75.34 - Direct Payments Against Budgets
Last updated August 24, 2005 (Moved from Chapter 60 - June 6, 2007)
A. General. Payment against the budget is an instance where there is no payment document (Purchase Order [See APM 75.32], Departmental Purchase Order [See APM 75.32], or Claim Voucher [See APM 75.31]) required for payment. In the following cases it is acceptable to pay a document against the budget: [ed. 6-07]
A-1. Credit Memos. When a department receives merchandise purchased on a Purchase Order or Departmental Purchase Order, the following applies if the vendor sends a credit memo for part (or all) of the billing. The credit memos are paid against the budget and will appear on the Financial reports, referencing an invoice number and the original vendor invoice with a CM (for Credit Memo).
A-2. Utility Charges. Payment against the budget is used by some departments to pay their monthly utility charges. It is acceptable to direct pay, against a budget number, and sign such utility bills and send them to Accounts Payable for processing. Payment documentation will be reflected as an invoice number on your financial reports.
A-3. Federal Express Charges. The university has one account with Federal Express that is used by all departments. Payment to Federal Express is electronic and has eliminated invoices and data entry. Payment requires that information provided be correctly listed. The department is required to provide the budget number which the shipment should be charged to on the on-line order form. Dashes and spaces in a budget number or no budget listed, results in manual intervention. Please enter in the reference field the budget number and activity code, if applicable, such as:
PCX025 1234PC PCX025
B. Procedure. The invoice is sent to Accounts Payable with the words Direct Pay, a budget number, and a signature written on the invoice. Invoices are processed and entered into Banner, the invoices are reviewed by the department using the approval queue process. The department than approves the document to complete check processing.
B-1. Accounting. The payment will show on the Finance Reports under the Document column [See Banner Finance Maintenance Users Manual]. There will be no reference document.