Invoice Processing
As fiscal year end approaches, it is important to clarify the procedures that we follow in processing invoices at the end of the year. The INVOICE DATE is used to determine which fiscal year that invoice is charged against regardless of the year of the PO creation. The invoice date is the date presented on the first page of an invoice that has been assigned by the vendor.
The university’s first close is set for Tuesday, July 7. All invoices received by AP up to and including July 6th with an invoice date of June 30 or before will be processed in the FY09 accounting books. Invoices dated July 1st or later will be processed in the FY10 accounting books.
An exception to these procedures can occur in the case of service pre-billings. Software and communications contracts are examples of services that are most often pre-billed by vendors. Service pre-billings contain a clear statement of the service period in the body of the invoice. Expenses related to services should match the period for which the services are provided and as such may create an exception to the above stated procedures. If an invoice for a service pre-billing arrives near the end of the year and is inappropriately processed in FY09, please contact Accounts Payable at (812) 855-4004 and ask that that invoice be canceled from the system and reprocessed in FY10.
Goods, or merchandise, are rarely pre-billed. If you order equipment or supplies in the month of June and ask for a delivery of July 1st or later, the vendor may ship your product early and issue an invoice on the date shipped. In this case, the invoice will be processed in FY09. Please keep this in mind when placing orders for products that you do not wish to take delivery of until after the fiscal year end.
Funding Recurring Purchase Orders:
At times throughout the year, but especially at fiscal year end, recurring Purchase Orders (POs) could run out of encumbered funds.
EPIC does not allow the processing of invoices against a PO that is not funded. Indiana University receives invoices that must be paid but the payment is delayed until funds are encumbered on the PO.
The practical result of the recurring Purchase Orders being unfunded is:
- Multiple communication occurs between Accounts Payable and the Department and Purchasing; and
- Payments delays are created at no fault of the vendor.
This note reminds and requests that your recurring purchase orders are funded for any invoices to be received and paid before June 30. These obligations must be processed promptly upon receipt of the invoice. Your attention to this matter is appreciated.
