Payment Reasons

Financial Processing > Standard Transaction E-Docs > Disbursement Voucher > Process Overview

Payment Reasons

When processing a DV document, users must indicate a payment reason by selecting a Payment Reason Code from the Payment Reason list in the Payment Information tab. The payment reason identifies the nature of the disbursement and determines what restrictions the disbursement is subject to.

Choosing a payment reason may restrict the other choices you can make on the document. For example, most payment reasons only allow certain object codes and some restrict whether the person being paid can be an employee or nonemployee.

The current payment reasons for using a disbursement voucher are explained below as typical examples:

Payment Reason Code

Code	Title	Description
Z	Claims, Settlements, or Tax Payments	Used to make payments for external insurance claims and some payments for worker's compensation.
E	Compensation for Services	Used to make payments for services such as artist fees and honoraria payments.
D	Compensation in Respect to Decedent	Used to make death benefit payments.
H	Medical, Health Care, or Insurance Payment	Used to make payments for chiropractic care, counseling/therapy/psychiatric, dental care, home health care, hospital/ambulance, lab work, pathology, nursing, patient care, ophthalmology, optometry care, physician fees, surgeon fees, vaccines, and check-ups
M	Moving Reimbursement	Used to make payments to new employees for relocation/moving expense.
C	Payment to Research Participant	Used to make payments when subject payments or participant expenses are paid to an individual participating in a research study.
L	Payments for Contractual Agreements	Used to make payments required under a contractual agreement.
A	Prize or Award	Used to make payments generally for punitive damages or settlements.
F	Refund/Repayment to Individual or Agency	Used to make payment for returned goods sold, or refunds for services rendered. This reason can also include repayment to agencies for contract and grant funding. It is possible to debit an income object code with this payment reason.
B	Reimbursement for Out of Pocket Expense	Used to reimburse individuals for out-of-pocket expenses on behalf of the departmental business operations due to an emergency or a situation where the regular procurement procedures cannot be followed
T	Rental Payment	Rents include rental payments for some equipment and space.
K	Revolving Fund Reimbursement	Revolving funds are a kind of cash account from which funds can be borrowed when cash on hand is needed for disbursements. Revolving funds are established as special types of payees that can be repaid using a DV document.
R	Royalties	Used for payments associated with royalties, rights, and permissions
W	Subscriptions, Books, Fees, and Resale	Used for any payment covering a renewal or subscription to a newspaper, magazine or to cover membership fees to a professional organization. This reason is also used by some departments, such as bookstores, to purchase books intended to be resold.
N	Travel Payment for a Nonemployee	Used to reimburse a nonemployee for travel expenses incurred for the purposes of university business.
P	Travel Payment for Prepaid Travel	Used for any prepaid travel to include conference registration, lodging, limousine and air fares. It can be used to prepay expenses for employees or nonemployees.
X	Travel Payment for Nonemployee with Honorarium	Allows the processing of a payment to a nonemployee for both travel reimbursement and an honorarium payment.
G	Utilities, Freight, or Postage	Can be used to pay utility bills, postage, or shipping and freight costs.