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Invoice and VoucherJanel Carey, Jennifer Abinette, Shannon Soja, Moet Slaughter (OSC)

Liz Vandenburg (SFS)James West (BSC)

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Roadmap• Proper Invoice

• Validating Receipt of Goods and Services

• Key Dates in the SFS

• Procure-to-Pay (P2P) Streamline Business Model Process

• Resources

• Contact Us

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Proper Invoice

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Proper Invoice – Mandatory Information

• Written or electronic request for payment submitted by the vendor.

• Must contain:

– Vendor Name

– Name of NYS Agency that ordered the goods/services

– Description of goods/services

– Quantity delivered or rendered*

– Amount requested*Consistent with NY State Finance Law §§ 109(1) and 179-e(5)

GFO: XII.4.F - Proper Invoice

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Missing Mandatory Information

• If an invoice does not have these required fields, agencies must reject invoice.

• Cannot short pay an invoice. – If amount to be paid is less than amount invoiced, agencies must reject

invoice.

• Must notify vendor within one business day to resubmit proper invoice with necessary information.

GFO: XII.4.F - Proper Invoice

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Importance of Mandatory Information

• Basis for validating deliverables. – Benefits of a good description.

• Vendors should only invoice once goods, property, or services have been delivered or rendered. – If not, agencies should return unpaid invoice to vendor.

• Must notify vendor within one business day to resubmit a proper invoice for correct amount.

• May lose available early payment discounts or lose short term interest by paying invoices earlier than necessary.

GFO: XII.4.F - Proper Invoice

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Proper Invoice – Additional Information

• Should contain:

– NYS Vendor ID number

– Invoice Date

– Unique Invoice Number

– PO number, if applicable

• Must ensure PO number is correct

– Payment terms, if other than Net 30

– Any other info agency may reasonably require as communicated in contract/PO

GFO: XII.4.F - Proper Invoice

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Missing Additional Information

• If an invoice does not contain this additional information, agencies should:

– Work with vendor to obtain; or

– Return invoice to vendor for correction.

• Must notify vendor within one business day to resubmit with necessary information.

GFO: XII.4.F - Proper Invoice

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Proper Invoice

• Supported by substantiating documentation agencies may reasonably require at time of, or subsequent to, receipt of invoice.

• Invoices not properly substantiated by documentation or fact must be denied for payment.

– Must notify vendor within one business day to resubmit.

GFO: XII.4.F - Proper Invoice

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Validating Receipt of Goods and Services

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Supporting Information

• Agency certifiers should be satisfied acceptable information or documentation is on file to:

– (i) show goods and/or services provided by vendor are in accordance with terms and conditions of agreement; or

– (ii) verify employee expenses are in accordance with New York State’s travel rules and regulations, union contracts, or agency policies.

• Effective review of claims can reduce risk of agencies overpaying vendors for incorrect type, quantity, and/or price of goods and services billed.

GFO: XII.4.B.1 – Supporting Information

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• Agencies may use risk-based approach, with greater focus on claims that pose a higher risk of being incorrect.

• To determine if a claim for payment is appropriate to pay prior to being certified and submitted to the Comptroller, agency staff need to know:

– Type of claim for which vendor or employee is seeking payment.

– Types of information that can support the claim.

– Where reviewer can obtain supporting information.

– How to evaluate supporting information.

Supporting Information

GFO: XII.4.B.1 – Supporting Information

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Supporting Information• Obtain enough information to provide assurance vendor

delivered goods/services as expected.

– e.g., requisition and/or PO, invoice or claim for payment, confirmation agency received the goods or services.

• Analyze information or documentation.

– Determine if vendor provided correct good/service at right price.

• Request additional back up information from vendor.

– Can often deter inappropriate claims.

GFO: XII.4.B.1 – Supporting Information

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Evaluating Supporting Information• Ensure information obtained in support of a claim for

payment or expense report pertains directly to that claim or report.

• A large amount of supporting information does not make up for lack of reliable, high-quality support.

• Agencies may require an explanation/cross-walk from the vendor in addition to the detailed documentation.

GFO: XII.4.B.1 – Supporting Information

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Types of Information - Goods

• Invoice or Claim for Payment

• Packing slips

• Receiving report

• Receipts

• Contract, program requirements, other agreements

GFO: XII.4.B.1 – Supporting Information

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Verifying Information - Goods

• Re-perform vendor’s calculations.

• Verify description, quantities and prices on invoice match contract, receiving report, PO.

• Verify rates charged on invoice are allowable under enabling agreement.

GFO: XII.4.B.1 – Supporting Information

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Verifying Information - Services

• Invoice or Claim for Payment

• Licenses, certifications, etc.

• Resumes

• Background checks

• Payroll records

• Cancelled payroll checks

• Timesheets

• Contract, program requirements, other agreements

• Subcontractor agreements

GFO: XII.4.B.1 – Supporting Information

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Verifying Information - Services

• Re-perform vendor’s calculations.

• Verify names and titles of employees providing services are allowable under PO or contract.

• Verify hours worked, pay rates/salaries do not exceed max allowable.

• Ensure dates of services are within contract period.

GFO: XII.4.B.1 – Supporting Information

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Verifying Information - Services

• Verify professional services met qualifications required for title ordered/billed.

• Compare resumes to qualifications required.

• Verify professionals providing services do not have any criminal offenses that would prevent them from providing requested services.

– e.g., background checks.

GFO: XII.4.B.1 – Supporting Information

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Verifying Information - Services

• Ensure hours on payroll records match timesheets.

• Review cancelled payroll checks to verify employees were compensated.

• Verify vendor billed for services in accordance with subcontractor agreements.

GFO: XII.4.B.1 – Supporting Information

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Key Dates in the SFS

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Invoice Received Date• Date proper invoice is received in designated payment office.

– Should designate payment office in writing in contract and/or PO(s).

• Online:– Required for all payments to “procurement suppliers” and interest eligible

payments.– Must be provided on voucher.

• Bulkload:– Required for all payments to “procurement suppliers.”– Able to submit IRD.– If left blank, SFS will populate IRD with MIR date from bulkload transaction.

GFO: XII.5.F.2 – Invoice Received Date

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Invoice Received Date

• Paper or Email Invoices:

– Date proper invoice was received in designated payment office.

• Electronic Invoices:

– Date populated automatically by SFS.

• Date vendor submitted proper invoice prior to 5:00 PM on business days.

• Next business day if submitted on weekends, holidays, or after 5:00 PM on business days.

GFO: XII.5.F.2 – Invoice Received Date

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MIR Date• Later of:

– Date proper invoice was received in designated payment office.

– Purchased goods, property, or services covered by proper invoice are received or inspection of goods is completed, when applicable.

• Used to calculate Net Due Date.

• May be adjusted in certain circumstances.

– Online agencies may update MIR Adjustment Date field.

GFO: XII.5.F.3 – Adjusting the MIR Date

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MIR Adjustment Date• Populates with Invoice Received Date.

• Receiving required:

– MIR date is later of:

• MIR Adjustment Date; or

• Merchandise Received/Inspection Date on PO.

• Receiving not required:

– MIR Date is equal to MIR Adjustment Date.

GFO: XII.5.F.3 – Adjusting the MIR Date

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MIR Adjustment Date

GFO: XII.5.F.3 – Adjusting the MIR Date

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MIR Adjustment Date• Examples of when to adjust:

– OSC determines there is reasonable cause to believe payment may not properly be due in whole or in part.

– Applicable appropriation has yet to be enacted (passed and signed).

– Goods/services have not been delivered/rendered in compliance with terms or conditions of contract.

– Goods/services delivered are defective.

GFO: XII.5.F.3 – Adjusting the MIR Date

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Basis Date

• Drives Scheduled Due and Discount Due dates.

• Procurement Suppliers:

– Default is Invoice Received Date.

• All other vendor classifications:

– Default is Invoice Date.

GFO: XII.5.F.1– Basis Date

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Scheduled Due Date

• Date voucher is scheduled to pay.

• Automatically calculated based on Invoice Received Date (Basis Date) and payment terms.

• Example:

– Invoice Received Date (Basis Date) = June 1

– Payment term = Net 30

– Scheduled Due date = June 30

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Adjusting the Scheduled Due Date

• Special circumstances:

– Lapsing

– Fiscal Year End

– Emergency Payments

• e.g., vendor will not make payroll, utilities will be shut off.

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Adjusting the Scheduled Due Date

• Factors to consider:

– Generally takes 3 days for vouchers to process from agency submittal to OSC approval and payment.

– If voucher has discount payment term and is not approved by OSC by Scheduled Due date, voucher will pay on Net Due Date.

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Adjusting the Scheduled Due Date

• Factors to consider:

– Voucher with non-discount payment term (Net 30) will pay immediately if approved by OSC after Scheduled Due date.

– If Scheduled Due date on voucher is adjusted to date after Discount Due date, voucher will not take discount under any circumstances.

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Discount Due Date

• Date payment must be made to take advantage of discounts.

• Calculated based on Basis Date and payment terms.

• Example:

– Invoice Received Date (Basis Date) = June 1

– Payment term = .5/15 Net 30

– Discount Due date = June 15

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Discount Due Date

• Agencies should ensure staff:

– Are aware of cash discounts offered by vendors.

– Complete invoice verification/approval processes in time to obtain discount.

GFO: XII.5.F.4– Selecting the Appropriate Pay Terms

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Key Dates Recap• Invoice Received Date (IRD):

– Date invoice is received in designated payment office.

• MIR Date:

– IRD or date goods/services were delivered (whichever is later).

• MIR Adjustment Date:

– Automatically populated by SFS, can be overridden in special circumstances as outlined in GFO § XII.5.F.3.

• Scheduled Due Date:

– Automatically calculated based on IRD and payment terms, can be overridden in special cases (i.e., lapsing).

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Procure-to-Pay (P2P) Streamline Business Model Process

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P2P Streamline Scope

Invoices

- Support more accurate vendor invoicing.

- Eliminate time spent working in multiple systems.

- Limit manual research for incomplete invoices.

- Reduce number of invoices needing agency review.

Vouchers

- Eliminate manual entry with automated voucher creation frominvoice.

- Reduce time resolving match exceptions.

- Schedule and make payments (including discounts) atappropriate time.

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Invoicing Overview• Consolidate invoicing and communication activity within SFS.

– Invoice transaction and status work done today in outside systems like FileNet will be done in SFS.

• Expand ability to work electronically with vendors.

• Generate and process agency invoices in SFS.– Vendors send eInvoices and attachments to NYS in SFS.

– BSC and agencies can enter invoices into SFS.

– Emailed and paper invoices can be scanned directly into SFS.

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Invoicing Overview

• Consistently capture IRD as date invoice was received in designated payment office and as basis for calculating payment due date.

• Create vouchers directly from approved invoices.

• Improve reliance on automated matching in SFS will reduce need for staff to manually intervene in matching process.

• Support streamlined process with invoice standards and improved new functionality.

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Invoicing: Future State ProcesseSettlements module or functionality in SFS will be leveraged to

support invoice creation/intake, workflow, and collaboration within the agency as well as between agency and BSC.

Invoices and related attachments will be entered, reviewed, approved, and validated in the eSettlements module.

SFS will provide ability to scan paper and emailed invoices into the system.

Invoicing standards are supported with required fields to ensure entry of a proper invoice.

Only invoices that can be processed are kept in the system.

IRD is recorded by BSC or agency.

With invoice in SFS, agencies can better collaborate with vendor or BSC to perform invoice resolution.

All invoice review and processing occurs in SFS, allowing greater visibility throughout the process.

Where possible, invoice review can be expedited to become a voucher.

SFS will be book of record and new View Invoice page can be sorted by a variety of field easing look-up capability.

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Invoice Processing Example

Vendor

Agency or BSC

AgencyReviewer

Invoice Manager

• Validates and stages.• Builds voucher.• Matches to PO, receipt.• Routes for review (payment authorization).• Makes payment.

SFS Automation

• Submits invoice for payment in SFS.

• Reviews ChartFields, Delivery or Service Date.• Includes any supporting documents.• Reviews / approves invoice.

• Enters Invoice Received Date.

• Reviews invoice.

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Invoice Entry into eSettlements

Sample invoices forillustrative purposes

Paper andemailed invoices can be scanned into SFS.

Agencies, BSC and vendors can directly enterinvoices into SFS.

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Payment Terms• Provided on vendor invoice.

• If not on vendor invoice, will default in following order:

• From PO

• From contract (if no PO)

• From vendor location

• From Business Unit

Payment termsare defaulted.

• Drop-down box shows list of OSC-approved terms.

• If payment term offered by vendor is not listed, you may request OSC add new payment term.

Payment terms can be selected from

drop-down box onvoucher.

NYS standard default payment term is Net 30.

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New Feature – Routing ID• Provides agencies more flexibility in defining how to manage their

workload among multiple approvers across multiple locations.

• Allows agencies to assign groups of invoices to individuals or pooled groups for approval (e.g., facilities).

• Helps agencies better organize invoice workload.

• Assignment of work approval is more efficient:– Routing IDs route invoices to the correct approver groups.– Routing ID can be automatically recorded at requisition level and carried over

to PO, invoice, and voucher.

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Reviewing Invoices

• As part of invoice review, an agency can:– Expedite to Accounts Payable.

– Change invoice status and reason code to support workflow and collaboration.

– Edit select fields (e.g., PO, contract).

– Upload related documentation.

– Include comments.

• Review Invoices page within SFS is used to view and modify invoices, which have not yet become vouchers in the system.

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ChartFields on Invoices

• ChartField string is created automatically from PO and can be updated if necessary.PO Invoices

• Agency staff can enter ChartFields and other required data.

• For some invoice types (e.g., utilities), templates are used to automatically provide required data in SFS.

Non-PO Invoices

• Invoice can continue to process to a voucher, but will be flagged as an exception.

• Agency staff can enter applicable ChartField values on voucher.

Invoices that do not include ChartFields

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Invoice and Voucher Process

• IRD and payment terms drive payment due date.

• Improved reliance on automated matching of receipt, invoice, and PO requires less manual intervention.

• After voucher is built by SFS, it is matched and approved by agency or BSC.

• OSC continues to approve vouchers, as per their guidelines.

SFS

SystemAgency

or BSC

Agency

or BSC

Vendor, BSC,

or Agency

Enters invoice directly into

eSettlements.

Enters IRD, completes invoice

review and approval.

Builds voucher that includes invoice info, payment terms, and

attachments.

Approves voucher, which will pay on

scheduled paymentdate.

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Model Process: Takeaways

• Entering and reviewing invoices will be done in SFS.

• Submitted invoices are routed for review and approval in SFS, with the ability to support multiple levels of approval, determined by agency’s business needs.

• Agencies and BSC have ability to systematically route documents and collaborate on reviewing/processing invoices.

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Model Process: Takeaways

• Vouchers are automatically created, saving effort to manually key invoices.

• Vouchers are automatically matched to the PO and receipt.

• Large volume voucher submission and approval is supported.

• Agencies can rely upon SFS to support payment at appropriate time, including discounts.

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Resources

• OSC Guide to Financial Operations– XII.4.F – Proper Invoice

– XII.4.B.1 – Supporting Information

– XII.5.F.1 – Basis Date

– XII.5.F.2 – Invoice Received Date

– XII.5.F.3 – Adjusting the MIR Date

– XII.5.F.4 – Selecting the Appropriate Payment Terms

• SFS Coach– Step-by-step job aids

– Interactive trainings

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Contact Us• voucherauditmailbox@osc.ny.gov

– To request rejection or expedite

– To determine why voucher or expense report has not paid yet

– To find out what information we need to approve something we’re auditing

– To find out when voucher or expense report will be approved

– Any questions on why OSC rejected a voucher or expense report

• stexpend@osc.ny.gov– If vendor claims to not have received payment, to verify address and bank account

– Special handling (handling codes, payment methods, etc.)

– Status of payments (cancelled checks, returned ACHs, etc.)

– Credit Memo issues

• BSCFinance@ogs.ny.gov– For BSC hosted agencies to request information regarding processing of vouchers or expense reports

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Questions?