FINAPS and Prompt Payment Review

1. FINAPS and Prompt Payment Review Mike Glisson UH Accounts Payable September 28, 2000

2. Creating a Voucher • VCHM Screen • Choose the vendor • Choose the type of account • Choose the type of voucher • Enclosure or special instructions (optional)

3. Creating a Voucher • VODM Screen • Type of transaction • FRS account number • Subcode or account control • Amount • Description • Invoice number • Dates (order, invoice, invoice rcvd, delivery) • Reference No. and “P” or “F” (if applicable)

4. Creating a Voucher • LDT Screen • Special instructions (if “s” entered on VCHM) • Purpose/benefit statement • Contract or blanket PO balance info • Additional info required for payment • Requested payment date • Request to refuse interest

5. Inquiry in FINAPS • VCHS Screen • Type “SEL” at NEXT • Search by Ref No., Invoice No., Description, Voucher No., Vendor No., or Vendor Name • Five screens wide (press arrow key and ENTER) • Pending partition “P” = unprocessed vouchers • Current partition “C” = processed vouchers

6. Inquiry in FINAPS • VODI Screen • Enter voucher no., suffix, and partition (p or c) • Includes: • suffix amount • payment due date • requested payment date (if applicable) • AP clock date • interest control flag/reason code (if applicable) • check number and date • Type “LDT” at NEXT to view LDT

7. Inquiry in FINAPS • VCHI Screen • Includes: • voucher amount • AP status • selected info for each line of voucher • Type “HIS” at NEXT to view history of voucher • Type “LDT” at NEXT to view LDT

8. Inquiry in FINAPS • VNDS Screen • Search by vendor name or number • Vendor number includes: • type of vendor (1st digit) • 1 is corp, 2 is individual, 3 is foreign or state, 4 is student • SSN or federal ID number (2nd-10th digit) • check digit (11th digit) • mail code (12th-14th digit) • “H” for vendors on hold • “DF” for vendors paid direct deposit (state only)

9. Inquiry in FINAPS • CHKI Screen • Enter UH check number (7 digits) • View voucher lines paid on check • “Reconciled” means it has cleared UH bank • WARI Screen • Enter state warrant number (9 digits) • View voucher lines paid on warrant

10. Prompt Payment Dates • Payment Due Date = 30 days after later of • Invoice received date • Delivery date (goods received or services completed) • Requested Payment Date = pmt before PDD • Department inputs request in LDT • Accounts Payable approves request and enters in FINAPS

11. Requested Payment Date • Price discount (PD) • Attach invoice with price discount • Submit voucher at least 5 days before discount deadline • Vendor agreement (VA) • Stated in PO or contract • Stated on invoice is not sufficient • Implied by nature of transaction • membership, registration, subscription, lease

12. Requested Payment Date • University student (US) • Reimbursement • Stipend or scholarship (may be future date) • Intra-university transaction/transfer (IU) • Move expenses between state and local accts • Payment to a UH auxiliary

13. Requested Payment Date • Interruption of normal operations (NO) • Utility payments • Other critical payments - justify • Recurring transactions with vendor (RT) • Boise Cascade, Airborne Express, etc. • Other vendors with frequent transactions • Government agency (GV) • Local, state, or federal agency

14. Requested Payment Date • Not subject to payment scheduling (NT) • Not payments for goods or services • Auxiliary refund to customer, etc. • Vendor hardship/relationship (HS) • Small business would suffer hardship • Repeated use requires statement from vendor • UH employees - automatic • Ledger 9 - automatic

15. Late Payment Interest • Calculation = 1% per month X late payment • Automatically calculated and added to pmt • Separate voucher automatically created for interest • Charged to subcode 5179 • Charged to same account as late payment • College/division receives monthly reports

16. Refusing Interest • No invoice received (NI) • Payment based on contract, lease agreement, etc. only if vendor will not supply invoice • Invoice is a written demand for payment • Federal contract prohibits timely pmt (FC) • Terms of federal contract or grant that prohibit timely payment must be explained • Does not apply to all federal grants or contracts

17. Refusing Interest • Invoice mailing instructions on PO or contract were not followed (MI) • PO invoices should be mailed to AP • Departments may give vendor written instructions for other invoices • Disputed payment (DP) • Dispute over invoice or delivery • Must notify vendor within 21 days of invoice receipt

18. Refusing Interest • General Services Commission granted exception (GE) • No exceptions granted currently • Automation issue (AI) • Payment for consultant or professional services • subcodes 3002-3027, except 3020 and 3025 • Vendors on hold with state - automatic, if on hold first time payment is scheduled

19. Refusing Interest • Agency discretion (AD) • Payments to UH students • Payments UH auxiliaries, except • Barnes and Noble Bookstore • University Copy Center • Chartwells • Computize (Cougar Byte) • UH employees - automatic • Ledger 9 - automatic

20. Forcing Interest • Direct payment to travel vendor (DT) • Payment to travel agency, hotel, rental car company, travel credit card company under travel subcode (75XX) • Only pays interest if payment is late • Accounts Payable will input

21. More About Prompt Pmt • State Comptroller’s Web Site • http://www.window.state.tx.us/comptrol/san/fm1.html • Includes: • overview of prompt payment (under “For Vendors”) • web-based training on prompt payment (“For State Agencies”) • prompt payment interest calculator (“For State Agencies”)