UPAY

UPAY (Direct Pay Overview)

(UPAY) Direct payments are those which do not require a purchase order. These payments are created and reviewed  in BASIS by the departmental user on the University PAYment (UPAY) function. Payments made using this function are not subject to receiving.

After the transaction is created and saved, it is routed through the CBCC criteria of TARGET.  Additional levels of TARGET approval by Human Resources are required for those transactions indicating an NRA (Non-resident alien) vendor and by the vendor maintenance person for those transactions for which a proposed vendor or additional address information has been created.  For those UPAYS that are of related to Employee Awards; the Accounts Payable Manager will also be on the approval chain.

Rejected or withdrawn UPAY transactions cannot be updated and resubmitted.  However, they can be viewed/copied to create a new UPAY transaction.

Types of payment authorized for use on this function include Direct Pays (D) and Direct Awards (DA)

Payments that do not require supporting documentation (Direct Pays)

  • Refund Authorizations
  • Emergency Student Loans
  • Stipends (Restricted)
  • State Payroll Reimbursements
  • Fringe Benefit payments
  • Reimbursement for Foundation Payments incorrectly deposited to UA accounts
  • Reimbursement to UA for use tax charged to State Treasury Accounts
  • Athletic Game Guarantees
  • Athletic Game Officials (Vendor Registration required)
  • Postage Meter and Regular Postage payments

Payments that require supporting documentation (Direct Pays)

  • Petty Cash Reimbursements
  • Agent Accounts
  • Use Tax Monthly Remittance
  • Third Party (Subcontractors) Payments for Research Grants
  • Debt Service on bonds
  • Freight bills (Federal Express, United Parcel Service, Airborne, etc.)

Payments for Employee Awards (tangible, non-cash such as trophies, plaques, etc) (Direct Awards)

This is a special UPAY transaction to process non-allowable state purchases for employee awards (tangible, non-cash awards, such as trophies, plaques, etc.) to be paid out of private funds for which the donor has specified funds for this purpose.

  • Only allowed for Foundation and Gifts cost center in companies:  0382, 0383, 0392, and 0393
  • Must use commodity code of 78961 (Employee Awards)  VERY IMPORTANT as this will drive the routing
  • Since this payment is an invoice attached to a vendor, please be sure to enter the FULL INVOICE AMOUNT to be paid to the vendor (including sales tax and freight, if applicable)

Documentation required for the Employee Awards (enter this information via the extended text PF9)

The documentation to be entered in the extended text (PF9) should include, at a minimum, the following information:

  • A business purpose for the award
  • An explanation of the criteria used for the award/prize
  • How the recipient is selected (via committee, nominations, etc)
  • The number of awards/prizes to be distributed (include each recipients' name, title, employee ID
  • The description and dollar value of each award PER PERSON
  • The date each award will be presented to its recipient
  • How often the award/prize is granted

Additional TARGET routing for Employee Awards

  • Routing criterion-BU based routing criterion based upon the BU of the cost center.  This routing will include the Budget Officer for that BU
  • Routing for Tax Compliance-all transactions will route to Tax Compliance and Foundation liaison
  • Routing to Accounts Payable Manager for final approval

Additional Restrictions for Employee Awards

  • Expense Transfers will not be allowed for this type of UPAY

General Information

  • Only one Commodity Class Item (CCI) code per UPAY transaction. The account code is associated with that CCI code
  • UPAY transactions are restricted to only a select group of CCI codes
  • Enter up to 10 cost centers and/or departmental categories
  • Payments made using this function are tax exempt and therefore no sales or use tax will be charged, with the exception of Employee Awards.  When creating this type of UPAY you will include any sales tax amount charged by the vendor within the invoice amount of the UPAY.  If no tax was charged, use tax will be manually calculated and expensed via a journal entry.
  • The TIN-Source will display on the screen for the vendor selected. This field will let the department know if the vendor has a valid TIN
  • It is the intent of the Business Services Department to obtain a TIN for every vendor in the UPS vendor file, except refund/reimbursement vendors who are identified by the vendor organizational type ‘R’. Those types of UPAY transactions, 1099 reportable, are required to have a ‘W9’ form on file for the selected vendor. If there is no TIN on the Vendor file, the system issues an error message and will not save the transaction. The user will be required to send a signed W9 to the Vendor Maintenance Person in Business Services
  • In order to find an existing UPAY record, access the following lists:
    • LIVD (List Invoices by Vendor for a Date received)
    • LIVI (List Invoices for a Vendor by Invoice #)
    • LITR (List Invoices for Type, bu, & Reference ID)
    • LIST (List Invoices of a Status & Type by date)
    • LITS (List Invoices by Type and Status)
    • UPAY supporting documentation:
  • If documentation required:
    • Write AP ID at top right corner of original documentation. (black ink please)
    • Send  documentation to Accounts Payable either by campus mail OR by email to acctpay@uark.edu
  • If documentation needs to go with check (i.e., Sales Tax report):
    • Make copy
    • Sign copy
    • Write AP ID at top right corner of copied documentation. (black ink please)
    • Send both (original & copy) to Accounts Payable or email to acctpay@uark.edu

How to create a UPAY record

 

  • From the UP application enter UPAY in Command field and A in Action field and press enter.
  • Entry fields:
    • Invoice number – Will default to the AP-ID number, except when required by the Commodity Class Item code.
    • Invoice date - cannot be future dated or dated prior to fiscal year
    • Date Received - The date services are performed or due to be performed. This date becomes very important at end of FY for future dated payments.
    • Press PF1 to search for vendor name. If correct vendor name or address is not found, press PF6 and propose the vendor
    • Invoice amount (NOTE: please be sure to enter the full invoice amount including sales tax and freight, if applicable, when processing a UPAY for Employee Award).
    • Payment due date (the date the check is needed & cannot be before current date). Also cannot be prior to the date received.
    • Supporting documentation (default to ‘N’, otherwise the Commodity Class Item code selected will require change to ‘Y’)
    • Reference id (this field is optional and is for departmental tracking use only)
    • MOF (Method Of Finance number)
    • Construction (default to ‘N’)
    • CCCN (press PF12 to enter up to 10 CCCN), %, amount, category, & project (optional)
    • Commodity Class Item code (press PF1 for keyword search)
    • Payment handling code (‘H’ - Hold check for pick-up by the authorized person, ‘C’ - Invoice Copy with payment, ‘S’ - Generate a separate check, <blank> - Normal payment processing.
    • Handling authorization (required with Payment Handling cd of ‘H’) [include Phone #]
    • Remittance (printed on check stub)
    • Bunit (defaulted to Bunit of initiator, but may be changed)
    • REMEMBER:  If entering a UPAY Type for an Employee Award your extended text must be entered via PF9 and press PF10 to save this text
    • Press PF10 to save the record. The nine-digit AP ID will be assigned by the system. You must write this number on the supporting documentation that is to be forwarded to Business Affairs, ADMN 321
  • The entry is routed according to the routing criteria outlined above

Copying an existing UPAY record

  1. Enter UPAY in Command field, V in Action field and existing AP ID number in the AP ID field and press enter. Change Action to C and press enter again.
  2. This results in an action A with the following information displayed: Vendor ID, reference ID, CCC, category, project, commodity code, payment handling code, remittance advice, Bunit and extended text. Update fields as necessary.
  3. Press PF10 to save the new record and note the new AP ID number assigned.

These records will be reviewed and checks will be processed in a nightly batch job according to the payment due date assigned by the department.