The purchase order sent to the vendor states, "This order will be canceled on June 30th following the date of issue" if the order has not been received.  The program must send a cancellation memo to the vendor for all the items not received by June 30th.  Attach a copy of the memo and send the receiving copy of the purchase order to Accounts Payable no later than July 1st.  All receiving copies of the purchase orders must be sent to Accounts Payable by July 1st indicating either received or canceled for each order or item.  Programs should check with vendors throughout the year on old orders and decide if the order should be canceled.

Price Increases

If a purchase order line number does not have a sufficient balance to pay an invoice, a price increase memo from the program director should be e-mailed to Ken Gragg, Director, Internal Accounting.

If the price increase is less than $300 however, the amount will be paid without requiring a memo. 

Note: 

1. IF AN EMERGENCY comes up and a confirming purchase order must be done, submit the requisition immediately.  Be sure to attach a memo explaining why the office policy was not adhered to. 

2. Before the Business Office can make a pre-payment from a requisition, there must be something in writing from the company stating they will not accept a purchase order. Subscription renewals are not considered prepayments and should be submitted on a purchase requisition. 

3. After making food reservations for a workshop, input a requisition with an estimated number of participants. In the description section, be sure to type "Will call on ________ ____ , 20____  with an actual count. The day after the workshop, sign off on the receiving copy of the purchase order and attach any invoice or statement the vendor leaves. 

4. Replacement/substitutions/additions are NOT ALLOWED on a Purchase Order. 

5. As soon as you receive a shipment, verify the items, quantities and amounts then sign off on the receiving copy of the purchase order and send it to the Business Office.  DO NOT wait for a memo from an Accounts Payable clerk requesting the purchase order as this delays payment to vendors. 

6. The Business Office pays from original invoices. When receiving an invoice from a vendor make a copy for your records, if needed, and then forward the original to the Business Office. 

7. Opens or partial payments need approval by signature or initials and "OK to Pay" or "Ok to Make Partial Payment," the purchase order number and date on the invoice. 

8. Make a notation on the receiving copy of the purchase order regarding canceled or discontinued items. 

9. If a vendor calls needing further information about payment, transfer the call to Accounts Payable.  QSS users can check payment status on purchase orders by entering an "I" at the P.O. payment screen and entering the P.O. number. 
10. Ship to Numbers: 22-confirming, 25-refund, 27-prepay, cannot be used on the electronic system. Use these numbers on hand written or typed requisitions only.

May 1, 2008

TO: All Staff

FROM: Mary Simms, Director, Internal Business Services

SUBJECT: Business Office End of Year Procedures

Accounts Receivable/Invoicing Invoices to be processed for the 2007-2008 fiscal year must be to the Business Office no later than 5:00 p.m. July 8, 2008. Those received after this date cannot be posted to the 2007-2008 fiscal year but will be issued as a 2008-2009 Accounts Receivable Invoice. For Accounts Receivable questions, please contact Kim Baehr at 636-4558 or email businessoffice@kern.org.

Accounts Payable 1. Purchase Cards: All purchase card transactions that are POSTED prior to May 20th will be paid against the FY 2007-08 budget. All purchases POSTED May 20th and later will be paid against the FY 2008-09 budget.

2. Closing Purchase Orders and Contracts: Each department will need to run and review an open purchase order report, and cancel any FY 07-08 purchase orders, requisitions, or contracts that are still open and encumbered but will not be used or received by June 30th. Instructions on how to run an open PO list are attached, and can also be found in the Internal Operations Manual online. Purchase orders can be closed by sending the receiving copy of the purchase order, signed, dated, and marked close without further payment to Accounts Payable. For contracts, confirming requisitions, and other items where receiving copies of purchase orders are unavailable, an e-mail should be sent to Accounts Payable (accountspayable@kern.org) requesting the closure.

For goods and services that will not be received by June 30, a letter must be sent to the vendor canceling the order with a copy forwarded to Accounts Payable attached to the receiving copy of the purchase order. This letter of cancellation should be done as soon as possible. Any items received from a vendor AFTER June 30 for a FY 07-08 purchase order cannot be accepted and must be returned to the vendor.

All paperwork (invoices, receiving copies, approvals) must be received in Accounts Payable by 5:00 p.m. July 8, 2008 in order to be charged against the FY 07-08 budget, after that it will be charged to the FY 08-09 budget.

3. June Payment Cutoff: Invoices that must be PAID prior to June 30 must be received in Accounts Payable by 5:00 p.m. June 13, 2008.

4. Travel Claims: For travel incurred through June 30, claims must be received in Accounts Payable by 5:00 p.m. July 8, 2008 in order to be paid against the FY 07-08 budget.

For Accounts Payable questions email accountspayable@kern.org.

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