DV Step 4: Initiate the DV document in KFS
On This Page: Critical Data in KFS | Accessing the DV Document | Document Overview Tab | Payment Information Tab | Accounting Lines Tab | Contact Information Tab | General Ledger Pending Entries Tab | Notes and Attachments Tab
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In almost all cases, critical data should not be entered into fields in KFS. Examples of critical data include Social Security numbers, health information (HIPAA), bank account numbers, etc. Inappropriate handling of critical data may result in criminal or civil penalties.
Critical data should only be entered into KFS when the KFS field explicitly asks for that type of data. For example, when setting up a vendor record a Social Security number must be entered in the US Tax Number field. The US Tax Number field is programmed to protect this critical data.
If you see critical data in KFS, you are obligated to report it to FMS Customer Service via the support form. FMS will scrub the critical data from the system and servers to ensure it is not visible to users.
Note: In order to initiate Disbursement Vouchers, you must first gain the DV Initiator Role in KFS. Details about this process are available on the DV Certification page.
The DV document is located in the Financial Processing module under Activities.
The Document Overview tab allows you to provide details regarding the payment for future reference. A sample Document Overview tab is provided below, required fields are highlighted in red, followed by definitions of each field.
Description: Required. The information entered in this searchable field should be detailed and meaningful. The description is posted to the General Ledger and appears on financial reports. Include the payee’s name. The field is limited to 40 characters.
Explanation: Optional, but required by some departments. Use this field to expand on the description.
Organization Document Number: Optional, but required by some departments. Searchable field used by some departments to categorize the transaction by including a faculty member’s name, for example.
The Payment Information tab includes payee information as well as basic information about the payment itself. To populate payee information, click the magnifying glass next to Payee ID.
Next, select the appropriate Payment Reason Code. Choosing the correct Payment Reason Code is extremely important. This code determines:
- Allowable vendor/payee types
- Object code restrictions
- Which tabs and fields of the DV document must be completed
- Document route path
Once the Payment Reason Code is selected, search for the payee. Be sure to use wildcards in your search to retrieve as many results as possible. Click the return value link to populate the payee's information in the DV document.
If the payee has more than one active address on file you must select the appropriate address. This is the address where the payment will be sent. Click return value to return information to the DV document.
The image below represents a completed Payment Information tab for this payment. Required fields are highlighted in red.
The purpose of the remaining fields is outlined below.
Address: Fields will auto-populate when the payee is selected. Although it is possible to edit the address on the DV document, permanent changes to the vendor’s address must be made on the vendor record, not in the DV document. If the address is updated on the vendor record, the new address will not populate to previously-initiated DV documents. For more information about vendor addresses, review the Vendor Maintenance page.
Check Amount: Required. The amount due to the payee. The amount in this field must equal the Total amount in the Accounting Lines tab.
Payment Type: Fields will auto-populate when the payee is selected.
Payment Method: Required. How the payee will receive their payment. For more information about the options below, visit the Payment Methods at IU page.
- P – Check/ACH: Paper check or direct deposit; the most common payment type option.
- F – Foreign Draft: Paper check in a foreign currency. The initiating department incurs an additional charge.
- W – Wire Transfer: Electronic distribution of funds in either U.S. dollars or foreign currency. The initiating department incurs an additional charge. Requires completion of the Wire Transfer tab.
Due Date: Used to hold payment until a certain date. When holding a payment, add a note in the Notes and Attachments tab to document the reason for holding the payment. If the check does not need to be held, do not update the field. This field does not indicate when the payee will receive the check.
Check Stub Text: Required. Information entered in this field will be printed on the check stub of paper checks. If the payee receives payment via direct deposit, they will receive an email with this information. Use this field to provide details that explain the purpose of the check, including itemization, when appropriate.
Other Considerations: If the payee has signed up for direct deposit, selection of either of these options will override the ACH default and the payee will receive a paper check.
- Check Enclosure: Accounts Payable will bundle paperwork with the check when it is mailed. Paperwork to be enclosed should be uploaded along with the payment’s supporting documentation. Add a note in the Notes and Attachments tab clarifying what paperwork should be enclosed with the payment. Review the Check Enclosure guidelines for more information and examples.
- Special Handling: Allows the DV initiator to customize the method of check delivery. Specifically, it allows the initiator to specify that an individual on campus should be notified when the check is printed and available for pick up. If selected, the Special Handling tab must be completed and a note must be left in the Notes and Attachments tab. Review the Special Handling guidelines for more information and examples.
- Exception Attached: Not used at IU.
Document Location Code: Determined by the kind of supporting documentation that will be uploaded. By default, “F – FMS Bloomington” is selected. Use this option except in the following cases:
- X – FMS Tax Area: Use when making a payment to a foreign vendor.
- O – Initiating Organization: Use when the initiating organization retains the supporting documentation. Find more information about retaining supporting documentation here.
- T – Travel Management: Used in conjunction with Payment Reason Codes (N) Travel payment for a Nonemployee or (P) Travel Payment for Prepaid Travel.
Invoice Number and Invoice Date: Not used at IU.
The Accounting Lines tab contains the IU account number and object code used to fund the payment. Totals entered in the amounts fields of the accounting lines must be equal to the amount entered in the Check Amount field on the Payment Information tab. The Total cannot be negative. Below is an example of a completed Accounting Lines tab. Required fields are highlighted in red.
Refer to the DV Payment Reasons and Object Codes guide when selecting an object code, or contact your Fiscal Officer for guidance. Your choice of object code impacts:
- How your department budgets for and tracks income and expenses
- The accuracy of the university’s financial statements
- The taxability of certain payments
When selecting an object code, consider what is being paid for: a good or a service. When paying for services, such as compensating a speaker, a reportable object code must be used. University Tax Services reports taxable activity to the IRS based on reportable object code usage. Reportable object codes also ensure the payee will receive appropriate tax documentation at the end of the calendar year. When in doubt, use a reportable object code.
The information entered in the Contact Information tab, with the exception of the Email Address and Campus Code fields, will be printed on the check stub of a paper check. If the payee has signed up for direct deposit, they will receive an email with this information.
The document initiator’s information will populate these field by default. If questions regarding the payment should be directed to another staff member or office, update the Contact Name and Phone Number fields with the appropriate contact information.
The General Ledger Pending Entries tab provides details of how the payment effects account balances. IU uses double entry accounting, so two entries per accounting line will appear. The type of offset is determined by the payment method.
- DVs with payment method of Check/ACH will have General Ledger pending entries using document type DVCA. These entries will be offset by a liability object code 9042 (Invoices Payable) that will be reversed when the disbursement is made in the Pre-Disbursement Processor.
- DVs with a payment method of Foreign Draft or Wire Transfer will have entries using document type DVWF. These entries will be offset by object code 8000 for cash. This code will not be reversed when the disbursement is made.
If you have updated the Due Date field or are using the Check Enclosure or Special Handling options, use the Notes and Attachments tab to communicate details to Accounts Payable.
This optional tab may also be used to include relevant information that will become part of the official record of the transaction or to communicate with other individuals on the Route Log.
For example, you may upload a PDF copy of an email chain with communication about the transaction, or use the Notes field to respond to questions posed by your Fiscal Officer. Before uploading documentation, ensure all critical information is properly redacted. Refer to the Knowledge Base for redaction guidelines.
Remember: critical data should never be entered in the Notes and Attachments tab.