Accounts Payable Training

Processing Payments

Agenda

1. Invoice

2. Credit Memo

3. DocuSign

4. Comparison of Types of Payments

5. Personal Payments

6. Payee Certification Form

7. Individual vs. Business

8. W-9/Substitute W-9

9. Banking Verification Form

10. ACH Form

11. Non-Resident Alien Payments

12. Glacier Software

13. Living Allowances

14. Moving Allowances/Reimbursements

15. Prizes/Awards

16. Employee Reimbursements/Non-

Employee Reimbursements

17. Prospective Employee Reimbursements –

Form 17C

18. Wire Transfers

Invoice

Key points which need to appear on an invoice.

1. Name and address of Company

2. Invoice Date

3. Invoice Number

4. Invoice Amount Due

5. Remittance Address

6. Payment terms of the Invoice

7. Name of Department that invoice is being billed to.

Invoice Number

Name of Department

Remittance Address

Invoice Date

Name andAddress of Company Invoice Amount Due

Credit Memo

How to access DocuSign

Go to PNW Home Page and Click on the I Am A…. and click Faculty/Staff

Click on One Campus

Choose – Electronic Signature Software DocuSign

Click on New Tab

Choose Send an Envelope

Now you must select a Template. Click on All Templates and choose PNW-DIV

Upload your supporting documents (Receipts, Invoices, W-9, Sub-9, Payee Cert, and Banking Certifications)

Add Recipient

The bottom half of this screen is where you assign approvers. Over to the left you will see there is an order to the signatures. This document will pass to the next department after each signature is obtained.

The order is as follows: 1) Yourself, 2) Supervisor, 3) Grants office (if applicable), 4) Business manager & 5) PNW payables.

If the grants department is not necessary then hoverover the right side and click on the black x to delete them from the approval flow.

To add a new Recipient click on the Add Recipient tab. Here you will add your additional person for approval and choose the number to place them in the signing order. Enter the person’s name and Purdue email address(example jdoe@purdue.edu)

X

Scroll to the bottom of this page to complete the account number to charge, the

amount to be paid, and the department information in Email Subject*.

After all of the items are complete, click Next on the bottom of the screen.

PNW-DIV

Instructions for DIV

• This will represent the DIV. Please fill in the indicated fields. You may click on the field and type directly in the box or you may type on the right side of your screen and the text will appear in the field you choose.

• Your department and business area should auto-populate.

• Vendor- Type the name of the company and the remit address per the invoice

• Text to appear on remittance is optional- This is where you would include any account number or invoice number that you wish to be written in the note section of the check.

• Invoice date- Date listed on Invoice or date of purchase if it is a receipt

• Reference/Invoice #- The invoice number listed on the invoice when applicable. Or, your own identifier. Examples: REIMB09282020JD(reimbursement) SVC09282020JD(Service), STIP092820JD (Stipend)

• Check Amount- The current total amount to be paid

• Description- Write a description of what services were provided or what items were purchased

• GL- Choose (The Business Office will assign the appropriate GL number)

• Amount- the amount of the charge. If the charges need to be paid by different accounts then you will need to enter separate lines.

• Order- This is where you include the account number(s) you wish to use. Example: 32xxxxxxxx

• WBS Element- This is used when your desired account number begins with F.xxxxxxx.xx.xxx

• C-Code – This is generally a Capital Expense and is handled through the Business Office. C.xxxxxxx

• Held Check- Use only if you wish for West Lafayette to not send the check directly to the payee. It would then be sent to our campus assigned to a particular person for distribution purposes. (Please include the location: Person, Building Name & Room)

• Contact for Held Check- Should only be completed if you are asking for the check to be held.

Example

• This is an example of a complete DIV prior to it receiving signatures.

• After all the required fields are complete click on the SEND tab on the bottom of the screen.

If you have an additional recipient, the add fields screen will appear. You will need to add a signature line for your additional person. Click on the Add Fields.

First click on the Signature tab to the left; then click in the empty Recommended for Payment line.

Then click on the recipient drop down to the right to select the name of the new recipient.

Choose the person from your drop down who was your added recipient.

After the signature line is added click the SEND button. Select SIGN NOW

Click on Continue

Click on the Sign tab and your signature will populate.

Accessing your submitted DocuSign for CORRECTING or VOIDING.

When on the home screen select Manage.

The Manage list will have your DocuSign that is still waiting for others to process. Click on the bold print to open your document.

Here you have the option to either Correct or Void the DocuSign under the More tab.

Choose to Correct if you are needing to add requested document(s) to your existing DocuSign. You may upload additional documents here then click Next. As you click through the screen this will enable you to also make needed changes to the DIV.

The example used here is to show how to make a correction and attach a supporting document.

For instance, if a payee, aka individual/student, is being paid then a payee certification is required.

If you have missed attaching this in your original DocuSign, Accounts Payable will reach out to you and request that

you go back into DocuSign and attach the missing document.

Click on the Upload tab.

Select the file location of your original document and click on it. It will fill into the file name and you will need to

click open.

Your Document will show that it had uploaded. Click Next

If you are needing to correct information on the DIV, click in the box that needs correcting. Type in the area on the right where it says, Add Text. This will type over and correct the text. When your corrections are complete click Correct at the bottom of the screen.

This is an example of the completed DIV from the invoice on the previous screen.

Processing Credits Memo

Process through DocuSign just like a regular DIV (with a few exceptions visible on the following page). Open an envelope, choose your DIV template, and attach your credit invoice for processing.

For credit processing, add a text box at the top of the page under the words Direct Invoice Voucher to say Credit Memo. To do so click on the text icon on the left side of the page. Move your cursor to where you want to add the text box. Type in the text box Credit Memo.

Example of a Credit DIV. Example of a credit memo.

This must be attached in your DocuSign for processing. Notice that it states at the top that it is a credit memo and the credit amount is listed at the bottom.*Please indicate the credit in the amount section as -$203.28

Notice the added text box at the top of the page. Please also add Credit Memo in the description area. Everything else is entered as a regular DIV.

LET’S POWER ONWARD

Comparison of Types of Payments

Non-Employee vs Employee(Grad Students) vs Non-Employee International

Non-Employee (ACH*)

DIV

Substitute W-9

Payee Certification

Banking Verification*

Receipts/Documentation

Employee

DIV

Perner/ID Number

Receipts/Documentation

Non-Employee

International(ACH*)

DIV

Glacier Packet

Substitute W-9

Payee Certification

Banking Verification*

Receipts/Documentation

Personal Payments Training

Consulting Payments, Honorariums, Participant Studies, Human Subject Payments, Travel Reimbursements, Employee Reimbursements, etc.

Payee Certification Forms (PC) Forms are required for non-employees for each payment. The payee must sign with an original signature in the Certification of Payee section and an authorized PNW representative must sign the Verification of receipt of deliverables and/or services section. A DocuSign signature by the PNW representative may be used in lieu of an original signature.

All ALCOHOL related expenses MUST go through PRF and not through Accounts Payable.

Payee Certification Form under Accounts Payable Forms

PAYEE CERTIFICATION FORM

Name: US Tax ID Number/SSN:

Has a Statement of Work (SOW) been executed for this enti ty/individual? Yes No N/A

Bus iness Type (Check One): Indiv idual/Sole Proprietor/single-member LLC/Partnership

Description of Services / Reason for Payment:

Period Covered by Payment Was the work performed outs ide the United States? Yes No

Have you been paid by Purdue Before? Y N If yes, has your address or banking informaiton changed since the last payment? Yes No

US Ci ti zenUS Citizen Permanent Resident If yes, enter Visa Type:

Are you a s tudent? Yes No If yes, enter institution

Are you a current or former employee of Purdue? Y N If yes, enter dates:

If yes, Do you have an approved Reportable Outside Activity Form? Y N

Do you have immediate relatives who are employed at Purdue? Y N

If yes, List name(s) and department(s):

Exempt payee code (i f any) Exemption from FACTA reporting code (i f any) Applies to accounts maintained outside the U.S.

Honorarium/Fees for Service $ $Expenses:

Airfare $ $

Ground Transportation $ $Subsistence :

Food $ $

Lodging $ $

Other - Describe: $ $

Total Invoice Amount $

Signature of Payee: Date:

Printed Name:

Signature: Date:

Printed Name: Title:

Order WBS Element

Fee/Rate Quantity

Payee Certification

Citizenship (check one box)

Purdue University-related Disclosures

Exemptions (apply only to certain entities, not individuals):

Itemized Payment

(Required when services provided are over 160 hours or multiple payments B@P process: Initiating a Consulting Agreement)

Non-Resident Alien or Foreign Entity M ust complete and attach Glacier file

(www.online-tax.net)

Note: The Internal Revenue Service does not require your consent to any provision of this document other than the certification required to avoid backup withholding.

B y Signing this invo ice I :

Under penalt ies o f perjury, I cert ify that:

Certification of Payee

Verification of receipt of deliverables and/or services by individual with first-hand knowledge

g) the information regarding citizenship or foreign status above is correct.

f ) I am not subject to backup withholding, and

e) The number shown on this form is my correct taxpayer identification number and the name is the correct name on file with the IRS,

Account Information

Earmarked FundsG/L Account

a) Certify that this invo ice is correct and just, the amount claimed is legally due, after allowing for all just credits, no part o f the same has been paid, no part will be paid by another entity, nor will any

expenses claimed here be used as a deduction for tax purposes;

b) Certify that I am not a Federal employee;

c) Agree that all inventions and materials first developed or produced as a result o f the above described consulting activities will be reported to Purdue and all rights, both domestic and foreign, to

inventions and materials first developed or produced as a result o f the above described consulting activities shall be retained by Purdue University, and

d) Agree not to disclose any information furnished by Purdue University that was identified as proprietary information.

By signing below, I certify that the services described are essential to the project, have been received, and the consultant’s fees are appropriate.

S or C Corportation/Trust/Estate/Other

Total Foreign CurrencyThis form is required in order to protect, both the payee and PNW, from fraudulent payments going out and hackers. This form must be included and updated with each individual, sole proprietor, payment.

Instructions for Payee Certification Form

• This form needs to be completed for sole proprietors, single member LLC’s, and individuals who are not employees.

• This form must be submitted with each request for payment through DocuSign.

• The Payee needs to complete items on the Payee Certification Form highlighted in yellow.

• Copy of Professional Services Agreement needs to be attached to DIV being processed through DocuSign if Statement of Work has been executed for entity/individual.

• If VISA Type is F1, Glacier form is needed (do not need Glacier packets from foreign employees).

• Signature of Payee must be handwritten!

• The information provided by the Payee is used to confirm all information is updated in the Vendor Master in the SAP accounting system prior to processing payment.

• Items on form to be completed by PNW department

1)Description of Services / Reason for Payment

2)Period Covered by Payment

3)Was the work performed outside the United States?

4)Itemized Payment

5)Verification of receipt of deliverables and/or services by individuals with first-hand knowledge

• Items on form to be completed by Business Office

1)G/L Account

2)Order

3)WBS Element

4)Earmarked Funds *NO AREAS MAY BE LEFT BLANK ON THE FORM. Payee Certification Form

Individual vs Business The Tax Department in WL reviews any tax codes payments to individuals and partnership.

Corporate entities are normally handled through Accounts Payable.

An LLC is a Limited Liability Company. A company with such a designation could file its tax return as a sole proprietor, partnership or corporation.

If the Substitute W-9 indicates an individual/sole proprietor is being paid, a Payee Certification Form would have to be completed.

If a W-9 indicates a business is a partnership, a Payee Certification Form would not be needed.

If a W-9 indicates an entity is a corporation (S or C), a Payee Certification is not required.

An individual may use their Social Security Number or their Employer Identification Number (EIN).

If a W-9 indicates an entity is an LLC, the Payee must indicate the code (C,P or S) in Section 3 of the form. If a W-9 is provided by the Payee then no form needs to be supplied to them. The Payee should have this form on file in their office.

Forms must be signed and dated. Accounts Payable Forms IRS W-9 Form

SUBSTITUTE W-9

This form combines two steps for a corporation (W-9 & ACH Banking Form). This form is necessary for all, new or changes to, a current individual or sole proprietor.

Instructions for Substitute W-9 Form

• Sub W-9 form must be included with the payment to be processed through DocuSign for New or Change Vendor requests if not using a W9 form.

• Corporations may submit a W-9 form

• The payee needs to complete the following items on the Sub W-9.

1) Taxpayer Information

2) Taxpayer Identification Number

3) Business Type

4) Citizenship

5) Purdue University-related Disclosures

6) Payment Method

7) Signature (Must be handwritten!), Date, and Printed Name

• The information on this form is used to set up the vendor in the SAP accounting system.

• This form would be needed for current vendors if there is a change in their name, address, phone number, fax number, email address, Taxpayer Identification Number, or Business Type.

• Example 1: ABC LLC is a partnership entity that is sending its first invoice to PNW to receive payment. If they have not provided a W-9 form along with the invoice, the Department would need to request a Sub W-9 form from the vendor.

• Example 2: XYZ LLC is a current PNW vendor. They have changed the address of their company. The vendor would need to provide a new Sub W-9 form listing their current address.

*NO AREAS MAY BE LEFT BLANK ON THE FORM. THIS FORM MAY NOT BE ALTERED IN ANYWAY!! SUBSTITUTE W-9

Banking Verification Form

• The Banking Verification Form must be used when a new vendor/payee chooses to be paid via the ACH option. This form is also required if the vendor/payee has a change to their banking information.

• The Banking Verification Form was put in place as a fraud prevention tool.

• THIS FORM IS TO BE COMPLETED BY THE DEPARTMENT, NOT THE VENDOR!

• The purpose of the form is to assure that the department received the information from an actual vendor and not any other source.

Business Verification Form under Accounts Payable Forms

Banking Information Verification

☐ New Vendor ☐ Change of banking info ☐ Switching from other pay method

Vendor Information

Please provide information used to contact vendor

Vendor Name Click or tap here to enter text.

Vendor Phone Click or tap here to enter text.

Vendor Contact name Click or tap here to enter text.

Vendor Contact Title/Department Click or tap here to enter text.

Verify the following banking information provided on the EFT/ACH form or Substitute W-9:

Name of Financial Institution Click or tap here to enter text.

Last 4 digits of account # Click or tap here to enter text.

If CHANGE, did the vendor provide old banking information, matching SAP? ☐YES ☐NO

Please choose one

☐ I contacted the vendor and successfully verified their banking information.

☐ I was unable to contact the vendor / unable to verify banking information.

Printed name Click or tap here to enter text. Department Click or tap here to enter text.

Signature Date Click or tap to enter a date.

Attach completed form to DocuSign.

If banking was successfully verified, continue with ACH set-up/change.

H o w w a s p h o n e n u m b e r v e r i f i e d ?

☐ SAP vendor record (preferred for existing vendors)

☐ Company Website (preferred for new vendors)

☐ Other Explain: Click or tap here to enter text.

ACH Form

This form is necessary for Electronic Funds Payments. We can’t accept the information written on an invoice as official banking information. This form is used in conjunction with a current year W-9 and Banking Verification Form for non-employee, non-personal payment vendors/payees.An ACH is an electronic funds transfer. This method is less costly

and safer than other methods of payment.

Instructions for ACH Form

• ACH Form is completed by the Payee.• ACH Form is needed if direct deposit is indicated as payment method on Sub W-9 Form. • Form is needed if new payee requests to be paid by ACH or current payee requests to change to ACH.

Section 1 of ACH Form• Check the box to indicate the type of action: New or Change• Enter the complete name, address, phone and email contact for remittance notification• Enter the Federal Tax Identification number of the payee.• If Change, payee must provide banking information of account currently on file at Purdue

Section 2 of ACH Form• Enter the name and phone number of the financial institution authorized to conduct the transaction. • Enter the ABA/Routing number of the financial institution. This is a nine-digit number that is listed on your

check. It may also be obtained by contacting your financial institution.• Enter the account number to which the direct deposits are to be credited.• Indicate whether the account is a checking or savings account.• An authorized signer on the bank account must sign this form.• The ACH Form completed by the payee should be forwarded to the department to perform the bank

information verification form.

*NO AREAS MAY BE LEFT BLANK ON THE FORM. ACH form under Accounts Payable Forms

Nonresident Alien Payments• All nonresidents must complete Glacier, regardless of what type of payment is being received.

In order for a nonresident to access the Glacier software, a link is sent, via email, by a Glacier

administrator.

• The Glacier packet should be filled out accurately indicating the type of payment being received

(scholarship, award, etc.) and all the appropriate documents need to be signed.

• Each payment request must have Glacier Summary attached and all the pertinent documents as

listed on the Summary (lower right corner). (

• Nonresidents should update their information in Glacier to reflect changes in their personal

situation.

• Please contact: Jane Coleman colema33@purdue.edu with Glacier related questions.

Glacier Software• Purdue University uses a web-based international tax compliance system, called Glacier, to

determine the correct tax withholding for non-resident aliens, and for making all tax treaty determinations. The payee enters his/her information in an online format that has logic to determine international tax decisions. The Nonresident Tax Administrator reviews all submissions for completeness however.

• All international employees must have a Glacier account, and must receive an access email link from a payroll or employment center staff person to create an account. Please contact Jane Coleman, colema33@purdue.edu with any Glacier related questions.

• Glacier Software Link

Living Allowances• Each living allowance payment needs to include a Payee Certification Form and offer letter.

• If this is a new payee, new payee paperwork will be necessary.

• If the individual receiving the living allowance is a nonresident alien, a Glacier packet needs to be completed as well.

Moving Allowances/Reimbursements• A moving allowance is a lump sum of money an individual receives to help defray the expense

of relocating.

• A moving reimbursement is when an individual submits receipts and receives payment for relocation expenses incurred.

• A Moving Allowance Withholding Calculator is used to determine the net amount an individual will receive for their moving allowance/reimbursement.

• Due to the enactment of the Tax Cuts and Job Act of 2017 (TCJA), all payments made to an employee for moving costs (both moving allowance and expense reimbursements) are considered taxable income to the employee. These payments are subject to both income and FICA (Social Security and Medicare) taxes.

• Future employees that have accepted a job offer are paid through the ZV60 process if it is more than 30 days before their hire date. An offer letter must be attached.

• If it is less than 30 days before the employee’s hire date, the allowance/reimbursement is paid through Payroll.

Please contact Human Resources for further details.

Prizes and Awards• Non-employees who receive an award or prize and are U.S. citizens, Resident Aliens or

Permanent Residents, payment is made via the DocuSign Process and a Payee Certification Form would be required. If a new payee, all pertinent forms are required.

• If non-employee international individuals receive a prize or award, payment would be made via the DocuSign process and Glacier documentation would have to be attached.

• The Tax Department will determine the tax coding.

Employee Reimbursements - Travel, Supplies, etc.

• Employee expense reimbursements do not require a Payee Certification Form, but do require original receipts (if possible).

• If an original receipt is not possible, a Certification for a Missing Receipt should be completed. Missing Receipts

• A PNW business purpose needs to be clearly stated that explains the reason for the expenditure.

• If business travel expenses are being reimbursed, CONCUR should be utilized. This includes Virtual Registrations as well as in-person, mileage, etc…(

Including Virtual Conference and Mileage Fees).

• Concur

Non-Employee Reimbursements - Travel, Supplies, etc.

• If a non-employee is being reimbursed, original receipts (if possible) should be submitted. A Payee Certification Form will need to be attached and a clear explanation of the business purpose for this expense should be provided. (If this Payee is not currently in the AP system, all pertinent paperwork will be required.)

• If the non-employee is international, a Payee Certification Form would need to be provided along with the appropriate Glacier documentation. Original receipts (if possible) should be provided. If foreign currency is used, a currency conversion chart must be attached. For mileage, a route map displaying miles traveled must be attached. (If the Payee is not currently in the AP system, all pertinent paperwork will be required.)

Prospective Employee Reimbursement

•Prospective Employees visiting campus to interview for a position may be reimbursed for some of the trip's associated expenses. Prior approval to reimburse these expenses is obtained by processing a Form 17C, Request for Approval for Reimbursement of Expenses for Prospective Employee Interview Trips.

•A SSN is needed if the spouse or other dependent accompanies the prospective employee. Any payments made to reimburse the expenses for the spouse or dependent are taxable.

Prospective Employee Reimbursement Form

Wire Transfer

• A wire transfer is used to transfer money from one person or entity to another, domestically or internationally.

• A Wire Transfer Request Form, a Payee Certification Form and supporting documentation need to be attached with each international payment request.

• All international payments must be made via wire transfers. Please contact your Business Manager for further details.

• Wire Transfer Request Form

WIRE TRANSFER FORM

This form is used when funds are being sent from one account to the other with the bank being the “liaison” instead of the ACH.

Please contact the Business Department with any questions pertaining to the Wire Transfer Process.

Wire Transfer Request Form

Questions?

Schwarz 25E – Westville Campus send inquiries

Contact

Please send email inquiries to our department at: pnwpayables@pnw.edu

Carol Wright – cwrigh@pnw.edu

Schwarz 25E – Westville Campus

(219) 785-5238

Felicia Armstrong – farmstr@pnw.edu

Schwarz 25G – Westville Campus

(219) 785-5238

Shawn Marks – marks62@pnw.edu

SAB 1143 – Hammond Campus

(219) 989-8366