Processing Invoices (KFS Payment Requests) for KFS Purchase Orders
- Centralized Accounts Payable Invoicing
- Best Practices for Ensuring Smooth Invoicing
- PaymentPlus: How It Works
- Sales Tax: Davis Campus versus City of Davis
Invoices and credit memos related to Purchase Orders created in the Kuali Financial System (KFS) are entered by the Supply Chain Management Accounts Payable Invoicing team (except those related to sub-awards).
This centralized process allows the university to most efficiently and expeditiously process payments, taking advantage of early payment discounts offered by suppliers, as well as saving time for departments who no longer have to manually process the invoices themselves.
Invoices are generally processed by the central invoicing team within 3-5 business days.
- Most KFS Purchase Orders indicate a Billing Address of UC Davis Invoicing Service and an email address of firstname.lastname@example.org; this is the email address that suppliers are instructed to email invoices with a valid KFS Purchase Order number.
- The central Accounts Payable Invoicing team then processes the Payment Request (PREQ) in KFS to pay the supplier.
- PREQs are reviewed or approved by departments (fiscal officer/account delegate) depending on thresholds.
- In some cases, such as payment of a capital asset purchase, KFS will require completion of the Line Item Receiving document before the PREQ can be approved by the fiscal officer/account delegate.
- Payments are made to the supplier via check, ACH, wire or credit card.
If a supplier sends you an invoice or credit memo for a KFS Purchase Order, please send a PDF attachment of each of them in separate messages (one PDF per email) to email@example.com for processing. Hard copies of invoices or credit memos are not accepted.
For special requests, such as rush invoices or special handling, visit the Special Requests page.
Good data in...good data out! When completing a Requisition in the Kuali Financial System (KFS), pay special attention to the following sections. Failure to complete these sections correctly can cause delays in payment processing.
Requisition Detail section
- Will any work be performed in the US? Will any work be performed in California?: If processing a request for any type of service, you will need to be sure these two fields that apply to tax reporting are answered correctly.
- Both of these fields default to N/A and should not be completed for goods procurement.
- If you are procuring any type of service, each of the questions should either be answered Yes or No.
Vendor Information section
- Make sure you have selected the correct vendor record; this includes selecting the correct address record as well. If the vendor record you need is not in KFS, a new vendor record or update should be made BEFORE you process your KFS Requisition.
- Payment Terms: These will default and cannot be changed if you are processing the Requisition against an existing Purchase Agreement, BUT if you are creating a Requisition without an Agreement, make sure the Payment Terms are correct.
- Use the drop-down menu to make adjustments to the field as needed.
- Some payment terms allow the department to take advantage of discounts if payments are processed by a certain time, so it’s important to make sure the indicated terms are correct.
- Item Type: Qty is the default setting and should not be changed, UNLESS you are purchasing something that is not quantity based. This impacts how the invoicing/billing is processed for the purchase, so make sure you are clear as to how the billing will be processed by the vendor.
- The nontaxable options are not applicable to most purchases unless you are selecting a taxable commodity code that should not be taxed for your particular purchase. The usual example of this is when the department holds a tax exempt certificate for specific goods. NOTE: The University of California is not a tax-exempt organization for most purchases.
- The use of 1 Lot in the Quantity and Unit of Measure fields is discouraged unless the department is certain that only one payment will be made.
Accounting Lines: Double-check the Account(s) and Sub-Accounts indicated for each line item, as well as for any items listed in the Additional Charges section of the KFS Requisition.
- After final approval of payment, UC Davis notifies U.S. Bank that the disbursement is authorized.
- The supplier receives an email from U.S. Bank with the credentials and a link to the PaymentPlus website.
- The supplier logs in and retrieves a one-time credit card preauthorized for any invoices included in the current remittance.
- The supplier processes the credit card for the amount due, using their point-of-sale system.
- U.S. Bank bills UC Davis for the prior day’s transactions through a daily batch job, and payment is remitted to U.S. Bank via Direct Debit.