IV. OTHER PURCHASING AND PAYABLES PROCEDURES

A. The Procurement Card

Requesters are encouraged to use The University of Iowa Procurement Card instead of Purchase Orders (PReqs) or e-Vouchers whenever possible for transactions under $3000.

The Procurement Card has become a primary vehicle for low-dollar transactions including Travel related expenses. Procurement Cards are issued to a department under an individual staff member’s name with the agreement to observe specific rules and procedures. The University shares responsibility and risk with departments when those rules and procedures are followed. Link: PCard Risk

The Procurement Card has many advantages, including:

• No geographical limits
• Available 24 hours per day, 365 days per year.
• Only one Voucher per month covers all Procurement Card transactions.
• Provides users speed and control of low-dollar purchases.
• May now charge most of their travel expenses directly to their departmental procurement card rather than using a personal charge card and submitting expenses for reimbursement.

To obtain a Procurement Card for your department’s low-dollar purchases, you will need to log on to Self-Serv (https://hris.uiowa.edu/portal/) click FO Applications tab > Data Applications > ProTrav (PCard Vouchers and Travel) and fill out the on-line agreement form.

After the newly issued cards has been received, the Procurement Card staff will notify the new cardholders and instruct them of upcoming training times and locations. Training is required for all cardholders.

Contact protrav@uiowa.edu for questions on how to obtain a Procurement Card, cancel a card, or to discuss a higher monthly limit.

Procurement cards may NOT be used to purchase the prohibited items listed under Low-Dollar/Non-Purchase Order Transactions.

B. Miscellaneous Accounts Payable Processes

1. Freight

Link:  Freight Website

Data2Logistics processes and pre-audits The University's freight bills. They are a leading provider of electronic transaction processing services and software, specializing in accounts payable, and streamlining freight invoice processing.

Data2Logistics audits for payment, overcharges and recommends ways The University could save money. Currently, carriers sending their bills EDI to Data2Logstics are UPS, Federal Express, and Airborne. We encourage departments to use one of the above vendors for shipping and realize the savings directly within your department. All other carrier payments need to be paid via a e-voucher and invoice and sent through Accounts Payable.

Each department designates one default mail/freight code number per shipper/account number for each freight carrier your department uses (UPS, FedEx, Lanter, etc.) This will streamline and customize our entire freight processing system for better control at lower costs and in less time. The default mail/freight code number will only be used when a mail code is invalid, missing or illegible on your shipping document. Department will be charged $.67 for each instance. All of the mail codes currently in use are valid, so please continue to use them.

The University Preferred freight vendors are Yellow Freight, Dohrn Transportation, Roadway Express, Federal Express and UPS. Departments wanting new accounts set up will need to complete the new account form on our website. This ensures that all accounts set up under The University of Iowa are eligible for our discount.
Link:  Quick Guide to Freight

Link:  Quick Guide to Package Shipping

Travel

The Travel Office processes travel-related expenses and reimbursements. For Travel information, details and forms please see The University of Iowa Accounts Payable and Travel Manual on the Web at: www.uiowa.edu/~fustd/travel/

2. Payroll

Payroll audits approved Vouchers to individuals when income must be reported on a 1099 form. Vouchers are routed to Accounts Payable for processing and check creation. Contact Payroll at 5-2420.

3. 1099-Miscellaneous Income Tax Reporting

The University of Iowa files a 1099-MISC Income Tax document with the Internal Revenue Service (IRS) based on calendar-year payments for any person (other than corporations, except for medical and dental services) whom we have paid:

• At least $10 in royalties
• At least $600 in rents, services, non-employee compensation, prizes and awards, other income payments, and medical and health care payments
• Gross proceeds paid to an attorney

Payments made to vendors/individuals using the following Institutional Accounts are subject to reporting to the IRS. Please review them and assign your Institutional Accounts appropriately.

C. Accounts Payable Check Writing Procedures

1. Check Processing

Accounts Payable produces checks Monday, Wednesday, and Friday on the Purchasing and Payables System. ACH payments are processed daily. Exceptions may occur around the Holidays, beginning of school semester, or in special circumstances. The Payment Coordinator initiates the payment creation process and verifies the Daily Pay Cycle defaults. Vouchers are selected for payment based on payment due dates, pay through date, and next payment date. Selection Exceptions are researched and corrections made as necessary. The Trial Register is reviewed and approved by the Payment Manager. The Payment Coordinator prints the checks and records the check numbers in a ledger. Checks are sorted, verified, and distributed according to their Handling Code. Checks over $10,000 are reviewed by the Manager.

2. Payment Cancellation & Voucher Reissue

Checks with discrepancies are reviewed by the Payment Coordinator to resolve or to cancel. Checks returned from vendors are reviewed by the Check Specialist to determine if the check should be cancelled and/or reissued. Checks that are cancelled are noted “Void”, reason is noted in the comments field, and liability is reversed. If check should be reissued, the original voucher is re-opened and corrections made.

3. Express Checks

When emergencies arise, contact Accounts Payable to review the need to process an Express Check. A voucher is required before an Express Check is created. Contact Karen Housel at 335-0409 or Mary Jane Stumpf at 335-0406.

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