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How To Process A Payment

Preparing Payment

Prepare a typed Vendor Voucher - BO 55-01 that reflects:
  • Vendor name, address, and vendor number
  • FOAP and amount distribution
  • Description/Explanation
  • Authorizing signature and date

If a fully itemized invoice is not issued by the vendor (e.g., subscriptions, registration fees, etc.):

Forward the vendor voucher with backup documentation to Procurement and Payment Services.

Unless paying for a subscription or registration fee, send only the original invoice to Procurement and Payment Services. Send the original invoice with one copy of any subscription notices or registration fee documents.

If the information on the invoice differs from that on the PO, Banner will not be able to process the payment. You must obtain either a corrected invoice from the vendor before submitting for payment or you must process a PCO if the variance is due to an item substitution or upgrade.

If the amount on the invoice differs from the amount on the PO, obtain a corrected invoice from the vendor before submitting for payment. If the vendor refuses to correct the invoice for a bid item, Procurement and Payment Services can adjust the invoice (per bid terms).

Other Payment Information

  1. Original signatures are always required. The signature on the voucher/invoice indicates that the quality and quantity of goods or services were received as ordered and that the department has approved the payment for processing.

  2. If an original invoice is not available, the invoice copy should be clearly marked "duplicate" and should contain a notation that the original invoice is not available and why that is the case.

  3. AU is exempt by law from paying sales tax within the state of Alabama. Sales tax reflected on invoices in error will be deducted by Procurement and Payment Services auditors prior to payment.

  4. Invoices reflecting discounts should be stamped or marked "Discount-Rush" and submitted for payment in a timely manner.

  5. All invoices should be paid within 30 days. A current statement from the vendor verifying that the invoice remains unpaid must be attached to invoices that are 90+ days old. An explanation from the department as to why the voucher is being sent late should also be attached.

  6. AU does not pay late charges, penalties or finance charges.

  7. Vendor numbers should be denoted on all payment documents.

    8. Vendor Numbers are available via Banner Admin (FTMVEND or FTIIDEN) or Banner SSB via the code lookup on the Purchase Requisition page.

    If a vendor number is not reflected on Banner, direct the vendor to register as a vendor via the AU Vendor Center (http://vendor.auburnuniversity.net).

  8. All vouchers, invoices, and Purchasing Card reconciliations are audited in Procurement and Payment Services prior to being approved for payment. If, for some reason, the document cannot be approved and processed without further action from the department, the document will be returned to the department attached to an audit exception (pink sheet). Audit exceptions are mailed to the person in the department who approved the voucher/invoice.

  9. Unless an Procurement and Payment Services Supervisor approves an exception, all payments are either mailed to the vendor or traveler or direct deposited into their bank account.

Return to Procurement and Payment Services Spending Policies

 

Business Office · Ingram Hall
Auburn University · Alabama 36849 USA
334-844-5588