3401 PR.05 Accounts Payable Invoice Remediation

Revision Date: 
October 17, 2017

Contents

1.      Overview of Accounts Payable (AP) Routing Reasons and Resolutions

2.      How to Correct Invoice Exceptions

3.      How to Prevent Future Invoice Payment Delays

4.      Record Retention

AP Invoices in Progress

Invoices that are missing the required departmental charging instructions (COA) and/or approval will route to the departmental inbox with a status of “In Progress” once Accounts Payable has identified the appropriate cost center.  The invoice or payment request is either routed to the department systematically or Accounts Payable follows the steps below to process an invoice or payment request and routes it to the departmental inbox accordingly:

  • AP researches the invoice to identify the department to which it belongs.
  • AP enters the default COA, with the proper Cost Center, so it will route to the appropriate Cost Center Accounts Payable Invoice Specialist (CC AP Invoice Specialist) for review and update.  Example:  SC298.YD000001.CCXXXX.PG99999.PJ006275.FD01
  • The department’s CC AP Invoice Specialist will have an opportunity to correct the COA, if all other information is correct.  If corrections are needed to Supplier, remit to, or amount, the CC AP Invoice Specialist should return the invoice to Accounts Payable.  Once the CC AP Invoice Specialist has approved the invoice, it will route to the 1K Approver for review and then either the 10K or Unlimited Approver, depending on the transaction amount.

Reasons for Routing an Invoice

The most common reasons for invoice needing to be routed are:

Type of Invoice

Invoices Resulting in Routing to Departments

OK to Pay Invoice

An invoice did not identify a Purchase Order.

Department submitted an OK to Pay invoice to AP and it now needs COA and/or Approval.

Standard Purchase Order Invoice

Invoice differs from purchase order with respect to any of the following:

  • Specific items ordered
  • Quantity of items
  • Unit price of items.

Match Exception approval is required before AP can pay the invoice.

Standard Purchase Order: if the department requested invoice approval

Department requested that department approves invoice before payment.

All Invoices

All invoices, greater than $5,000 match to a purchase order, require departmental receiving (approval) before AP can pay such invoices. 

All Invoices

All invoices that do not have an associated Purchase Order and are greater than $100,000 require AP Director approval before AP can pay such invoices and will route back to AP for such approval. 

Payment Holds

When an invoice is incomplete or needs approval, it will route to the departmental inbox and indicate the incomplete status.

The department lead administrator, or designee (authorized disbursement approver), is asked to approve/reject the invoice from the inbox within 3 business days.

Approval of invoices will route to the CC AP Invoice Specialist, which is the only departmental role that is allowed to make updates to the charging instructions.  Once the CC AP Invoice Specialist is satisfied and approves/submits the invoice, the transaction will route to the 1K Approver for review and then either the 10K or Unlimited Approver, depending on the amount of the transaction.

In the event of a Match Exception, please refer to the Supplier Accounts Match Exception and Override Training Guide for steps to remediate.

When approval is complete, the transaction will be removed from the departmental inbox and payment will be made, according to terms.

The Controller’s Office monitors the University default COA to ensure that departments are submitting approvals in a timely fashion.

To ensure timely payment processing, it is recommended to prioritize which invoices are released first.  The following invoice tips are offered as best practices: 

  • Invoices with discount payment terms;
  • Those invoices which are high dollar amount;
  • Those invoices which will be charged to a grant or Award; and
  • Older invoice dates.

Immediately communicate to the supplier any shipping errors, unsatisfactory or returned merchandise, and/or any necessary credit.  

Invalid Worktags

Check department copies of transaction documentation and use Workday Reports to determine that all Worktags have been properly set up.

If COA is invalid because…

Then…

Grant has an Award with an end date prior to the Invoice date

If the budget date on an invoice must be updated to allow the grant to be passed in the system, coordinate with Accounts Payable.  Department must check “Use Budget Date” and Accounts Payable must update the budget date to reflect order or service date of the purchases.

Spend Category is not enabled for use

If the spend category has not been enabled for the system being used (i.e. Expenses, Payables, Purchases, etc.), please contact COA@yale.edu for further guidance.

Ensure suppliers route invoices to the correct location.

To ensure prompt payment, when placing orders with suppliers, departments should clearly inform the supplier of the correct invoice mailing address.  Suppliers should forward all of the following invoice types to the address below: Standard Purchase Order Invoices; Ok to Pay Invoices; and Standard Purchase Orders if department approval is specified (i.e. requisition type 02 or 04):

                        Accounts Payable

                        P.O. Box 208228

                        New Haven, CT 06520

Whenever possible, create a Purchase Order.  If OK to Pay is necessary, please make sure supplier includes the Yale Department and/or Yale contact person.

University Policy 3201 General Purchasing states that all purchases should be made by Purchase Order.

Do not add to Purchase Orders.

Invoices that are related to purchase orders must match the purchase order with regard to the number of items, quantities, and unit prices.  If the invoice shows additional amounts or items, the invoice will route for a match exception until the department provides approval via their inbox.

To prevent delays in payment of an invoice, initiate a separate purchase order if additional items need to be purchased after a purchase order has been issued.  Do not add items to the existing PO.

To prevent PO/Invoice price holds, please obtain accurate pricing for non-catalog orders.

Make sure COAs are valid.

The lead administrator is responsible for ensuring that the COA on a request for payment is correct and valid for the transaction.  It may be helpful to maintain a list of the department’s valid Worktags, and the end dates for any Grants the department may utilize.

Make sure COAs included on requests for payment are correctly recorded and legible.

Note: Preprinted labels may be produced for recording each COA so they can be affixed to invoices and payment requests.

Retain copies of all invoices, Check Request Backups, and supporting documents for 90 days.