Policies & Procedures

Administrative Procedure: 6001

ACCOUNTS PAYABLE

The Accounts Payable function includes processing invoices and making timely and accurate payments for authorized transactions.

Vendor Master File

The College’s Purchasing Department is responsible for obtaining appropriate documentation to establish new vendors. When payment is submitted for a new vendor or contractor, the department will forward the appropriate documentation to purchasing for processing. Purchasing personnel will review for the following information:

• Completed IRS Form W9 for domestic payments;
• Vendor’s legal name and any “Doing Business As” name(s);
• Street Address;
• Telephone Number;
• Fax number, if applicable; and
• Contact name.

When the preceding information is not complete, all paperwork will be returned to the originator for completion.

Receipt Recording of Payment Requests

All invoices received by Accounts Payable will be date stamped with the date of receipt. The Accounts Payable team coordinators forwards all documentation to the Assistant Director, Accounts Payable for review and approval.

All accounts payable transactions must be supported by adequate documentation that explains the nature and purpose of the expense. Accounts payable transactions are processed for payment on the next check run unless a future date is specified. Information is entered into the system to record accounting transactions module from approved invoices or disbursement vouchers with appropriate documentation attached.

When the original invoice is not available, a duplicate copy may be submitted to process the payment. The duplicate copy must be approved by the Associate Vice President, Financial Services and verification must be made that the invoice has not been previously paid. Vendor statements will not be used to support payments.

Vendor invoices received, approved, and supported with proper documentation by the last business day of the fiscal year, will be recorded as an accounts payable liability, providing the invoice pertains to goods and services delivered by the end of that fiscal year.

Processing of Invoices

The Accounts Payable team coordinators will perform the following steps to process invoices for payment:

• Check the mathematical accuracy of each vendor invoice;
• Compare the nature, quantity, and prices of all items ordered per the vendor invoice to the purchase order, or approved check request;
• Verify the account code using the College’s current chart of accounts; and
• Verify the approval of the center/department head (or designee) associated with the goods or services purchased. Approvals shall be documented electronically through email, or with initials or signatures of the approving individual.

Vendor Discounts

The College will take advantage of all prompt payment discounts offered by vendors. When availability of such discounts is noted and all required documentation in support of payment is available, payments will be scheduled so as to take full advantage of the discounts.

Voided Checks

All checks are voided by the Financial Services Department in the system to record accounting transactions.

Reconciliation

On a monthly basis, amounts due to vendors per the accounts payable subsidiary ledger are reconciled to the total per the accounts payable general ledger account (control account). All differences are investigated and adjustments are made as necessary. The reconciliation and the results of the investigation of differences are reviewed and approved by the College Associate Vice President, Financial Services.

References:

Rowan College of South Jersey Board of Trustees Policy Manual, 6001 Accounts

Payable