Accounts Payable Procedures

General purchase order rules

A purchase order must be generated prior to purchasing materials or contracting for services.

I. Invoice processing for payment

To process invoices for payment Accounts Payable must have the following:

FOR MERCHANDISE

• Blue copy of the Purchase Order documenting receipt of the order or service. (If the merchandise is received in the Warehouse the Warehouse will forward the necessary documents to Accounts Payable. If the merchandise is received at a school site or is a Pick-Up order, the School/Department is responsible for forwarding the Blue copy of the Purchase Order to Accounts Payable. Proof of delivery (packing lists/vouchers) must accompany the Purchase Order.
• Each Purchase Order must have a signature and date to authorize that the Purchase Order may be processed for payment.
• An original copy of the vendor's invoice is required by auditors to process payments.
• All MUNIS Purchase Orders Invoices must be billed to the Fayette County Board of Education or Fayette County Public Schools Accounts Payable Room 109 IAKSS.
• Partial payments to Vendors are NOT permissible for merchandise orders. Our purchase orders now read:
  “Orders must be shipped complete! Back ordered items are not allowed! Partial Shipments will be considered complete and therefore the purchase order will be closed. This does NOT apply to textbook orders.”
  The purchase order will then be processed and paid for the partial shipments of merchandise, which are received on an order and the remaining amount will be liquidated and put back into your accounts. If you would like to order the backordered items when they are available a new purchase order to the vendor will be required. In either situation above, please attach packing lists and sign and date the Purchase Order copy to authorize payment of the partial shipment; Forward all the documents to Accounts Payable, Room 109 IAKSS.
• Purchase Orders should include a shipping/freight allocation to ensure that there are sufficient funds to process the invoice for payment if the vendor adds freight/shipping charges. A base line figure to use for freight estimates is 10% of the Purchase Order total. Purchase Orders that do not have sufficient funds to cover the invoice totals (amounts that exceed the allocation by 10% cannot be processed) must be revised through Purchase Order Maintenance.
• Purchase Order Maintenance must be requested in writing or e-mail Sherese Ellison in Financial Services. A detailed explanation on the updates being requested should be included in the request. We cannot do purchase order maintenance to purchase orders which are not in the current year. For example, the 2005-2006 fiscal year purchase orders begin with the digits 26. If maintenance is requested for a purchase order that begins with 25, 24, or 23, we cannot process this maintenance except for a request to cancel the purchase order. Please contact Rodney Jackson or Sherese Ellison in Financial Services if you have questions or concerns.

FOR SERVICE

Indicate on the purchase order the dates the service was provided, the rate of payment and the nature of the service provided.

• Forward the Blue copy of the Purchase Order documenting receipt of the order or service to Accounts Payable.
• Each Purchase Order must have a signature and date to authorize that the Purchase Order may be processed for payment.
• An original copy of the vendor's invoice is required by auditors to process payments.
• All MUNIS Purchase Orders Invoices must be billed to the Fayette County Board of Education or Fayette County Public Schools, Accounts Payable, Room 109 IAKSS.
• Partial payments to vendors are permissible when partial services are received on an order. Make a copy of the Purchase Order; indicate on the Purchase Order copy the amount of service received and sign and date the Purchase Order copy to authorize payment of the partial shipment for services rendered so far; Forward all the documents to Accounts Payable, room 109 IAKSS.
• W-9 form (completed by the vendor prior to services being performed) must be forwarded to accounts payable on ALL service vendors prior to processing for payment.
• A current CONTRACT must be completed and signed by the vendor, reviewed by the board attorney, and signed by the superintendent and a copy must be submitted to Accounts Payable with the original vendor invoice and blue copy of the purchase order. The purchase order should be made out for the entire amount of the contract and then partial payments made as work is done. The process should be as follows: 1) when the items are received the schools/departments should send the signed blue copy to accounts payable along with the contract so that the invoice(s) can be matched and paid on a timely basis. (2) then every partial payment after that related to that same purchase order and contract, the school/department should copy their copy of the purchase order & send it along with the new invoice to accounts payable suite 109 for payment. Accounts Payable staff will then partial pay on that purchase order until the contract is fulfilled. For more information on Contracts related to Consultants see Consultants under Accounting on Financial Services website.

PURCHASE ORDER LIQUIDATION

1. Purchase Order liquidation results when a purchase order has been processed for payment or when a purchase order has been requested to be canceled through Purchase Order Maintenance.
2. Liquidation processes can be accessed under CHANGES in the Menu of Purchase Order Inquiry Invoice Payment Information can be accessed under Purchase Order Inquiry by selecting INVOICES or in Vendor Inquiry by selecting MENU, then select Option 1 (Invoices). Select the Fiscal Year and blank out the invoice status before clicking on Escape.

II. VENDOR NUMBERING STANDARDS

The vendor number is a six-digit number. The vendor numbers that should be used by most requesters would start with 00--. If you see a vendor number that starts with 20--30--,70-- or 90-- please do not use it. These numbers are reserved for Food Service, Tax Refunds, Payroll and Insurance. You might find the same vendor with two different vendor numbers. One starts with 00-- and the other starts with 90--. You should always use the 00-- number. Even if you find a vendor that only has one number and it is 90-- you SHOULD NOT use it, but contact the Purchasing Office to request a new vendor number (see vendor request form in down load forms). All Vendor Requests must be in writing. You cannot enter a Purchase Order until you have the proper vendor number.

III. REQUESTING A NEW VENDOR

1. Check the vendor list thoroughly to verify that the vendor does not exist. Remember that a vendor may be listed in a number of ways --- so be creative when searching.
2. To conduct vendor Searches:
   1. Select Purchasing Menu
   2. Select Menu Option C (Purchase Order Inquiry and Reports Menu)
   3. Select Menu Option A (vendor Inquiry and Reports)
   4. Select "Find"
   5. Press [ENTER] until cursor is in Name Field and enter a portion of the vendor Name to search on. This feature works differently than the [GOTO] feature in Purchase Order Entry - YOU MUST enter a portion of the name followed by an asterisk (*). To do a more thorough search you can put the asterisk (*) before and after (*)
   EXAMPLE: To find all vendors beginning with the letter L enter L*.
   To find all vendors beginning with LEX enter LEX*.
   To find all people vendors with a last name of SMITH enter *SMITH.
3. For vendors that have an address that varies from the one listed in the vendor file DO NOT request to have a new vendor set up for the new address. Forward the vendor address information to Accounts Payable so that vendor addresses may be updated.
4. If the vendor you need is not found, SUBMIT IN WRITING a New vendor Request to the Purchasing Office. Include the complete vendor name, ordering address and remittance address (if applicable) of the vendor. If the vendor is providing services rather than merchandise and is not incorporated a form W9 will need to be sent to the vendor. Therefore, you MUST include the vendor's Social Security Number and/ or their Federal I.D. Number.
5. DO NOT request a vendor number for employees of FCPS unless it is for reimbursement. Employees of the FCPS must be paid by STIPEND for any services rendered.

IV. SHIPPING CODES

WARE - to be used for any order that is to be shipped to the Warehouse.

OTHER - this code should be used for any product that is not to be delivered to the warehouse. If the product is to be delivered to another location, this must be specified using the Delivery Reference field and vendor/Sourcing notes. This code should be used for live samples, contracted services, magazines, standard bills, etc. For example, when ordering magazines, place the person's name to receive the magazine in the Delivery Reference field and put the name and the full address of the recipient in the vendor/Sourcing Notes. If the Purchase Order must accompany a magazine invoice, use the Ship-To code of OTHER and enter in the Post-It Note to have the Purchase Order returned to the Originator.

PICK-UP - this code is to be used ONLY if the product will be physically picked up. Be sure to change the Special Handling field on the Header Screen from "N" None to "C" Confirmation to alert the vendor to not double-ship the merchandise.

DNM - (Do Not Mail) this code should only be used if there is no merchandise to be delivered and the white copy of the Purchase Order is not mailed to the vendor. Purchase Orders using a Ship-To Code of DNM will have the Purchase Order returned to the Originator.

MEDIA - this code is only used by Media Services for merchandise to be shipped directly to Media Services on Springhill Drive. Currently all subscriptions should be ordered through Black Magazine, who has our bid.

VI. "TRIAL ORDERS"

For any "TRIAL" Orders, a vendor-sourcing note must be entered on the Purchase Order that clearly states the nature of the purchase. This note should also address the terms for return of the product if unsatisfactory (e.g. return shipping will not be paid by FCBE). This note will alert the Accounts Payable Department to not process the invoice for payment unless an e-mail or Note is received verifying that the product will be retained.

VII. CREDITS AND CREDIT MEMOS

All Credit Memos received from a vendor should be forwarded to the Accounts Payable Office. Codes to which you wish to have the Credit applied to should be hand-written on the Credit Memo (Org, Obj, Project) or give us the PO number.

Credits are not to be indicated on the Purchase Order as a line item and subtracted in the Total field.

IX. REQUESTING PROFESSIONAL LEAVE

When Professional Leave (Board Approved) is requested and approved, a Purchase Order must be generated. The assigned Purchase Order number must be indicated on the request form for Professional Leave Reimbursement. The Purchase Order would not have to be in detail, but the Purchase Order amount must be an amount for which the reimbursement amount could not exceed. If the individual to be reimbursed is not on the vendor list, the Purchasing Office must be contacted so they can assign a vendor number before the Purchase Order can be issued. The Ship-To field on the Purchase Order should contain the code DNM (DO NOT MAIL). It is very important that the person entering the purchase order for travel reimbursement make sure the address is correct for the employee seeking reimbursement.

X. REQUESTING MILEAGE REIMBURSEMENT (LOCAL TRAVEL ONLY)

Mileage reimbursement forms are used for employees to be reimbursed for local daily travel that occurs. This type of travel requires a Purchase Order to be generated at the time the Reimbursement Form is submitted to the supervisor for approval.

The Ship-To field on the Purchase Order should contain the code DNM (DO NOT MAIL). The Purchase Order and Mileage Reimbursement Form should be submitted to Brenda Carter. Destination must originate from either a school site or from Support Services.

FCBE vendor codes (cost to schools/departments)

2727 Warehouse furniture/equipment purchases only
2734 Warehouse instructional supplies, projection bulbs purchases
2730 Food Service
2742 Printing
2748 FCBE (reimbursement to the general fund) (example: transportation)

*NOTE: Individual School Cafeterias are not to be paid. Use Food Service.

Last update: 3/16/2006 12:09:27 PM     Printer friendly view