7.3 Invoice Processing

UPS has subgroups of invoice processors and expeditors who are tasked with handling invoices for payment processing, using RU Marketplace queues where invoices are routinely integrated through DMR or routed after invoice approval and matching processes.

Below are relevant queues that can be sorted and filtered to maximize processing:

• Invoice Import Approval – This is a general queue where all validated invoices are routed, accessible to all invoice processors and expeditors.

• Suppliers by alphabet (including numeric) queues – These queues are filtered from Invoice Import Approval for responsible processor groups.

• Invoice Import Notification – Imported invoices may have errors when transmitted to RU Marketplace, such as duplicate invoices or invalid purchase orders. In this queue, only processors can make the necessary adjustments to the invoices in the interface and push them to the general Invoice Import Approval queue when ready for processing.

• Matching Exceptions – Tolerances are allowable variances between an invoice and a purchase order, such as very low dollar amounts. In many cases, UPS will approve an invoice if a variance is small and does not significantly impact a unit’s purchase order funding. Matching exceptions are generated by the system when the variance is beyond allowable tolerances. The expeditor must review before processing can be completed.

• Closed Purchase Order Exceptions – Invoices cannot be processed against a closed or canceled blanket purchase order or closed or canceled lines on a quantity-based purchase order. Action cannot be taken on a canceled purchase order or line. The expeditor must review before processing can be completed.

• Accounts Payable Prepayment Review – Only expeditors handle prepayment requests and have access to this queue. This is where unit requisitions via the Pre-Payment Request Form are routed to.

• Wire Invoice Processing Review and Approval – Invoices with a request to use a wire transfer for the payment method are handled by expeditors, supervisors, or managers. Domestic wires are only done with the approval of the Treasury Department.

RU Marketplace provides a number of invoice statuses available for units’ viewing. It is important to understand the status of an invoice in RU Marketplace. This information is visible to the unit under the “Invoice tab”. If the unit has additional questions, they may contact the University Procurement Services Help Desk.

Listed below are the invoice statuses:

• In Process - An invoice with “In Process” status is ready for an AP processor to initiate the payment process (as long as the invoice is under $5K and is not a sub-award nor an invoice in the exception queue).

• Payable - An invoice with “Payable” status has been completely processed through invoicing and is in queue for payment to be issued per terms. This means that an invoice will reside in the system with “Payable” status until payment is issued according to the contract terms.

• Paid - An invoice with “Paid” status has been paid per terms, and payment information is available from Oracle and RU Marketplace.

• Canceled - An invoice with “Canceled” status has been canceled by UPS for reasons such as finding duplicate invoices. In addition, a unit may reach out to UPS and request an invoice be canceled if they know it was issued incorrectly, such as from a dispute. Canceled invoices are edited with an X, XX, etc. to differentiate with the true valid invoice that should be processed. For example, a duplicate would be marked “INV1982X” and “INV1982” would be paid. Once canceled, an invoice cannot be processed unless resubmitted with an unique invoice number. 

7.3.1 Invoice Review, Adjusting, and Completing

Accounts Payable processes invoices when the processor accesses their designated alphabet queue, sorts the invoices by invoices over $5K first and then by folder entry date (oldest first) and carefully verifies the amounts. Three different screens are opened in RU Marketplace order to review line by line:

1) The invoice in “Detailed Manual Entry” view in the interface.

2) The scanned image of the invoice (via DMR, etc.).

3) The purchase order referenced on the invoice.

The requirements for invoices on the invoice interface must be matched exactly to the corresponding information on the supplier invoice image. This is another check for accuracy. The processor can make adjustments directly on the interface. For example, if a supplier address is not captured correctly through validation, the processor can correct that field. The processor then compares the corrected invoice and the purchase order, checking that all requirements for invoices (date, remit to address, invoice number, etc.) accurately match. The invoice is reviewed for discrepancies and adjustments can be made on the amount or quantity, line by line where applicable, within tolerances (See 7.3.2 Invoice Matching and Resolution).

Common issues may surface during review and can be resolved before completing the invoicing process:

• The purchase order or a line has insufficient funds. Accounts Payable can contact the unit via the Comments tab and request an order modification. This is done through the PO Modification form in RU Marketplace. Units are responsible for ensuring that their purchase order has sufficient funds. In some cases, a new purchase order may be needed to apply to an invoice for payment. The new purchase order should reference the old purchase order to assist in resolving any issues.

• Invoice disputes arise when a supplier invoices the unit for items that either do not match the items requested on the purchase order, or the goods/services delivered to the unit are not correct. Units are responsible for resolving invoice disputes with the supplier and will notify Accounts Payable if invoice processing can continue as needed.

• Internal supplier invoices can also come through RU Marketplace queues to Accounts Payable. If an invoice does not match an internal purchase order (IPO), an expeditor may contact the internal units for resolution, particularly for high dollar amounts.

• Electronic invoices from punchout supplier file transfers may not be matched to a purchase order. Accounts Payable may reach out to the supplier for resolution.

• Non-standard invoices may require a different process for payment and accounting purposes outside of RU Marketplace. See 8.0 Payments. When all required fields match on the invoice and purchase order, the processor completes the process from the interface. This will change the invoice status to “Payable” and move it to a system queue for payment.

7.3.2 Invoice Matching and Resolution

Invoices are subject to an internal system matching process once they are fully accounted for by a processor. This process may generate exceptions and route invoices to exception queues. The two most common exceptions:

• Matching Exceptions, which apply to open purchase orders

• Closed Purchase Order Exceptions, which apply to closed or partially closed purchase orders

Tolerance Thresholds Marketplace has built-in tolerance thresholds that prevent invoices from exceeding the purchase order amount without AP review. These tolerance thresholds are designed to allow for incidental expenses that may not have been quoted when the PO was established. Examples include: setup charges, mailing/shipping expenses etc. Reasonable expenses applying these tolerances may be approved by the AP Associate Director. They are not intended for offsetting PO overages (more Goods Delivered that the Purchase Order stated).

Accounts Payable expeditors are responsible for researching and resolving these invoice issues. The unit can be contacted for resolution assistance. The unit must update Accounts Payable via the Comments tab in RU Marketplace if they are taking action. It is critical that the unit selects the specific expeditor/processor’s name on the interface to notify them of any change. Until action is taken to complete processing, invoices will remain in these exception queues.

• Matching Exceptions – A matching exception occurs when the invoice overbills the PO by quantity or amount. Usually the unit would have to take action per the request of Accounts Payable, such as doing an order modification on the purchase order.

Types of Closed Purchase Order Exceptions:

• Closed Purchase Order – The purchase order has been fully expended and auto-closed during invoice processing.

• Canceled Purchase Order – The unit can request a purchase order to be canceled by UPS using a PO modification form. This action not only closes the purchase order, but also returns the encumbered funds back to the UDO

• Closed Line – A specific line on a purchase order can be fully expended and consequently closed. However, this does not mean the full purchase order is closed, and other lines may be open for invoice processing.

• Canceled Line – A specific line on a quantity-based purchase order has been canceled as requested by the unit using a Change Order form. The line would be closed and encumbered funds would be returned to the UDO.