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September 13, 2016
Note: In an effort to reduce the risks of cyberattacks to the Indiana University community, FMS is will not include URLs or hyperlinks in mass emails to reduce the possibility that our messages will appear to be phishing scams.

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
Object Codes Are Critical for Tax Form 1099-MISC
Indiana University compensates non-employees, including students and business entities, for services provided to the institution. University Tax Services reports all non-payroll payments for services on Form 1099-MISC to U.S. taxpayers as "other reportable payments."

University Tax determines which non-payroll payments to report on Form 1099-MISC based on the object code applied to the payment. Thus, when processing a non-payroll payment for services provided, choosing the correct object code is critical for tax compliance. Make sure to check FMS’s list of object codes that are reportable on Form 1099-MISC. View this list by going to the FMS website, navigating to “Tax,” selecting “Independent Contractors” from the left navigation bar, and then choosing the “Reportable Object Codes” link.

It can be difficult to determine which object code best suits a payment. University Tax reviewed non-payroll payments made through KFS for proper object code use and found that, many times, compensation for services are not reported using a reportable object code from the list referenced above. To assist with making the correct object code determination, check the list of Form 1099-MISC Frequently Asked Questions. Form 1099-MISC FAQ is located under “Independent Contractors” option on the Tax website; click “Form 1099-MISC” in the left navigation bar and then select “FAQs.” To distinguish between services (reportable on Form 1099-MISC) and goods (non-reportable), refer to the section “How do I know which object code to pick?” in the Form 1099-MISC FAQs.

If you are unable to find an answer to your question using the Form 1099-MISC Reporting resources on the FMS website, please email taxpayer @ iu . edu for further assistance.
Auxiliary Calendar Updated through June 2017
The Auxiliary Calendar has been updated to reflect the Auxiliary Voucher (AV) cutoff dates through June 2017 (AV cutoff for May). View the updated calendar by going to the FMS website, navigating to “Auxiliary Accounting,” and choosing “Calendar” from the left navigation bar.

Auxiliary Vouchers must be submitted and approved by 5:00 p.m. on the 10th day of the month following the end of the fiscal period. If the 10th falls on a weekend or a holiday, the due date will move to the next business day. If you need AVs approved after 5:00 p.m. on a particular day, please e-mail auxacct @ iu . edu before 5:00 p.m. on that day.
Demystifying the "Check Enclosed" Process
“Check Enclosed” is a bill-paying process used for prepayments, such as a deposit to secure a venue or a required down payment. To initiate a check enclosed purchase order (PO), open a Requisition (REQS) document in KFS and mark the line item as “Restricted”. REQS documents with restricted line items always route to Purchasing for prepayment approval.

Once the PO document is approved, Purchasing emails payment documentation to Accounts Payable (AP) for processing. Payment requests are then processed by AP using a two day pay date to accommodate the business need. Disbursement occurs following the payment request document’s approval or auto-approval.

Before submitting a check enclosed purchase order, the initiator should confirm the remit address (where the check should be mailed), particularly when the prepayment has not been invoiced. The remit address instruction must be added to the “Delivery Instruction” field in the REQS document in these cases.

In addition to traditional prepayment situations, the check enclosed process is also used for checks that will be delivered to performers or speakers when Purchasing has determined printing a check to deliver in hand is appropriate.

Note that, although memberships and subscriptions are advance payments, they should NOT be processed via a check enclosed purchase order. Instead, memberships and subscriptions should be paid using a disbursement voucher (DV) or a procurement card (with the exception of software subscriptions, which should be done on a standard purchase order).

Furthermore, payment instruction for past due invoices should NEVER be submitted via the Check Enclosed process. Past due invoices should be sent to AP at invoice @ indiana . edu for processing.

Read more about the Check Enclosed process and the situations in which a subscription must be paid through a PO in the October 2014 Purchasing Newsletter, available in the newsletter archives on the Purchasing website, www . indiana . edu / ~ purchase.
When Should I Close a Recurring Purchase Order (RPO)?
A recurring purchase order (RPO) is opened to make ongoing payments to a vendor on variable dates and for variable amounts.

Ask yourself the following questions before closing a recurring purchase order:
  1. Have all the invoices for this RPO been received and processed? Review the “Payment History” tab on the PO document to confirm invoice and credit memo processing and status, as well as payment disbursement information.
  2. Will this RPO be invoiced in July for June services? Closing an RPO before all invoices are received incurs additional labor, as the RPO must be reopened to process additional invoices. Leave the RPO open until all billing is received and processed on a Payment Request (PREQ) document.
When closing an RPO, complete the following steps:
  1. The note you provide in KFS when closing the RPO should include the number of the replacement RPO. For example: “See FY17 PO 1865555.”
  2. Include a note in KFS such as, “All invoices received after August 1, 2016, should be processed on open FY17 PO 1865555”, if applicable to your situation.
What is E-Invoicing?
If your responsibilities at Indiana University include approving payments, you might see a Payment Request (PREQ) document in KFS that is missing the “Supporting Documentation” tab. While most PREQs have a “Supporting Documentation” tab that contains an image of the order invoice, PREQs created via the e-Invoicing process do not have invoice attachments. E-Invoicing is a process that automates the creation and routing of PREQ documents.

Whereas most vendors send a paper or digital invoice to IU that must then be processed and uploaded to a PREQ as supporting documentation, an e-Invoice vendor sends a specialized computer file to IU in place of an invoice. In turn, KFS automatically converts the file into a PREQ. As KFS converts the vendor file into a PREQ, it verifies and matches specific criteria within the file against the vendor’s Purchase Order and the corresponding KFS vendor record. If all data in the file passes validation, a PREQ is automatically routed for departmental approval. If it does not, KFS rejects the invoice and sends it to Accounts Payable for review and revision.

E-Invoicing streamlines the purchasing workflow and reduces processing costs. Currently, IU has enacted e-Invoicing with 16 vendors. These vendors are:
  • Apple Computer
  • Bio-Rad Laboratories, Inc.
  • CDW Government, Inc.
  • Dell, Inc.
  • Fisher Scientific Company, LLC
  • Graybar Electric Company, Inc.
  • Guy Brown Management, LLC
  • H P Products Corporation
  • Integrated DNA Technologies, Inc.
  • Life Technologies Corporation
  • McKesson Medical Surgical, Inc.
  • National Gift Card Corporation
  • Qiagen, Inc.
  • Sigma-Aldrich, Inc.
  • VWR International
  • W. W. Grainger, Inc.
Changes to the FMS Training Team
FMS is pleased to welcome a new Training and Documentation Specialist, Elisabeth Mason. Ellie brings with her a diverse set of skills and experience, including more than nine years in instructional design and consulting.

Most recently, Ellie worked as an Instructional Systems Developer with the Indiana Institute on Disability and Community, where she led the development and implementation of about 30 online, interactive training modules for Indiana Vocational Rehabilitation staff. Previously, she held similar positions in the Center for Innovative Teaching and Learning and the Teaching and Learning Technology Centers, both at Indiana University Bloomington. The FMS Training Team has a long project list, and we are confident that Ellie will be instrumental in getting several initiatives off the ground. Welcome, Ellie!

The FMS Training Team also congratulates Tracey Mui, Customer Service Manager and Training Specialist, on her new position as a Financial Systems Analyst/Project Leader with FMS Operations. For the past five years, Tracey has designed, developed, and implemented training and communication programs for the Kuali Financial System, Indiana University Information Environment, Kuali Time, and HRMS Payroll.

In her new position, Tracey will continue to support KFS users by ensuring the stability and integrity of the financial accounting systems (including KFS) and designing, testing, and enhancing any future enhancements to IU financial systems. As she transitions into her new position, Tracey will continue assisting with training responsibilities. We will miss Tracey’s contributions to our team and wish her the best of luck in her new position.

Tracey’s departure created a vacancy within the FMS Training Team that is in the process of being filled. If you know of anyone who might be interested in and qualified for the Training and Documentation Specialist position, please encourage them to apply for Posting Number 02387P on jobs . iu . edu.
Events Calendar
Tue, Oct 4, 2016
KFS Financial Processing Basics I
Poplars W183
Wed, Oct 5, 2016
KFS Financial Processing Basics II
Poplars W183
Thu, Oct 6, 2016
General Ledger Balance Inquiries
Poplars W183
Fri, Oct 7, 2016
Disbursement Vouchers I: Introductory
Poplars W183
Wed, Oct 12, 2016
Disbursement Vouchers II: Advanced
Poplars W183
View more events and register at fms . iu . edu / training »
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