Accounts Payable Policy
Canceling and Reissuing Checks
The Accounts Payable office makes every effort to insure that vendor invoices are paid within the guidelines of vendor payment terms. Although there are payments that are due immediately upon receipt of invoice (Example: individuals), most vendor's payment terms are Net 30. As invoices are entered in the BASIS system for payment, the payment due date will default to 30 days from the vendor invoice date. The Accounts Payable office does have the ability of overriding the default date and moving a payment up as required. Once the invoice is disbursed a check will be issued to the vendor 5 days prior to the payment due date if sufficient time allows; otherwise it is issued the next day after it is disbursed.
Credit Memos received from a vendor MUST reference a Purchase Order and original invoice. These credits will be entered in the BASIS system. All credit memos require approval by the department for which they are entered. Approval of credits must be done by accessing the command LUCB in the UPS application. Once the credit has been disbursed, the company cost center/s from which the original invoice was expensed will be credited. This credit will be stored in the BASIS system until sufficient debits are available to use the credit. If the credit is not taken within 60 days, the Business Affairs office will make every effort to have the vendor send a refund check for the amount of the credit. When a refund check is received, the credit memo that was entered in BASIS will be canceled. Checks are deposited into the cost center from which the expense was paid.
Direct payments are those which do not require a purchase order. These payments are created in BASIS by the departmental user using the UPAY function. Payments made using this function are not subject to Receiving. Certain payments will require supporting documentation to be sent to the Business Affairs office prior to disbursement of the payment.
All invoices MUST be billed to the University, not to an individual, and to also include the following additional information, if applicable:
- The complete name and address of the vendor. NOTE: If the vendor name is not PRINTED on the invoice, the invoice must be signed by the vendor if the invoice exceeds $500.00.
- Invoice Date
- Invoice Number
- Purchase Order Number
- Itemized listing of purchases. This should include a description of the merchandise and/or services, unit price, and extended line total.
- It is the department's responsibility to provide a listing of merchandise purchased from vendors that issue only cash register tape as invoices. This listing should detail items listed as ‘miscellaneous’ or ‘groceries’.
- Name and location of department for whom the goods or services were provided.
Invoices paid through the Accounts Payable module of BASIS shall not be split between more than two purchase orders. If an invoice is to be split between two purchase orders, the following must occur:
- The original invoice and one copy of the invoice are provided to Accounts Payable.
- Both purchase order numbers are clearly visible on both invoice copies.
- The amount to pay per purchase order is clearly visible on both invoice copies.
- Accounts Payable personnel clearly note each AP ID number on both invoice copies.
Every effort should be made to contact the Non-Resident Taxation Specialist in Human Resources well in advance of any desired payment or reimbursement to a non-resident individual. This step will ensure that the appropriate tax documentation has been secured in order to make a timely and accurate payment and that the University is in compliance with the Internal Revenue Service regulations.
The Non-Resident Taxation Specialist will provide instructions to the requesting department on the appropriate tax deductions for any payment type to an NRA (excludes students). All payments to non-resident individuals who are classified as students will be processed directly through the Human Resource payroll system.
Please contact Human Resources NRA Representative at 575-2099 or visit the Non-Resident Alien Information page.
The BASIS Receiving system enables departments to provide electronic acknowledgment of orders received and to give authorization to pay or withhold payment on invoice lines processed by Accounts Payable. Before a payment will be issued to a vendor, Receiving MUST be performed.
There are two types of Receiving that can be performed depending on how the user setup the Purchase Order line:
- Quantity Receiving (QRPO)
- Dollar Receiving (DRPO)
The Receiving system allows the user to post any quantity without regard to quantity ordered. In any case, the invoicing system will disallow a payment if it exceeds the PO Max on the Purchase Order. Receiving is disallowed for closed or canceled Purchase Orders. You may not post to the Receiving system, purchase dates which are prior to the PO Effective Date on the Purchase Order or past the PO Expiration Date on a blanket.
All food purchases should comply with the following:
- Enter the official function occasion for which the food was purchased on the store receipt.
- When receiving in BASIS, the comment field must reflect the official function occasion for which the food was purchased.
There are certain orders where Receiving is NOT required:
- Check with Orders
- Invoice Attached Orders
- Direct Pays
- Travel Authorizations
Sales and Use Tax
The University of Arkansas is NOT exempt from paying sales or use taxes except on those items and/or purchase transactions that are specifically exempted by law.
Sales Tax will be charged by those vendors located in-state and by out of state vendors if that out of state vendor remits sales tax to the State of Arkansas.
Use Tax will be calculated by the BASIS system on those purchases where tax is applicable; the vendor is located out of state, and the vendor DOES NOT remit sales tax to the State of Arkansas. Use tax is then remitted to the State of Arkansas by the Financial Affairs Office at the University of Arkansas.
Arkansas State law requires that a claim be filed with the Arkansas State Claims Commission for invoices or services rendered that are more than two (2) fiscal years old. The vendor supplies a copy of the unpaid invoice to: Arkansas State Claims Commission, 101 E Capitol Ave., Ste 410, Little Rock, AR 72201-3823. The commission can be reached at: (501) 682-1619. The claim is reviewed by the commission and is forwarded to UAF for research. The department provides a cost center from which to pay the invoice. The Claims Commission issues payment directly to the vendor. This process can take up to four (4) months to complete.