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SUMMARY OF PAYMENT FORMS

Disbursement Services Section (APY)

POLICY 1

Effective Date: 09/30/2003

Last Modified Date: 06/30/2008

General

Disbursement Services generates reimbursements to vendors and individuals in response to certain approved documents. First, however, here is some information that applies to more than one kind of document.

Payments to Individuals

All documents supporting payments to individuals (employees, non-employees, or students) must provide the payee's Social Security Number and home address (permanent mailing address for students). Additional information is required for the payment of non-service scholarships/fellowships/stipends to students. See "Special Instructions" in APY Procedure 1, Check Request.

Out-of-Pocket Expense

Out-of-pocket business expenses to be reimbursed to an individual who is also the disbursing authority for the account to which the expenses will be charged require a countersignature. The signature should be obtained from either of the following: (1) a person of higher authority or (2) the business manager or other person designated to review and approve expense transactions for the department, school, college, or division.

Check with Order

Vendors sometimes require advance payment. To fulfill this requirement, send a Purchase Requisition accurately reflecting all related charges, including shipping and handling, to the Purchasing Division. Purchasing will prepare a Purchase Order and send it to Disbursement Services, which issues a check and sends it with the order to the specified vendor. Upon request, the check with order may be returned to the department for special handling.

Regular Purchase Orders

The vendor's invoice must agree with the corresponding Purchase Order by line item in item description, quantity, unit price, and terms of sale. When an order is shipped to Central Receiving on a Purchase Order, Materials Management and Distribution enters a Receiving Report indicating receipt of the items on the invoice. When a shipment is sent directly to a University department, an authorized department representative must either sign a Receiving Report or enter it online. Vendor invoices for Regular Purchase Orders will not be paid without an authorized receiving report.

See also APY Procedure 2, Receiving Reports; and MSD Appendix 9, pg. 2, Receiving Report

Standing Purchase Orders

Used for supplies that must be replaced on a regular basis, such as medical supplies or animal feed, and for maintenance contracts. The vendor's invoice must agree with the corresponding Purchase Order by line item, in item description, quantity, unit price, and terms of sale. The invoice is approved by an authorized departmental representative and forwarded to Disbursement Services. No receiving report is required for payment.

Check Requests

Online Check Requests are generally used for all payments for which a Purchase Order is not required. (The Request for Payment of an Independent Contractor is a specialized form of the Check Request; see below.) These items are specifically identified in the online help manual.

Additional information is required for the payment of non-service scholarships/fellowships/stipends to students. See "Special Instructions" in APY Procedure 1, Check Request.

See also APY Procedure 1, Check Request

Small Order Purchase Vendor Invoices: These are invoices received in response to the Small Order Procedure (purchases cannot exceed $5,000). There is one invoice for each Check Request. The online Check Request supporting payments to outside vendors should specify the address where the check is to be mailed. The invoice should be attached to a Supporting Documentation Form and forwarded to Disbursement Services for processing.

In the event that a credit memo is issued for items paid by a Check Request, the credit memo should be forwarded to Disbursement Services. Include with the credit memo the number of the purchase order or check request that was originally used to pay for the items. Disbursement Services will enter the credit memos into the University's Financial Records System. The next check cut to the vendor will deduct the amount of the credit memo and return the funds to the account that originally paid for the merchandise.

Request for Payment of Independent Contractor

Consultants and others are paid from an approved Request for Payment of Independent Contractor (Form AP-1a). If these payments are for services rendered and total $600 or more in a calendar year, Disbursement Services sends the IRS a Form 1099-Misc, which reports the payments (thus requiring the vendor to claim the income on that year's tax return). Important: Unless the department sends Disbursement Services the vendor's original receipts for expenses incurred, those expenses will count toward the $600 threshold (and so the vendor must claim them as income). Therefore, please save a copy of these receipts with the department copy of the AP-1a and send the originals to Disbursement Services. Doing so streamlines the tax reporting process for everyone.

Prepare the AP-1a online through the Finance Central Web site [choose Check Request; under Payee Type choose Contractor (Independent).]

See also APY Policy 6, Independent Contractors, for procedures; MSD Policy 27, Contractual Services, for guidance concerning independent contractor services that require competitive procurement and/or other Purchasing-related actions before engaging independent contractor services; and CON Policy 3d, Expenditure Guidelines-Contractual Services.

Petty Cash Reimbursement

Payments to reimburse Petty Cash accounts are made from approved Petty Cash Reimbursement forms (Form AP-218) with supporting vouchers.

See also ACT Policy 16: Use of Petty Cash Funds/Imprest Bank Accounts

Computerized Billing System

The following on-campus locations are paid through an internal University computerized billing system. The billing system allows campus departments to charge various goods and services when an account number (State, Trust, or Contract/Grant) is provided and signature authorization is given (either prior to receipt of goods/services or at the time of delivery).

Materials Management and Distribution

Goods and/or services charged at the following on-campus sites will be billed through Materials Management and Distribution. Each month, a combined information statement, itemizing goods and/or services requested from these locations, is distributed to campus departments that used these agencies.

The name of the person who authorized the purchase is included on the statement to aid in verifying transactions. Questions or errors concerning charges should be directed to the Help Numbers shown at the bottom of the monthly billing statements.

Other Billing Information

Carolina Copy (Photocopy Support) allows the UNC OneCard holder to use stand-alone copiers located at various sites across campus. The OneCard, which works like a cash debit card, can also be used at dining and snackbar facilities on campus. Departments that contract with Carolina Copy receive monthly billing statements prepared by MMD (but separate from the MMD statement described above). Additionally, departmental copy cards are available for the stand-alone copiers. They cost $3 each and can be obtained by sending an AJ-1 to the OneCard office, CB #1530. Credit account 3-17654-0506.

Facilities Services: The following service areas are billed through the Facilities Services Division operations.

Student Stores: The purchase of books (Bull's Head Bookstore) and computer software (Ram Shop) by authorized department personnel is billed through Materials Management and Distribution.

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