Receipt Required Purchase Order Invoices

It is critical to the prompt payment process that receiving reports be completed by departments on a regular and timely basis. Departments should establish a process whereby all required receiving records are routinely entered into the Banner system.

Failure to complete departmental receiving requirements within University and State policies, and the payment terms stated on the PO or contract, results in one or more of the following University-wide consequences:

• Vendor credit hold on all pending unshipped orders for all campuses

• Late payment penalties charged to the department

• Price increases on future orders

• Loss of negotiated prompt payment discounts

• Damaged vendor relations

Receiving Process Basics

1. Payment of a PO Invoice is put on hold awaiting Banner receiving ("receipt required status") when:

   • Any single invoice of $50,000 or more is processed in Banner for payment against a regular Banner PO or an iBuy PO (either regular or standing). The Banner system defaults automatically to receipt required status for all invoices of $50,000 or more. NOTE: This default goes into effect even if your department issues the order as "no receipt required."
   • A department submits a requisition for a PO in Banner and identifies it as "receipt required," regardless of the invoice amount or default setting.
     • The receipt required option is currently not available for iBuy requisitions. However, if an invoice for an iBuy order is $50,000 or more, it will still trigger the Banner receiving process when the invoice is completed in Banner.
2. Departments should enter all received PO items into Banner Receiving on the same day the shipped goods or services are received or accepted, assuring that the invoice matches the purchase order. Internal lines of communication should be set-up to accomplish this requirement within the payment terms of the purchase order.

3. Departments must resolve PO Invoices pending receipt in Banner as soon as possible after goods are received. Otherwise, the transaction remains incomplete as "in process," and not posted for payment in Banner.

Please note: Invoice transactions still pending receipt after 6 months of non-response will be considered as abandoned or resolved through other payment methods. These invoice transactions will be deleted unless further inquiry is made by the vendor or department.

The following resources are available to assist you with receipt required PO invoices:

• Receipt Required Report

• Banner form FPIIREC

• Receiving Training

• Payment Processing Regulations

Receipt Required Report

OBFS posts a daily (Monday - Friday) Receipts Required Report to help departments identify and manage Purchase Order based invoice transactions that require submission of receiving reports in Banner in order to complete the payment process. The Receipts Required report shows the following information:

• Banner Invoice number

• PO number

• Vendor

• Buyer

• Invoice amount

• Invoice date

• COA

• Fund

• Orgn

• Orgn title

• Prog

• Prog title

Checking the posted Receipts Required report regularly will help departments manage their receipt required orders and prevent unnecessary payment delays to the vendor.

Banner form FPIIREC

Banner form FPIIREC will also assist in the identification of items that need to be received. Querying on the Banner Invoice number will provide a summary of outstanding items to be received. Querying on the Banner Purchase Order number will provide a summary of all outstanding invoices requiring receiving. Please see Identifying Invoices Awaiting Receiving using FPIIREC Job Aid

Checking the posted Receipts Required Report regularly will help departments manage their receipt required orders and prevent unnecessary payment delays to the vendor.

Receiving Training

Take advantage of the training resources offered by OBFS. You may register to attend PURCHASING: Receiving 101 (RC 101) to learn about the receiving process, including how to do adjustments, overrides, and returns; as well as how to query in Banner to view the receiving status, and the resources available to departments to appropriately receive and log-in purchases.

Training materials and job aids are also available on the OBFS Training Center, under Purchasing.

Payment Processing Regulations

It's important to become familiar with the following payment processing guidelines and regulations:

• The State of Illinois Prompt Payment Act guidelines provide incentives to encourage payment within 60 days for purchases charged against State funds: http://www.ilga.gov/legislation/ilcs/ilcs.asp

• The OBFS Policies and Procedures Manual, Section 8, Payments and Reimbursements, addresses Prompt Payment of Invoices.

Last Updated: July 1, 2015