Account System Conversion Procedure Changes

CAMPUS MEMO

MAY 15, 1997

TO: CAMPUS UNITS

FROM: UNIVERSITY FINANCIAL SERVICES

RE: ACCOUNTING SYSTEM CONVERSION PROCEDURE CHANGES

As we begin the conversion to the new PeopleSoft accounting/financial systems, it will become necessary to change some business processes to more closely match the requirements of the new software. Many of those changes will occur over a period of time with involvement from many campus users. Others are dictated by the system and require the University to do business differently to utilize the system immediately.

We recently began processing data through the PeopleSoft Purchasing/Accounts Payable modules. To take full advantage of those systems and to operate efficiently it is necessary for us to make a change in the way some information from those systems is provided to the campus.

In the past, copies of paid invoices were provided to all campus units when a check was written. Because of some differences in the way PeopleSoft prepares purchase orders and makes payments to vendors, it has become impractical to provide invoice copies to campus units.

Since it is critical for certain departments that must price inventory or buy goods for resale to have information from the invoice, a provision is being made to provide the information necessary for those units in an electronic format. For all others, this information will no longer be provided.

In a few instances, invoices are received by the buying department and then forwarded to Accounts Payable. If copies of those invoices are required they should be made before being forwarded.

On occasion, units may need an invoice copy for warranty work or other circumstances. Those copies will be provided by the Accounts Payable Office upon request. If you have an unusual need for invoice copies or information which would normally be found on that document, please let the Accounts Payable Office know of that need by calling ext. 8-3845.

The new system also has some limitations in the use of "blanket" purchase orders. These are contracts made with certain vendors (usually locally) to permit employees of the University to buy goods from that vendor without going through the purchasing order system. Those vendors have been given authorization to bill the University for each purchase made by an authorized employee. The vendor then bills the University each month for all purchases from all units on a single billing to the Accounts Payable Office, where the charges are then broken down and recorded to each buying unit..

Since this is a difficult process and PeopleSoft does not support it, the University is encouraging the use a new purchasing tool, known as a Purchasing Card. The Purchasing Card is a VISA charge card which is issued to employees who have a need to make purchases. They can make the purchase simply by presenting the card to the vendor. Monthly, the employee makes a reconciliation between the purchases made and those charged to that card's account statement for the period. This process has several advantages including electronic posting of data and the ability to define where the card can be used. Also, limits can be placed on the dollar amount of purchases made by transaction, and by day or month. This provides an additional level of protection that cannot be maintained under the blanket order system.

It is expected that the Purchasing Card will eventually eliminate nearly all blanket orders and will substantially reduce the number of Limited Purchase Drafts (LPD's) used by units since the Purchasing Card will usually be more convenient and flexible than present systems.

If you have interest in exploring the use of the Purchasing Card in your area, please contact Mike Nielsen in Purchasing Office, ext. 8-3471.

Some of these changes may dramatically affect the processes you have been using in your operations. The goal is to provide the best solution to your particular need that is available. We would like to become aware, as soon as possible, of any concerns you might have with these changes.