Overview
The Payment Request (PREQ) document is created in response to receiving an invoice for goods or services requested from a vendor on a PO. The system provides two ways of creating a payment request:
- One is automated through the electronic invoicing process. If the electronic invoice passes all matching and validation criteria with the PO, the system generates the PREQ document automatically. If a discrepancy is found during matching and validation, the electronic invoice data may be processed via the Electronic Invoice Reject document in the action list of an Accounts Payable Processor. This user researches the reasons for the rejection. Subsequent editing and approving the Electronic Invoice Reject document initiates a payment request document if validation rules can be satisfied. The xml associated with the electronic invoice is added to the PREQs note section.
- The other approach is to complete the Payment Request document manually using the screen described in this section.
If invoices are processed centrally by your institution, initiation of a Payment Request document is likely restricted to users having the Accounts Payable Processor role.
Payment Request
Two screens are associated with the Payment Request document—an initiation screen with a single tab followed by a main screen with multiple tabs.
Payment Request Initiation
When you select Payment Request the Payment Request Initiation tab opens. This tab allows you to specify details about the invoice and the PO to which it applies.
The fields on this screen are self explanatory, a couple things to note:
- The PO must be open in order for a Payment Request to be processed against it.
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The duplicate payment check is performed on the Payment Request Initiation screen when parameters INCLUDE_DISBURSEMENT_VOUCHER_IND and / or INCLUDE_PAYMENT_REQUEST_IND are set to Y. A warning is returned when:
- The vendor number and invoice number match values previously processed on other Payment Requests and / or Disbursement Vouchers. Parameter DUPLICATE_INVOICE_DAYS specifies the maximum age of invoices that will be checked for duplicate payments by the duplicate invoice check.
- The invoice amount and invoice date match values previously processed for this vendor on other Payment Requests and / or Disbursement Vouchers.
- The warning only displays when the Payment Request is initiated.
Click the Continue button to open the Payment Request document.
Overview
Most fields in this section are self-explanatory those requiring additional information are described below:
- Description: defaults to the purchase order number and the vendor name.
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Financial Document Detail section:
- Year: The fiscal year referenced on the Purchase Order.
- Total Amount: The total amount of the payment request after the request has been submitted. This may differ from the amount entered on the Initiation Screen, if it is a warning will be presented upon submit.
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Payment Request Detail section:
- Receiving Required: This field displays when parameter RECEIVING_DOCUMENT_REQUIRED_IND parameter is set to Y. This parameter controls whether receiving required functionality is invoked.
- Payment Request Positive Approval Required: This field displays when parameter POSITIVE_APPROVAL_IND parameter is set to Y. This parameter controls whether the payment request positive approval functionality is invoked. This flag can be set on the Requisition or Purchase Order and will be set if required by the Payment Request Auto Approve Exclusions table.
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Use Tax Indicator: This field displays when the ENABLE_SALES_TAX_IND parameter is set to Y. This parameter controls whether tax service is invoked and whether tax-related fields and columns display.
- The Change to Sales Tax and Change to Use Tax buttons allow you to toggle between the two settings. The system displays different fields in this document depending upon whether tax is enabled or disabled.
- When the Use Tax Indicator is set to Yes, Use Tax is calculated and the total lines will show that the vendor remit amount is the Grand Total Prior to Tax in the Process Items tab.
- When the Use Tax Indicator is set to Yes, Use Tax is calculated and the total lines will show that the vendor remit amount is the Grand Total Prior to Tax in the Process Items tab.
- The Change to Sales Tax and Change to Use Tax buttons allow you to toggle between the two settings. The system displays different fields in this document depending upon whether tax is enabled or disabled.
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When the Use Tax Indicator is set to No, Sales Tax is calculated and the total lines show that the Vendor Remit Amount is the Grand Total (which includes tax) in the Process Items tab.
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- AP has the ability to close a non-recurring payment PO at the time the PREQ is submitted if they know that the order is complete, using the Close PO checkbox. There is no validation to require that all lines and/or below-the-line items on the PO are complete. The Close PO checkbox is available only on non-recurring payment orders.
Vendor
The vendor address will be editable when permission Edit Vendor Address PREQ is assigned to the appropriate role. Otherwise, only the Vendor Address can be changed by using the lookup and returning valid addresses.
The Vendor tab contains information about the vendor associated with the PO and allows you to modify vendor address information.
- Vendor Address Section: The default remit-to address from the Vendor document will be populated if one exists. If the Vendor does not have a remit to address, the purchase order address will populate. Override the default by entering a different address or by searching for it from the Address lookup.
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Vendor Info Section:
- Customer Number: Populated from the Purchase Order, if included.
- Check Stub Notes: Enter text to be printed on the check stub.
- Specialing Handling Instructions: Will fill in from the PREQ Init screen, if entered. Adding Special Handling instructions, flags the payment as requiring special handling. A check will be issued even if the payee has an ACH account and the check will be mailed to the institution for processing.
- Payment Terms: Populated from the Purchase Order and can be changed. Discounts applied from payment terms do not apply to additional item charges.
- Shipping Title: Pppulated from the Purchase Order and indicates when the items associated with the Purchase Order become the property of the ordering institution.
- Shipping Payment Terms: Populated from the Purchase Order and identifies the entity that pays for shipping (the vendor or the institution).
- Active ACH Payee: This field displays only when the document is in an 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.
Invoice Info
The Invoice Info tab provides a means for display and modification of invoice information.
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The following fields are populated from the Payment Request Initiation page and cannot be changed:
- Invoice Number
- Purchase Order #
- Invoice Date
- Vendor Invoice Amount: This field displays only on an In Process Payment Requests. When the document is submitted, the field is dropped.
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The following fields are populated from the Purchase Order and cannot be changed:
- Payment Request Cost Source
- PO End Date
- AP Processed Date: The date the PREQ was submitted.
- The following fields are used to support processing in the Pre-Disbursement Processor, Refer to Format Checks / ACH for additional information
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Pay Date: Approved Payment Requests with pay dates equal to today or earlier will be extracted in to Pre-Disbursement Processor.
- If the Pay Date field is blank, the later of the following two dates will be used as the pay date:
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The date calculated based on the payment terms
- If the Payment Terms are blank the value in PAY_DATE_DEFAULT will be added to the Invoice Date.
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The current date plus the number of days specified in parameter NUMBER_OF_DAYS_USED_TO_CALCULATE_DEFAULT_PAY_DATE
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- If the Pay Date field is not blank, a date will not be calculated.
- If the date is more than 60 days from the current date, the system displays a warning message.
- The pay date cannot be a date in the past.
- If the Pay Date field is blank, the later of the following two dates will be used as the pay date:
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(Immediate Pay): Approved Payment Requests where the Immediate Pay box is checked will be extracted immediately into Pre-Disbursement Processor when:
- The PREQ is final, if the Immediate check box was selected prior to final approval, OR
- The AP Processor selects the check box and saves prior to a final PREQ being extracted.
- Extract Date: The date the Payment Request is extracted into Pre-Disbursement Processor for payment.
- Payment Attachment Indicator: Check the box if an attachment must be sent to the Vendor with this payment. Marking a Payment Request as having an attachment will prevent the Payment Request from being paid via ACH and from bundling with other Payment Requests.
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Pay Date: Approved Payment Requests with pay dates equal to today or earlier will be extracted in to Pre-Disbursement Processor.
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Payment Method: The Payment Method will default to Check/ACH unless a default payment method is assigned to the vendor. Payment Methods that can be used are defined in the Payment Method table. Supported Payment Methods:
- Check/ACH: Generates a check or, if ACH information exists, an ACH direct deposit is initiated.
- Wire Transfer: Indicates that the disbursement should be wired to the recipient. Details can be added to the Wire Transfer tab.
- External Payment: Indicates that the disbursement was made outside of Financials. This payment method does not generate payment, but records the payment in the system.
- NOTE: Foreign Draft, Wire Transfer and External Payment are extracted into PDP when the Payment Request is fully approved.
- Bank Code: The bank code will display when the BANK_CODE_DOCUMENT_TYPES parameter includes PREQ and ENABLE_BANK_SPECIFICATION_IND is set to Y. The default bank is determined by the Payment Method table if a default bank is specified for the selected Payment Method. If no default is specified in the Payment Method table, the Bank defaults to the value in the DEFAULT_BANK_BY_DOCUMENT_TYPE parameter. Parameter DEFAULT_BANK_BY_DOCUMENT_TYPE paramter must be completed even if Bank Offsets will not be used.
- Payment Classification: Not currently used.
- PO Notes: If notes have been added to the PO, this field contains the value Yes.
Tax Information
The Tax Information tab is displayed only when the PREQ is routed to a person in the Tax Manager role. This tab allows the tax manager to review and change tax information.
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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.
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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.
- Click Calculate to update the
Process Items
Quantity Items
NonQuantity Items
The Process Items tab includes the lines of the PO that this invoice relates to and the dollar amounts to be paid on this payment request. Accounting information associated with the lines can be edited by clicking on the $ icon and additional invoiced items such as freight or shipping and handling can be added.
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Purchase Order Line Item Totals section: The fields on this tab are read only.
- Encumbrance excluding freight and s/h: The total dollar amount encumbered for this PO excluding freight, shipping and handling.
- Total Encumbrance Amount Relieved: The total dollar amount of the encumbrance that has thus far been relieved from this PO, excluding any additional charges processing.
- Total Paid Amount: The total of the line item payments excluding freight, shipping and handling, discount and miscellaneous payments made thus far against this purchase order. The difference in amounts between Total Encumbered Amount Relieved and Total Paid Amount is the difference between the PO unit cost and the payment request unit cost.
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Items Section:
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The following fields are read only:
- Item Line number: This field does not have a heading. The actual Item line number from this PO.
- Open Qty: The quantity of items that have yet to be invoiced for this line item. Blank if non-quantity.
- UOM: The unit of measure copied from the PO for this line item. Blank if non-quantity.
- PO Unit/Ext Price: The cost per unit from the PO for this line item.
- Qty Invoiced: Enter the number of items being invoiced for this line. This entry reduces the open quantity for this line item on the PO. Not editable if non quantity.
- Unit Cost: The unit price for this line item as it appears on the invoice. This field is automatically populated using the price from the PO, but it may be changed if the invoice reflects a different price. Not editable if non quantity.
- Extended Cost: If this field is blank and if the quantity invoiced is populated, the system calculates the extended cost for this line item when you click the Calculate button. If the field already contains a value, you must delete the value in order to populate a new value by clicking Calculate button. Override the amount as needed.
- Tax Amount: This column displays only if the ENABLE_SALES_TAX_IND = Y; is calculated automatically when the tax service is called and can be edited by the initiator.
- Total Amount: The sum of the extended cost and the tax amount.
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The following fields come from the Purchase Order and are read only:
- Catalog number
- Assigned to Trade In
- Description
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The following fields are read only:
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Additional Charges section: The items included in this section are determined based on parameter ADDITIONAL_CHARGES_ITEM_TYPES. The parameter should contain items that can be used on the Purchase Order, in addition to those unique to the Payment Request. Since Items from the PO will copy over to the PREQ, PO items also need to be included. Item types are maintained vai the Item Type lookup and maintenance document.
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- Item Type: The type of item to be charged.
- Original Amount from PO: The total amount of this item type from the Purchase Order.
- Outstanding Encumbered Amount: The outstanding encumbrance amount of the additional charges for this item type.
- Extended Cost: The total amount charged on the invoice for this item type.
- Tax Amount: This column displays only if the ENABLE_SALES_TAX_IND = Y; is calculated automatically when the tax service is called and can be edited by the initiator.
- Total Amount: The sum of the additional item extended cost plus the items tax amount, if applicable.
- Description: Parameter ITEM_TYPES_REQUIRING_DESCRIPTION controls whether the description is required or is optional.
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To display Item Accounting Lines information in order to see where the charges are to be posted, click $ icon. Additional charges items that were not specifically funded on the purchase order are allocated to accounting lines in proportion to the item amounts on the purchase order.
Wire Transfer
When you select Wire Transfer as the payment method you are prompted to complete the Wire Transfer tab. Whether or not this tab is required can be specified in the Payment Method 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. Currently this field is not editable and will be fixed in a future release.
- Waive wire transfer fee?: The Payment Request does not currently create entries for Wire Transfer and this box and the Wire Transfer message at the top of the tab will be removed in a future release.
- Additional wire Information and Addenda: Optional additional information that you would like to send to the financial institution regarding this wire transfer.
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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
View Related Documents
The View Related Documents tab collects information about PURAP documents related to this document. For example, it displays identifying information and any notes for associated requisitions, the purchase order, receiving documents, other payment requests for this PO, and credit memos. Within each document type the documents are listed in order, with the most recent first.
View Payment History
The View Payment History tab tracks payment information related to the purchase order associated with this Payment Request document. It shows pending payment information and is updated automatically to show when a payment has been processed through the Pre-Disbursement Processor (PDP). This tab also shows any credit memos that have been processed against the related purchase order, including detail with an associated payment request referenced by the credit memo.
General Ledger Entries
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Payment Requests creates two sets of entries:
- A set of Actual (AC balance type) entries to post the expense (debit) to the accounting string associated with the items paid on the Payment Request and to establish the liability (credit) to an accounts payable offset defined in the Offset Defition table.
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A set of Encumbrance (EX balance type) entries to relieve the encumbrance.
- If the line item is quantity - the amount of encumbrance relieved will be equal to the quantity invoiced times the PO item cost.
- If the line item is non-quantity - the amount of the encumbrance relieved will be equal to the amount invoiced.
- Unlike other documents, these entries will post to the General Ledger next time the batch runs, regardless of the status of the document. Other documents wait for the document to be final before posting, but because the receipt of the invoice indicates that their is a liability owed by the institution, the Payment Request entries are posted when the document is submitted.
- Canceling a payment request that has already received some level of approval will result in reversing G/L entries (encumbrances and actuals) and reversing updates to the PO line items affected (open quantity, amount paid, etc.).
- If a fiscal officer or delegate changes the accounting lines while approving, the appropriate reversing and posting entries will be created.
- When the PREQ is and final and if the Payment Method is Wire Transfer, the PREQ entries are reversed and a set of PRQW entries are created to reduce the encumbrance and post the expense. The offset will be to Cash and Bank Offset entries will be created if the bank offset functionality is enabled.
- When the PREQ is and final and if the Payment Method is External, the PREQ entries are reversed and a set of PRQX entries are created to reduce the encumbrance and post the expense. The offset will be to Cash and Bank Offset entries will be created if the bank offset functionality is enabled.
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 Calculate 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:
- FEDERAL_TAX_CHART
- FEDERAL_TAX_ACCOUNT
- FEDERAL_TAX_OBJECT_CODES
- STATE_TAX_CHART
- STATE_TAX_ACCOUNT
- STATE_TAX_OBJECT_CODES
Hold/Request Cancel
- Approvers can request cancel or hold an enroute payment request.
- AP users can cancel a Payment Request document as long as it has not been extracted.
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AP Processors:
- can cancel a PREQ with or without a request cancel if it is in saved or final status and if the PO is not closed.
- can not cancel a PREQ in enroute status if there is no request cancel on the doc, but they can put the PREQ on hold.
- AP Managers can cancel a PREQ when it is in enroute status.
- If the Payment Request is canceled, the G/L entries are reversed, any disencumbrance created from AP submission of the payment request is reversed, and the PO open quantities that were decremented from the creation of the payment request are increased.
- A payment request that is held or has a pending request cancel does not route and cannot be paid until the hold or request cancel is removed.
Expired and Continuation Accounts
- Fiscal Officers are warned when a PREQ contains one or more expired accounts that were not replaced by a continuation account. The Fiscal Officer has the option to either check the Expired Account Override box or change the account. AP users are not warned about expired accounts that are not replaced by a continuation account.
- Based on the setting of the EXPIRED_ACCOUNT_AP_IND and EXPIRED_ACCOUNT_FO_IND parameters, AP users and Fiscal Officers are warned when one or more expired or closed accounts on a PREQ are replaced by a continuation account when the Payment Request is initiated. When the parameter value is Y, a warning is presented. When an expired account is replaced by a continuation account, the accounting line shows the current accounts being used and includes a note indicating that the expired/closed account has been added to the PREQ. Users can refer to either the notes or the original PO to see the original accounts.
- If a Contracts & Grants account is expired while the PREQ is enroute, the expired account will be changed to the continuation account and a note indicating that the expired account has been replaced is added to the PREQ.
- Sub-accounts and sub-object codes are dropped from the accounting line when an expired account is replaced with a continuation account.
Extraction into Pre-Disbursement Processor (PDP)
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A payment request is extracted for payment via the purchasingPreDisbursementExtractJob if the following conditions are met:
- The PREQ is department-approved or auto-approved.
- The Pay Date is today or a prior date.
- The payment is not held.
- There is not an associated credit memo with the Payment Request, Purchase Order or Vendor that causes the payment to be negative.
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The following Payment Requests will be extracted immediately into PDP when the PREQ is final:
- Payment Requests marked for Immediate Payment prior to the PREQ becoming final.
- Payment Requests with Payment Methods Wire Transfer or External.
- After being extracted, a payment request cannot be put on hold.
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AP users can change the following fields at any time prior to the Payment Request extraction:
- Pay date
- Payment Attachment Indicator
- (Immediate Pay) - When Immediate Pay is selected and the PREQ is saved, the PREQ will be extracted immediately into Pre Disbursement Processor.
- Bank Code
- Special Handling Instructions
- Check Stub Notes
- After the Payment Request is extracted, the Payment Request can be set to Immediate, Canceled or Held using Search for Payment in Pre-Disbursement Processor.
Auto approve
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Payment requests will be auto approved, if the pay date is today or earlier AND:
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The application Doc Status is:
- Awaiting Sub-Account Manager Approval
- Awaiting Fiscal Officer Approval
- Awaiting Chart Approval.
- The payment request total is less than the amount specified in parameter POSITIVE_APPROVAL_LIMIT
- The Payment Request hasn't been manually marked as requiring approval
- There aren't any accounts requiring positive approval as defined in the Payment Request Auto Approve Exclusions or Negative Payment Request Approval Limit tables
- The Receiving Required indicator = Yes and Receiving has occurred
- The Payment Request is not held or request cancel
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The application Doc Status is:
Year End Posting
Refer to Payment Request Year End Post Back Rules for information regarding year end processing.
Routing
Payment requests have the following route nodes, refer to Route Nodes for details:
- Image Attachment also known as Awaiting AP Review
- Receiving, refer to Receiving (Bulk, Line Item and Correction) for more information on how Payment Requests are impacted by receiving.
- SubAccount
- Account aka Fiscal Officer routing
- Accouting Organization Hierarchy aka Organization Review
- Object Code
- Tax
- Disbursement Method Reviewer
- Auto Approve
Upon Submit
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When the Payment Request is submitted:
- The Purchase Order line item details (open quantity, amount paid, etc.) are adjusted to reflect materials/services that have been paid.
- The approved timestamp is updated to indicate the PREQ should post to the General ledger, see General Ledger Entries for more information.
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