Accounts Payable (AP) Process
- Path of the Invoice Flowchart
- Process Overview
- Logging and Sending Notifications
- Disputing an Invoice
- Processing an Invoice
- Payment Methods
- Payment Status Inquiry
- Credit Memo
Process Overview
Vendor invoices are matched to an approved online purchase orders in PAS. By requirement of WA State statutes, invoices are processed for payment within net 30 days from the time a properly completed invoice is received in Accounts Payable.
Invoices received in AP are tracked by logging into a separate PAS edit module called Document Logging within 48 hours of receipt in AP. They are processed as follows:
Logging and Sending Notifications
-
RIP Process (Invoices up to $10,000)
- After an invoice is logged, a Rapid Invoice Payment (RIP) copy is sent to the campus box number listed on the order's primary budget. The department has 5 working days from the time the invoice is logged to contact RIP to cancel or hold the payment.
- The invoice will be paid within the terms specified in the contract unless otherwise notified.
-
Non-RIP (Invoices over $10,000)
- A Non-RIP copy which consist of an invoice copy and a receiving report that requires department approval and material/service received by date is sent to the campus box of the primary budget on the purchase order.
- In lieu of the receiving report, send an email to Non-RIP with the material/service received by date.
- Non-RIP invoices received with pre-approval department memo or UW invoice voucher (signed/dated) will get logged and processed promptly.
- Non-RIP copies will not be sent for pre-approval invoices.
Processing an Invoice
AP matches the invoice
-
Confirming
Order
- Is placed by the department under $3000 (including tax and shipping)
- AP can pay up to $3000
- Any invoices over this limit will be referred to the assigned buyer in Purchasing department for resolution.
- Non Confirming Order
- Will be matched to the Purchase Order as placed by the buyer.
- Any discrepancy will be sent to the assigned buyer for resolution.
Payment Methods
Invoices are processed and paid via UW check processing method. The check is issued and mailed to the vendor the following day.
- Wire Transfer: Must be requested and negotiated through Purchasing at the time a requisition is placed. This is communicated through the comments field on the Req Entry screen. Additional fees will apply. More information can be found here.
- Foreign Vendors: Payments to a foreign vendor may be issued in foreign or U.S. currency. Payment in foreign currency must be negotiated with the buyer and the department will be charged a fee for this payment process.
- UW Invoice Vouchers: Used for communicating additional information and for pre-approving Non-Rip invoices over $10,000.
Payment Status Inquiry
- Departments will be able to see payment status in PAS.
- Invoice in process. AP is not able to match the invoice and it has been forwarded to the assigned buyer for further resolution or the invoice is greater than $10,000 and requires department approval.
- Invoice scheduled for payment.
- Invoice paid.
Credit Memo
A credit memo is issued by the vendor for the following reasons:
Department Responsibilities:
- Contact the vendor and request a credit memo or refund. A credit memo will be used against future payments to that vendor and should be routed to Accounts Payable Box 351130.
- Advise the vendor to reference the Purchase Order number on all correspondence, checks or credit memos.
Process:
Credit memos are processed separately from invoices. Credit memo's are applied directly to the original invoice that was paid to the vendor. The credit will show on the vendor's account. Once credit memos have been processed, they will be applied to the next payment made to the vendor. If no further payments are to be made, a request for a check refund from the vendor is the next step.
If a credit memo has been on a vendor's account for 90 days, Accounts Payable will send a letter to the vendor requesting a check refund. Accounts Payable will send two more reminder letters if no response is received from the vendor. If the refund is not received, the department will be contacted and the credit memo will be removed from the account and the budget will be charged back for the credit amount as a debit.