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TIPS FOR HANDLING DEPARTMENT PURCHASES AND PAYMENT REQUESTS PRESENTED BY BONNIE SAMSEL COORDINATOR, PAYABLE ACCOUNTING

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Text of TIPS FOR HANDLING DEPARTMENT PURCHASES AND PAYMENT REQUESTS PRESENTED BY BONNIE SAMSEL COORDINATOR,...

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  • TIPS FOR HANDLING DEPARTMENT PURCHASES AND PAYMENT REQUESTS PRESENTED BY BONNIE SAMSEL COORDINATOR, PAYABLE ACCOUNTING
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  • AGENDA Introduction General Guidelines Payments to Non-Resident Aliens (NRAs) Payments to Independent Contractors Form W-9 for 1099 Reporting Tips For Purchase Order (PO) Processing Tips For Non-Purchase Order (NPO) Processing Payable Accounting Staff Directory NEW FAQs On Web Page!
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  • INTRODUCTION Payable Accounting is responsible for processing a variety of payment requests, such as: purchases of equipment/supplies, professional fees, independent contractor services, non-employee/student expense reimbursements, prizes and awards, membership dues, subscriptions, refunds, utilities, etc. Our primary goal: Process all payment requests timely, accurately, and in accordance with University policies and procedures and state and federal (IRS) regulations. The University has several purchasing/payment options, depending on the type and dollar amount of the purchase. These options include Purchase Orders, Non-Purchase Order invoice vouchers, the CMU Business Card and, in some cases, employee reimbursement. Payment requests processed from receipt of a valid PO invoice, NPO invoice voucher and/or vendor invoice. Typically, purchases (non-service related) of less than $500 are to be made using your CMU Business Card. The purpose of this training is to provide information that will assist you in handling all your departmental purchasing & payment needs.
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  • GENERAL GUIDELINES Follow University Policy & Procedures for making purchases by using a PO, NPO, CMU Business Card, or employee reimbursement where appropriate. Check out the following resources: Contracting & Purchasing Services web site at www.purchasing.cmich.edu, or call 3118.www.purchasing.cmich.edu Payables web site at www.purchasing.cmich.edu, select Payables, or call 3523.www.purchasing.cmich.edu Controllers web site at www.controller.cmich.edu, select Credit Cards, then go to CMU Business Credit Card and Related Information, or call 3525.www.controller.cmich.edu Refer to the University Expenditure Policy for the appropriate purchasing methods. (Available on Payables web site at www.purchasing.cmich.edu, then select Payables tab).www.purchasing.cmich.edu Provide the appropriate paperwork, with required signature(s)-of-approval, in a timely manner. Allow 10 business days, from the date the paperwork is received in Payable Accounting, for processing (this is IF paperwork is complete). Plan your payment requests around our 10-day turn-around time AND the Payables Tuesday & Thursday check run schedule. A calendar of check run dates is available on the Payables web page.
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  • PAYMENTS TO NON-RESIDENT ALIENS (NRAs) When planning to make a payment or reimbursement to a Non-U.S. citizen (a.k.a. non-resident alien (NRA)), contact Human Resources (HR) at 3753, first to determine if the NRA is eligible to receive a payment from CMU. Only certain (NRA) visa statuses are eligible to receive payment for services or honoraria. Even if the NRA is eligible to receive payment from CMU, we may be required to withhold Federal (30%) and state (4.35%) taxes from the payment. Only certain (NRA) visa statuses may be reimbursed travel expenses. (Exception-Canadian citizens may be reimbursed travel expenses without a visa). The travel expenses must be business related, and original receipts must be provided (as required by CMUs Accountable Plan), or the reimbursement would be taxable. Additional documentation and review is required to determine if CMU can legally pay a NRA, so you must get prior approval from HR before making arrangements/signing a contract with the NRA. Department information pertaining to payments to NRAs is available on Payrolls web page at the following link: http://www.controller.cmich.edu/payroll/nonresalien.htm. http://www.controller.cmich.edu/payroll/nonresalien.htm Guidelines for paying a NRA individual also apply to paying a foreign company, foreign group, foreign organization, etc.
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  • PAYMENTS TO INDEPENDENT CONTRACTORS Know University policy/procedures for determining independent contractor (IC) status before making a payment for services being provided to your department. Determination is made by Human Resources! Individuals performing services for the University, for which they will be compensated, are presumed to be employees unless he/she meets the criteria of independent contractor status. Submit the on-line IC Questionnaire to Human Resources (HR) for approval before services are provided. Anyone currently employed by CMU (i.e., faculty, staff, student, graduate assistant or temporary) who performs additional services (outside regular job description) for compensation will be classified as an employee and should be paid Supplemental Assignment Pay. Work with the appropriate employment office (HR or Faculty Personnel Services) to review/approve the request and process payments. See Paying Individuals to Perform a Service on Payrolls webpage at: www.controller.cmich.edu.www.controller.cmich.edu See Independent Contractor Policy at: http://www.cmich.edu/gencounsel/manual/p04012.pdf. The IC Policy covers individuals and businesses (i.e., sole proprietorship, partnership, corporation).http://www.cmich.edu/gencounsel/manual/p04012.pdf For independent contractor questions, contact HR/Staff- Employment Services section, at 3753. The IC Questionnaire and Long & Short Form Contracts are located on Human Resources web page at: www.hrs.cmich.edu, under Forms - OR on Contracting & Purchasing Services web page at: www.purchasing.cmich.edu, under Independent Contractor. www.hrs.cmich.edu www.purchasing.cmich.edu
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  • SUBSTITUTE FORM W-9 / IRS FORM W-9 (Request for Taxpayer ID Number and Certification) Assist the University in complying with Internal Revenue Service (IRS) regulations for 1099 reporting. Obtain a completed Substitute Form W-9 from all NEW vendors who will be providing any type of service to the department, or who will be receiving any other 1099-reportable type payment, such as rent, lodging, transportation, royalty/copyright fee, conference fee, membership fee, etc. The W-9 Form is used to determine the vendors tax status, to obtain the taxpayer identification number, and to certify that the vendor is a U.S. person or U.S. resident alien. A W-9 Form should NOT be requested from a foreign person, foreign business, foreign organization, etc., they would be required to complete the appropriate W-8 Form. Forward the completed W-9 Form to Payable Accounting with your payment request. The Substitute Form W-9, Attachment, and Instructions are available on the Payables web page at: www.purchasing.cmich.edu, under Forms. www.purchasing.cmich.edu The vendor/payee may provide you with the IRS Form W-9, however, it MUST be the current version, which has a revision date of October 2007. A link to the IRS Form W-9 is also available on our web page under Forms.
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  • TIPS FOR PURCHASE ORDERS (POs) You may submit an on-line purchase requisition for a PO, for purchases of services and other items, if total purchase will be $500 or more. Use a PO, regardless of the dollar amount, for computers, software (requiring signed agreement) and maintenance agreements. EXCEPTION: If you are paying for the professional services of an individual, which involves a binding contract, this would be an independent contractor issue handled through Human Resources. (Do not pay using CMU Business Card OR personal credit card!) Allow sufficient time when requesting a pre-payment or deposit be made to a vendor. Pre- payment/deposits are not automatically handled as rush payments, so plan accordingly. Have all PO purchases delivered directly to Central Receiving for proper handling (i.e, on-line receiving of goods against the PO, damaged goods, etc).
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  • TIPS FOR POs (CONTINUED) If PO merchandise is delivered directly to the department, then submit the on-line Direct Delivery Form to Central Receiving so Payable Accounting can process the invoice for payment. (See Attachment 1a) The Direct Delivery Form and Direct Delivery Instructions are available on Contracting & Purchasing Services web site at: www.purchasing.cmich.edu. (Select Receiving tab).www.purchasing.cmich.edu Verify accuracy of data before submitting (e.g., correct line items?, correct quantity received?, etc.). You will get on-line confirmation if submission is successful. If an invoice is received and the goods have not been received against the PO (in reasonable length of time), the department will receive e-mail notification from Payable Accounting. The department must respond within seven (7) days or the invoice will be processed for payment. Contracting & Purchasing Services should be contacted anytime it is necessary to return or exchange merchandise purchased on a PO or Blanket PO. Work with the Buyer who created the PO or BPO. NOTE: Anytime a return or exchange takes place, a credit memo or refund should be issued by the vendor, AND Payable Accounting should receive a copy of the Merchandise Return Memos. Procedures for Returning/Exchanging Merchandise are now available on Contracting & Purchasing Services web site at: www.purchasing.cmich.edu (Select Purchasing tab). For questions call 3917.www.purchasing.cmich.edu
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  • TIPS FOR POs (CONTINUED) Instruct vendors to send ALL invoices, credit memos, or refund checks, which must include PO number, directly to: Central Michigan University, Payabl

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