December, 2014 - FMS Newsletter
Financial Management Services

In This Issue

December, 2014

Disbursement Voucher Supporting Documentation

Speed up final approval of your Disbursement Vouchers by ensuring that you have uploaded valid supporting documentation. Supporting documentation for reimbursement of out of pocket expense is valid if it shows proof of purchase. Proof of purchase includes an itemized list of what was purchased and payment detail.

The payment detail is not satisfied by:

A photocopy of the front of a check. You must also include the back of the check showing the check endorsement. Ensure all account information is redacted before submitting with your itemization.

An online order summary showing only itemization. You must also include separate payment detail like a credit card statement or an image of the front and back of a check. Again, ensure all account information is redacted.

Approving PREQs for Defective Merchandise

A payment request that routes for a defective item should be placed on hold pending the receipt and processing of a credit memo. Here are the steps:

  1. Select ‘Hold’ on the document
  2. Add the following note: “Item defective. Requesting credit memo to be sent to Accounts Payable.”
  3. Contact vendor customer service office regarding:
    1. Notify vendor that item is defective
    2. Request return process instructions
    3. Request that credit memo be issued and sent to Accounts Payable
  4. Remove ‘Hold’ once the credit memo has been processed and has routed as an “FYI” in KFS
FMS Accounts Payable appreciates your help with the aforementioned process. It will improve the speed and efficiency of our credit memo and subsequent invoice processing.

KFS User Role and Disbursement Voucher Initiator Role

The KFS User and Disbursement Voucher Initiator roles are managed separately. The KFS User Role does not give users the ability to process Disbursement Vouchers (DVs). There is a special role for DV initiators that is granted once a KFS user goes through a certification process. Moreover, the DV Initiator Role does not give KFS access. To be able to initiate DVs, users must both be in the KFS User Role and the DV Initiator Role. For more information on the DV certification process, please visit the FMS website at: DV Certification.

For a quick tutorial on how to request the KFS User role for an individual, please view this video: Create/Modify a New User.

Processing the Global Account Document

We will be using an example from BL-CHEM to demonstrate how to complete an Accoung Global document.

In KFS, under Chart of Accounts, click the create link for the Account Global doc.

Create Global Account Doc

Enter a description for the document. On the Global Account Maintenance tab, enter values only for the items you want to change. Leave everything else blank. In this example, we will be changing the account supervisor.

Global Account Management Tab

To populate the Edit List of Accounts tab click the Look Up/Add Multiple Account Lines link to the right:

Edit Accounts

Determine what search criteria will best identify your accounts. It might be all of the accounts in a given org. It might be all of the accounts where Jane Doe is currently supervisor. In our example, we will search for Bloomington Chemistry General Fund accounts. Enter the search criteria and click the “search” button. Results are below.

Account Lookup Results

Each row has a “Select” box to the far left. You can use it to choose individual accounts, or you can use the “select all from all pages” or “select all from this page” buttons to select multiple accounts at once. Once you have the right accounts selected, click the “return selected” button. After you click “return selected”, the accounts will now be populated on the Edit List of Accounts tab.

Edit Account Field with Results

Delete anything you brought back by mistake or use this box to add an additional account if necessary

Add New Single Account

Remember to click the “add” button if you add a single account.
Scroll down and click the “submit” button.

FIS Account History

There is an IUIE report that will give you all the FIS history of an account, if you need to review the history of an account that was converted from the FIS.

The report is located at: IUIE/ Master Catalog / Kuali Financial / Chart of Accounts / FIS Historical Datagroups / FIS Account Maintenance (Legacy FIS).

Process for Approval of PREQs carrying Full Order Discounts

There is a known KFS issue for Payment Request with full order discounts that either:

  1. Route to multiple fiscal officers, or
  2. Route for chart review

These documents cannot be approved by these approvers.
Please use the following workaround until this issue is fixed:

  1. Confirm final approval and payment disbursement is appropriate.
  2. Add a PREQ note “Final approval needed – full order discount and a known issue – please approve”.
  3. Send “note” notification to csinex.
  4. Csinex will review and request final approval on your behalf.

Note: In the case of multiple fiscal officers, each Fiscal Officer must add a note approving payment. Please use this work around until the issue is fixed in KFS for the above situations. Unfortunately, there is not an estimated date for the fix.

Frequently Asked Questions: Customer Setup

Q: How do I know if a customer already exists in KFS-AR?

A: Use the Lookup button in the “Reference” section of the Accounts Receivable module to determine if the customer already exists. Always change the “Active Indicator” to “Both” so that inactive customers are also included in your search results.

Wildcards can be used in the search criteria. It is best to search for part of the individual’s or company’s name you are looking for - with astrisks on both ends - so that more results are returned. Once the list of search results displays, you can click on the column titled “Customer Name” to sort the list by name.

Q: How do I edit or add a new address for a customer?

A: Perform a search for the customer number or look the customer up by using wildcards as demonstrated above. This will return all of the addresses for that customer.

  1. Click “edit” in the “Actions” column of the search results.
  2. Follow these steps to edit the customer:
    1. Enter a description - “add address” or “edit address” is sufficient.
    2. Go to the “Addresses” tab, leave the address type as “Alternate”, enter the new customer address and click “add.” Note: if you want the name of the customer to appear in the first name last name format on the invoice, you will need to enter the name in that format under the “Addresses” tab when updating the address information.
    3. Submit the document to route to Non-Student Accounts Receivable for approval.

Q: How to I make an inactive customer active?

A: Once you have performed a search for the customer, click on the “edit” option under the “Actions” column of the search results. This will open the customer set-up screen.

  1. Enter a description – “to activate customer” is sufficient. Do not specify the customer if it is only for use by your department or organization.
  2. Under the “General Information” tab, you will see a blank box next to “Active Indicator.” Click the box to activate the customer.
  3. Submit the changes so it will route to Non-Student Accounts Receivable for approval.

Q: How do I add a new customer?

A: To create a new customer, click the “Create” button next to “Customer” in the “Reference” section of the Accounts Receivable module.

  1. Enter a description – “new customer” is sufficient. Do not specify the customer if it is only for use by your department or organization.
  2. Be sure to follow the Business Rules for New Customers found at
  3. Enter all of the required information indicated with “*” next to the field. You must click “add” after entering the address information.
  4. If you want the customer name to appear in the first name last name format on the invoice (John Doe), you can enter it this way in the address section of the customer set-up.
  5. Once you submit the edoc, it will route to Non-Student Accounts Receivable for approval.

Q: Will I be able to use the customer immediately after submitting my changes?

A: The customer must first be approved before you can add it to the invoice. It will not appear in any of the customer searches until the Customer document is in "Final" status. Non-Student Accounts Receivable usually approves the customer documents in a timely manner, but if you need it immediately, please contact

Q: Can I blanket approve my new customers or customer edits?

A: No. All Customer documents need to route to Non-Student Accounts Receivable for approval. Please contact if you have any questions.

Q: Are the Business Naming Rules for customers posted on the web?

A: Yes, they can be found at:

Q: Is there a step-by-step guide to editing or creating new customers on the web?

A: Yes, training material can be found on the FMS website under the “Training” tab. Scroll down and select the drop-down list for Accounts Receivable.

When to use Capital Asset Object Codes

Equipment purchases with an acquisition value of $5,000 or more must use a capital asset object code (i.e. 7000, 7015, 7030 or 7035). In addition to the cost of the equipment itself, the following are also allowed to be capitalized as part of the asset’s total cost:

  • Freight/Shipping
  • In-transit insurance
  • Cost to prepare site for its intended use
  • Cost of installation/assembly
  • Initial training

It is important to note that software licenses, warranties, and service/maintenance agreements are NOT allowed to be capitalized. These costs must use expense object codes such as 4616 or 4776.

For more information, see CSOP 8.0 Capitalization of Moveable Equipment or feel free to contact Capital Asset Management at

Tax Tidbits

Updated Substitute Form W-9

University Tax Services has recently updated the Substitute Form W-9 used by Purchasing and Accounts Payable (AP) to add a new vendor into the Kuali Financial System. The purpose of the Form W-9 is for a vendor to certify their name, tax Identification number and that they are a US person or entity. Starting January 1, 2015, Purchasing and AP will no longer accept an expired Form W-9 from departments. This procedure will apply to both the IRS original and IU’s Substitute Form W-9.

The IRS original Form W-9 was last updated on August 2013. This date can be seen in the top left corner of the form. While IU’s Substitute Form W-9 was updated on September 2014 noted in the bottom left corner of the form. Any department submitting an out-of-date Form W-9 for a new vendor will be asked to re-submit a new, updated Form W-9. University Tax Services appreciates your assistance in keeping IU compliant with the IRS.

Tax Implications of P-Card Transactions to Foreign Vendors

Due to the possible tax implications of P-Card transactions to foreign vendors, University Tax Services is performing an audit of 2014 P-Card transactions to foreign vendors.

  • All foreign purchase transactions require additional review by University Tax Services.
  • A detailed explanation of the purchased item/s is required in order to provide substantiation for IRS purposes.
  • All foreign vendor payments have a potential 30% mandatory withholding
  • IMPORTANT: The P-Cardholder’s department is responsible for any tax resulting from a P-Card transaction to a foreign vendor.

In order to adequately substantiate P-Card charges to foreign vendors, it is necessary for the department to provide the type of purchases and a brief justification when contacted by University Tax Services.

Common types of purchases:

  1. Tangible/Physical Good
    • Goods are something that you can use or consume, and are always tangible property
  2. Software
    • Perpetual – perpetual license will allow indefinite use by the customer
    • Renewable – allows use for a period of time
  3. Publications
    • Reprints or other hard copy – classified as tangible good and therefore not taxed
    • Right of use – also called a copyright royalty, is taxable
  4. Breakdown of Service
    • U.S. Sourced
    • Foreign Sourced

In January of 2015, University Tax Services will move to a monthly audit process on all P-Card transactions to foreign vendors. We are planning to provide additional education through upcoming website resources and on campus trainings.

Please contact Rashul Sartoris at 855-2921, or by email at if you have any questions on potential tax withholding requirements on P-Card transactions to foreign vendors.

If you would like to be added or removed from the Purchasing Card listserv please email Patricia Anderson at

Financial Management Services
Support Form

Unsubscribe from this list.
Subscribe to this list.

Copyright© 2014, The Trustees of Indiana University