Creditor Invoice Procedure

Purpose

These procedures set out the mechanism for creditor invoice receipt, processing  and subsequent payment actions. An explanation of related documents and their purpose is also provided.

Definitions

• Accounts Payable Office - Financial Services Division Accounts Payable Office
•  AP - Accounts Payable
• Creditor - Money owed by the University
• EFT - Electronic Funds Transfer  (money direct credited to Creditor's bank account)
• Finance One - University Corporate Financial System 
• FX - Foreign Exchange
• GST - Goods and Services Tax

Content

Processing Creditor Invoices/Credit Notes

Creditor invoices must be received by the Accounts Payable Office direct from the creditor for entering into Finance One. The preferred option is that creditors mail or email  invoices directly to the Accounts Payable Office.

The Accounts Payable Office will send out to Cost Centres the invoices for processing and authorisation.

Cost Centres must return invoices within seven days of receipt or inform the Accounts Payable Office of the reason for not doing so. It is likely that many Cost Centres are dealing with the same creditors and withholding an invoice may jeopardise the relationship the University has with the creditor.

Overseas Creditor Invoices

Overseas creditors are paid monthly in the appropriate currency and do not generally contain any Goods and Services Tax (GST).

Cost Centres will be charged in NZ dollars using the spot foreign exchange (FX) rates on the date of the invoice.

Querying an Invoice

If a Cost Centre queries or disputes an invoice, the Accounts Payable Office must be notified immediately and a copy of any correspondence forwarded to the Accounts Payable Office.  This enables Accounts Payable Office staff to deal with supplier payment enquiries.

Creditor Payment Method

The preferred option for paying creditors is by direct credit. This system allows the University to pay creditors by Electronic Funds Transfer (EFT).

Creditor Payment Dates

A schedule of deadlines to return Creditor invoices to the Accounts Payable Office and payment dates is maintained by Financial Services.

Schedule of Creditor Deadlines

Invoices v Statements

Payments to creditors will be made on receipt of approved invoices (not statements) addressed to the University of Otago.

An invoice must have a purchase order number written on it. A statement will summarise a series of invoices for a specific (usually monthly) period of time.

Statements are not treated in the same way as invoices. The Accounts Payable Office reconciles all statements. Any statements received by Cost Centres must be forwarded to the Accounts Payable Office for reconciliation.

Packing Slips

Packing slips should be retained by Cost Centres as proof of delivery. Please note that the packing slip/invoice and till receipt documents are not packing slips and must be processed as a creditor invoice.

Related Policies, Procedures and Forms

• Advances for Staff Travel Procedure
• Petty Cash Reimbursement Procedure
• Staff and Non Staff Reimbursement Procedure

Contact for Further Information

For further information, contact the Financial Controller, extn 9247 or email financial.controller@otago.ac.nz