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AMC

Quality Management System

AMKWI-310-00002

Revision

Title: Vendor Maintenance, Invoice Receipt, Invoice Approval, Invoice Recording, IPAC, Invoice Processing, Payment and Reports

DATE: Signed

Vendor Maintenance, Invoice Receipt, Invoice Approval, Invoice Recording, IPAC, Invoice Processing, Payment and Reports

1.0 Purpose:

The purpose of this work instruction is to provide guidance for timely and accurate posting of source documents to the Delphi accounting system.

2.0 Scope:

This procedure applies to work performed by the Administrative Payments (AP) Branch at the Mike Monroney Aeronautical Center (MMAC) for Enterprise Services Center (ESC) customers.

3.0 References:

Customer and Vendor Setup Training (http://DELPHI.faa.gov/custsupptwbt/index.htm) http://sdelphi.jccbi.gov/tutor/ FAA Acquisition System Toolset (FAST) 5 CFR, Part 1315, Prompt Payment Act PRISM Policy and Business Process Public Law 104-50 Treasury Office of Management & Budget (OMB) FAST Procurement Guidance, T3.6.1 Executive Order, M-11-32, Dated 9-14-11, Accelerated Payments for Small Businesses for Goods and Services

Process Owners:

AMK-311 Robin Nowakowski AMK-312 Cindy Drummond AMK-313 Rigo Driscoll AMK-314 Michelle Storie AMK-315 Ryan Wisniewski AMK-316 Ricky Woods AMK-317 Lana Null AMK-318 Debra McDonald

Approval: Heather Scott, Branch Manager http://delphi.faa.gov/custsupptwbt/index.htm) http://sdelphi.jccbi.gov/tutor/

Revision History Rev Description of Change Effective Date

0 Initial Release 12/13/07 1 Updated WI to incorporate correct format, IAW AMCWI-0001.

Revision to Section 6.10, Invoice Receipt, Prepping and Approval and Section 6.11, Two-way Matched Invoices. Added Sections 6.5 and 6.6, Existing foreign employees, Safety Inspection Refund Requests of Foreign Vendors.

04/29/10

2 Revision to Section 6.14, Invoice Batch Entry-Control activities and added Section 6.14.2.6, assigning invoice prefixes.

03/31/11

3 Updates several sections 7/15/2014 4 Change process owner from Thu Nguyen to Robin Nowakowski 4/1/15 5 Update several sections & Process Owners from Robin

Nowakowski to many 2/27/19

6 Update Vendor Maintenance section and formatting of entire document.

2/21/2020

7 Update Invoice Receipt, Prepping & Approval, FAA Invoices per current processes, section 6.6.1, 6.6.3

2/28/20

8 Complete revision of document to reflect current processes. 2/28/20

9 Update to replace Thu Nguyen with Michelle Storie. Update routing symbol for Debbie McDonald. Revision to add section 6.6.4-Electronic Supplier Invoices (iSupplier). Subsequently, follow on process section numbers updated. Revision to section 6.6.3, 6.6.5 and 6.6.6

3/24/22

4.0 Requirements:

4.1 Personnel:

Accounting technicians, supplier specialists, Financial Specialists and lead accounting technicians.

4.2 Training:

Individual receives guidance from experienced personnel and completes additional training as required.

4.3 Equipment:

FAA network computer

4.4 Safety:

Hazard Prevention and Control is managed by the Mike Monroney Aeronautical Center

(MMAC) Occupational Health and Safety Management System.

5.0 Overview:

The payment process involves multiple steps that will enable accurate and timely posting of payments to vendors. It involves the creation and updating of vendor/employee supplier records, invoice receipts to invoice payments.

Before payment may be processed, invoices should be pre-validated to detect and correct any discrepancies that may exist. In addition, source documents should be verified to ensure availability of funds.

Once source documents are verified, invoices are entered into the financial system and validated before they are swept and confirmed then released for payments by the Department of Treasury

(DOT).

6.0 Implementation:

6.1 Supplier/Vendor Validation

During the invoice preparation stage and prior to processing it for payment, if there is the need for either a new supplier record or a change to an existing record identified by Contracting Officers (COs) or accounting technicians, a Supplier Request form, along with pertinent documentation (e.g., W-9) is sent electronically via email to the Supplier Team. If necessary, the requestor (accounting technician) can check the status of a request via an email to the Supplier Maintenance Team shared inbox.

6.2 Supplier/Vendor Maintenance

Vendor Maintenance is the first business process within the Accounts Payable process. This maintenance activity is controlled by exclusive responsibilities limited to a specific AP section. For detailed instructions, please refer to the Knowledge Services Network (KSN) dedicated to Operational Support Section G found here: AMK-312 Operational Support Section G.

https://ksn2.faa.gov/arc/amc/qms/esc/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Farc%2Famc%2Fqms%2Fesc%2FShared%20Documents%2FAuthorized%20Docs%2FAMK%2D300%20Financial%20Services%20and%20Task%20Automation%20Division%2FAMK%2D310%20Administrative%20Payments%20Branch%2FAMK%2D312%20Operational%20Support%20Section%20G&FolderCTID=0x012000759101902B8C554896DEB685D47DC015&View=%7B2E0AC68D%2DB428%2D48C3%2D8A76%2D5E8F8A7A33CB%7D

The work instructions found at the link, provide detailed steps for new supplier/vendor record setup and updating existing supplier/vendor records for both SAM and non-SAM supplier/vendors.

6.3 Contract Award

This process resides with Acquisitions.

6.4 Purchase Order

This process resides with Acquisitions.

6.5 Receipt/Approval of Goods

This process resides with the requisitioners or designated personnel outside of ESC.

6.6 Invoice Processing

6.6.1 FAA Invoices

• Technician prepares invoices received for DELPHI entry via manual entry or through approval workflow.

• Invoices are entered into DELPHI

• All related and pertinent correspondence are attached in Delphi.

6.6.2 FAA Invoices – Direct Charge

• Some invoices are entered in DELPHI for payments by AP as direct-charge (unmatched) for which an obligating document does not exist, expenses are charged against the appropriation at a high level versus the PO level. An example of this type of payment is utility invoices.

6.6.3 Processing Invoices for Payments for agencies using invoice approval workflow solutions

• For customers using AP workflow, the invoices are received by the AP

Technician and the AP Technician enters the invoice in the Delphi AP module.

• Once the invoice data is entered, the invoice and backup documentation is attached to the invoice.

• The AP Technician then selects the Validation button and initiates the AP Workflow process (excluding FAA.)

• The invoice is routed through the invoice approver hierarchy designated by the OA.

• Once the invoice is approved by the OAs’ approving officials, the invoice is electronically routed to the payment queue for payment processing.

6.6.4 Electronic Supplier Invoices

• Vendors and Grantees submit invoices through the iSupplier portal or via Electronic Data Interchange (EDI) files.

• Customers are responsible for ensuring costs incurred are eligible, allowable, reasonable, and authorized.

• Invoice is routed through the invoice approver hierarchy designated by the OA.

• Once invoice is approved, invoices are imported to Delphi core tables for payment processing to the vendor or grantee bank account.

6.6.5 Invoice Batch Entry

• The following are control activities while processing individual invoices:

o Proper and consistent naming conventions for invoices are used to prevent duplicate payments.

DELPHI will not allow the same invoice number to be entered more than once for the same Supplier site for a given PO to prevent duplication of payment.

o Vendor invoice numbers are entered into Delphi exactly as they appear on the vendor’s invoice.

• Once an invoice batch has been created in DELPHI, the technician will then enter each invoice matching to a line item on the PO or contract in DELPHI.

6.6.6 FAA Lease Process

Has 6 sub-processes: Preparing lease contract file, logging new leases on spreadsheet; setting up payment schedules; exporting invoices to payable interfaces; importing invoices into invoice payment batches; running and checking invoice batch detail report prior to submitting it for validation.

• Lease Contract File - It is set up with the following required information: Signed lease agreement; Supplemental Lease Agreements, signed awards and modifications

• Logging New Leases - The Lease Team will log new leases on the lease spreadsheet located at: Org120/LEASES/1 Lease schedules

• Setting up Payment Schedules - Using the FAA FA lead accounting technician module, the technician sets up the payment schedule.

• Exporting Schedules to AP Interface - Using the FAA Accounting Supervisor Module, the technician checks the PO Number, payment amount, schedule number, and pay site against the lease spreadsheet. The technician will then export the payment schedule, view and save the export log at:

Org120/1 Batches IMPORT and EXPORT/FY folder.

• Importing Schedules from AP Interface into an Invoice Payment

Batch - Using the FAA AP Interfaces Module, the technician imports the invoices into a payment batch with a suffix of OFA, prints the first and last two pages of the Import Report, and saves the entire Import Report at:

Org120/1 Batches IMPORT and EXPORT/FY folder.

6.6.7 Intra-Governmental Payment and Collection (IPAC)

The IPAC payment process is a sub-process within the Accounts Payable process, and consists of four distinct steps, including Treasury Download, Tracker Entry, Invoice Prep and Batch Entry.

• Treasury Download: The IPAC Accounts Payable (AP) technician or financial specialist logs into the Treasury IPAC system (via the Internet) and downloads all IPACs received for the given Agency Location Code (ALC) for a specific time period. IPACs are pulled on a daily basis.

• Tracker Database: The AP technician or financial specialist maintains an IPAC tracker within Access. The Access database summarizes the IPAC transactions received. This database is used so the accounting technician/financial specialist can keep track of what is outstanding and still needing approval. The worksheet also contains a separate column for cleared and charged back (rejected) items.

• Invoice-Prep: Once all transactions logged in the Tracker, the accounting technician/financial specialist reviews and researches, if necessary, each IPAC for obligation details to process the transaction in DELPHI. In some cases, the IPAC Detail document does not contain all information required to post the transaction;

the AP Technician (or the customer agency) must contact the billing agency to obtain the necessary information. The billing agency must be able to provide the accounting technician with a copy of a signed contractual document that allows the billing agency to bill the specific OA for goods and/or services. The Accounts Payable technician/financial specialist cannot process an IPAC payment until all the payment information is available.

Once the information has been obtained, the AP technician/financial specialist goes through the matching processes described in Sections 6.6.4 – 6.6.6.

• Entering IPAC Batches - The process for invoice batch entry is the same as described in Section 6.6.7 above with the following differences o The batch name ends with “IPAC”; i .e., AC2019-001190-IPAC for an FAA IPAC.

o The other OA’s use the trading partner number along with the Julian date, N for No Check, and the technician’s assigned/distinguished number;

i.e., 2719001N190IPAC.

o For an Advance IPAC, an “A” is used rather than an “N” with ADV at the end of a batch, e.g.

2719001A190ADV.

o The invoice number includes the IPAC Document Reference Number (DRN) from the IPAC Detail Document and ends with “IPAC” (i.e. “69436624 IPAC).

6.6.8 Payment Previewing

• On a daily basis, the preview team runs a Discoverer query to obtain the invoices/invoice batches that need review/invoice validation.

• The following information is reviewed on all invoices to verify the information is correct: Supplier Name; Amount; Pay Method; Check – matched against “Remit To” address;

Invoice Date; Invoice Number.

• After this, the invoice or batch is ready to be validated in Delphi.

• When discrepancies are found previewers notify the appropriate AP technician for correction.

• After the invoice or batch has been previewed, the previewer initiates the invoice validation program in Delphi.

• When the request is completed, the previewer verifies that all invoices are in a validated status by checking the invoice status on that invoice or batch in Delphi.

• The previewer notifies the technician for any invoices that are not validated.

• Once the technician notifies the previewer that the corrections have been completed, the previewer reviews the invoice and runs the validation program and repeats the invoice status review and notification.

6.6.9 Payment Processing

• Payment processing must be completed before 1:30 PM each day to conform to Treasury policy.

• Clearing batches may be swept at any time.

• A payment batch does not necessarily equate to one validated batch.

Payment specialists pay invoices that are becoming due within the next 28 days for vendor-type payments or 30 days for employee-type, while a validated batch normally consists of up to seventy-five invoices with different due dates.

• Technicians create a payment batch for each type of payment: Check, Electronic, Corporate Trade Exchange (CTX), Foreign, Same Day Payment, or Clearing using Oracle Business Intelligence Enterprise Edition (OBIEE) report DP2P99002, AP Invoices.

• The sweeping process consists of five distinct steps.

• Entering payment batches in Delphi by type.

o This step sets a ground for Delphi to pull all invoices that are due to be paid within the next 28 to 30 days into one check/electronic payment batch.

o A standard naming convention is used to name payment batches: V for Vendors, a two-digit agency code (12 for FAA), a two-digit calendar year, Julian date, C (check) or E (EFT), number of the batch (0 for the first batch, 1 for the second batch, 2 for the third batch, etc.) For example, the first vendor payment batch paid electronically on February 27, 2019 is named V1219056E0.

o For vendor payment batches, the payment date is set as a next treasury business day and the Pay-through Date is 28 - 30 days after the current date.

o For clearing batches, the payment date is the current business date and the Pay through date is 30 days for other types of payments. This process is repeated for each batch.

• The payment program for every batch being processed will identify invoices that do not pass treasury requirements for payment issuance.

• The program will either remove the invoice from the payment batch or will stop the payment batch for further review/action by the payment specialist.

• If the invoice is removed, the payment specialist will notify the AP technician of the error and request appropriate corrective action so the invoice will process with the next available payment batch.

• If the payment batch is stopped, the payment specialist will remove the invoice, complete the payment process, and notify the AP technician of the error requesting appropriate corrective action so the invoice will process with the next available payment batch.

• Clearing can be pulled in by invoice batch number (created by the AP Tech), not just the pay groups.

• Confirming payment batches. This step is essential to complete the sweeping process. When the payment batches are in “Confirmed” status, the Financial System Branch (AMK- 221C) is able to transmit them to Treasury for payments to the vendors.

6.6.10 Preparing and Certifying SF-1166 for Treasury Disbursement

• This process pertains to every check or electronic payments that have been processed regardless of the Operating Agency making a payment.

• AMK-221C involvement at this stage is limited to transmitting the confirmed payment files to Treasury.

• The U.S. Treasury generates a validation report, Payment Automation Manager/ Payment Request File (PAM/PRF e-mail) that is sent via e-mail to the ESC SPS personnel responsible for completing the SPS entry and certification.

• The SPS certifying officers use the Final Payment Register from Delphi and PAM/PRF e-mail to perform a reconciliation of the totals.

• Once reconciled, the Data Entry Operator (DEO) logs into U.S.

Treasury’s Secure Payment System (SPS) and enters the payments.

• The Certifying Officer (CO) verifies that the payments are entered correctly in SPS and completes the certification for Treasury to issue payments.

• If there is an error in SPS, the CO rejects the schedule back to the DEO and notifies the DEO that a correction is needed.

• Once corrected, the DEO resubmits the payment schedule to the CO and the CO completes the certification process.

6.6.11 Treasury Confirmation

• This step records Treasury Confirmation in DELPHI.

• The payment specialists schedule the payments to be made for the next treasury business day as explained above in Section I. The day after payments are processed, a technician assigned to the Cash Operations Branch, AMK-331, records the Treasury Confirmation in DELPHI.

6.6.12 Contract Close-Out

This process is initiated by the CO; however, the appropriate accounting technician will work with the vendor, CO, and the procurement office in order to successfully close out contracts and purchase orders (POs).

6.6.13 Accruals and Management Reports – FAA Only

• Accruals o Monthly Franchise Fund (FF) Accruals

• At the end of each month, AP personnel compile a list of all invoices received but not paid or accepted due to system downtime.

• This information is merged onto a worksheet, which is used to produce the ADI Spreadsheet.

• The worksheet and ADI spreadsheet are sent to the Reporting and Analysis Division at ESC, AMK-331 for posting to the General Ledger.

o Quarterly Invoices On-Hand Accruals

• At the end of each quarter, AP personnel compile a list of all greater than $5,000 invoices received by not paid or accepted due to system downtime. This list excludes invoices that are expensed to Franchise Fund.

• Once information is received, AMK-311/314 sends the complete list to HQ to post the accruals.

6.6.14 Management Reports

The following reports are available in DELPHI and used as controls throughout the Accounts Payable process. These reports are produced daily/weekly by leads and accounting technicians who review and correct any discrepancies found.

• Purchase Order Information

• Aging Report

• Invoice Scheduled pay Date

• Batches and Invoices Checking

• Payables Interfaces Not Processed

• Invoices on Hold

7.0 APPENDIX:

N/A

8.0 RECORDS:

All supporting hard copy, scanned, or electronic media payment and certification documentation from disbursements such as invoices, payment vouchers, receiving reports (payment approval and authorization), bills of lading and obligation documents must be retained with the payment batch.

Once the accounts payable is closed, the file is housed in the Accounts Payable division for 3 years.

After 3 years, the file is shipped to the National Archives and Records Administration where they are kept for 4 additional years until they are destroyed.