8.1 Methods of Payment

Rutgers offers several methods of payment for suppliers. Payment is issued when all requirements are met for processing an invoice, including making any order modifications, resolving invoice disputes or shipping discrepancies, and goods received or services rendered. Payment methods and terms are determined in the supplier set-up process or the purchase order or related contract.

8.1.1 Payment Terms for NEW Suppliers effective August 2020:

Rutgers offers the following standard terms and requirements for all procurement suppliers (with the exception of sub-awards). Unless the supplier has a UPS-negotiated contract with different terms, any exception to these terms must be requested by a Rutgers Unit Head and approved by the Associate Vice President and Chief Procurement Officer (or designee).

Alternative terms ALL EXCEPTIONS and Payment by check setup MUST be approved by the Associate Vice President and Chief Procurement Officer (or designee). Supplier Invoice submissions will be monitored by invoice type and payment type may be changed by UPS if there are changes in the transmission mode.

8.1.2 Electronic Payment (virtual credit card, Paymode-X or ACH)

Rutgers has a robust electronic payment program available to domestic suppliers and LLCs. Suppliers are offered these programs at the time of Rutgers onboarding. Ongoing suppliers may reach out to University Procurement Help Desk for program onboarding information.

Electronic payment options are identified in order of preference:

1. ePayables Virtual Card: External suppliers may elect to participate in the Bank of America ePayables Program, in which funds are deposited to the supplier’s virtual (“ghost”) credit card that is assigned to the supplier through the program.

2. Paymode-X: External suppliers electing to participate in Bank of America’s Paymode-X network receive ACH direct deposits through Paymode-X into the bank accounts designated in the profile maintained by the Paymode-X network.

3. ACH – CTX: Some suppliers request to have their payments made through electronic funds transfer via ACH, where payments are directly deposited into the bank account designated by the supplier. These payment types are on an exceptional basis.

8.1.3 Check

While not a preferred method of payment, a paper check is the default method of payment to the supplier, until electronic payment is established. Checks are issued by Accounts Payable and disbursed according to terms negotiated on the purchase order agreement.

Checks are distributed to the supplier in two ways:

1) By mailing to the supplier – Most checks are disbursed by Accounts Payable directly to the supplier. On an exception basis, express mail may be used for priority mailing if the unit provides a pre-printed PDF label to Accounts Payable.

2) By mailing to the unit – Units may request a check be mailed back to their location. For example, documentation may be required by the supplier to be included with the check.

• Most checks produced from the Non-PO Upload Process are mailed back to the unit. The unit must self-audit to ensure checks are made out to the correct entity.
   
• In very rare cases, a unit may pick up a check from Accounts Payable in emergency circumstances. The individual must obtain explicit permission from the Accounts Payable supervisory approval.

8.1.4 Check Request

A check request is an official request to UPS to initiate payment for goods, services, or other business-related needs. In most cases, these payments do not require units to obtain quotes or bids. Check requests can direct payment to suppliers or to non-employees. Check requests cannot be payable to a Rutgers employee. See Check Request Processing Instructions. The Non-PO Transaction Matrix is maintained by UPS and outlines the goods, services, or other business-related needs that are allowable to be paid via check request.

The matrix outlines:

• Which goods, services, or items are allowable to be paid via check request (or Non-PO upload).
   
• The correct account code to use, if applicable;
   
•  A detailed description of the good or service;
   
• Any details to include in the “Supporting Information” box on the check request form;
   
• The required supporting documentation, such as an invoice or receipt; and
   
• The invoice naming/numbering convention that UPS will use

Once the unit confirms that a good or service is eligible for check request payment, the unit should:

1) If the supplier/payee is not in the system complete and submit a supplier invitation request in PaymentWorks, the Rutgers self-service supplier portal.

2) Complete the Check Request form in RU Marketplace and submit the Check Request form, along with needed back-up specified in the matrix. For wire transfers, complete and submit the Wire Transfer form in RU Marketplace after submitting the Check Request form.

3) Track the payment status in RU Marketplace. Status can be checked by inputting a requisition number, purchase order, or invoice number in the search bar on the upper right-hand side of the homepage.

Checks are then mailed to the supplier, unless otherwise specified, and the process is complete.

8.1.6 Purchasing Cards (PCard)

Payment is via a Rutgers credit card issued by Bank of America and administered by UPS. Low-dollar items may be purchased with the PCard if the following two conditions exist:

• the item is not available from a university-contracted supplier or an internal supplier; and
   
• the purchase is necessary to the mission of the unit

Units should contact the University Procurement Services Help Desk to confirm that the good or service is not available from a university contract prior to payment.

8.1.7 Journal Entries

Funds are transferred from one unit to another using Unit/Division/Organization (UDO) strings via journal entry, which can either be done online in the Financial Management module or uploaded on templates found in the Office of the University Controller Forms Repository.

Procurement-related processes that use journal entries:

• Internal Purchase Orders (IPO) - When a Rutgers unit buys goods or servicesfrom another Rutgers unit, invoicing and payment occurs in RU Marketplace similar to processes applied to external suppliers. When an invoice is incorrect, the end user purchasing goods or services from an internal supplier must create a journal entry to make the necessary corrections.
   
  • Payments are made through an Oracle generated accounting entry when the IPO payment template is processed by Accounts Payable.
     
  • When large dollar amount exceptions occurs, Accounts Payable notifies the unit using the Comment tab in RU Marketplace.
     
  • The unit creates the journal entry to pay an overbilled difference owed to the internal supplier.
     
• Purchasing Cards (PCard) – Purchasing Cards can be issued to units (specifically an end user) if they are eligible. Payment of charges incurred on a PCard follows a dual-step process.
   
  • UPS issues payment from a clearing account to the bank to avoid delinquency. A payment file exports from BOA Works(a file sharing system in conjunction with the bank) and imports to Oracle. Payment is charged to a default accounting string in Oracle provided by the unit, which is hard-coded to their PCard in the card set up process.
     
  • 2) Once the PCard charge hits the unit’s default accounting string, they have the option to journal the expense to another general ledger or project string.