Accounts Payable

Invoice Processing

As fiscal year end approaches, it is important to clarify the procedures that we follow in processing invoices at the end of the year. The INVOICE DATE is used to determine which fiscal year that invoice is charged against regardless of the year of the PO creation. The invoice date is the date presented on the first page of an invoice that has been assigned by the vendor.

All invoices received by AP up to and including Thursday, July 3 with an invoice date of June 30 or before will be processed in the FY14 accounting books. Invoices dated July 1st or later will be processed in the FY15 accounting books.

June or prior invoices billing service and/or maintenance contracts with begin dates of July 1, 2014 or later will be processed as received. Similarly, membership billings for Fiscal Year 2015 memberships that expect payment in advance of June 30, 2014 will be processed as received. Accounts Payable will tabulate the invoice and accounting detail so that a financial reporting adjustment can be made to the Fiscal Year 2014 reports. This procedure has been followed for the past two fiscal years.

Goods, or merchandise, are rarely pre-billed. If you order equipment or supplies in the month of June and ask for a delivery of July 1 or later, the vendor may ship your product early and issue an invoice on the date shipped. In this case, the invoice will be processed in FY14. Please keep this in mind when placing orders for products that you do not wish to take delivery of until after the fiscal year end.

Funding Recurring Purchase Orders:

At times throughout the year, but especially at fiscal year end, recurring Purchase Orders (POs) could run out of encumbered funds.

KFS PURAP does not allow the processing of invoices against a PO that is not funded. Indiana University receives invoices that must be paid but the payment is delayed until funds are encumbered on the PO.

The practical result of the recurring Purchase Orders being unfunded is:

  1. Multiple communication occurs between Accounts Payable and the Department and Purchasing; and
  2. Payment delays are created at no fault of the vendor.

This note reminds and requests that your recurring purchase orders are funded for any June 30 and prior invoices to be received and processed by the end of the day July 3. These obligations must be processed promptly upon receipt of the invoice. Your attention to this matter is appreciated.