The Disbursement Voucher (DV) document is used to reimburse employees and nonemployees for expenses incurred while conducting university business and to pay other vendors for performing a service, or providing goods to the university. Most often this payment is in the form of a check although direct deposit, foreign draft and wire transfer options are available.
Following are some examples in which a disbursement voucher might be used:
- An employee needs to be reimbursed for the purchases of supplies for a project that were paid for out of personal funds.
- A department wishes to purchase a subscription to an academic journal.
- An honorarium is needed for a guest speaker.
- Research participants need to be compensated for taking part in a scientific study.
- An employee needs to register in advance for a work-related conference.
Payments that are to be disbursed via check or ACH (direct deposit) will be passed to Pre-Disbursement Processor (PDP) for additional processing and disbursement.
The Payment Information tab contains information such as the payment reason, amount, payment method, attachments, and documentation location. Several fields on this tab are self explanatory, those needing additional explanation are described below.
Payee ID: Retrieve the payee ID from the Payee Lookup icon. The payee ID identifies the employee or vendor who will be paid. Payees must exist in the system, either in the Vendor table or in the Person table. The Payee Lookup searches both tables for active payees. Payee Type labels can be configured with the following parameters:
After you select the payee ID from the Payee lookup icon, the system automatically fills in the Payment Reason Code and Payee Type selected in the Payee Lookup screen, as well as, the Payee's Name and Address. Items to note:
The address can be changed. If changed, approvers will be notified that the address has been changed.
- The Payee and the Initiator cannot be the same person and must be active.
- Payment Method: Select the method in which the payment should be made:
- Check/ACH: Generates a check or, if ACH information exists in the disbursement processing system for this payee, an ACH direct deposit is initiated.
- Foreign Draft: Indicates that the payment is to be made in a foreign currency. Details are added to the Foreign Draft tab.
- Wire Transfer: Indicates that the disbursement should be wired to the recipient. Details are added to the Wire Transfer tab.
- Documentation Location Code: Select the code for the location where supporting documentation will be sent. Supporting documentation refers to documents or backup submitted with the disbursement voucher (receipts, invoices, letters, memos) that detail what was purchased, the cost, the name of the vendor and the date of the transaction. If a disbursement voucher is for services, the documentation might include a memorandum or contract outlining what services are performed and the agreed-upon contract amount.
- Initiating Organization: Indicates that your department plans to retain the documentation. When you select this location you may receive a message with additional instructions based on your institution's procedures and documentation retention policies.
- No Documentation: Indicates that you have no supporting documentation for this transaction. If selected, you are required to attach a note in the Notes and Attachments tab of the document explaining why.
- Due Date: Defaults to the following day which is the earliest date that a payment can be made (assuming Kuali Financials is processing batch transactions nightly, this is typically the next business day). Payment information is not extracted into Pre-Disbursement Processor until the due date.
- If you wish the payment to be made as soon as possible, do not change the default date.
- If you wish to delay a payment until a future date you can set the due date forward.
- Payment Type: The payment types are determined by the payee selected from the Payee Lookup.
- Is this a foreign payee? If the payee is a nonresident payee, this field will display Yes. Users with appropriate permissions can change this field.
- Is this payee an employee: If the payee selected is an employee, this field will display Yes, when CHECK_EMPLOYEE_PAID_OUTSIDE_PAYROLL_IND = Y.
- Employee Paid Outside of Payroll? If the Payee record is an Employee record or a Vendor record with the same tax identification number as an Employee record, then this is set to Yes. Your institution may wish to perform specialized review on these transactions to make sure they should not be processed through your regular payroll process.
- Other Considerations: Select special requirements associated with this payment.
- Check Enclosure: Refers to any documents related to the DV document that must accompany the check when it is mailed to the payee. Examples might include a registration form that must accompany a payment of a conference fee or a subscription form that must be returned with payment for a subscription to an academic journal. Selecting the check box properly indicates that there is a form or other attachment that must accompany the check.
- Special Handling: Indicates that the payment should be mailed to a person other than the payee. For example, a check needs to be returned to the document initiator so it can be express mailed or picked up by the payee. When selected, a message asking you to add a note explaining the need for special handling is displayed.
- W9/W-8BEN Completed: Indicates if the payee has a W-9 (or W-8BEN for nonresident payees) on file. For nonemployees this is generally completed as part of processing of the Payee document.
- Exception Attached: Indicates that you are requesting an exception to policy on this DV document. For instance, your institution may require that all disbursement vouchers have supporting documentation, but in this case you do not have such documentation. When this option is selected, a message prompting you to add a note of explanation is displayed.
- Immediate Payment Indicator: Indicates that a check is needed on the same day. This indicator allows for an approved Disbursement Voucher to be extracted for payment immediately. Only the Disbursement Manager may select this option.
- Prior to the document being approved the box can be checked. When the immediate box is checked, the DV will be automatically extracted when the DV is Final or Processed.
- After the document is approved, but prior to it being extracted to PDP, an Extract Now button appears on the document that can be used by the Disbursement Manager to extract the DV to PDP for payment. The presence of this button is controlled by permission Use Transactional Document DV extractNow.
- Use the following parameters to send emails when the Extract Now button is used:
- Check Stub Text: Enter the information regarding the payment itself, intended for the payee. This commonly includes what the payment is for (invoice number, for example) or other information to assist the payee in identifying the source and reason for the payment. Check Stub is required even if the payment will be made via ACH, wire or foreign draft.
Invoice Number and Date: Required when the selected Payment Reason is included in parameter PAYMENT_REASONS_REQUIRING_INVOICE_FIELDS. If either Invoice Number or Date are completed, both fields must be completed. Refer to Disbursement Voucher - Prevent Duplicate Payments for more information.
- Active ACH Payee: Display Only. This field appears only when the document is in Initiated, Saved, and Enroute status. If the vendor has an active Payee ACH Account, Yes is displayed. If the vendor does not have an active Payee ACH Account, No is displayed.
- Total Accounting Lines must equal Check Amount aka payment amount.
- Negative amounts are allowed when parameter NEGATIVE_ACCOUNTING_LINES_IND is set to Y.
- Accounting lines will be added when non-resident payments are made and taxes will be withheld. Refer to Nonresident Payments Tax Accounting Lines.
- The following parameters control which accounts and object codes can be used. Refer to Payment Reasons for additional accounting line restrictions based on payment reason:.
The Contact Information tab contains information that is intended to be printed on the check. When the DV document is first initiated, the Contact Name and the Campus Code default to those of the initiator's. The Contact for a DV is typically the initiator, thus the contact information is typically the name, phone, and email address of the initiator. The Campus Code drives the Documentation Location default.
NOTE: When parameter ISO20022_FORMAT_IND = N, the information in the Contact Information tab is listed as the first line on the check stub.
Special Handling Tab
The Special Handling tab is used only when a check is to be sent to someone other than the payee. For example, a department needs a check for a guest speaker sent to the Department Chair to present the check after the event. If the payee has requested the payment be mailed to them, but at a different address, simply change the address in the Payee tab. To request Special Handling for the payment, select the Special Handling check box in the Payment Information tab and complete the fields on this tab.
Nonresident Tax Tab
This tab is completed only if the payee is a nonresident and it is only editable by a member of Kuali Financials-SYS Tax Manager role when the document has routed to them. The information on this tab is used for reporting purposes and to add any special tax withholding that might be required as a result of the income classification of the payment when the fields are completed and generate lines is clicked. If the transaction is taxable, this function automatically adds the appropriate tax related accounting lines to the Accounting Lines tab of the document, and reduces the total check amount if tax needs to be withheld.
After clicking Generate Lines, the tab becomes read only. Clicking Clear Lines will remove the tax related accounting lines and the tab will become editable again. See Nonresident Payments Tax Accounting Lines for more information.
- Income Class Code: The type of activity for which this disbursement is being made. Values are maintained via the Disbursement Voucher Tax Income Class lookup and maintenance document. Following are the available values. New values require coding.
- Fellowships: Non-service related payments
- Independent Contractor: Service related payment
- Non-Reportable: Goods or accountable plan travel
- Royalties: Royalty, rights or permission payments
- Federal Tax Percent: Required for all Income Class Codes, except Non-Reportable. If 0.00, State Tax Percent must also be 0.00.
- State Tax Percent: Required for all Income Class Codes specified in parameter INCOME_CLASS_CODES_REQUIRING_STATE_TAX.
- Country Code: The nonresident payee’s country of citizenship. Required for all Income Class Codes, except Non-Reportable.
- NQI Code: Reference and reporting only.
- Reference Doc: Use to reference a former payment when processing a correction. Even when a tax rate is indicated, no tax withholding will occur. Cannot be used if the Income Class entry is Non-Reportable.
- Checking any of the following options will prevent tax from being withheld. The following cannot be used when Income Class Code is Non-Reportable.
- Foreign Source: The payment is defined as foreign source based on U.S. income sourcing rules. When checked, no other boxes can be checked and Special W-4 Amount must be blank.
- Treaty Exempt: There is a tax treaty with the nonresident payee's country. If selected, no other fields can be completed.
- Exempt Under Other Code: Used for various exemptions from tax withholding. When selected no other boxes may be checked except for USAID Per Diem, and Special W-4 Amount may be blank or filled in.
- Gross Up: Not allowed if the Income Class entry is Non-Reportable. Any taxes required to be withheld are calculated and added to the original amount of the disbursement voucher by charging an additional matching amount to the first account listed in the Accounting Lines section. See Nonresident Payments Tax Accounting Lines.
- USAID Per Diem: Check this box if the payee is receiving USAID per diem payments under a USAID grant. These payments are exempt from tax withholding but are taxable and reportable to the payee.
- Special W-4 Amount: Use to exempt a payment from tax withholding based on withholding allowance. The amount of the exemption should be the amount of the payment.
- When USAID Per Diem is checked or when Special W-4 Amount is completed. Complete the following fields as directed.
- Income Class Code: F – Fellowship
- Federal and State Tax Percent: 0
- Exempt under other Code: checked, when checked no other boxes can be checked.
When you select Wire Transfer as the payment method you are prompted to complete the Wire Transfer tab. The wire charge fees are maintained in the Wire Charge lookup and maintenance table. Most fields are self explanatory those requiring additional explanation are listed below.
- Recurring Profile No.: A user established code which identifies the wire transfer profile for a payee to which frequent wire transfer payments are made. There is no validation or functionality associated with this field. It is intended for institutional manual use.
- Bank Account #: Enter the specific account number to which the funds are to be wired. Once the DV is saved or submitted, this field is masked unless the user has permission to view bank account numbers.
- Waive wire transfer fee?: When institutions charge departments a wire transfer fee it is possible for the fee to be waived in particular situations. Only members of Kuali Financials-FP Disbursement Method Reviewer role have permission to waive the fee for a wire transfer.
- Additional wire Information and Addenda: Optional additional information that you would like to send to the financial institution regarding this wire transfer.
- DV Amount Stated in: Indicate what the amount of the DV represents:
- U.S. Dollars
- DV amount is stated in U.S. dollars; convert to foreign currency
- DV amount is stated in foreign currency.
- Currency Type: Indicate the currency of the payment
When you select Foreign Draft as the payment method you are prompted to complete the Foreign Draft tab.
Non-Employee Travel Expense
This tab is required when the Payment Reason is in parameter NONEMPLOYEE_TRAVEL_PAYMENT_REASONS. The Non-Employee Travel Expense Tab breaks down entry of the nonemployee travel expense information into five sections.
- Traveler Information and Destination sections are always required.
- Per Diem, Personal Vehicle, and Traveler Expenses sections - at least one must be completed, depending on the expenses needed to be reimbursed. After that, the other two are optional.
- Travel Expenses Total section is display-only
- Pre Paid Expenses section is always optional.
Traveler Information and Destination Sections
This section contains information regarding the travel origination and destination, as well as capturing the times of departure and return. Kuali Financials uses the travel dates and times to accurately calculate per diem reimbursement.
Per Diem and Personal Vehicle
This section is optional if the Personal Vehicle or Traveler Expenses section is completed.
- Category: Select the destination category. Categories and associated Per Diem Links are maintained with the Disbursement Voucher Travel Per Diem lookup and maintenance document.
- Rate: Enter the per diem rate in dollars. Per diem rates are based on rates set by the IRS but may vary from institution to institution. These rates are typically calculated based on the city where the traveler spent the night (per IRS regulations).
- Per Diem LInks: When clicked the following page opens. The message that displays can be configured with parameter TRAVEL_PER_DIEM_LINK_PAGE_MESSAGE. The links are maintained in the Disbursement Voucher Travel Per Diem lookup and maintenance table.
- Calculated Amount: Click Calculate to update the Calculated Amount based on the start/end times entered in the destination tab.
- Actual Amount: This field is pre-filled with the calculated amount but may be edited to reduce the actual per diem payment (but never increased). The Actual Amount will be included in the check stub when the Disbursement Voucher is extracted and paid and the ISO20022_FORMAT_IND=N.
- Justification for Change: Enter an explanation for the reason for the changes in the Actual Amount in the Per Diem, if it is changed.
The Personal Vehicle section is used to calculate mileage reimbursement for personal vehicles used during the trip. This section is optional if the Per Diem or Traveler Expenses section is completed.
- From / To (City/State): Enter the From and To cities and states for which reimbursement is being requested.
- Round Trip: Check the box if the personal vehicle was used round trip.
- Total Mileage: Enter the total number of miles to be reimbursed for; selecting Round Trip does not automatically double the miles driven.
- Calculated Amount: When Calculate is clicked, the Calculated Amount will be updated with the number of miles multiplied by the effective rate maintained in the Disbursement Voucher Travel Mileage Rate table.
- Actual Amount:This field is pre-filled with the calculated amount but may be edited to reduce the actual mileage payment. If parameter NONEMPLOYEE_TRAVEL_ACTUAL_MILEAGE_LIMIT_IND =N, the actual mileage can exceed the calculated amount.
This Traveler Expenses section is used to itemize other reimbursable out of pocket expenses the traveler may have incurred. These are typically expenses for which the traveler would provide you a receipt. This section is optional if the Per Diem or Personal Vehicle section is completed.
- Type: Populated from the Disbursement Voucher Travel Expense Type lookup when the Prepaid Expense Indicator = No.
- Company: Look up and return companies associated with the selected Type. The valid values in Company are maintained in the Disbursement Voucher Travel Company lookup and maintenance document.
- Expense Sub Total: A running total of the expenses entered in this section.
- Grand Total Section: The Grand Total section is display-only. It combines the totals of the Per Diem, Personal Vehicle and Traveler Expenses sections into one total. This total should match the Accounting Lines section total and the Check Amount in the Payment Information tab.
Pre Paid Expenses Section
The Pre Paid Expense section is an optional section that can be used to enter other expenses that were prepaid for this traveler. These entries have no effect on the disbursement voucher itself, but may help give a more complete picture of all the expenses incurred by this traveler. This section functions identically to the Traveler Expenses section except that lines added here are not included in the Grand Total.
- Type: Populated from the Disbursement Voucher Travel Expense Type lookup when the Prepaid Expense Indicator = Yes.
- Company: Look up and return companies associated with the selected Type. The valid values in Company are maintained in the Disbursement Voucher Travel Company lookup and maintenance document.
Pre-Paid Travel Expenses
If the selected Payment Reason on a disbursement voucher is in parameter PREPAID_TRAVEL_PAYMENT_REASONS, the Pre-Paid Travel Expenses tab is required. Most fields on this tab are self explanatory, those requiring additional explanation are described below. If CHECK_PREPAID_ACTIVE_EMPLOYEE_IND = Y, employees cannot be paid prepaid travel using the DV.
- Type: Lists the available Prepaid Expense Types, values in the Disbursement Voucher Travel Expense where the Prepaid Expense Indicator = Yes.
- Name: Enter the name of the individual for whom the disbursement is being requested. Click add. Continue entering as many names as needed. Multiple travelers may be added to the same DV document as long as the payee is the same for all of them. For example, registering several employees for the same conference and paying with a single check (payable to the conference itself).
- Department Code: The department aka organization code to which the traveler belongs or the department sponsoring the travel (for nonemployees).
- Req/Instate: Enter the request or instate travel code that specifically identifies the travel for which this disbursement is being made. The nature of this code may vary, but the field can be used for any identifying code—possibly referencing a travel system external to Kuali Financials. There is no system functionality around this code.
Pre-Disbursement Processor Status
The Pre-Disbursement Processor Status tab displays information from the Pre-Disbursement Processor (PDP) so you can track the payment status and the status date.
- Pre-Disbursement Processor Status: Status of the disbursement. Possible values:
- Unextracted: Has not yet been extracted into Pre-Disbursement Processor (PDP) for payment. DVs will not be extracted until their due date is reached.
- Extracted: DV has been extracted into PDP, but has not yet been disbursed.
- Paid: DV has been paid.
- Canceled: DV payment has been canceled within PDP. Note that the DV Document status will still be FINAL, but if the DV payment has been canceled, reversing entries have been posted.
- PDP Extraction Date: The date when the disbursement voucher was extracted for payment processing by PDP. Either the DV Due Date or if the date the DV was marked as requiring immediate payment.
PDP Paid Date: The date when the payment was disbursed by PDP. When the payment has been extracted, a Disbursement Info link will display. Clicking on this link will open Search for Payment and provide for more payment detail.
PDP Cancellation Date: The date when the payment was canceled within PDP.
- The following parameters are used by the disbursementVoucherPreDisbursementProcessorExtractJob batch job:
Disbursement Voucher Cover Sheet
If you have attachments or supporting documentation that needs to go to another university location you can print a cover sheet to accompany them. This cover sheet contains identifying information about the DV as well as an address field indicating where these materials should be sent.
To print a cover sheet, click the Print Disbursement Voucher Cover Sheet link which becomes available at the top of the document after the document is successfully submitted.
Following are the parameters that determine what is included on the coversheet for specific payment reason or payee types.
- COVER_SHEET_TEMPLATE_ATTACHMENT: Text that prints on the Disbursement Voucher cover sheet when hard-copy attachments are required for a payment to be issued.
- COVER_SHEET_TEMPLATE_BAR: Text that prints on the Disbursement Voucher cover sheet when hard-copy is required for particular payment reasons.
- COVER_SHEET_TEMPLATE_HANDLING: Text that prints on the Disbursement Voucher cover sheet when hard-copy is required due to special handling requirements.
- COVER_SHEET_TEMPLATE_LINES: Text that prints on the Disbursement Voucher cover sheet to provide details and requirements related to nonresident payments.
- COVER_SHEET_TEMPLATE_NONRESIDENT: Text that prints on the Disbursement Voucher cover sheet that indicates this is a Nonresident payment.
- COVER_SHEET_TEMPLATE_RLINES: Text that prints on the Disbursement Voucher cover sheet when hard-copy is required due to Subcontract or Personal Services payment requirements.
Payment reasons are maintained in the Disbursement Voucher Payment Reason table. Following are parameters that can be used to configure the DV based on payee types, object codes and payment reasons.
Use the following parameters to configure the document title that shows in the Action List:
- ADD_PAYEE_TAX_REVIEW_FLAG_TO_DV_TITLE_IND: T will display if tax review is required for the payee, otherwise displays N.
- ADD_PAYMENT_REASON_TAX_REVIEW_FLAG_TO_DV_TITLE_IND: P will display if tax review is required for the payment reason, otherwise displays N.
Use the following parameters to identify specific payment reasons in order to enforce various business rules:
- RESEARCH_PAYMENT_REASONS used in conjunction with RESEARCH_NON_VENDOR_PAY_LIMIT_AMOUNT
Use the following parameters to configure valid and invalid payment reason and documentation location combinations:
Use the following parameters to configure valid and invalid payment reason and object code combinations:
Use the following parameters to configure valid and invalid payment reason and payee type combinations:
NOTE: Vendor Types are hard coded. Parameters VALID/INVALID_PAYEE_TYPES_BY_PAYMENT_REASON control which of the existing vendor types can be used with specific payment reasons. New values will require coding.
- E - Employee
- V - Vendor
- VRF - Revolving Fund Vendor
- VRV - Refund Vendor
- VSP - Participant Payment Vendor
Use the following parameters to configure valid and invalid payment reason and account combinations:
Use the following paramaters to configure the invoice number and date fields and duplicate invoice checking:
Use the following parameters to configure routing:
Use the following paramters to configue ownership types:
Following are the Disbursement Voucher route nodes and a brief explanation of when they are triggered. For more detailed explanation about the different route nodes, refer to Route Nodes.
- Purchasing: A PO Vendor is used.
- Account: The Fiscal Officer or primary account delegate for all accounts used on the document.
- Organization Review: Based on the Organizations assigned to the Account. For more information, refer to Organization Review.
- Payee is an employee paid outside of payroll
- Payee requires backup withholding (determined by the presence of backup withholding dates on the Vendor record)
- Payee is a nonresident
- Payee is a Vendor, the payment reason is Moving and the initiator's Campus code is in CAMPUSES_TAXED_FOR_MOVING_REIMBURSEMENTS
- Award: Contracts & Grants Processor if Contracts & Grants account is used and the CG Responsibility ID on the account has been assigned.
- Travel: Nonemployee travel or prepaid travel payment reasons
- Campus: Disbursement Manager based on the Inititator's Campus
- Payment Method: Wire Transfer and Foreign Draft
- Separation of duties: If parameter ENABLE_SEPARATION_OF_DUTIES_IND is set to Y and the payee is the fiscal officer and there are no other approvers, the DV will route for additional approval. Due to other routing rules, this is rarely ever triggered.
Restrictions may be in place, which require you to send your documentation to a particular location. Specific locations can be customized and may vary from institution to institution.
- Documentation Locations based on Payee
- DEFAULT_DOCUMENTATION_LOCATION - set when the DV is first initiated based on this parameter.
- TAX_DOCUMENTATION_LOCATION - set if the Payee requires tax review, unless the payee is a nonresident.
- NONRESIDENT_DOCUMENTATION_LOCATIONS - set if the payee is a nonresident.
- Documentation locations based on Campus of the initiator
- Documentation locations based on Payment Reason
Nonresident Payments Tax Accounting Lines
When nonresident tax is being withheld there are two options: 1) Gross Up the payment to include the taxes; 2) withhold the taxes from the payment.
- If Gross Up Payment is checked, clicking Generate Lines adds a line is to the same account and object code as the payment equal to the tax being withheld. Tax lines are added as negative amounts.
- If Gross Up Payment is not checked, negative tax accounting lines are added and the payment amount is adjusted to match the total of the accounting lines.
The following parameters are used to identify the state and federal tax accounts and object codes: