GAP NO. 200.136
Accounts Payable Check Request

I.	General
II.	Items to Acquire/Services to pay for, using the Accounts Payable Check Request
III.	Completing the Accounts Payable Check Request
IV.	Approval Process
V.	Payment Terms
VI.	Disbursement of Checks
	Print This GAP

 

I. GENERAL

The Accounts Payable Check Request is used to make many types of payments. As detailed in GAP 200.135, Acquisition of Goods and Services Overview, you should first determine if it is more appropriate to pay for the item utilizing a Corporate Card or the Miscellaneous Reimbursement Form. If your acquisition does not fit those criteria, then you should review the items below that can be paid using an Accounts Payable Check Request. If the specific item that you are acquiring does not fall within this list, then you must make the acquisition by submitting a Purchase Requisition to Procurement Services.

 

II. ITEMS TO ACQUIRE/SERVICES TO PAY FOR, USING THE ACCOUNTS PAYABLE CHECK REQUEST

The following items can be paid for by submitting an Accounts Payable Check Request:

Adjunct Professors (non-employee) Airlines (group travel only – see GAP 200.022 for required documentation) Architects Attorneys Auditors Awards Catering Services Conference Participants Contributions E&O Engineers Employee Assistance Program Fitness/Health Instructors FPM Engineers Gifts Guest Speakers Honoraria Hotels (group travel only – see GAP 200.022 for required documentation) Petty Cash/Change Fund/Research Fund Instructors Insurance

Lecturers Licenses/Certificates for the Corporation Musical or Theater Production Groups Musicians PDC Payments Performing Artist Play Production Design Postage U.S. Postmaster Referees Royalties Settlement Payments Sponsored Programs Sub-Recipient Payments Subscription Renewals Taxes Tuition Assistance/Grant Umpires All other payments for services where the total cost of the engagement is less then $2,500 unless payment is for services involving patient care, access to patient information or to a temporary staffing agency. Payments to consultants (other than the consultants specifically listed above) where the total project cost is in excess of $2500 must go through the Purchase Order process.

Many of the listed items have links to specific GAPs that detail procedures that must be followed in order to pay for this type of service or product. If paying an individual and the category is not linked to a specific GAP, review GAP 200.134, All Other Individuals, to ensure that the request is properly processed. If the required paperwork is not submitted with the check request, the payment process will be hindered and it may result in a delay in the issuance of a check.

If it is appropriate to submit an Accounts Payable Check Request, complete the form and submit it, with the backup and any additional required paperwork, to Accounts Payable, 324 Blackwell Street, Box 104131.

DUHS has special approval requirements; these are issued by the Health System. Accounts Payable will not process the request without the appropriate approvals.

 

III. COMPLETING THE ACCOUNTS PAYABLE CHECK REQUEST

On the downloaded form the instructions are on the second page. These procedures will focus on the areas of the form that need particular attention.

If the Payee is a Nonresident Alien:

• If yes: Follow the Payments to Foreign Nationals instructions
  
  
• If the appropriate forms are not attached the check request will be returned and the payment will be delayed.

Is payment to individual or unincorporated business for personal services?

• If yes: the individual is subject to 1099 tax reporting. GAP's 200.130 through 200.134 deal with these types of payments. The appropriate GAP needs to be followed; the necessary paperwork is submitted with the check request.

Alternate Payment Terms:

• Follow the guidelines in section V below to help determine if Alternate Payments Terms are appropriate.

Business Purpose for Request:

• Give specific details regarding why the payment is being made. Attach the appropriate documentation to the form. This may include; a vendor invoice, a copy of a contract, an ICC, or other documentation. If submitting an invoice it should be an original, and a copy.

Special Handling Instructions:

• Include any special instructions (e.g. check stub message, special disbursement (see Section VI for guidlines), wire transfer instructions if appropriate, request that the check be printed separately and not batched with other invoices, if payment is to be grossed up for taxes.)
  
  
  • Check stub reference, the check stub reference will print on the check stub and will also print in the Name column of the R/3 report Display Actual Line Item, this will assist with monthly reconciliations.
    
    
• For foreign transactions and wires - Indicate the foreign currency to be used, amount to be paid in the foreign currency (example: 400 British pounds) or amount in US dollars to be converted to the foreign currency (example: convert $20,000 to British pounds). The Endowment/Investment Office will contact you when your foreign draft is ready. If wiring funds, include: bank name & address, beneficiary's name & account number, details to be provided to beneficiary and bank codes. A fee is charged to the department requesting the wire transfer.
  
  
• Checks can be picked up at Broad Street or at the American Tobacco Campus. If not specified, the check will be sent to Broad Street for pick up.

Distribution of Expenses:

The check request must be completed using the R/3 accounting information.

• The first column asks for the Company Code information, the company codes are as follows:

• The second column asks for the G/L Account.
  
  
• The third column asks for the cost object.
  
  
• The fourth column asks for the Ind. or Indicator. In R/3 a cost object has one of four possible indicators or classifications. The options are as follows:
  
  
  • Cost Center (C): Cost objects used for ongoing expenses, not projects or balance sheet accounts. For the university these would be cost objects 15x through 19x, 4xx or 8xx.
    
    
  • Profit Center (P): Cost objects that only record revenue. For the university these would be cost obejcts 11x through 14x.
    
    
  • WBS Element (W): Cost objects used for projects, such as Sponsored Research or Construction. For the university these are generally 3xx or 7xx codes.
    
    
  • Fund (F): Cost objects used for balance sheet accounts. (DUHS does not use the indicator Fund)

An indicator (C, P, W,or F) must be identified in the Ind. column. For assistance in determining the appropriate indicator, contact Accounting Systems & Procedures at 684-2752.

• The fifth column asks for the amount. This should be the amount to charge to the cost object indicated on the same line. If more than one cost object is to be charged then complete all of the information for each cost object. Payment can only be made against one company code. The Total Amount Due Payee is the total charged to all cost objects.

 

IV. APPROVAL PROCESS

The Accounts Payable Check Request must be signed by the preparer and approved by a designated departmental representative other than the preparer..

In addition:
The University has the following approval requirements:

• Less than $50,000
  • approval by the local budgetary authority or designee
    
    
• between $50,000 and $249,999
  • approval by local budgetary authority or designee
  • and the University Controller
    
    
• between $250,000 and $999,999
• approval by local budgetary authority or designee
• and the University Controller
• and the Vice President for Finance
  
  
• more than $1,000,000
• approval by local budgetary authority
• and the University Controller
• and the Vice President for Finance
• and the Executive Vice President

DUHS has special approval requirements; these are issued by DUHS Corporate Finance and Entity Finance Offices.

All gifts and contributions over $25.00 in value must be approved by a Dean or Officer.

All Length of Service awards (retirement gifts) must be approved by a Dean or Officer. Awards in excess of $400.00 require submission of a Length of Service Award Form for proper tax reporting purposes.

Accounts Payable will not process an Accounts Payable Check Request without the appropriate approvals.

V. PAYMENT TERMS

In the normal course of business Duke pays its vendors using net 30 terms. A vendor is defined as an individual or company engaged in a trade or business. This means payment to a vendor will be mailed 30 days from the date of the vendor invoice.

It is recognized that there are times when terms should be different, it may be to Duke's benefit or for another valid business reason. Below we have detailed some types of payments that warrant different terms.

Types of payments that would likely warrant Net 00 terms (pay immediately):

Honoraria Insurance Payments Postage Catering Services Guest Speakers Referees Umpires

Musicians Gifts Performing Artists Tuition Grants Imprest Cash Funds Reimbursement (Petty Cash, Imprest funds on Deposit) Payments with terms defined legally

Types of payments that would likely warrant Net 15 terms (check mailed 15 days after invoice date):

• Payments to certain individuals for services rendered such as:
  • Fitness/Health Instructors
  • Electricians
  • Carpenters
  • Painters
• This does not include payments to consultants.

VI. DISBURSEMENT OF CHECKS

Accounts Payable checks are printed and mailed directly from the bank. Requests for a different handling must be indicated in the Special Handling section of the Accounts Payable Check Request. Special handling of the disbursement will be considered for the following situations:

• Check must be mailed with documents attached (e.g. applications, tax returns, registration, or other required paperwork). Attachments are submitted with the Accounts Payable Check Request. The check with the attachments will be mailed by Accounts Payable.
• Check for services that by contract must be paid at the time the service is provided.
• COD payment

 

GAP History
Issued:	March 2002
Revised:	July 2002
Revised:	October 2002
Revised:	August 2003
Revised:	October 2003
Revised:	November 2004
Revised:	November 2006
Revised	October 2007