Accounts Payable Procedures
This chapter contains policies and procedures relating to the payment of all invoices for the University, including both purchase order and non-purchase order items. These policies are intended to be guidelines for processing all expenditure documents through Accounts Payable. The responsibility to observe these guidelines is that of both the employee and the department dean/director/chair who approve such expenditures.
ScopeThe material in this chapter pertains to all employees and departments of the University, regardless of the index to be charged.
This material is not all inclusive, but is intended to cover those policies and procedures which should be referenced on a more than casual basis by a significant portion of the University community. If you cannot find policies and procedures in this chapter that relate to your situation or if you need interpretative assistance, please contact the General/Auxiliary Accounting area or the Director's office, as appropriate.
PolicyAccounts Payable is responsible for accurate and timely payment of all invoices for the University. This includes all payments on purchase orders, blanket purchase orders, check requests, travel advances and travel expense vouchers, petty cash, freight bills and fellowship payments.
Inquiries from vendors regarding the status of unpaid invoices are generally handled by Accounts Payable personnel. If invoices have been sent directly to the department by the vendor, or have not been returned to Accounts Payable with the necessary information (index, acct, PO number, signature) the department will be expected to respond to inquiries from the vendor. It is extremely important for the University to maintain a satisfactory credit standing with vendors and prompt payment ensures this.
Check requests can be also be processed on the web. Click here to get there.
Use of the University's sales and use tax number for personal use is prohibited.
Generally payment or reimbursement of Michigan sales and use tax will not be made. The University is also exempt from the payment of sales tax in Wisconsin and Florida.
If prepayment is required, a check request must be received in Accounts Payable at a minimum of five business days prior to the check being needed.
Click here for PROCEDURE
Click here for PROCEDURE
All business meals and banquet costs incurred by University employees hosting these events should be paid directly by the employee, unless the event is held at University facilities. Reimbursement requests are processed on a Business Meals and Banquet Report with original receipts attached and submitted to Accounts Payable. Events held at University facilities are interaccount billed by the facility.
Click here for PROCEDURE
Departments requiring a stop payment on an operating/accounts payable (non-payroll) check should contact the Manager of Banking Operations and Auxiliary Accounting immediately upon realizing a check is lost or stolen. If a stop payment is required on a payroll check, Payroll Services must be contacted.
Accounting services issues the stop payment with the bank. A replacement check will be issued. Generally, if a non-student check is reissued 30 days after the date of the check, there is no fee. However, if the reissue is prior to 30 days from the check date, there will be a fee. If a student refund check is reissued after 15 days from the date of the check, there is no fee. If the reissue is prior to 15 days from the date of the check, there will be a fee.
Accounts Payable is also responsible for maintaining the check cancellation function. If a check must be canceled due to an inaccurate amount, an incorrect vendor name, or an incorrect address and a replacement is not needed, the check must be sent to Accounts Payable with a note indicating the check must be canceled.
The JR Van Pelt Library issues purchase orders directly to vendors due to the unique nature of the items (books, journals, subscriptions, periodicals, etc.) being purchased. Accounts Payable receives the invoices from the Library and processes them for payment.
The Campus Store and University Images also issue purchase orders directly to vendors due to the nature of their business. It is practical and efficient since items being ordered are for retail sales. Invoices are entered by these units into their point of sale system and interfaced to accounts payable for payment. Checks are distributed by Accounts Payable.
Departments enter student fellowship information into the Banner system by the 11th of each month. The registration status, index and any withholding requirements are verified by Accounting.
The University is required by federal law to withhold taxes on fellowships payments to some nonresident alien students depending on their visa status and tax treaties. The withholding requirements are determined by the University tax accountant.
Accounts Payable distributes the fellowship checks to the departments. They are normally available on the 24th of the month. Check requests may also be processed for fellowship payments.
MTU - Accounting Services
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This page created by Bryon Freeman.