Definitions

Automated Clearing House (ACH): An electronic network for financial transactions in the United States; processes large volumes of credit and debit transactions in batches; credit transfers include direct deposit, payroll, and supplier payments. More information is referenced in 8.0 Payments.

Concur (Rutgers Travel Online Booking Tool) – system used by employees to book airfare, car rental, and train services. More information is referenced in 11.0 Travel and Expense Management.

Convera – wire payment system used to pay international suppliers. More information is referenced in 8.0 Payments.

E-Payables (Bank of America): External suppliers may elect to receive payment through the Bank of America E-Payables program, in which funds are deposited to the supplier’s virtual credit card that is assigned to the supplier through the program. E-Payables is the preferred method of payment where suppliers have quick access to funds in a secure environment. More information is referenced in 8.0 Payments.

Oracle Expense- the Oracle financial management expense solution is the automated online tool used for expense management. Rutgers employees use this system to submit, approve, process, and pay expense reports. Oracle

PaymentWorks: Self-service supplier data portal for new supplier onboarding and existing supplier maintenance. More information is referenced in 2.0 Supplier Management.

Paymode-X: External suppliers electing to participate in Bank of America’s PayMode network receive ACH direct deposits through Paymode-X into the bank accounts designated in the profile maintained by the Paymode-X network. For suppliers, Paymode-X is the second preferred method of payment managed by Bottomline / Bank of America. Banking information is not maintained at Rutgers. This method is only available for companies and LLCs. More information is referenced in 8.0 Payments.

RU Marketplace - the university-wide automated e-Procurement system used for procuring and paying for goods and services. RU Marketplace covers all stages of the source-to-pay process (sourcing, contract management, supplier management, requisitions and ordering, accounts payable).

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Corporation: An organization that is recognized as having a legal existence as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations.

Employer Identification Number (EIN): A unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. The EIN is also known as the Federal Tax Identification Number.

Independent Contractor or Employee Determination Form (ICED): This is a prerequisite document for guest lecturer, honorarium, or professional services engagements, that the prospective supplier must complete and must be reviewed and approved by UPS or University Tax Department prior to any start of service.

Individual Tax Identification Number (ITIN): A tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NN).

Limited Liability Company (LLC): A organization whereby the members of the company cannot be held personally liable for the company's debts or liabilities. This is a hybrid entity that combines the characteristics of a corporation and a partnership or sole proprietorship.

Ownership Declaration Form: A form required to be submitted by all suppliers performing work with RBHS or other Rutgers units that may be Medicare reimbursable.

Partnership: An organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.

PaymentWorks: Self-service supplier data portal for new supplier onboarding and existing supplier maintenance.

Procurement Approver: Approver within UPS who will perform a general screen and review of invitation requests for a new Supplier or review any updates of a current supplier.

RU Marketplace: The university online system that covers all stages of the procurement-to-payment process. This system provides a comprehensive approach to the provider and end user. The tool also allows for data analytics by measuring the effectiveness of contracts, transaction approval cycle times, and use of automated invoice processing.

Social Security Number (SSN): A unique 9-digit number in the format 000-00-0000 issued to individuals in the United States to track Social Security benefits and for other identification purposes.

Sole Proprietor: A business that legally has no separate existence from its owner. A sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Supplier: Any individual, company, corporation, partnership or sole proprietor that provides goods or services to the University.

Tax Identification Number (TIN): An identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. The TIN is also known as the Employer Identification Number (EIN).

Unit: A Rutgers internal department.

University Procurement Services (UPS): The unit that processes all procurement transactions including requisitions and invoices, facilitates the formal bid process, and negotiates and manages contracts.

W-8 Form - The IRS form that certifies foreign status and needs to be completed for any foreign individual (W-8BEN) or company (W-8BEN-E) when the University is making a payment to them. It is also used to validate a tax treaty exemption from, or a reduced rate of, withholding on certain income.

W-9 Form - The IRS form which certifies a domestic taxpayers identification number. This form is requested from suppliers to conform to IRS regulations. Rutgers must have a federal tax identification number or social security number on file for all suppliers and individuals receiving payments from the University and this form is used to certify those numbers.

Business Associate Agreement (BAA): This is a prerequisite document which must be obtained before a procurement contract is entered into by Rutgers. This agreement is required when a unit is engaging services that include creating, receiving, maintaining, or transmitting Protected Health Information (PHI). Use of the University template is preferred. A non-University template may be authorized upon review, negotiation, and approval by University Ethics and Compliance. This contract, regardless of the template origin, must be negotiated and approved by the Rutgers’ University Ethics and Compliance.

Accessibility Purchasing Form: This form is to be used to provide the necessary information needed for an accessibility review. All electronic information technology (EIT) systems, applications, software, and services used by Rutgers University are required to be assessed for accessibility based on the Rutgers University Accessibility Policy, current adopted version of WCAG, and applicable state and federal laws.

Facilities Approval: Any purchase needs to be reviewed and approved in writing by the facilities manager if a unit is considering the purchase of new equipment requiring utilities, modification to an existing space, or if a hole will be dug or material change to the landscape is required. The approved document should get attached to the requisition.

Independent Contractor or Employee Determination (ICED): This is a prerequisite document for guest lecturer, honorarium, or professional services engagements, that the prospective supplier must complete and must be reviewed and approved by UPS or University Tax Department prior to a procurement contract being entered into and any start of service.

Intent to Award Letter: A letter which informs a successful bidder that Rutgers intends to award a contract to them, provided certain requirements and prerequisites are met, including, but not limited to, successful contract negotiations. If the prerequisites are not met, the Intent to Award letter is rescinded.

Public Works Registration: This registration is needed for all facilities or constructions-based engagements ($2,000 or greater).

Request for Proposal (RFP): A document that solicits a proposal, often made through a bidding process, by Rutgers University for procurement of a commodity, service, or valuable asset, to potential suppliers.

Procurement Authority: Procurement Authority is the criteria/justification which must be met before any procurement activity (i.e. expenditure of Rutgers and taxpayer dollars) proceeds. It must be established to purchase goods or services based on financial thresholds and to ensure compliance with Rutgers University procurement policy and procedures. Can be established the following ways: formal/competitive bid, informal bid, waiver of bid or use of a viable GPO agreement or other University agreement.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Statement of Work (SOW): All service-based purchase orders should have a Rutgers SOW or supplier bid/quote/proposal that outlines the service scope, deliverables and fees and expenses. This would include most professional and business services. This should include every deliverable, in detail, that the unit expects to receive from the supplier, and it must be attached to the requisition as an external document. The SOW, along with the link to Rutgers University Procurement Terms and Conditions on a Purchase Order, constitute a contract.

Third Party Vendor Risk Assessment Form: This form assists units in evaluating the security/compliance of third parties or application service providers by requiring the supplier to disclose their method of managing and storing restricted, internal or public information. Rutgers’ Office of Information Technology reviews the form and assesses the prospective supplier’s processes, making a recommendation regarding moving forward with the supplier. The goal is to provide a safe environment for Rutgers’ data, assets, resources, and confidentiality. This is a prerequisite examination which must be completed prior to a procurement contract being entered into by Rutgers.

Waiver of Bid: Required document for the purchase of at least $50,000 that meets the specific criteria set by the University allowing the bypass of the competitive bid process.

Amendment: A formal change to an existing contract or other legal document, such as modifying terms and conditions. This may be done through a Rutgers or supplier amendment or a Supplemental Statement of Work (SOW).

Contract: An agreement between two or more parties with specific terms and conditions, wherein an offer to provide something is made by one party and accepted by another party in return for consideration of some kind.

Contracts Plus: RU Marketplace solution that allows the University to see the contract processing stages of certain contracts including those resulting from competitive requests for proposals issued by UPS and university-wide contracts. It also serves as a repository for contract documents and information and allows for advance notice of contract expiration and/or renewals to be made to the appropriate unit.

Expired Contract: A contract has fulfilled its contract term and is no longer active for purchasing. If the unit requires the goods and services to continue, a new procurement must take place (ex. bid, waiver, quotes, etc.).

Group Purchasing Organization (GPO): A GPO is an organization that is created to leverage the purchasing power of a group of businesses or organizations to obtain discounts.

Non-Disclosure Agreement (NDA): A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes but wish to restrict access to outside parties. It is preferred to use the university template if possible. However, a non-university template may be authorized upon contract management review, negotiation, and approval.

RU Marketplace: RU Marketplace is the university online system that covers all stages of the procurement-to-payment process. This system provides a comprehensive approach to the provider and end user. The tool also allows for data analytics by measuring the effectiveness of contracts, transaction approval cycle times, and use of automated invoice processing.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Statement of Work (SOW): A complete and detailed description of all goods and/or services to be delivered to Rutgers including specifics such as cost, milestones, deliverables, and timelines. This must include everything the unit expects to receive as a result of the purchase.

Supplemental Statement of Work: A complete and detailed description of the requested changes to an original SOW already issued under a Rutgers Purchase Order. These service engagement changes may include a service date extension, changes or additions to the services being rendered including deliverables or milestones (if any), and/or an increase to the fees and expenses.

Supplier: Any individual, company, corporation, partnership or sole proprietor that provides goods or services to the University.

Terminated Contract: A contract that has been terminated, at the direction of the unit or supplier. The contract will no longer be active for purchasing.

Unit: Department within the University (e.g. UPS, Facilities Department, etc.).

Blanket Order: A blanket order is a purchase order the unit makes with its supplier which contains multiple delivery dates over a period of time, often negotiated to take advantage of predetermined pricing. It is normally used when there is a recurring need for expendable goods.

Business Associate Agreement (BAA): This agreement is required when a unit is engaging services that includes: creating, receiving, maintaining, or transmitting Protected Health Information (PHI).

Check Request: An RU Marketplace form to request payment for certain expenses that do not require the involvement of UPS or the issuance of a purchase order (see the check request matrix).

Accessibility Purchasing Form: This form is to be used to provide the necessary information needed for an accessibility review. All electronic information technology (EIT) systems, applications, software, and services used by Rutgers University are required to be assessed for accessibility based on the Rutgers University Accessibility Policy, current adopted version of WCAG, and applicable state and federal laws.

Facilities Approval: Any purchase needs to be reviewed and approved in writing by the facilities manager if a unit is considering the purchase of new equipment requiring utilities, modification to an existing space, or if a hole will be dug or material change to the landscape is required. The approved document must get attached to the requisition.

Goods Request Form: An RU Marketplace form used to issue quantity-based purchase orders for tangible goods that are $50,000 and over or for such requests, regardless of amount, not allowed to be issued on a Quick Order.

Independent Contractor or Employee Determination (ICED): This is a prerequisite document for guest lecturer, honorarium, or professional services engagements, that the prospective supplier must complete and must be reviewed and approved by UPS or University Tax Department prior to a procurement contract being entered into and any start of service.

Internal Purchase Order (IPO): A purchase order issued to order goods and services from other university service units, such as dining services or facilities related services.

Multi-Year Purchase Order: A purchase order issued to order services over the course of multiple years

Non-PO Upload: The non-PO upload process is a transaction process used for paying individuals rather than businesses. Payment is in the form of a check.

Procurement Authority: Procurement authority is the confirmation/validation that the procurement of goods or services conforms to the standards identified in the University’s Procurement and Payment Policy 20.1.11.

Public Works Registration: This registration is needed for all facilities or constructions-based engagements ($2,000 or greater).

Punchout catalog supplier: A contracted supplier that is electronically connected to RU Marketplace allowing the supplier to receive electronic copies of purchase orders as well as send electronic invoices to Accounts Payable.

Punchout Order: An order that is electronically submitted in RU Marketplace via the online catalog tiles in RU Marketplace.

Purchase Order: Is a legal document containing a description of the good or service requested, and terms and conditions of the transaction including, but not limited to, payment and delivery terms, for the purchase or lease of goods and services.

Purchasing Card (PCard): A university-issued credit card, to be used for purchases that are of low value and for goods and services.

Quick Order: A type of purchase order for goods under $50,000 that are not among the Restricted Items. A Quick Order does not require the review of UPS and will be sent directly to the supplier once the unit approvals are complete.

Service Request Form: Is an RU Marketplace form used to issue service-based purchase orders. Such requests, regardless of amount, are not allowed to be issued on a Quick Order.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Statement of Work (SOW): All service-based purchase requisitions should have a Rutgers Statement of Work attached. This SOW outlines the scope of services and all deliverables associated with the engagement. The SOW instructions will assist in completing the form.

Third Party Vendor Risk Assessment Form: This form assists units in evaluating the security/compliance of third parties or application service providers by requiring the supplier to disclose their method of managing and storing restricted, internal or public information. Rutgers’ Office of Information Technology reviews the form and assesses the prospective supplier’s processes, making a recommendation regarding moving forward with the supplier. The goal is to provide a safe environment for Rutgers’ data, assets, resources, and confidentiality. This is a prerequisite examination which must be completed prior to a procurement contract being entered into by Rutgers.

Procurement team: In UPS, specific managers and analysts (are grouped to manage different categories of suppliers.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Unit/end user: Unit is the general term for a school or department and is used interchangeably with end user, who is any individual authorized to create requisitions or other procurement requests.

Accounts Payable Expeditor: Second tier AP processor with advanced roles and responsibilities who handles problem invoice queues and advises a team of processors on issues.

Accounts Payable Processor: First tier Accounts Payable Processor who processes invoices for payment.

Detailed Manual Entry: Option to view the invoice in more detail in RU Marketplace. This allows the AP processor to match the invoice to the purchase order and find possible discrepancies. This view is only available to AP.

Digital Mail Room (DMR): An automated incoming digital mail program that extracts and validates supplier invoice data for integration in RU Marketplace.

E-Invoicing: The preferred method of supplier invoice submission. Two options include 1) cXML where suppliers send invoice files via cXML format to Jaggaer directly, 2) Portal Invoicing where suppliers log in to the Rutgers Jaggaer Portal to convert purchase orders to Invoices.

Internal Purchase Order (IPO): An IPO is a purchase order for a good or service that is provided by a university unit to another university unit. Related costs are billed to the receiving unit using an approved recharge rate. UPS generally does not assist with these transactions, except in the event of a change order.

Optical Character Recognition (OCR): Used to populate fields in invoice template.

Oracle: A database that manages and processes financial data across wide and local area networks. The Oracle database has its own network component to allow communications across networks. This is the general ledger system that payments are issued from.

Punchout Supplier: A preferred supplier set up through UPS for users to procure products by accessing their catalog through the RU Marketplace portal. These suppliers are linked on the homepage for easy access.

Purchase Order (PO): An official document that Rutgers sends to suppliers to document the sale of products and services.

RU Marketplace: RU Marketplace is the university online system that covers all stages of the procure-to-pay process excluding payments. This system provides a comprehensive approach to the provider and unit. The tool also allows for data analytics by measuring the effectiveness of contracts, transaction approval cycle times, and use of automated invoice processing.

Standard Operational Procedure (SOP): A controlled document that functionally describes the key procedures.

Unit/Division/Org (UDO): A unit’s 10-segment ledger string used for charging expenses.

Automated Clearing House (ACH): An electronic network for financial transactions in the United States; processes large volumes of credit and debit transactions in batches; credit transfers include direct deposit, payroll, and supplier payments.

Convera: wire payment system used to pay international suppliers with invoices in USD.

Corporate Trade Exchange (CTX): A file format defined for ACH transfers to corporate bank accounts.

E-Payables: External suppliers may elect to receive payment through the Bank of America EPayables program, in which funds are deposited to the supplier’s virtual credit card that is assigned to the supplier through the program. The supplier must “charge their card” to receive their funds. E-Payables is the preferred method of payment where suppliers have quick access to funds in a secure environment.

Journal Entry: An accounting transaction that records debits and credits from one unit’s ledger account to another. A unit may use a regular adjusting journal for general ledger transactions or a cost transaction journal for project-related expenses.

Paymode-X: External suppliers electing to participate in Bank of America’s PayMode network receive ACH direct deposits through Paymode-X into the bank accounts designated in the profile maintained by the Paymode-X network. For suppliers, Paymode-X is the second preferred method of payment managed by Bottomline / Bank of America. Banking information is not maintained at Rutgers. This method is only available for companies and LLCs.

Prearranged Payments and Deposits (PPD): A file format defined for ACH transfers to personal bank accounts.

Pre-payments: Payments that may be requested by a supplier prior to goods or services being rendered (such as deposit to start work on project).

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Unit/Division/Org (UDO): A unit’s 10-segment ledger string used for charging expenses.

Wire: A payment method for electronically transferring funds from Rutgers to another entity through Treasury. At Rutgers, these are used for international payments only and domestic payments as an exception.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures.

Appropriate: Means that the expenditure is consistent with objectives of the program, project or task. Appropriate also means that the expenditure is allowable under the terms and conditions of the underlying funding source and/or policies.

Approver: An individual with the responsibility to review purchases for reasonableness, necessity, and appropriateness to allow reimbursement. The traveler’s Business Manager or designee who does not report to the traveler/requester must approve all travel-related business expenses. The approver also is responsible for ensuring that the correct accounts have been used and sufficient funds are available to cover the total expenses. Under no circumstances may an individual approve his or her own expense report. The traveler’s Business Manager or designee who does not report to the traveler must approve the expense report.

Approved by: Approving expenses signifies that the proper authorized person (generally the traveler’s Business Manager or designee) has reviewed travel expenses and the supporting documentation for fund approval and appropriateness of the travel and that these expenses comply with all university policies and all pertinent federal, state and sponsoring agency policies. Travel and business expenses incurred on grants, contracts, sponsored programs, or restricted funds must comply with university policy and any specific expenditure policy of the funding source, if more restrictive than university policy.

Basic Economy: A restrictive airfare class that typically restricts the ability for travelers to check luggage, select seat assignments, make reservation changes, etc. The university does not recommend this airfare type due to its restrictive nature.

Business Expense: Reasonable, appropriate, and necessary travel and business-related expense(s) that are incurred while carrying out university business.

Class of Service: The travel class or cabin in which a travel reservation is reserved or ticketed. Class of service is typically marketed as Economy, Premium Economy, Business, and First. Actual terms may vary by carrier or vendor. The class of service subcategory that determines the cabin, price, rules, and restrictions of a travel reservation or ticket.

Conference/Event: A conference/event is a formal scheduled meeting of a recognized organization in which the university or department has an active area of interest.

Concur Online Travel and Expense: The Rutgers online travel and expense reporting system to be used by Rutgers employees.

Department and/or Unit Head: The person in charge of a subdivision of a particular school or unit that has its own structured budget.

Employee: A full or part-time employee of Rutgers University.

Expense Report: The form which is used to account for travel and other business expenses. Expense reports are subject to review by internal auditors, external auditors (including state and federal grant agencies), and the IRS.

GSA: The U.S. General Services Administration establishes a per diem rate yearly. The GSA per diem rates are the allowance for meals and incidentals. Rutgers University allows incidentals to be reimbursed at actuals. Items that fall under Incidentals are tips for porters, baggage carriers or hotel staff.

Legitimate Travel-Related Incidentals: Small dollar purchases that occur and are required for successful completion of the business trip. Examples of appropriate travel-related incidentals are: books, office and teaching supplies.

Necessary: This means that the expenditure is required to achieve the expected goals or outcomes of the program, project or task.

Per Diem (Travel Allowance): Daily payment instead of actual expenses for meals while travelling on University Business

• Expenses for breakfast, lunch, snacks, dinner and related tips and taxes are included in per diem.

• Per Diem is reduced on travel days to 75% of the per diem regardless of trip departure time.

• Per Diem is prorated for meals provided based on 20% breakfast, 20% lunch and 60% dinner. The current per-diem chart is located the procurement website under ”Related Links”: https://procurementservices.rutgers.edu/travel-and-expense/reporting-travel-expenses.

Professional Judgment: A determination based on the application of knowledge and understanding of facts and circumstances.

Proof of Payment: Documentation (e.g., receipt, credit card charge slip, hotel folio) that indicates that the individual has settled the bill in full with the service provider.

Reasonable: The cost of the good or service is not excessive.

Receipt: An original document itemizing the good(s) or service(s) purchased. The receipt must provide a named payee and date that confirms payment has been made for a stated purchase. Method of payment must be shown on the receipt. If the receipt is lost, the individual seeking reimbursement must be complete within Concur.

Standard Operational Procedure (SOP): A set of instructions that functionally describes the key procedures. Supervisor: A person to whom the faculty or staff member reports.

Travel Authorization Request: An online authorization in Concur for booking air, Amtrak, hotel or car rental which is obtained prior to booking the trip in the performance of university business. Also known as a pre-trip Request.

Travel Advance: When a traveler requests university funds in advance to pay for upcoming travel-related expenses. Also known as a cash advance.

Travel Card: An employee travel card for university business travel.

Travel Management Company: The university-designated travel agency used to support all Rutgers-related travel.

Travel Order: A form that must be completed and approved any time the direct billing option is used to purchase air or rail tickets through the university's preferred travel agencies.

Travel Status: When an employee travels more than 100 miles from his or her place of residence or official work site to perform official university business or for a duration of at least twelve (12) hours for a specific business purpose.

Traveler: Any person who incurs travel expenses on official university business and who is entitled to reimbursement of those expenses.

Trip: Travel from an individual’s work site for a duration of at least 12 hours for a specific business purpose, such as attending a conference, presenting a paper, or conducting research. An individual can take several consecutive trips while on travel status. Each trip can be reported on a separate expense report or on one expense report with each trip clearly indicated.

Work Site: This is the official university payroll location to which the employee reports every day.