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February 21, 2017
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Instead, we have provided clear instructions on how to access the necessary information found in this newsletter. We apologize for the inconvenience.
In This Issue
FMS News
I received a past due invoice. What are the next steps?
Actions you should take:
  1. Make certain the purchase order number (PO#) is on the face of the invoice. Add the PO# and your first initial and last name if the PO# is not already on the face of the invoice. Mark “past due” at the top of the invoice.
  2. Verify that the PO is fully funded to pay the invoice. If not, please have the account’s fiscal officer or delegate add a note to the PO document in KFS to increase the funds to pay that invoice. They should also “FYI” that note to the Purchasing Team on the PO. This can be done by adding the group “PURHELP” as an ad hoc recipient.
  3. Make certain the itemization matches. In other words, confirm that the invoice is not billing for items that were not on the PO. If the itemization does not match, resolve the discrepancy with the help of Purchasing: use an amendment to add the additional items to the PO.
  4. Email the PDF invoice to invoice @ indiana . edu after confirming that #1, #2, and #3 are okay.
  5. Do not request the following, as they will not be accommodated for past due invoices:
    1. Special pay dating.
    2. Two-day pay.
    3. Check enclosed.
  6. In the future, ensure that standard ordering and billing procedures are followed to avoid past due invoices. The vendor should be sending its invoices to invoice @ indiana . edu, not to you.
Actions Accounts Payable will take:
  1. Past due invoices will automatically be placed in a queue so that they are processed ahead of current, Net 30, invoices.
  2. Past due invoices that are less than $5,000 will be paid with a seven-calendar-day pay date. This means that a past due invoice processed on 2/20/2017 will route with a 2/27/2017 pay date when the billing amount is less than $5,000.
  3. Past due invoices that are $5,000 or greater will be paid with a two-calendar-day pay date. This means that a past due invoice processed on 2/20/2017 will route with a 2/22/2017 pay date when billing is $5,000 or more.
Wire Transfers and Foreign Drafts
The issuance of wire transfers and foreign drafts is a lengthy process. It involves collecting all the appropriate banking information and creating a KFS document that matches the payment expectations. Please review the tips below to proactively aid in the timely disbursement of foreign draft and wire transfer payments.

Wire Transfers:
  • Wire transfers differ from direct deposit, or Automated Clearing House (ACH). Accounts Payable is responsible for processing wire transfer payments on purchase orders. Purchasing has the ability to change payment terms to wire transfer on the PO. This indicator can help the department and Purchasing to monitor encumbrances for purchase orders paid by wire transfer. This indicator can help an invoice processor in Accounts Payable know the PO is intended to be paid by wire transfer. Make sure all the necessary banking information is gathered before submitting the KFS document.
  • Wire transfer payments that are unrelated to Purchase Orders are processed on DVs by department staff members. Include all required wire transfer information. Enter this information in the Wire Transfer tab on a DV. If the bank name provided does not match the bank name in vendor record exactly, the bank will reject the deposit.
  • Wire transfer data is not kept on file in AP, so it must be provided for each transaction. This includes Check Enclosed payment requests. Foreign wire transfer data can be submitted with the invoice, emailed to fmsaphlp @ indiana . edu, or faxed to (812) 856-4452. Foreign bank account information is not categorized as critical data at Indiana University, so policy and procedure allow email of foreign bank account information.
  • Be clear on the currency of payment, U.S. dollars vs. the specific foreign currency.
  • Some foreign vendors have a U.S. sister company that shares a similar name. Please set up the PO to pay the company that will be billing IU for the services. Some foreign entities have U.S. bank accounts and do not need to be paid via wire transfer.
  • Payments to Canada in U.S. dollars are paid through standard Indiana University check payments. A wire transfer, however, may be issued, upon request, when the business need is evident.
Foreign Drafts:
  • The IU Office of the Treasurer recommends that IU issues payments via wire transfer rather than foreign draft. Use foreign draft when the preferred currency is unavailable via wire transfer.
  • Create the DV document in KFS using the amount for the type of currency owed. For example, if the vendor is invoicing in Euros, the Euro amount should be entered in the KFS document, not the U.S. dollar equivalent.
Ensuring Quick Delivery of Ordered Goods
When your department is placing orders with vendors for supplies, equipment, or other items, please ensure you have provided an appropriate delivery address.

The FMS Accounts Payable Operations team has been receiving shipments that erroneously list FMS Accounts Payable (AP) as the delivery address. Our standard procedure is to decline shipments mistakenly delivered to the FMS AP address because we cannot determine the intended delivery location.

To prevent your shipments from being returned to the vendor, please confirm that the delivery address you provide for your department meets one of the following criteria:
  • When using a Procurement Card, correctly enter your department’s address into the vendor web form when making purchases, or
  • When completing a requisition to a vendor, correctly enter your department’s address in the Requisition document in KFS.
Please remember that the FMS Poplars location is not a mail sorting facility. AP’s function is to support university financial administrative transactions. Supplying the appropriate delivery address will ensure a quick delivery for your ordered items.
Standard Ordering and Billing Procedure Refresher
Standard ordering and billing procedure means that departments place orders via the requisition (REQS) and purchase order (PO) process in KFS. The vendor then submits their invoice directly to Accounts Payable (AP) with the PO# on the face of the invoice and clear remit address instructions. AP pays the bill in accordance with the purchase order terms. Timely payment results when the PO is open and funded and when the billed items are part of the PO.

Indiana University requires the above process for the control benefit of separation of duties and for the efficiency benefit for standard operating procedures.
Check Enclosed Refresher
“Check Enclosed” is a term derived from the days when a check was placed (enclosed) in an envelope to be mailed to a supplier as a down payment or deposit in advance of beginning work or shipping goods. Although this process is no longer common at IU, there are still situations when a deposit is necessary.

The check enclosed process may only be initiated and submitted by Purchasing staff with instructions to Accounts Payable. Subsequent payments on the PO, following receipt of goods or services, are processed via an invoice sent to AP as described in the standard billing procedures, above.

Please note that the check enclosed process is not used to “fast track” past due invoices.

The Purchasing Newsletter dated Fall 2014 provides instruction for the department steps on a requisition. Here is the link to that article. This link includes spaces per IU protocol http: // www .indiana.edu /~ purchase / resources / newsletter / 2014 / Fall_2014.pdf
Events Calendar
Wed, Feb 22, 2017
Kuali Time for Supervisors and Payroll Processors
Poplars W183
Thu, Feb 23, 2017
Payroll Essentials
Poplars W183
Tue, Feb 28, 2017
Financial Processing Basics 1
Poplars W183
Thu, Mar 2, 2017
Financial Processing Basics 2
Poplars W183
Wed, Mar 8, 2017
Disbursement Voucher Basics
Poplars W183
View more events and register at fms . iu . edu / training »
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