Review of the Invoice Process

Mary Jane PachecoManager, Payment ServicesRyerson University

What is an Invoice?

Canada Revenue Agency defines invoice as a source document.Source documents reflect binding agreements between parties to transactions.They generally represent the proof of transactions and are relied upon whenever disagreements arise between the parties in relation to the transaction.Invoices need to inform customers of the price of the goods and/or services they are purchasing and the amount of tax they are paying on those goods and/or services.Other source documents include credit card receipts, contracts, purchase orders, work orders, and cancelled cheques.

Background

Last fiscal year (2013-14) financial services processed 32,527 invoices via Markview.Any one of these invoices may be subject to audit review.For this reason, we require specific information on every invoice.When an invoice is received in financial services it is scanned into Markview to initiate the payment process.

Information required on an invoice

For audit purposes, the following is required on each invoice:Vendor NameVendor AddressVendor Telephone/Fax/EmailBill To Name: RYERSON UNIVERSITYUnique Invoice NumberInvoice Date (i.e. date goods/services are received)Detail description of the goods/services incurredValid Purchase Order (PO) Number (if applicable)Vendor HST Registration Number (if applicable)

Sample Invoice

HST is not applicable

1. If the invoice is payable to an individual for professional services, Financial Services will require the Independent Contractor forms to be completed before the work commences. These independent contractor forms are kept on file (shared drive) by Payment Services. Please refer to Weblink –http://www.ryerson.ca/purchasing/independent_contractor/

2. If the invoice is payable to a company/organization we need to confirm if the vendor is operating as a Non-Profit Organization (NPO) or Registered Charity.

Vendor NameVendor Ad

What is an NPO?

A non-profit organization (NPO) can be set up for any legal purpose as long as its members do not receive a direct financial benefit from the revenues or assets of the organization.

An NPO can operate fully without registering as a charity with the Canada Revenue Agency (CRA).

What is a registered charity?

A registered charity is a technical and precise term that refers to an organization that:- Is established exclusively for charitable purposes- Uses its resources for charitable activities- Does not operate for profit- Has applied and is registered as a charity under the

Income Tax Act (ITA)- Has received a Notice of Registration from the CRA- Has been assigned a charitable registration number by

the CRA

Questions??

Please direct any questions and/or concerns you may have regarding invoices to:

invoices@ryerson.ca