ACCOUNTS PAYABLE POLICIES AND PROCEDURES
Payable is under the direct supervision of the Director of Financial Services
and is accountable for maintaining accurate and up-to-date accounting of all
outstanding financial obligations of the University.
State University has entrusted Accounts Payable to disburse all funds except
those for salaries and wages by an appropriate payment method. Accounts Payable
is responsible for auditing and processing accurate and timely payments to
vendors and individuals. Checks are written and mailed twice a week. Direct
deposits are processed and submitted to the bank three days a week. Accounts Payable
staff work directly with departments and vendors to ensure proper policies and
procedures are followed. The payment process involves reviewing vendor
statements, resolving discrepancies, applying credit memos and providing
customer service. Accounts Payable
maintains records of all checks and backup documentation.
CHECK PROCESSING AND ISSUANCE
Accounts Payable accountants input invoices into the Banner Accounts Payable
System on a daily basis. Any department submitting checks for processing for
the Tuesday check run must ensure that all pertaining information is submitted
to the Accounts Payable before 3 p.m. on Mondays. All invoices submitted after
the Tuesday deadline will be submitted for the Thursday check run. Any
department submitting checks for processing for the Thursday check run must
ensure that all pertaining information is submitted to the Accounts Payable before
3 p.m. on Wednesdays.
checks are mailed to vendors or sent electronically. Vendors are not allowed to
pick up checks. Reimbursements to employees will generally be processed as
direct deposits. Checks are mailed, however, if an employee does not have a
checking or savings account.
Accounts Payable will not generate a check to vendors
without an approved letter and invoice.
INVOICES AS A RESULT OF A PURCHASE ORDER
State law requires that the University
receive an original invoicefrom the vendor, and payment of the invoice must be processed within 45 days of receipt (Miss,
Code 31-7-305). The invoice should be on the vendor’s letterhead and/or include
vendor representative signature. Should the department receive the invoice from
the vendor directly, the Purchase Order number (if not provided) should be
referenced and forwarded to Accounts Payable. All invoices not paid within 45 days shall result in a 1.5% monthly
late fee because the University would be out of compliance with State Law.
Invoices are date stamped and separated
once submitted to Accounts Payable. All invoices are divided between two
Accounts Payable payers; once invoices are received by payers, they are audited
thoroughly for obvious errors and problems such as original invoices, reference
to purchase orders, goods received, departmental approval, etc. When an invoice
has met all the requirements,
it will be processed for payment. Payees are allowed a minimum of two weeks for
In order to minimize the risk of
making duplicate payments, original
invoices are required for all types of payments (Miss. Code
7-7-27). Copies of invoices, faxes and e-mails are not considered original and
will not be accepted.
If a Purchase Order has been issued to
pay a deposit or an initial payment with subsequent payments to follow, the
same Purchase Order cannot be used to pay the additional payments due the
vendor unless the
additional payment requirements are included on the Purchase Order.
When a Purchase Order has been issued
that has incremental payment requirements, it is the responsibility of the
department to monitor a timely release of payments. It is requested that the
department forward any notices prompting a payment release or invoices for an
installment payment that is due to Accounts Payable.
VERIFICATION OF GOODS RECEIVED OR SERVICES
department must verify receipt of items purchased on a Purchase Order (PO). Accounts
Payable cannot process payment until verification of goods received have been
reflected by the Receiving Department. Any items received directly by the
department must be verified by the Receiving Department.
Receiving Department, Infirmary, Natchez Campus and Library have the ability to
receive items and input them into Banner. (See Receiving Department document
for instructions on marking items as received).
DOCUMENTATION FOR REIMBURSEMENTS
order to minimize the risk of making duplicate payments, an original itemized
invoice is required for all types of payments. Copies of invoices, faxes and
e-mails are not considered original and will not be accepted. Reimbursements
must be processed on a Purchase Order. Purchase Orders must be detailed.
Documentation required for reimbursement must include the following:
- Original itemized receipts
- Copies of canceled checks (front and back) or bank
statements that provide details of paid checks or credit card slips or
- Other forms of documentation that may be approved
for independent contractors, honorariums, stipends, athletic umpires,
international individuals, employee recruitment and interviews must have
original documentation. All original documentation is required.
required for reimbursement may include the following items:
- Airline Ticket Documentation:
- The original passenger receipt that accompanies the
hard copy of the e-ticket.
- An email or computer print out, referencing the amount
of the ticket, form of payment and the status of whether the ticket is
refundable or nonrefundable (usually called the Passenger Receipt and Itinerary
- Copy of credit card statement reflecting payment:
- Original itemized receipts
- Copies of canceled check (front and back) or bank
statements that provide details of paid checks
- Credit card slips or statements
All purchase orders should be made on a Purchase Order
or using a Procurement Card. If the vendor will not accept a Purchase Order or
Procurement Card as a payment option, the employee can use personal funds. An
Employee Reimbursement Request form with the original itemized receipts must be
submitted for reimbursement. A letter of justification is required, explaining
why a purchase was made without a Purchase Order or before a Purchase Order was
for equipment, services and state contract items must be paid with a Purchase Order.
The Employee Reimbursement Request form will be returned to the employee if it
has no Purchase Order. Any items purchased by an employee and not processed on
a Purchase Order will be returned to the department. A Purchase Requisition
must be submitted with the employee named as the vendor for reimbursement.
Employee Reimbursement Request form has been received, it is audited thoroughly
for obvious errors and problems such as signature approvals, original invoices,
letter of justification, etc. Once an Employee Reimbursement Request form has
been audited and is deemed an allowable expense, it is processed.
processes the remittance and employee reimbursements forms, the payee should allow
at least two weeks for processing of remittance. Should there be extenuating
circumstances that require the check to be issued sooner, the payee should
reference the date needed in special instructions and hand deliver to the
Accounts Payable Manager.
cannot approve their own reimbursements. Approval must be acquired from an immediate
REIMBURSEMENTS FOR EMPLYEE MOVING EXPENSES
reimbursements on a Purchase Order for employee reimbursements with all
original receipts. A copy of the department supervisor’s offer letter should be
attached referencing the approved moving expense amount.
REIMBURSEMENTS FOR CELLULAR PHONES
types of reimbursement for expenses of wireless communication devices are not
allowed. Under the law a wireless
communication device is a “cellular telephone, pager or a personal digital
assistant device having wireless communication capability” (Senate Bill 2398 to
amend Mississippi Code of 1972, Section 9-3).
of the University requires that some on-campus entertainment expenses be
incurred. These expenses should be for University business only. All
transactions involving entertainment expenses must have the following
- A statement of purpose for the expense, as well as the
benefit to the University provided. (General descriptions such as “entertainment
expense” and “business lunch” are not adequate explanations and will be
returned, thereby delaying processing.)
- A list of all persons in attendance, including their
relationship to the program to be benefited and any other relevant details
- The date, time and place of the entertainment
- Approval of the appropriate signature authority
Please note that Accounts Payable reserves the right
to request itemized receipts at any time, under any circumstance or when deemed
HONORARIUMS, STIPENDS AND SCHOLARSHIPS
honorarium is a form of gratitude shown toward an individual (non-ASU employee)
in return for that individual’s willingness to visit the University and
participate in a University event of short duration (such as speaker, etc.).
The recipient should be told that the honorarium does not represent
compensation equal with the actual service provided. A description of the
reason for the honorarium and the name of the event including the date and
location must be referenced on the Purchase Order.
should not be charged to restricted funds. Contact the Sponsored Programs
Administration should you have any questions. Documentation required to
compensate for honorariums should include:
- A signed original
W-9 that must be on file in Accounts Payable before payment is made.
- A 1099-MISC that
is used on all dollar amounts of $600 or more. A permanent address must bed
provided for mailing of the 1099-MISC form.
documentation for all expenses being reimbursed. See section on reimbursement
to non-employees for travel expenses.
procedures for payment to an ASU student or non-University student who provides
a service to the University is as follows:
- Pay with a purchase order and provide a detailed
description for the reason for payment.
- Letter must be sent to Financial Aid Office with
detailed description and reason for payment.
procedures for payment of business expenses for an independent contractor are
- For reimbursement of business expenses during services
rendered, original receipts are not required. If the department needs to verify
expenses, it is the department’s responsibility to obtain copies of the
receipts. Expense reimbursements will be included in taxable income for the
individual to deduct on his or her personal tax return.
- A signed original W-9 must be on file in Accounts
Payable before payment is made.
- 1099-MISC. is issued on all dollar amounts of $600 or
more. A permanent address must be provided for mailing of the 1099-MISC form.
general information on scholarships:
- Scholarships are
awarded through Financial Aid.
- Contact Sponsored
Programs Administration for any payments involving restricted funds.
students or individuals should be paid with a Purchase Order with a detailed
description of the reason for payment.
ADDITIONAL PAY FOR SERVICES RENDERED
ASU employees cannot be paid from a Personal Service Contract for any
additional services rendered for a department.
Alcorn State University is exempt from paying sales taxes in the State
of Mississippi and in several other states. Sales Tax Exemption Certificates
are located in the Accounts Payable Office. If you have questions, please
contact the Accounts Payable Office at (601) 877-4188.
1099 MISC FORMS and MISC TAX INFO
Payments of $600 or more made to independent contractors or other
persons who render services to the University must be reported on a Form 1099-MISC.
It is the responsibility of individuals or groups who are paid for services and
reimbursed for expenses, other than a corporation to report such to the
Internal Revenue Service. Accounts Payable produces the 1099-MISC form sending
one copy to the vendor and one copy to the IRS. This policy is not all
inclusive nor does it address every situation that may arise. It is intended to
help prevent some of the more common mistakes. In order to prevent
reimbursement problems, questions about specific situations not addressed in
this policy should be directed to the Accounts Payable at (601) 877-4188.
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