Monitoring Controls Over Accounts Payable/Purchase Order Key Processes

Function:

Accounts Payable

Procedure

n/a

Contact:

Megan Moran

Guideline Recommendations

This document should be utilized by campus and RF central office staff responsible for the Accounts Payable and Purchasing processes as a guideline for developing monitoring and review procedures.

Note: This document only includes key processes and is not a fully inclusive listing of the controls to be created, rather a high-level guideline for managers to assist in developing monitoring controls.

Requisitions/Purchase Orders

Monitoring should be performed over electronic purchase requisitions and purchase orders.

The table below describes basic monitoring functions to be performed:

Monitoring Function

Purpose

Frequency

Recommended Report

Business Area/Responsibility

Review open purchase orders

Identifies all open purchase orders and closed purchase orders with remaining balances that need to be liquidated prior to closing an award and/or project. Can be used in Accounts Payable to prioritize closing PO payments.

Monthly

Open Purchase Orders with Active Encumbrance

Report Center, RF Air - Purchase Order Inquiry

Report Minority Business activity to sponsor (as needed)

Use to track payments made to minority businesses by award or by campus. Used on demand, each location may run as needed.

Quarterly or as needed based on sponsor requirements.

Accounts Payable MWBE Report

Report Center, RF Air – Accounts Payable Inquiry

Review Exceptions processed to Subaward payment categories

Report identifies PO’s encumbered for incorrect amounts and invoices processed for incorrect amounts for expenditure types Sub awards first $25,000 and Sub awards over $25,000.

Use to monitor the correct expenditure types are being used for Sub awards first $25,000 and Sub awards over $25,000.

Monthly

RF Subawards First $25,000 Exception Report

Oracle – Purchasing &

Accounts Payable

Invoices/Payments

Monitoring Controls:

Monitoring should be performed over invoice and payment activities.
The table below describes basic monitoring functions to be performed

Monitoring Function

Purpose

Frequency

Recommended Report

Business Area/Responsibility

Review open purchase orders

Identifies all open purchase orders and closed purchase orders with remaining balances that need to be liquidated prior to closing an award and/or project. Can be used in Accounts Payable to prioritize closing PO payments. Used to track PO over 120 days old and on terming awards.

Monthly

RF Open PO Report

Oracle – Purchasing &

Accounts Payable

Report Minority Business activity to sponsor (as needed)

Use to track payments made to minority businesses by award or by campus. Used on demand, each location may run as needed.

Quarterly or as needed based on sponsor requirements.

RF Minority Business Report

Oracle – Purchasing &

Accounts Payable

Review Exceptions processed to Subaward payment categories

Report identifies PO’s encumbered for incorrect amounts and invoices processed for incorrect amounts for expenditure types Sub awards first $25,000 and Sub awards over $25,000.

Use to monitor the correct expenditure types are being used for Sub awards first $25,000 and Sub awards over $25,000.

Monthly

RF Subawards First $25,000 Exception Report

Oracle – Purchasing &

Accounts Payable

Review Invoices On Hold

Lists all invoices on hold in the Accounts Payable module. Report includes project, task, and award information for invoices with saved distributions. The report can be run for a specific project, award, location, or hold reason.

Daily/Weekly depending on volumes

RF Invoices on Hold Report

Oracle – Purchasing &

Accounts Payable

Review Unvalidated Invoices

Use to review invoices with a status of "never validated" or "needs revalidation" in the Accounts Payable module. Report includes project, task, and award information for invoices with saved distributions. The report can be run for a specific project or award, or for all invoices.

Daily/Weekly depending on volumes

RF Unvalidated AP Invoices Report

Oracle – Purchasing &

Accounts Payable

Review AP payment information

Review payment information to ensure a payment is generated from an AP invoice.

Provides summary or detail information of payments made for a specified date range. Report can be run for a specific document type (wire transfers, foreign drafts, electronic, zero invoices and checks).

Daily

RF Summary and Detail Payment Register

Oracle – Purchasing &

Accounts Payable

Review Outstanding Vendor Checks

This report provides a list of uncashed vendor checks for tracking and resolution of items

Monthly

RF Outstanding Check Register

Oracle – Purchasing &

Accounts Payable

Review payments issued to 1099 suppliers to ensure accurate 1099 reporting

Displays a listing of miscellaneous payments made to 1099-MISC suppliers (U.S. citizens and resident aliens) for specified time period. The report can be run with detailed information, such as invoice numbers, invoice amounts, payment dates, and award and project numbers that have been charged, or with a summary of payment information.

Monthly

RF 1099 Payment Report

Oracle – Purchasing &

Accounts Payable

Review paid invoice distributions with inaccurate or missing 1099-MISC income tax information

Use to review paid invoice distributions with inaccurate or missing 1099-MISC income tax information.

Monthly

1099 Invoice Exceptions Report

Oracle – Purchasing &

Accounts Payable

Supplier Maintenance

Monitoring Controls:

Monitoring should be performed over supplier file activity.
The table below describes basic monitoring functions to be performed:

Monitoring Function

Purpose

Frequency

Recommended Report

Business Area/Responsibility

Review New Suppliers or Sites

Displays detail information for each supplier or supplier site including who entered it, the pay group, terms, creation date, and whether a site is a pay site.

Daily or weekly depending on location activity

RF New Supplier/New Supplier Site Listing

Oracle – Supplier File

Review suppliers to ensure 1099 information is accurate

Identifies 1099-MISC suppliers with inaccurate or outdated income tax information. Report identifies suppliers that will be treated as exceptions in the 1099-MISC reports.

Monthly (Central Office also runs this report and contacts campus users to correct invalid information to ensure accurate 1099 reporting)

1099 Supplier Exceptions Report

Oracle – Supplier File

Change History

Date

Summary of Change

July 24, 2017

Updated Reports

October 17, 2006

New parameter (location) added.

April 11, 2006

Revised to add monitoring tables and remove unnecessary information.

 

 

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