Receiving & Payment Process
After an item is ordered, a copy of the purchase order is sent to the account manager. It is the account manager's responsibility to review the purchase order when received from the Purchasing Office to ensure the information on the purchase order fulfills the department's needs. Since the purchase order is actually a contract with the vendor, it is important that the Purchasing Office settle any issues with the vendor as soon as possible.
Goods can be received through the University loading dock or directly by departments. Departments should examine items received to ensure the items are in good condition and to verify compliance with the purchase order. If the items are in order, a Receiving/Payment Authorization Form-AP-102 (ATTACHMENT II-1) should be filled out by the department and submitted online to the Accounting Office.
The purchase order directs vendors to send invoices to the Accounts Payable Office, MSC 309. When an invoice is received from a vendor, it is matched to the purchase order and to the AP-102. Assuming that all information agrees, payment will be issued to the vendor by the State Comptroller's Office. It is essential that the payment process be initiated by departments as soon as possible after acceptable goods or services are received to ensure vendors are paid on time.
All information required on Form AP-102 must be provided for payment to be processed by the Accounts Payable Office. Forms not fully completed will be returned to the department.
The Accounts Payable Office will not pay purchase orders for goods specifying an installation or testing period until directed to do so by the department or unless specified in the purchase order. If an item requires installation or allows for a test period, such arrangements should be clearly specified on the face of the purchase order. The Accounts Payable Office will rely on the purchase order to determine if an installation period is provided. If not stated in the purchase order, it will be necessary for the department to obtain a written statement from the vendor specifying the allowed installation or testing period.
Freight will only be paid when it is specifically identified on the purchase order. When departments obtain quotes and recommend a vendor and price to the Purchasing Office the requisition should specify that freight is or is not included in the price so it can be noted on the purchase order.
The following wording will be used by the Purchasing Office regarding the payment of freight:
|Purchase Order Wording
|Freight included in item price.
||Accounts Payable Office will pay only purchase order amount.
|Freight to be prepaid and added.
||Accounts Payable Office will pay freight based on invoice and reasonableness of charge.
|Estimated freight charges.
||Purchase order will state a dollar amount for encumbrance purposes. Accounts Payable Office will pay based on invoice and reasonableness of charge.