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Receiving & Accounts Payable

• Welcome! We will begin promptly at 9:00 a.m.
• Make sure your first and last name displays in the “Participant” list so we

can mark your attendance.

• Training handouts: https://go.iu.edu/buyhandouts
• BUY.IU training site: https://trn.one.iu.edu
• Click on the “BUY.IU TUIT” task tile.

Receiving & Accounts Payable

INDIANA UNIVERSITY

Office of Procurement Services

Agenda

• Invoice creation.
• Receiving: what & when.
• Break.
• Logging a Receipt.
• Activity 1.
• Matching rules.
• Invoice review.
• Break.
• Activity 2.
• Locating Invoices.
• Activity 3.
• Wrap-up.

Learning Objectives

• Describe the different methods by which Invoices are created.
• Log quantity and cost receipts on received orders as appropriate.
• Define 2-way and 3-way matching and when each applies.
• Describe when rejecting or cancelling an Invoice is appropriate.
• Save document searches to locate invoices in various states such as

paid, payable, or hold for receiving.

Invoice creation

Invoice workflow

Supplier invoice submitted BUY.IU Invoice generated BUY.IU Invoice paired to PO Matching tolerances applied Pass tolerances Fail tolerances Invoice reviewed, approved Invoice marked “Payable” Payment generated

Digital Mailroom (DMR)

• A third-party which receives and reviews supplier invoices.
• Invoices sent to lockbox via mail or emailed to invoice@iu.edu.
• Attempts to pair supplier invoice to corresponding purchase order.
• Invoice first scanned by visual recognition software, then reviewed by staff.

– Paired invoices are scanned and uploaded into BUY.IU. – Unpaired invoices forwarded to Accounts Payable for additional research.

• Invoice Source = Digital Mailroom Import.

Electronic file

• Invoice data file sent directly to BUY.IU which immediately generates

BUY.IU invoices.

• Used by Catalog suppliers such as Guy Brown, Dell, Fisher Scientific, etc.
• No supplier invoice document in BUY.IU.
• Must contact supplier directly with invoice questions.
• Invoice Source = Electronic.

Supplier portal

• Suppliers can submit invoices directly to BUY.IU using their portal.
• BUY.IU Invoice generated immediately upon submission.
• May or may not have supplier invoice document attached. Will appear if

attached by supplier.

• Invoice Source = Supplier Portal.

Manual entry

• Accounts Payable staff can manually create BUY.IU Invoices as needed.
• Used to reprocess invoices or in special situations.

– Supplier invoice image attached.

• Invoice states who manually entered the invoice from AP.

‒ Contact fmsaphlp@indiana.edu with questions.

• Invoice Source = Manual.

Receiving: what & when

Receiving overview

What is receiving?

• The process of marking a good or service as complete based on the

quantity or value of items/services accepted. How is this accomplished?

• Via the logging of a Receipt document on the Purchase Order.
• A Receipt represents what was received in that shipment.

Who can log a receipt?

• Any BUY.IU user with the Requestor role.

Receiving overview cont’d

What triggers receiving?

• Invoice booking against a Purchase Order which requires receiving.
• Receiving a good or service.

Who is notified when receiving is required?

• The individual listed in the “Prepared By” field of the Requisition. This

individual is considered the Purchase Order owner.

Types of receiving

Quantity receiving

• Used to log the number of

goods or services received.

• Used with one-time orders.

Cost receiving

• Used to log the value of goods
• r services received.
• Used with Recurring orders
• Used to log receipt of capital

assets.

When is receiving required?

• It depends on a couple factors:

– The type of Requisition, or order, placed. – The value of the order or invoice.

One-time orders

Orders less than or equal to $4,999.99:

• Quantity receiving is not required.

Orders greater than or equal to $5,000:

• Quantity receiving is required and forced by BUY.IU.
• Every Invoice, regardless of dollar amount, routes to Hold for Receiving

workflow stop.

Hold for Receiving stop

• Invoice is held at this stop until Quantity Receipt which satisfies the

Invoice is logged or 10 days before Invoice Due Date.

• When deadline is reached, Invoice moves to Matching Exceptions

workflow stop. This is referred to as Receiving Lead Time.

Matching Exceptions stop

• Hold for Receiving reflects a Completed status even though Receipt is

incomplete.

• Fiscal reviewers must verify Quantity Receipt logged prior to Invoice

approval.

Recurring orders

Invoices less than or equal to $4,999.99:

• Receiving is not required.

Invoices greater than or equal to $5,000:

• Cost receiving is required per Standard Operating Procedure.
• Invoice routes to Recurring Payment Review workflow stop for fiscal

review and approval.

Recurring Payment Review stop

Fiscal reviewers must verify Cost Receipt logged prior to Invoice approval.

Subawards

• Contract & Grant subawards are established as Recurring orders using

commodity code ORA1.

• Every Invoice, regardless of dollar amount, booked against a subaward

Purchase Order requires Cost receiving.

– Invoices route to Hold for Receiving workflow stop, then Matching Exceptions if Receiving Lead Time reached.

Check Requests

Generally, Check Requests do not require Receiving.

• Exception: Purchases for Resale form.

– When using this form, we are receiving goods in return. – Follows same guidelines as one-time orders.

When is receiving required?

Order type Receiving required? Receiving forced?

One-time order ≤ $4,999.99 No. One-time order ≥ $5,000 Yes, regardless of Invoice value. Yes Recurring orders Yes, if Invoice value is ≥ $5,000. Subawards Yes, regardless of Invoice value. Yes Check Requests No, unless using Purchases for Resale ≥ $5,000. Yes

Break

Logging a Receipt

Overview

• Receipts are initiated from the Purchase Order.

– Open the Document Actions menu, then select the appropriate Receipt type.

Activity 1

Logging Receipts

Question 1

In the Non-Catalog Orders class, you placed a one-time order with Pier Group for 13 Surface Pro 6 tablets. The order totaled $13,845. So far, your department has received one tablet. The remaining tablets are on backorder. Pier Group submits an invoice to DMR, totaling $1,065, which books against the Purchase Order.

• Is a Receipt required in order to pay this Invoice? If yes, which type of

Receipt: Cost or Quantity?

– Yes – Quantity Receipt. – One-time order with a value greater than or equal to $5,000.

Question 1

In the Non-Catalog Orders class, you placed a one-time order with Pier Group for 13 Surface Pro 6 tablets. The order totaled $13,845. So far, your department has received one tablet. The remaining tablets are on backorder. Pier Group submits an invoice, totaling $1,065, which books against the Purchase Order. Locate a Purchase Order from Pier Group and log a Quantity Receipt for one tablet.

Make sure you’re logged into TRN! https://trn.one.iu.edu “BUY.IU TUIT” task tile

Activity 1: Log a Quantity Receipt

Question 2

In the Catalog Orders class, you placed an order with CDW-G for three Ethernet cables and one Microsoft docking station. The order totaled $171.76. The items have shipped and CDW-G already invoiced IU for the goods.

• Is a Receipt required in order to pay this Invoice? If yes, which type of

Receipt: Cost or Quantity?

– No. – One-time order with a value less than or equal to $4,999.99.

Question 3

You work in the Kelley School of Business on the Bloomington campus. Each year, your department establishes a Recurring order with a local Coca Cola

• distributor. The blanket order is used to purchase refreshments for student

recruitment events throughout the year. Coca Cola submits an invoice, totaling $6,095, for payment and the Invoice books against PO0005155.

• Is a Receipt required in order to pay this Invoice? If yes, which type of

Receipt: Cost or Quantity?

– Yes – Cost Receipt. – Invoice with a value greater than or equal to $5,000 booked against a Recurring

• rder.

Question 3

You work in the Kelley School of Business on the Bloomington campus. Each year, your department establishes a Recurring order with a local Coca Cola

• distributor. The blanket order is used to purchase refreshments for student

recruitment events throughout the year. Coca Cola submits an invoice, totaling $6,095, for payment and the Invoice books against PO0005155. Locate the Purchase Order and log a Cost Receipt for the value of goods received.

Make sure you’re logged into TRN! https://trn.one.iu.edu “BUY.IU TUIT” task tile

Activity 1: Log a Cost Receipt

Matching rules

Matching in BUY.IU

Once BUY.IU Invoice is paired with a Purchase Order, matching rules are applied. Matching: an automated process which verifies information across multiple documents “matches” or is within acceptable tolerances. Two sets of matching rules:

• 2-way match: PO and Invoice comparison.
• 3-way match: PO, Invoice, and Receipt comparison.

Acceptable tolerances: 2-way

• Invoice extended price is within 10% or $250, whichever is less, of PO.
• Invoice line item values are within 10% or $250, whichever is less, of

corresponding PO line items.

• Invoice line item quantities are within 10% of corresponding PO line

items.

Acceptable tolerances: 3-way

• Invoice extended price is within 10% or $250, whichever is less, of PO.
• Invoice line item values are within 10% or $250, whichever is less, of

corresponding PO line items.

• Invoice line item quantities are within 10% of corresponding PO line

items.

• Receipt document logged on PO which meets or exceeds items/amounts

invoiced.

What if tolerances are exceeded?

• Invoice routes to Matching Exceptions workflow stop.
• Fiscal approvers review Invoice and approve or reject the payment.

When do matching rules apply?

Order type 2-way match 3-way match

One-time order ≤ $4,999.99 X One-time order ≥ $5,000 X Recurring order Invoice ≤ $4,999.99 X Recurring order Invoice ≥ $5,000 X Subaward Invoice (any amount) X

Invoice review

Who reviews Invoices?

• Invoice review workflow stops consist of the Fiscal Officer, primary and

secondary delegates associated with the account(s) used to fund the Purchase Order.

– Individuals associated with the PREQ doc type in KFS. – Each individual has equal review and approval permissions.

Invoices do not route to an Org Review workflow stop for review and approval.

What is a Matching Exception?

• An Invoice routes to the Matching Exceptions workflow stop when the

Invoice fails system matching rules.

• BUY.IU requires fiscal reviewers to review the Invoice and determine if the

Invoice is viable, even though established rules failed.

• Fiscal reviewers then approve the Invoice to move it forward in routing or

reject/cancel to stop routing.

Matching section

BUY.IU provides a side-by-side comparison of the supplier invoice to the BUY.IU Invoice in the Matching section.

Failed 2-way match

Failed 3-way match

Approve/Complete option

• Select Approve/Complete & Show Next or Approve/Complete Step

– Invoice continues routing forward and ultimately generates payment.

• When approving, BUY.IU requires an explanation as to why the Invoice is

viable.

– Explanation is logged as a Comment and becomes part of the official audit record of the Invoice.

Force matching an Invoice

When to contact AP

AP staff are able to edit and manually enter Invoices.

• Contact AP when:

– Supplier invoice is correct but was keyed incorrectly. – Remit address on BUY.IU Invoice document is incorrect.

• AP staff can sometimes correct these errors. Once corrected, department

can approve for payment.

Reject/cancel option

If the Invoice did route to Match Exceptions workflow stop:

• Select Reject/cancel from Document Actions.
• Contact supplier and instruct them to submit corrected invoice.

Reject/cancel option

If the Invoice did not route to Match Exception:

• Contact Accounts Payable and request Invoice be cancelled.
• Contact supplier and instruct them to submit corrected invoice.

When is reject/cancel appropriate?

• Invoice books which represents a duplicate payment.
• Invoice books which contains incorrect items or services.

When is reject/cancel not appropriate?

Situation Resolution

Invoice books for items not yet received. Request credit from the supplier. Invoice contains sales tax or shipping charges. Invoice books for goods which arrived damaged. Invoice is funded by incorrect account. Complete a GEC once payment posts.

Break

Activity 2

Matching rules and Invoice review

Question 1, Part 1

The School of Medicine holds a welcome celebration for its newly accepted med students. Chartwells, the preferred caterer on the IUPUI campus, catered the event. In total, catering for the event was estimated to cost $1,170. Chartwells submits an invoice for the event which is undergoing matching in BUY.IU.

• What matching rules apply to this Invoice?

– 2-way match.

• Will this Invoice route for fiscal review?

– No – unless the Invoice fails matching rules.

Question 1, Part 2

The Invoice fails matching rules and routes to Matching Exceptions for review and approval. Review the matching summary below and determine why matching failed.

Ordered Received Net Invoiced Quantity: 1

• 47

Unit Price: 1,170.00 USD

• 2.00 USD – 37.00 USD
• Ext. Price:

1,170.00 USD

• 1,285.63 USD

Document DTS&H: 0.00 USD

• 110.57 USD

Question 2

You work in the Center for Rural Engagement on the Bloomington campus. In May, you established a Recurring order with Lamar Outdoor Advertising to purchase billboard space along Interstate 69 in Indiana. Lamar Outdoor Advertising bills your department quarterly. It’s October and the first invoice is submitted to DMR. The invoice’s value is $6,750.

• What matching rules apply to this Invoice?

– 3-way match.

• Will this Invoice route for fiscal review?

– Yes – All Invoices greater than or equal to $5,000 booked against Recurring orders route for review and approval.

Locating Invoices

Advanced Invoice search

• Create and save searches in BUY.IU.
• Share with your department or individuals.
• Search based on amount, pay status, workflow stop, and more.

OK to Pay workflow stop

• Every Invoice routes to the OK to Pay workflow stop.
• Once reached, payment details are transmitted to the Pre-Disbursement

Processor, or PDP, and held until payment terms on supplier profile are reached.

• The Invoice Due Date reflects when payment is due to the supplier.

– PDP subtracts 4 days from the Due Date to establish when payment is generated.

Invoice pay statuses

The Pay Status field of the Invoice reflects whether payment will be, or has already been, made.

Pay Status Description

In Process Invoice is enroute and awaiting approval/system validation. Payable Invoice is considered “OK to Pay.” Payment information transmitted to PDP and held until payment terms on supplier profile are met. Paid Payment has been issued. Cancelled Payment was rejected or cancelled by an approver.

Activity 3

Locating Invoices

Activity 3

You are responsible for reviewing Invoice activity for your organization. Login to the production environment of BUY.IU, create, and save searches which return Invoices meeting the criteria described below.

• 1. Invoices which have been paid in the past 30 days.
• 2. Invoices which did not require fiscal review and approval prior to being

considered OK to Pay.

• 3. Invoices which require the logging of a Receipt prior to being considered OK

to Pay. Next, create a dashboard in BUY.IU which contains your saved searches.

Activity 3

Make sure you’re logged into PRD! https://one.iu.edu “BUY.IU” task tile

Wrap-up

Next steps:

• Review your reference guide.
• Visit the BUY.IU resource page: https://go.iu.edu/buyiu.
• Review communications from Purchasing.
• Use the BUY.IU Support Form to submit questions or issues.
• Sign up for additional training.

Additional training

Getting Started in BUY.IU Catalog Orders Receiving and Accounts Payable Non-Catalog Orders Check Requests

Training evaluation

How was the session? Let us know! Complete our anonymous survey (1-2 minutes) https://go.iu.edu/eval