* This information replaces FIS 406 & 406-04/05/07/11 Vendor Invoice Processing
An invoice from the vendor must have the following to be processed by OSU:
- Vendor’s name
- Vendor’s mailing address
- Billed to Oregon State University at OSU building or location
If the documentation/vendor invoice is addressed to an individual employee and their home (or non-OSU) address, payment cannot be made directly to the vendor by OSU. The individual must pay for the product or service themselves, and then request reimbursement from OSU if it is a qualified business expense. This request for reimbursement is made using a Reimbursement Request Form with proof of payment attached.
Banner invoices will route through unit approval queues before routing to the appropriate Business Center or Business Affairs for approval. Invoices are received, reviewed, and approved in the ordering unit. If they have authority to do so, the unit enters the information into the FAAINVE screen in Banner. If they do not have Banner access for this entry, the unit sends the invoice to the Business Center. Back-up documentation is scanned into Nolij. The invoice is electronically routed to the following approval queues:
1. Unit approver, if unit approval is still needed;
2. Fixed Assets Property Management - Business Affairs, if paid on account code 40101 “capitalized equipment”; and
3. Business Center or Business Affairs for final approval.
Payments $5,000 or greater must have a P.O. reference in Banner or prior approval from PaCS. For additional information, see PaCS 303: Purchase Orders.
Invoices are audited for accuracy, compliance, allowability, use of proper account code, payment amount, appropriate discounts taken, correct vendor, and payment address. For expenditures on indexes connected with gifts, grants, and contracts, the Office of Sponsored Programs and Award Administration (OSRAA) also reviews these documents for specific sponsor requirements, policies, or limitations. Banner invoices with errors will be disapproved on-line and routed back to the originator for correction. The reviewer will specify what needs to be corrected. There is a requirement for an additional special review/approval when a check is greater than $300,000. No approvals should be done without the required invoice/documents (paperwork).
Travel advances, Departmental (Non-travel) advances, and the associated settlement reimbursements are approved by the appropriate Business Center and Business Affairs. Exception: Moving Expenses should be sent directly to Business Affairs.
The signature represents the payment is an appropriate allowable expense within the current budgetary authority. Do not use signature stamps. If you have the authority, sign your own name and print your name under the signature. Signature stamps are not accepted in lieu of an original signature. Do not sign other people names; this is forgery. Remember the separation of duties still applies. Original signatures are required on reimbursement requests for both the claimant and the department approver. A properly authenticated eSignature meets the threshold of an original signature. See FIS 511: e-Signature.
The person signing the document must be able to answer questions concerning the document, if additional information is required.
Price discrepancies requiring alteration of the vendor’s invoice must be documented with a Notice of Invoice Change Form. Common errors include extensions, overcharges on quotes, freight charges on FOB Destination, short shipments, returned merchandise, or damaged goods on FOB Destination orders. The Notice of Invoice Change should be submitted with the corrected invoice to the Business Center and mailed with the check to the vendor.
Discount terms are usually counted from the date the invoice or the merchandise is received, whichever is later. Check each invoice and purchase order for discount terms and take the larger discount if there is a difference. Take the discount only on items purchased, not on shipping or handling charges. Discounted invoices should be given priority processing.
If a vendor disallows a discount already taken, verify with the original documents and BANNER system information. Create a BANNER invoice for the disallowed amount. Use the original vendor invoice number with a suffix DD. Explain in text the reason for the payment.
Payment Terms (i.e. Net 30)
The Payment Due Date default on FAAINVE has been set to NET 30 Days. The Discount code shows "03"; this is Net 30. This discount code tells the Banner system to automatically calculate the Payment Due Date as 25 days after the vendor invoice date. DO NOT CHANGE this default unless the vendor requires their payment within a specific time period or there is a discount.