3401 PR.08 Recurring Payments

Revision Date: 
September 21, 2020

Contents

1.      Overview

2.      Requesting Recurring Payments

3.      Accounts Payable Review of Requests

4.      Requestor Approval of Template

5.      Accounts Payable Setup of Recurring Payments

6.      Cancelling and Changing Recurring Payments

1. Overview

This procedure supports Policy 3401 General Payment.  It details the steps to follow to request that Accounts Payable (“AP”) establish recurring payments to a Supplier.  This procedure does not cover the sourcing or purchasing of goods and services.  Policy 3201 General Purchasing covers the University’s rules on those subjects (e.g., Purchase Orders, PCard use, out-of-pocket expenditures) and their supporting procedures.

In general, recurring payments may be established for transactions of fixed (for utilities, variable) amounts occurring at regular intervals (e.g., monthly, semi-annually) over a specific time period (e.g., one year).  AP only establishes recurring payments for future payments.  Payments for previous billings should be processed according to Procedure 3401 PR.02 Supplier Invoice Request.

Note: this procedure does not apply to payments via PCard or the establishing of recurring payments for long-term (i.e., ≥ one year) real estate leases.  For information on PCard payments, refer to Policy 3215 Yale Purchasing Card.  For information on establishing recurring payments for long-term real estate leases, refer to Policy 1800 Real Estate Leases.

2. Requesting Recurring Payments

Requestors who have determined recurring payments to a Supplier are appropriate (based on the criteria in Section 1, above) may request establishment of those payments by submitting a request via email to AP at sharedservices@yale.edu.  In the email, indicate the request is for the establishment of recurring payments and include the following information:

  • Supplier name and payment address;
  • Start date and end date of recurring payments being requested;
  • Interval of recurring payments (e.g., monthly, semi-annually);
  • Amount of each payment, if fixed (if variable, indicate amount is variable); and
  • For arrangements with signed agreements, attach the signed agreement (e.g., contract, lease).

3. Accounts Payable Review of Requests

AP reviews requests to determine whether the circumstances are appropriate for establishing recurring payments and whether the information provided is sufficient.  Once AP receives the email, it reviews the request and supporting documentation (if any) and responds within three business days of receipt, following one of the following options:

  • Circumstances are inappropriate for recurring payments.  AP responds to the requestor with an explanation about why the communicated circumstances are inappropriate for establishing recurring payments.  In this case, AP does not establish recurring payments.  If the requestor has additional information that may alter AP’s decision, the requestor may provide that information in reply.
  • Supporting information is insufficient.  AP responds to the requestor and indicates the required, additional information.  The requestor is responsible for supplying AP with the required, additional information.  Once AP receives sufficient information, it proceeds to the next step (next bullet).
  • Supporting information is sufficient and circumstances are appropriate.  AP creates a recurring payment template for review and sends to the requestor via Workday with the draft template and further instructions on completing the process.

4. Requestor Review of Template

The requestor, upon receiving a response from AP with the recurring payment template, is responsible for reviewing the template to ensure all information is correct.  The requestor should consult any other appropriate members of the department to confirm accuracy.  The requestor should then do one of the following:

  • Information on the template is incorrect.  Use the “Send back” function to indicate to AP that corrections are required.  In the “Comments” field, include detailed instructions on what information needs to be corrected.  AP will make the requested correction(s) and return an updated template for review.
  • Information on the template is correct.  Use the “Approve” function to indicate the information is correct and approved for setup of the recurring payments.

5. Accounts Payable Setup of Recurring Payments

Upon receiving the requestor’s approval of the recurring payment template, the AP Manager verifies the completeness of the template.  If the template is incomplete, the AP Manager returns the template for completion.  If the template is complete, AP sets up the approved recurring payment according to the specifications in the template.

Once AP sets up the recurring payments, payments for fixed amounts are processed according to the specifications in the template for the specified time period.  For variable payment amounts, Workday creates an invoice for each interval.  The appropriate departmental Approver is responsible for updating the amount each interval to the appropriate amount and attaching that interval’s bill.  AP processes the payment once upon receipt of the updated information.

6. Cancelling and Changing Recurring Payments

Once set up, recurring payments continue for the time period specified in the approved template.  If an established recurring payment requires cancellation or changes (e.g., amount change, COA change, Supplier address change), the requestor (or other appropriate member of the department) is responsible for sending a request via email to AP at sharedservices@yale.edu.   In the email, indicate whether the request is for a cancellation or a change and include the following information:

  • Supplier name and payment address;
  • Start date and end date of current recurring payments;
  • Interval of recurring payments (e.g., monthly, semi-annually);
  • Amount of each payment, if fixed (if variable, indicate amount is variable);
  • Reason for the requested cancellation or change;
  • For changes, specific information to identify and describe the requested change; and
  • For changes resulting from an amended agreement, attach the amended agreement.

Upon receiving the request to cancel/change a recurring payment, AP reviews the request to determine whether the information provided is sufficient.  AP responds within three business days of receipt, following one of the following options:

  • Supporting information is insufficient.  AP responds to the requestor and indicates the required, additional information.  The requestor is responsible for supplying AP with the required, additional information.  Once AP receives sufficient information, it proceeds to the next step (next bullet).
  • Supporting information is sufficient and circumstances are appropriate.  AP executes the cancellation/change request.  Cancellations are effective immediately.  Changes appear in the next scheduled payment interval.