procedure for documents scanned and linked to the Institute’s Document Imaging System.

Policy Statement

Georgia Tech is a unit of the Board of Regents of the University System of Georgia (USG).  The Institute follows the official USG Records Retention guidelines.

Georgia Tech Business Services retains electronic imaged documents as the official Institute record for invoices, Check Requests, Purchase Orders, vendor documents, and receipt documents for expense reimbursements. In addition to supplier invoices, a rendered e-invoice is created for all invoice data that is received electronically from suppler.

Campus departments and Document Processing Team should retain the original documents until they have been scanned and linked into the document imaging system. The original can be destroyed after the document has been digitized. Providing the digitized document reflects the information as originally created and can be accessed electronically for later reference through the ImageNow Access Request Form.

P-Card, Electronic Cost Transfer (ECT) and other subsidiary expenditure documentation is to be maintained at the local unit level.

Documents will be maintained in the document imaging system for the required USG retention period of 5 years.

Fiscal Year-End Encumbrances

Fiscal Year-End Encumbrances
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:22
Policy No
5.5.2
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

Beginning with the fiscal year ending June 30, 2001, Georgia Tech adopted a new policy regarding the accounting for open purchase orders at fiscal year-end. Both state and non-state orders remain encumbered obligations of the budget year in which the orders are placed. This reserves monies to pay for the orders and at the same time it allows the Institute to account for funding in accordance with state appropriation guidelines (i.e., the funding is an obligation of the year in which the order is placed, not the year the obligation is paid).
(Note that prior to June 30, 2001, the Institute “expensed” open state funded purchase orders to obligate funding. This facilitated state budgetary reporting, but it was a violation of Generally Accepted Accounting Principles (GAAP). This variance from GAAP was noted in the Institute’s annual audit. Under the new practice, this disclaimer to our financial statements will be removed.)
To better understand how the new process works, know that each purchase order placed is associated with two different “year” designations. One of these is the “budget year”. This maps expenses and encumbrances to the state’s/BOR’s approved budget for Georgia Tech. The second designation is “fiscal year”. This indicator tracks expenses for GAAP (as opposed to budget) reporting. Most management reports developed for the campus track to the “budget year” automatically, since the budget is the primary management tool in place to control spending. In most instances, the budget and fiscal years are the same for a procurement transaction; however, for carry forward orders the encumbrance and expense will be reported as obligations of the old budget year, not the current budget year.

Procedures

For prior budget year orders, units should approve invoices for payment once goods are received and forward the approved invoices to Accounts Payable (AP). AP will make payment to the vendor using the prior year funding. If insufficient funding is available on the prior year order to pay the invoice, a new distribution line using the same accounting information will be added for the overage in the current budget year. If there is a remaining balance of state funds on a prior budget year purchase order after all invoices have been paid, they will be lapsed to the Institute’s unreserved fund balance (surplus). This lapsed funding is not available to the unit. If there are remaining non-state funds available on a prior budget year order after all invoices have been paid, it will be released from the budget year obligated and moved to the current budget year as available funds.

Reports
There are reports available in the Institute's Financial System for campus management to review procurement activity and funding availability. The reports recommended for prior budget year procurement management are the Open Obligation Campus - CR Report (formerly Open Encumbrance Campus - CR) and the Open Obligation by Company - CR Report. If you need assistance running reports, please forward a request for help via https://gatech.service-now.com/home.

Policy for Lapsing
Orders for sponsored sub-agreements and construction contracts may span two years without justification. Other purchase orders should be completed no later than the year following the year in which the order was placed, unless justified.

Request for Stop Payment of AP Checks

Request for Stop Payment of AP Checks
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:46
Policy No
5.5.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidelines on requesting stop payments of Accounts Payable checks for the Institute, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement

A stop payment is a request by the Institute to our bank to refuse the processing of a check upon presentation. The most frequent reasons for stop payments are a lost, stolen, or damaged check. The associated action is a request to reissue the payment via a new check. A stop payment is made to prevent two checks being presented for payment. Checks within 10 days of issue from check date are considered to be en route to the payee.

A stop payment request may be submitted if the check was:

  1. Lost, stolen or damaged,
  2. Payee  has not received the check at least 20 business days from the date check was issued, to allow for check audit and mail delivery,
  3. A check was sent in error,
  4. Check has not been cashed for more than 180 days since the check issue date.
Scope

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting payments to Accounts Payable, and all suppliers (trade vendors for goods and services) submitting payments for conducting business with Georgia Tech.

Policy Terms

Stop Payment

A stop payment is a request by the Institute to our bank to refuse the processing of a check upon presentation.

Void and Reissue Payment

A void/reissue is a request by the department to void a check that has been mailed to a payee and reissue (replace with) a new check.

Procedures

5.1 Stop Payments

Status of Accounts Payable Check

The status of Accounts Payable check payments are to be checked prior to submitting a request stop payment checks. Payment status can be reviewed via the PO Payment Inquiry tool on the Procurement website. Checks that have cleared the GT bank account will reference the date in the ‘DATE CLEARED’ field. Checks that have cleared the Institute’s bank cannot have a stop payment request placed.

Requests for stop payment of Accounts Payable Checks

All requests request for stop payments are to be submitted to the AP Accounting Team via ServiceNow Accounts Payable or via the Institute’s Ticketing System.

Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday

08/2017

Accounts Payable

General updates

02/2011

Accounts Payable

New Policy

Vendor Invoice Submission and Payment Matching

Vendor Invoice Submission and Payment Matching
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:39
Policy No
5.5.1
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidelines on the submission of invoices for payment by Suppliers (trade vendors for goods and services, consultants, independent contractors) conducting business with the Georgia Institute of Technology, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement

All invoices submitted for payment by Suppliers must be sent directly to Accounts Payable with a valid Georgia Tech purchase order number.

Scope

All Suppliers conducting business with Georgia Tech, and all Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier.

Policy Terms

Supplier

Trade vendors for goods and services, consultants, or independent contractors conducting business with Georgia Tech.

Procedures

5.1 Invoice Submission

Invoice Submission

Invoices are to be sent with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Invoice Submission for Office of Sponsored Programs(OSP)

Invoices are to be sent with a valid Georgia Tech PO number directly to Office of Sponsored Programs (OSP).

5.2 Payment Terms

Payment Terms

Payment Terms are net 30 days from date of invoice, receipt of goods, or receipt of correct invoice, whichever is later, unless stated otherwise in the supplier’s agreement.

Responsibilities

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Enforcement

Suppliers who are found in violation of the policy are at risk of delayed payment or not receiving payment for goods or services rendered.

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updates to align with Workday

02/2011

Accounts Payable

New Policy

Employee Reimbursements (Non-Travel Related)

Employee Reimbursements (Non-Travel Related)
Type of Policy
Administrative
jbarber32 Thu, 06/07/2012 - 16:41
Policy No
5.5.1.7
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidance to Georgia Tech Employees submitting employee payments requests through the Institute’s Financial System for non-travel related activity, in a timely and efficient manner while also ensuring compliance to regulations for the Institute.  

Policy Statement

The Institute Financial System is designed to request payments to employees for non-travel related activity. Employees are to take an attestation that they are eligible for the requested expenses incurred as described for performance of official business on behalf of Georgia Tech.

 

Employees should submit all expenses for reimbursement and reconciliation within 10 days incurred expense but no later than 45 calendar days. Expenses submitted more than 60 calendar days after completion of the trip or event, if reimbursed, maybe considered taxable income.

Scope

All Tech employees, (includes faculty, staff, students and employees) who have incurred expenses on behalf of the Institute and seeking reimbursement.

Procedures

4.1

Employee Reimbursements (Non-Travel Related)

All non-travel related expenses incurred by employees on behalf of Georgia Tech requests are submitted to be submitted on an expense report via the Institute’s Financial System.

4.2

Refund of Personal Funds for Institute Expenses

Refunds are processed for employees who are due a personal refund for key deposits, study abroad deposit, BUZZ card, parking refunds, payroll STRAP, etc). The original Georgia Tech receipt should be included or may be referenced on the form with the receipt# and deposit date. Refunds should be charged to the same account used for the original deposit of funds.

Reimbursement for Food/Group Meal Expenses

A supplemental form, the Food/Group Meal Summary Documentation Form, must be included for reimbursement of any food or group meal expenses, with the exception of reimbursements exclusively using Georgia Tech Foundation Funds. If sponsored funds are used, the sponsor must specifically authorize use of funds. In all case a list of the attendees must be included regardless of the funding source. Approved Georgia Tech caterers must be used for all on-campus events, unless an exception is approved by Auxiliary Services. State of Georgia per person meal per diems limit the amount that can be spent for each participant. See Food/Group Meal policy for specific policy guidance.

Program Advance

- Study Abroad

-  Participant Research

 

 

The program coordinator may request program advance or reimbursement for program expenses when the scope of the project requires small dollar cash disbursement to participants where check payment would be impractical, an administrative burden, or payee identity is confidential. A statement of project scope, budget of proposed advance, and project dates must be included. Program advances are requested via the Institutes Financial System

Within 15 business days of project end, a summary of expenses must be submitted that references the original campus ref# and provides original receipts and/or a participant roster that documents receipt of funds. If additional funds are due, they can be requested via the Institutes Financial System. If all funds are not used, the program coordinator will return unused funds via a personal check (made payable to Georgia Tech) attached to the post-event summary of expenses. A program advance that is not substantiated with documented receipts and a business purpose that supports Georgia Tech will be classified as a taxable stipend and reported as income on the employee’s W-2.

Any individual payee/project participant that receives $600 or more per year will receive a 1099-misc. The campus unit is responsible for notifying Accounts Payable by January 10th for any payments for the prior calendar year that reach this limit. An IRS W-9 form must be submitted and a individual will need to be registered as a supplier via the Institute Supplier Portal.

Responsibilities

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

6.1. Employee

Employee is responsible for ensuring that any expenses claimed are accurate and that they are eligible for the requested expenses incurred in support of official business on behalf of Georgia Institute of Technology.

6.2. Expense Preparer

The preparer prepares the expense report on behalf of the employee and is responsible for ensuring appropriate incurred expense and all required receipts and supporting documentation is submitted.

6.3. Approvers

Manager/Supervisor
Employee’s Manager/Supervisor is responsible for reviewing the expense report prior to approval to validate the appropriateness, business purpose of the incurred expense, expense is allowable, cost reasonableness, and ensuring all receipts required supporting documentation is submitted.

Delegates
Delegates act as proxies on behalf of the manager/supervisor and have the same responsibilities as the supervisor.

Department
Department administration is responsible for reviewing the expense report prior to approval to validate availability of funds, the appropriateness and business purpose of the incurred expense, validate expense is allowable, cost reasonableness, and ensure all required receipts supporting documentation is submitted.

Enforcement

All Georgia Tech employees, (includes faculty, staff, students and employees) incurring expenses on behalf of the Institute are to adhere to the Employee Reimbursement Policy. Employees who are in violation are at risk of not receiving reimbursement expenses incurred.

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday
02/2011 Accounts Payable New Policy

FedEx and UPS Accounts

FedEx and UPS Accounts
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:05
Policy No
5.5.1.8
Effective Date
Last Revised
Review Date
Contact Name
Jeanette Smith
Contact Title
Procurement Coordinator
Contact Email
Purchasing.ask@business.gatech.edu
Reason for Policy

This procedure applies to the request for, assignment of, and use of UPS and Federal Express Accounts. UPS is on a mandatory State Contract and should be used as the primary shipping vendor. Fed Ex should only be requested if shipping dangerous chemicals or if required for shipments per sponsors.

Policy Statement

The authority to make purchases of freight is delegated to the administrative departments. This authority is vested in the Purchasing Department and administrated under the State Purchasing Rules and Regulations.

Procedures

Establishment of Account
One or more accounts per delivery address may be established. A UPS Employee Agreement Form or a FedEx Employee Agreement Form should be completed and approved and sent to the Georgia Tech Purchasing Department if an employee is acting as the accountholder. The Purchasing Department will establish the account with UPS and Federal Express, based upon available account numbers. The department should take care in releasing the UPS and FedEx Account number as they will be responsible for charges associated with that account.

Payment of Invoices
All UPS and FedEx accounts can be invoiced to the department or set up with a Pcard for autopay. This set up is the responsibility of the accountholder.

Redistribution of Charges
Departments should the Concur system to redistribute charges if necessary for accounts linked to a Pcard. Multiple lines can be allocated for an ePayment request.

Disputed Charges

It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a cardholder discovers an incorrect amount has been charged or a questionable purchase appears on the monthly statement, the cardholder must immediately seek to resolve the problem directly with the vendor by calling UPS Customer Service at 1-877-289-6418 or FedEx Customer Service at 1-800-463-3339. Any communications should be documented on the statement (or attachment) including dates, persons involved, and a brief description of the problem.

 

Policy History

 

Revision Date Author Description
May 2015 P-Card Manager Added UPS to approved charges
April 2018 Procurement Coordinator Updated payment methods

Invoice Approval

Invoice Approval
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:58
Policy No
5.5.1.5
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidelines on the approval of invoices submitted for payment by Suppliers (trade vendors for goods and services, independent contractors) conducting business with Georgia Tech, while also ensuring compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement

All invoices submitted for payment by Suppliers must be sent directly to Accounts Payable with a valid Georgia Tech purchase order number. The department is responsible for the approval of invoices prior to payment.

Scope

All Suppliers conducting business with Georgia Tech, and all Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier.

Policy Terms

Supplier

Trade vendors for goods and services or independent contractors conducting business with Georgia Tech.

Procedures

5.1 Procedures

Invoice Overview

All invoices require a valid Georgia Tech Purchase Order (PO) in order to be processed for payment. The PO number is to be is referenced on the invoice. Supplier invoices that reference a Georgia Tech PO are entered directly by Accounts Payable into the Institute’s financial System. Invoices that do not reference a valid PO number will not be processed until a PO is provided by the supplier or the department that has requested the order for goods or services. The PO number should have sufficient funds available and once processed via Accounts Payable, the auto- matching process in the Institute’s financial System will match the invoice to the PO and the receipt (for orders $3000 and over).

Invoice / PO Tolerances

 

Match exceptions may be created that prevent invoices from being processed for payment payment. Match exceptions have to be cleared from the Institute’s Financial System by the Financial Administration personnel within the department in order for an invoice to be matched and processed for payment.

Invoices may be in match exception for the following reasons:

  • Insufficient funds available on the purchase order
  • Quantity on the invoice does not match the quantity received in the Institute’s Financial System
  • Invoice cost is plus or minus 5% of the PO amount.
  • Orders greater than $3,000 that have not be received in the Institute’s Financial System
  • Sales tax included on the invoice
Responsibilities

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting invoices for payment on behalf of the Supplier are to ensure invoices are submitted with a valid Georgia Tech PO number to apinvoices@gatech.edu.

Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday

Payment Approval Authorization

Payment Approval Authorization
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:31
Policy No
5.5.1.2
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

This policy documents the signature approval and authorization requirements necessary to commit Institute funds for the payment of goods, services and other non-payroll expenditures through Accounts Payable.

Procedures

Delegation of Approval Authority
The Dean, director, or department heads may delegate the authority to approve payments, but not the primary responsibility of the approver. Delegated signers should always sign their own name, rather than sign the name of the dean, director or department head. Once a signature delegation is provided, it is valid until cancelled by the unit.
 

Responsibility of Approver
The approver must verify the following prior to approval of payment:

  • Receipt of goods or performance / completion of services
  • Confirmation of payment and shipping terms
  • Purchase is appropriate for fund source
  • Purchase matches order including item description, quantity, and unit prices
  • Sufficient funds to make payment are in the indicated amount

The approver is responsible for submitting an approved invoice or Check Request Form for payments to Accounts Payable within ten business days of receipt of merchandise / services or receipt of invoice, whichever is later.

Payment Terms

Payment Terms
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:18
Policy No
5.5.1.11
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

General trade vendor payment terms for orders will be net 30 days. Days are calculated from date of invoice, date of receipt of goods/services, or date of receipt of accurate invoice, whichever is later.


General payment terms for employee and non-employee reimbursements is three to five business days. Official guests, visitors, and most other payments paid via the Institute’s Financial System with a Supplier Invoice Request (SIR) do not have payment terms and follow the standard payment turnaround processing time of being processed for payment within five business days from receipt of departmental approval and all other necessary requirements. Construction contractors and OSP sub-agreements will be paid as per the payment terms of the contract.

Payment Turnaround

Payment Turnaround
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:39
Policy No
5.5.1.3
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Policy Statement

Governor's Executive Order - Prompt Payment of Invoices
Georgia Tech is mandated by Executive Order of the Governor of the State of Georgia to pay vendor
invoices within 30 days from the latter of:

  • Invoice date
  • Date the invoice is received by Georgia Tech Accounts Payable
  • Date goods and/or services are received by Georgia Tech
Procedures

Departmental Approval Turnaround
Invoices are entered by Accounts Payable and processed against the PO referenced on the invoice. Invoices that are delivered directly to the department by the supplier must be sent to Accounts Payable at apinvoices@gatech.edu immediately to ensure timely record of invoice delivery. Departments are responsible for entering receipts for all POs $3000 and over and are responsible for managing all invoices that are in match exception status. Delays in approval or receipt entry should be noted in the comments of the applicable fields of the invoice; for example, “Goods received damaged 06/30/2011, replacement anticipated 07/05/2011.”

Accounts Payable is unable to pay invoices that do not reference a valid PO number. The department will be contacted for invoices that do not reference a valid PO, if the department contact is provided on the invoice.
 

Payment Request Turnaround
Accounts Payable is responsible for processing invoices within five business days of receipt of departmental approval and all other necessary requirements, to ensure prompt payment of invoices. It may however be necessary in certain instances that additional processing time is required if all requirements to process an invoice for payment are not met. Therefore, departments should allow at least ten business days for processing an invoice for payment. Should this not be possible, see "Rush Payment Requests". If Accounts Payable cannot process the payment due to missing or incorrect information, Accounts Payable is responsible for alerting department within ten business days. Department will be informed of problem and provided with instructions regarding what is needed to complete the transaction.

Processing Credit Memos and Refund Checks

Processing Credit Memos and Refund Checks
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:16
Policy No
5.5.1.10
Effective Date
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Procedures

Credit Memo Instructions
Vendors issue credit memos for returned goods as well as pricing discrepancies. If a credit memo is anticipated, for overpayments, exchanges, etc., the department should hold the original or final invoice until it receives the corresponding credit memo. The credit memo and the invoice should be approved and submitted to Accounts Payable for payment. In the event an invoice is processed prior to receipt of the corresponding credit memo, the department can approve the credit, referencing the original campus reference # and account distribution, and submit to Accounts Payable for processing. Future invoice payments from any department will offset credit memos. If the corresponding invoice has been paid, and the department does not anticipate doing additional business with this vendor, the department is responsible for requesting a refund check in lieu of a credit.

Refund Check Instructions
When a department receives a refund check, the associated PO number and account number must be referenced on the check stub and submitted to Accounts Payable.

Suppliers are to mail refund checks to the following address:
Georgia Institute of Technology
ATTN: Accounts Payable
711 Marietta Street, N.W.
Atlanta, GA 30332-0253

Accounts Payable will apply the refund to the appropriate account and deposit it with the Bursar's Office. For state projects, if the refund applies to a current year payment, use the current year account number. If the refund applies to a prior year payment, the surplus account will be credited.

Rush Payment Requests

Rush Payment Requests
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:46
Policy No
5.5.1.4
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable and Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidance on requests for rush payments and to ensure compliance to the University System of Georgia, State Accounting Office and Institute payment policies.

Policy Statement

Accounts Payable is responsible for processing payment requests within five business days of receipt of request, with the exclusion of peak periods. In order to allow efficient processing of all payments, requests should be submitted in a timely manner to allow adequate time for processing.

There will be instances, however, that the campus unit is unable to do this due to circumstances beyond their control. Rush payment requests should only be used in those situations. Additional time and effort goes into providing campus with additional services such as rush payments. Campus units should follow the rush payment request procedures to ensure the payment is processed, and received by the vendor in the necessary time frame. In all cases, suppliers must be registered on the Institute’s Supplier Portal for payments to trade vendors and all payments for rents, royalties, and services.

Same-day checks are not feasible, due to payment processing production schedules. Rush payment requests received by noon, if approved, will be processed within 48 hours.

Procedures

3.1 Types of Rush Payments

Supplier Invoice Request (Non-PO Requests)

 

Submit Supplier Invoice Request (SIR) via the Institute’s Financial System using the handling code “RUSH” and provide justification. Comments should also indicate the rush payment.

Additional approval in work flow is required.

Invoices with Purchase Order

 

Submit a ServiceNow request to Accounts Payable with rush request form attached and invoice.  ‘RUSH PAYMENT REQUEST’ must be in the subject line to ensure priority payment processing.

5.2 Rush Payment Process

Procedure for Rush Payments

All rush payment requests require a valid justification as to why an exception should be granted outside the standard processing time. Any rush forms with incomplete information or insufficient supporting documentation will not be processed and will be returned to the requestor.

The Accounts Payable Manager will initially review to ensure all required fields on the payment request form have been completed and sufficient documentation has been provided.

All rush payment requests must be approved by the Director of Accounts Payable & Travel prior to being processed.

Invoice Payments

The invoice must be approved and have an appropriate PO reference and sufficient encumbrance balance to cover the payment. If the PO is $3000 or greater, a receipt must be entered in the Institute’s financial system delayed. Submit the invoice with the approved rush payment request form as a ServiceNow request to Accounts Payable with ‘RUSH PAYMENT REQUEST’ in the subject line to ensure priority payment processing.

Responsibilities

Departments are responsible for submitting rush payment request with valid justification and appropriate approvals.

The Accounts Payable Manager will initially review to ensure all required fields on the payment request form have been completed and sufficient documentation has been provided.

All rush payment request must be approved by the Director of Accounts Payable & Travel prior to being processed.

Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech's Ethics Hotline, a secure and confidential reporting system at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday
     

Student Payments

Student Payments
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 15:36
Policy No
5.5.1.9
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to ensure that all Georgia Tech Student payments (fellowships, stipends and awards) processed through Accounts Payable are in compliance with the taxation rules and regulations of Internal Revenue Service (IRS).

Policy Statement

All payments to Georgia Tech students for research training grants, participant support, and scholarship/fellowships must be approved by Accounting Services Financial Aid Team prior to payment by Accounts Payable. Payment requests for students will be forwarded to the Office of Scholarships & Financial Aid prior to payment by the Accounts Payable Team. Accounts payable process payments to students for awards or activities that are unrelated to employment.

The Internal Revenue Service (IRS) Publication 970: Tax Benefits for Education covers the rules for the taxation of student scholarships and fellowships. The publication states that the part of any grant, scholarship, or fellowship that represents payment for teaching, research or any other service is taxable to the student. Colleges and universities are obligated to withhold taxes on any award that represents compensation for services. Nonresident alien students may have taxes withheld on awards that do not represent compensation for services. Their tax obligations are governed by their visa status, United States (US) tax laws, and/or the tax treaty between the US and their country of residence. The Institute is required by federal law to withhold taxes on fellowships that require the student to perform services (past, present or future) to receive the award. Students that are required to perform a service as part of the fellowship agreement, must be classified as employees and payments are processed through the Payroll process. The consequences of not properly withholding the taxes may cause the Institute to incur serious financial penalties. The department is responsible for determining if a student’s fellowship/trainee award requires that a service be performed. The Office of Human Resources can assist departments that need clarification regarding proper employee classification.

Scope

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting student payment requests.

Procedures

4.1 Student Payments

Student Payments – Georgia Tech Students

 

Students are to be set up as suppliers in the Institute’s Financial System in order for their payment request to be processed via Accounts Payable. Payment requests for student payments are to be submitted as Supplier Invoice Request via and submitted via the Institute’s Financial System. Accounts Payable will report payment to the Office of Scholarships and Financial Aid appropriate for compliance review and approval before processing for payment. This additional review should be taken in to consideration as it may increase the turnaround time for processing the payment. Allow 10 business days before contacting AP to inquire on the status of payment

Stipends for Participant Support – Georgia Tech Students

Accounts Payable will process the following student payments:

  • Award/Prize
  • Honoraria/ Performer
  • Student Group Officer
  • Advisor/Student Mentor
  • Research/Survey Participant
  • Human Subject Payment

Payment via Payroll

Students who perform any of the following type of services for Georgia Tech are to be on boarded as employees, and the payments are to be routed to Payroll:

  • Campus Recreation Center (CRC) –
  • Graduate Research or Teaching Award –
  • Note Takers –
  • Technique Newspaper –
  • Wreck Radio

Foreign Student Payments

  • Non-US tax residents are required to have an appropriate visa classification that permits payment of honoraria. These classifications include Visa Waiver, B-1, B-2, or J-1 visas. Students receiving payments for an award or for participation in a research/survey are required to have a F-1 or J-1 visa.
  • Payee set-up forms are initiated through the Georgia Tech GLACIER system for all payment requests $75 and over. Departments are to initiate this process by providing the payee's full name and email address and submitting a ServiceNow request to AP Accounting.
  • Tax withholding at 30% applies to most payments that are not classified as reimbursements. Contact Ap Accounting by submitting a ServiceNow request for further information regarding the appropriate visa classification to be used for payments to Non-US tax residents

Tax Implications

Student payments are reportable to the Internal Revenue Service (IRS) as non-employee compensation.  This compensation will be reported on Form 1099-misc box 3 or 1042-s (non-US tax residents), where required.  Students should consult a tax professional for advice and counsel to ensure these payments are reported correctly when taxes are filed.  

Responsibilities

The student is responsible for providing sufficient information to the department to enable a determination of status. The student is also ultimately responsible for determining his/her tax liability and filing his/her individual income tax return with the IRS.

The department is responsible for determining if a student's scholarship, fellowship or other award requires services to be rendered before receipt of payment.

Accounts Payable is responsible for ensuring appropriate taxes are withheld prior to payments processed for students through Accounts Payable.

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday
04/2011 Accounts Payable New Policy

Supplier Invoice Request (SIR)

Supplier Invoice Request (SIR)
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 15:05
Policy No
5.5.1.6
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Reason for Policy

The purpose of this policy is to provide guidelines on the submission of Supplier Invoice Request (SIR) process used for payments that do not require a purchase order in accordance to the University System of Georgia, Department of Administrative Services (DOAS), and Institute payment policies.

 

State regulations do not permit payment prior to receipt of goods and services, with the exception of subscriptions, institutional memberships, or postage, shipping, or where specifically required by the contract/agreement. Consequently, campus units should not use the Supplier Invoice Request (SIR) for pre-payment of goods and services, unless approved by the Purchasing Director.

Policy Statement

All payments that do not require a purchase order are to be submitted on a Supplier Invoice Request (SIR) via the Institute’s Financial System. Official invoices require a valid Georgia Tech purchase order number before payment can be processed and are not be submitted.

Scope

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting requests for payment on behalf of the Supplier.

Policy Terms

Suppler Invoice Request (SIR)

Payments that do not require a purchase order and submitted via the Institute’s Financial System.

Payee Information

Name of recipient (organization or individual) payment is payable to.

All payees for supplier invoice requests must be set up as suppliers in the Institute’s Financial System before payment can be processed.

Procedures

5.1 Supplier Invoice Request Submission

Supplier Invoice Request (SIR)

All requests that do not require a purchase order are to be submitted via the Institute’s Financial System along with supporting documentation justifying the payment.

5.2 Payment Types

Affiliate Transfer, (formerly Inter-Agency Transfer) Affiliated Organization Joint Staffing

Transfers to the Georgia Tech Foundation, GTRC, GTAA, and other state agencies. These may be for expenses related to joint-staffing arrangements, co-sponsored events, or authorized transfers between affiliated organizations.

Department of Homeland Security

Processing fees associated with visas and associated expedite fees. The individual’s name must be included; however, back-up documentation is not required for standard H-1B processing fees.

The following information must be provided:

 Invoice# = LAST NAMEmmyy(Last name +month and year)

Honorarium

One-time payments for short-term services with no expected deliverable, payable to individuals. Short-term is typically defined as nine business days or less within the last six months. Services over a longer period must be contracted and will require purchase order. Honorariums should typically not be greater than $5,000 unless a special exception has been granted by the Director of Accounts Payable.

Legal Settlements

Submitted along with supporting documentation justifying the payment.

This does not include payment for legal services. Payments to attorneys must be authorized by the Georgia Tech Office of Legal Affairs and require an invoice and a purchase order.

Non-Georgia Tech Student Training Stipends

Supplier invoice requests to be submitted for three payments or less. Recurring supplier form (Workday Recurring Form) to be submitted for three or more recurring payment requests of the same amount and emailed to apinvoices@gatech.edu.

Postage/ Shipping/ Mailing Services

           And

Telecommunication/ Utilities/ Services Paid to Provider

Invoices payable to the service provider for these types of services can be processed using a supplier invoice request and submitted via the Institute’s Financial System. For recurring monthly invoices, ensure that the approved amount is the current monthly charge and does not include a prior month’s un- posted payment.

Registration Fees (Conference or Workshop)

Payment of registrations fees are only permissible for employees, students, or official guests/visitors. A registration form must be included as supporting documentation and Accounts Payable will send a copy with the check. Registration associated with college courses for credit cannot be processed via a supplier invoice request.

Subscription, Membership or Certification Fee

A subscription or membership form, estimate, or order form must be included to support the payment request.

Memberships and Certifications must be related to job function and must provide services beneficial to Georgia Tech.

Student Payments

The supplier invoice request is to be used to request payments to students for awards or activities that are unrelated to employment.

Student performing a service are to be on-boarded as employees via Office of Human Resources.

Student Center Performer/Service Provider

Payments to performers and artists as specified in the Ferst Center performance contract may be paid with a supplier invoice requests. A copy of the agreement but be submitted as supporting documentation.

Foreign Payments

A supplier invoice request may be submitted for non-purchase order expenses only.

Wire Payments

A supplier invoice request may be submitted for foreign/international non-purchase order expenses only.

Responsibilities

All Georgia Tech employees, (includes faculty, staff, students and employees) submitting Supplier invoice requests for payment on behalf of the supplier are to ensure payments are allowable and supporting documentation is submitted. Payment for goods or services rendered require an invoice and a valid purchase order, and are not to be submitted as a supplier invoice request(SIR) through the Institute’s Financial System.

Enforcement

Supplier invoice requests submitted without required information or do not meet the requirements outlined in this policy are at risk of delayed payment or not receiving payment for goods or services rendered.

To report suspected instances of Ethical Violations with this policy, please visit Georgia Tech’s Ethics Hotline, a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

12/2020

Accounts Payable

Updated to align with Workday, policy title change
08/2017 Accounts Payable General updates

2/2011

Accounts Payable

New Policy

Types of Payments

Types of Payments
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 14:27
Policy No
5.5.1.1
Effective Date
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable & Travel
Contact Email
abbie.coker@business.gatech.edu
Procedures

Payments processed by Accounts Payable for goods and services may generally be classified into the following types:

Payment Type Description
EFT EFT payments are made as a direct deposit for all active employee reimbursements. Establishment of EFT Detail is through TecWorks via One USG Connect Employee Self-Service. .
ACH ACH payments are available for all non-employee payments. Establishment of ACH Is through Georgia Tech’s Bank of America PayMode system. A registration link is available on the Procurement & Business Services website located on the Suppliers webpage
Check The standard payment process is via a paper check mailed to the remit address on the invoice or supplier invoice request.
Wire Transfer International payees can receive funds in US or foreign currency by the completion of the Wire Transfer Request Form. The is to be attached to the payee request at the time of submission.
PCard The PCard can be used for payment by Institute employees for authorized business purchases within the delegated authority limit. For further details refer to the P Card policy located on the Procurement & Business Services website.

Vendor Registration, Maintenance and Inquiries

Vendor Registration, Maintenance and Inquiries
Type of Policy
Administrative
jbarber32 Wed, 06/13/2012 - 16:32
Policy No
5.5.3
Last Revised
Review Date
Policy Owner
Accounts Payable
Contact Name
Abbie Coker
Contact Title
Director of Accounts Payable/Travel
Contact Email
Vendor.help@business.gatech.edu
Procedures

New Vendor Registration
A new trade, service, individual, or consultant vendor may be set up upon submission and approval of a Georgia Tech Vendor Profile Form. The Vendor Profile Form includes data required for IRS, State and Federal, and SBA reporting (note: registration vendors must supply FEI/EIN on the registration form, otherwise a Vendor Profile Form will need to be submitted). In rare cases, as italicized below, IRS Form W-9 may be submitted in lieu of a Vendor Profile Form (legal settlements, estate checks and various government entities). Form W-8 and the Foreign Vendor Profile Form must be submitted for all foreign companies, partnerships, organizations, institutions, and individuals. Links to the Vendor Profile Form can be found on the Vendor/Supplier Information Bank. IRS W-9 and W-8 forms and instructions can be accessed via the irs.gov website.
Exceptions for the requirement for submission of a Vendor Profile Form, W-9, or W-8 are listed below:

  1. Human Subject Participants with expected annual payments of less than $600. The department financial administrator or PI will maintain appropriate documentation to determine if $600 reportable IRS income has been attained in any calendar year and contact Accounts Payable with details.
  2. Non employee expense payable vendors based on supporting documentation provided on the Check Request Form or Travel Expense Statement. Examples include student key deposit refunds, expense reimbursements for faculty candidates and other official guests/visitors, and parking refunds.
  3. Subscriptions

Vendor Maintenance for Established Vendors
A new Vendor Profile Form or a W-9 is required whenever critical information on the form changes. Critical information includes a change in the vendor name, tax ID, SBA classification, or conflict of interest indicators. A new form is not required to update phone numbers or address information. Please forward notification by e-mail, fax 404-894-8552 or mail to:
Georgia Tech Accounts Payable
711 Marietta Street
Atlanta, GA 30332-0253

Vendor Review and Approval Process
All new vendors are subject to approval prior to establishment in the Business Services vendor database. A vendor must be registered before it can be selected for BuzzMart purchase orders.

Conflict of Interest, Ethics and Unlawful Actions
Georgia Tech subscribes to the State's Code of Ethics for Governmental Service. All procurements are subject to the Georgia Vendor Manual, in particular, Chapter 9, Ethics and Unlawful Actions. Any apparent or potential conflict of interest between the vendor and a Georgia Tech Employee must be defined. If the conflict would not disqualify the vendor for obtaining business under certain conditions or circumstances, an understanding of those conditions or circumstances must be part of the vendor record.

Employee vs Independent Contractor
If the prospective vendor is an individual or a sole proprietor that is performing a service, Procurement Services, with the assistance of the Human Resources Department, will make a determination of the proper classification status. Retired or ex-employees that return to Georgia Tech to perform a service similar to that performed when they were an employee, will be classified as an employee through Payroll. For more information regarding this topic, please see "consultants individuals and firms".

Foreign Vendor Exclusion List
The Department of Treasury's Office of Foreign Assets Control (OFAC) maintains a list of individuals and organizations that we are prohibited from doing business with. Please refer specific issues regarding vendors that may appear on this list with the Office of Legal Affairs.

Vendor Inquiries
The Accounts Payable department will answer inquiries from vendors regarding the status of delinquent invoices. Accounts Payable will serve as a liaison between the campus department and the vendor. Georgia Tech must strive to maintain and promote a satisfactory credit standing with suppliers. Prompt payment of invoices and responses to inquiries is necessary in order to achieve this goal. Vendor inquiries for invoices over 30 days old will be referred to the campus unit for action. Georgia Tech's Credit Reference Letter, tax exemption forms, and Georgia Tech's IRS W-9 are available on the Vendor/Supplier Information Bank: from Accounts Payable via e-mail or 404-894-5000.