Public Knowledge Base - SIMBA: Non-PO Invoice Process Overview

Article Intended For

SIMBA users

Introduction

This article provides a general overview of the non-PO invoice process.

Article Body

Overview
Uses for Non-PO Invoices
Penn State's Invoice Process
Document Type and Number
Entering a Non-PO Invoice
Accessing a Parked Non-PO Invoice
Submitting a Non-PO Invoice into Workflow
Vendors Paid via Non-P Invoice
Invoice Payments
Vendor Remittance Advice

Overview

A vendor invoice is a billing document received from a vendor seeking payment for goods or services provided to the University. Non-PO invoices are used when payment is due to a vendor for goods or services related to recurring fees, one-time fees, or grant refunds. When a user submits a non-PO invoice in SIMBA, payment is made to the vendor via check, wire transfer, or ACH (Automated Clearing House).

Uses for Non-PO Invoices

In SIMBA, a non-PO invoice can be used in the following situations:

Recurring fees such as utility bills, membership fees, and rent.
Grant refunds. Learn more in SIMBA Support website | Grants Management.
One-time fees such as legal fees, reimbursements and advances, guest speaker or lecturer fees, and payment of officials. Learn more in the following knowledge base articles:

To determine the best method for payment, refer to the Procurement Search Tool. In this tool, click the General Ledger icon. Then enter the GL number and verify that non-PO invoice is an acceptable payment method.

For a non-PO invoice, the expense General Ledger (GL) accounts are captured along with the appropriate cost objects for debit. The credit is applied to the vendor via the Accounts Payable balance sheet GL 21000100 – A/P Recon Account.

Penn State’s Invoice Process

The Accounting Operations Accounts Payable team approves payment for both PO and non-PO invoices. The following steps outline Penn State's invoice process, as illustrated in Figure 1.

Receive invoice. A SIMBA user or a department receives a vendor invoice.
Enter invoice details. A user opens the Park Vendor Invoice tile and enters invoice details. Header details can be used as report filters.
Park invoice. The user clicks the Save parked document button to save the new details and generate a document number. The parked invoice is not sent into workflow. (The user should write down the document for future use.)
Attach documents. Users upload supporting documents to add to the invoice, including a copy of the invoice.
Submit invoice. A user clicks the Save as Completed button, which sends the invoice into workflow for review.
Review and approve. Assigned reviewers complete individual tasks. When all assigned tasks have been completed, SIMBA automatically posts the invoice. When a document moves from parked to posted, the invoice is ready to be paid.

Note: If the vendor being paid is a foreign vendor, the invoice will be routed to Accounting Operations for approval by the Foreign Vendor Specialist. Refer to Non-US Citizen Payment Guidelines.

Issue payment. The Accounting Operations department pays the vendor via check, wire transfer, or ACH (Automated Clearing House).

Figure 1. Penn State’s invoice process.

Document Type and Number

The standard document type for non-PO invoices entered directly into SIMBA is KR. The document number sequence begins with 19 followed by 10 digits: for example, 19xxxxxxxx. A document number is assigned when a user initially clicks the Save parked document button. Reports can be filtered by document type or document number, as well as vendor line item text.

Entering a Non-PO Invoice

To enter a single vendor non-PO invoice, use the Park Vendor Invoice tile. To learn how, watch the Park Vendor Invoice simulation.

To simultaneously create multiple vendor invoices to pay on a regular basis, use the Custom AP Mass Upload Program tile. Learn more in the Master Data Templates and Tools section or watch the Non-PO Custom AP Mass Upload Program simulation. This mass upload initiates the process and saves invoice documents as parked.

Users must then access each parked document, whether created singly or through a mass upload. In each parked document, add any additional details, attach documents, and complete the document (click the Save as Completed button). Even if no details need to be changed and no documents need to be attached, each invoice must be opened to click the Save as Completed button to trigger the workflow. Review Penn State’s Invoice Process section above.

Accessing a Parked Non-PO Invoice

Complete the following steps to view a parked document.

Select the Display Parked Document tile.
Enter 1855 in the Company Code field.
Enter the document number. (This number is generated when a user clicks the Save parked document button.
Click the Continue button.

Submitting a Non-PO Invoice into Workflow

When a user clicks the Save as Completed button on a parked document, the document enters workflow. Review Penn State’s Invoice Process section above. Learn more in the following knowledge base articles:

Vendors Paid via Non-PO Invoice

Each vendor paid via a non-PO invoice is required to register in the secure PaymentWorks vendor portal. During this registration process, the vendor provides banking information (the use of ACH payments is encouraged) and a tax ID, and uploads the W-8BEN (international tax form) or W-9 (request for taxpayer ID form). These documents must be uploaded in the vendor portal rather than attached as supporting documentation to a non-PO invoice. The SIMBA Support website | Supplier/Vendor Registration Process section details this registration process.

Vendors can be paid in foreign currency. In SIMBA, the person processing the vendor payment enters the foreign currency amount and type and the converted USD amount. When the payment is sent to the bank, the bank will issue a wire transaction in the foreign currency.

When a non-employee is paid via a non-PO invoice, the Non-Employee Information (NEI) form must be uploaded and attached to the invoice as supporting documentation. (See the Non-U.S. Citizen Payment Guidelines for complete details.) The W-8BEN (international tax form) and W-9 (request for taxpayer ID form) are not to be uploaded as supporting documentation to a non-PO invoice. A vendor payment will not be approved by Central Accounting without proper documentation.

Invoice Payments

The SIMBA Support website | Accounts Payable section details PO and non-PO invoice payments, including specific processes and tasks for the following roles:

Vendor Remittance Advice

Vendor remittance is payment made by a customer to a vendor for goods or services provided. A vendor remittance advice is a document sent along with this payment to help the vendor match the payment with the correct invoice and understand why payment is being received.

SIMBA users can add a note to this remittance advice document; these notes can be general, such as “Payment for Services Rendered,” or more specific, such as “Honorarium Payment 6/1/2020.” In the document header of the non-PO invoice, enter an asterisk (*) followed by the desired note in the Text field. The text will not appear as a note on the remittance advice if the asterisk (*) is omitted.

Vendors choosing to receive checks will receive the notification in the Notes column at the top section of the paper check (as shown in the following illustration). Vendors who choose to use ACH and provide a valid email address will receive remittance advice as a PDF attachment via email.

Text at the item level gives more information to the approver and is viewable in many line item reports. The Notes tab provides additional space for supporting information. Extensive supporting text is best added as an attachment.