Business Rules
• Every payment request must be processed against a specific open PO document. This PO must be specified when the payment request is initiated.
• If the vendor number and invoice number match values previously processed, a warning notifies the initiator of the potential duplicate. Even so, the system allows the initiator to override the warning and continue.
• If the invoice amount and invoice date match values previously processed for this vendor, a warning notifies the initiator of the potential duplicate. Even so, the system allows the initiator to override the warning and continue.
• 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 SHOW_CONTINUATION_ACCOUNT_WARNING_AP_USERS_IND parameter, 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 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.
• Pay Date may not be a past date. If the pay date is more than 60 days in the future, a warning is received.
• Discounts applied from payment terms do not apply to freight or shipping and handling charges.
• 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.
• The calculate button must be pressed prior to submitting the payment request.
• 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.
• The following G/L entries are created when the payment request is submitted.
o Debit entry: The expense accounts (full accounting string) on the payment request are debited in the G/L when the initiator submits the document. The G/L entry is made in summary for each accounting string. Consequently, if three line items on a payment request use the same accounting string, only one debit (not three) is created in the G/L for that accounting string.)
o Credit entry: One offset to object code 9041 is created for each account/sub-account combination on a payment request.
• During fiscal officer approval routing of the PREQ, the fiscal officer/PREQ delegate may edit the accounts/sub-account/object codes and amounts. The existing account string is reversed. The new account string debits the expense and credits object code 9041, the liability offset.
• After being 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.
• Only AP users may cancel a Payment Request document, and they may do so only if it has not yet been extracted. AP Users may cancel a PREQ with or without a request cancel if it is in saved or final status and if the PO is not closed. AP Managers may cancel a PREQ when it is in enroute status. AP Processors may not cancel a PREQ in enroute status if there is no request cancel on the doc, but they may put the PREQ on hold.
• Only AP users may modify a payment request's pay date, attachment flag, special handling instructions, immediate pay flag, check stub notes and bank code. This action may be taken at any point following AP submit and preceding extract to PDP.
• Payment request searches are available to all users.
• A payment request that is Hold = 'yes' or is Request Cancel = 'yes' does not continue through workflow routing and cannot be paid until the hold or request cancel is removed.
• If payment requests total less than the threshold established by the institution and do not have any accounts requiring positive approval, they may be automatically approved.
• After being extracted, a payment request cannot be put on hold.
• A payment request is extracted for payment if the following conditions are met:
o The PREQ is department-approved or auto-approved.
o The Pay Date is today or a prior date or 'immediate pay' is indicated and the payment has departmental approval.
o The payment is not Hold = 'yes'.
o If the payment request includes accounts that are excluded from auto-approval, it must be department-approved.
• The following rules apply for allowable accounts to be charged on a PREQ. These are the same rules used for the PO. The specific codes for these rules may be specified via parameters.
o Only expense (EE, ES or EX object types) or asset (AS object type) object codes are allowed. Asset object codes must be in the INV or OASS object level.
o Object codes in the consolidations of Compensation (CMPN), Financial Aid (SCHL), Reserves (RSRX) and Assessments Expenditures (ASEX) are not allowed.
o Object codes in the levels of Depreciation (DEPR), Indirect Cost Expense (ICOE), Valuations and Adjustments (VADJ) and Taxes (TAX) are not allowed.
o Object codes with a sub-type code for Transfers (TN) are allowed.
• When the PREQ routes to the Tax Manager for review, the Income Class field is required and the following rules apply, depending on what is selected:
o If the Income Class = Non Reportable, all other fields should be blank.
o For all other income classes:
If Foreign Source is checked, Federal Tax Percent and State Tax Percent must be 0.00. Treaty Exempt and Gross Up cannot be checked.
If Treaty Exempt is checked, Federal Tax Percent and State Tax Percent must be 0.00. Foreign Source and Gross Up Payment cannot be checked.
If Exempt Under Other Code is checked, Federal Tax Percent and State Tax Percent must be 0.00 and Treaty Exempt, Foreign Source and Gross Up Payment cannot be checked.
If USAID Per Diem is checked, Income Class must be Fellowship, Federal Tax Percent and State Tax Percent must be 0.00 and Treaty Exempt, Foreign Source, Gross Up Payment and Exempt Under Other Code cannot be checked.
If Special W-4 Amount is completed, Income Class must be Fellowship, Exempt Under Other Code must be checked, Federal Tax Percent and State Tax Percent must be 0.00 and Treaty Exempt, Foreign Source, Gross Up Payment and USAID Per Diem cannot be checked.
Routing