Accounts Payable Procedure

Responsibilities

It is the responsibility of the department initiating the purchase of the product or service to follow the procedure below:

  • Check the goods or services to verify all items have been received and note any discrepancies on the green copy of the purchase order. Make sure the costs are correct. Clearly mark any errors.
  • Have an authorized individual in the department sign and date the Purchase order green copy.
  • If a partial order is received, copy the PO and mark the received items only. Have an authorized individual sign and date the copy. Repeat this procedure as other items are received. When last item/s is/are received send down the green copy of the purchase order noting the items received and the date received.
  • Forward the approved Purchase Order to AP immediately, allowing AP enough time to process the invoice to take advantage of any offered discounts or to meet the minimum terms.
  • The College mails AP checks to vendors from the Financial Services office. This policy is to satisfy internal control requirements.
  • If any paperwork needs to be mailed with the AP check, clearly mark this on the Check Request. The department forwarding the requests to AP needs to send the original and a copy of the document that must accompany payment. The original invoice must remain in AP. All invoices should be sent directly to AP by vendors not to the departments.
  • Any payments made to an independent contractor or an unincorporated vendor for services require the College to prepare and mail an IRS Form 1099-MISC for individuals and vendors earning $600 or more at the College during the calendar year. Social Security numbers or tax ID numbers are required for all payments to individuals not on the college payroll and to qualifying vendors. Request for Taxpayer ID-Federal form W-9 can be obtained from the Administrative Assistant in Financial Services.

Sales Tax

The College as a not-for-profit corporation is exempt from sales tax in New York State. This exemption applies to hotels, meals, rental cars, and business purchases.

Please request the tax exemption number from the Administrative Assistant in Financial Services, when conducting any business on behalf of the College.

Payment Cycle

AP mails checks to the vendors with sufficient time to either take advantage of discounts to comply with the terms noted on the invoice. The AP department schedules payment based on discount opportunity, balance due dates, and fundamental cash management principles.

Per office policy, checks are printed each Tuesday and Friday during a standard week. The check run schedule is modified when necessary for holidays.

The deadline for receipt in our office for eligibility in Tuesday’s check run is the preceding Friday at 4:00 p.m. 

The deadline for receipt in our office for eligibility in Friday’s check run is the preceding Wednesday at 4:00 p.m. 

Miscellaneous

The current mileage reimbursement rate is 53.5 cents per mile as of January 1, 2017.

Paying students, faculty or staff for work performed must be processed through Payroll.

All new vendors should complete an IRS Form W-9.

Reimbursements for travel and entertainment expenses follow the same general guidelines noted above for payments to vendors. Complete the Travel Expense Report and list purpose of trip. In the case of reimbursement for meals, record list of individuals covered with the Expense Voucher. Generally, meals for partners, spouses, or other guests not affiliated with the College are not allowable requests for reimbursement unless incurred for a valid business purpose. Hartwick College does not reimburse for parking tickets or moving violations. Individuals may not make personal purchases through the college. Reimbursement requests should include detail explaining the total expense incurred. For example, the reimbursement for meals should contain the receipt from the restaurant detailing the items ordered, if at all possible.

Hartwick’s Purchase Order forms are four-part forms. The copies are distributed as follows:

  • White -Vendor
  • Yellow -Department (file copy)
  • Green – Receiving (to be signed, dated and sent to Accounts Payable when items have been received or service has been completed)
  • Pink – Financial Services/Accounts Payable

This procedure is subject to periodic review or modification based on changing business issues and external guideline or regulations. Any changes to the procedure will be made directly within this online document.

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