Background:

The Acquisitions Department in Technical Services Division is a designated accounts payable unit in the University of Maryland, College Park. This means that payment, records, and audit responsibility is delegated to this office instead of being done in the campus accounts payable department. This allows the UM Libraries to keep close control of its budget and spending as well as avoiding working through another office when placing orders and tracing payments.

Invoices come into the department in several ways. They come with shipments of material and are also mailed direct from vendors. Invoices come from other library departments too. ILL and the Bindery Unit send their invoices to the Business Section for payment. Some invoices for material shipped on the Approval Plan are mailed direct to the Archives and Marylandia departments, which in turn, send them on to Acquisitions for payment. The renewal invoices from Faxon come both on magnetic tape and in paper. There are times when no invoice is sent and a pro forma invoice is created in Acquisitions in order to pay for the materials. Except for such tasks as photocopying, matching purchase orders to invoices, and invoice filing, which are performed by student assistants, all procedures are performed by the staff of the Business Section and Serials payment staff.

List of Major Payment Activities:

Types of payments:

Once the material is received, the payment process begins. Invoices that are shipped with material are kept with the shipment until after receipt. The invoices and the corresponding MRFs are then routed to the Business Section for payment. The original invoice is photocopied. The original invoice and the photocopy (called the file copy) are stamped with a blank University of MD payment stamp and the date. The MRFs for each invoice are attached to the file copy of the invoice. The original is paper-clipped to the back of the file copy. The original and the file copy are then 'coded'. The vendor file is searched in order to write the vendor code on each invoice. The blank UM payment stamp is filled in with fund number(s), budget(s), vendor number, total cost, object code, staff initials, goods delivery date, special handling code and late code (if necessary).

Invoices that are received in the mail are photocopied and stamped as above. The vendor file is searched to provide the vendor code, usually by student assistants. The students then file the invoices alphabetically by vendor name in the 'unpaid invoice file'. As MRFs without invoices are received, they are routed to the Business Section to be attached to the appropriate invoice, also usually done by student workers. The invoices are then coded as above. Both the unpaid invoice file and the unmatched MRFs file are reviewed on a regular basis in order to make prompt claims for unshipped/unreceived orders and for unbilled receipts. An invoice is not ready for payment until all the items billed on it are received. If an invoice is incomplete, it is held in the unpaid invoice file until all the orders have been received.

Once an invoice is ready for payment, the payments staff (all levels) pay the invoice online. This is a two or three step process. First, the invoice is received in the payment maintenance module. Then, moving to the order edit module, the invoice number and cost of each item billed is entered on the appropriate purchase order record. At the same time, the online order is quickly scanned for any problems such as incomplete shipments or incorrect information that may hold up payment. Creating a postage and handling record if this charge is separately billed on the invoice concludes this process. The payment process requires 'flipping' between a number of screens and going into three or more modules in CARL.

When an invoice is completely paid, it is put aside and held for review against the 'Not Approved List' which will be created overnight in ITD. This report is picked up every morning in ITD by Acquisitions staff. The Business Section receives four copies of this report. A copy is distributed to each staff person who paid invoices the previous day. These reports are of all invoices paid the previous day listed alphabetically by vendor name. The elements it contains are the vendor number, vendor name, fund number, account number, invoice date, invoice number, special handling code, delay code, object code, item charge, credit and total invoice amount. (See attachment 1)

Each element is compared to the paper invoice to make sure there are no errors. If an error is discovered, it is corrected. The invoice is held for the next day's report to verify that the correction was implemented. Every day, invoices that are correct are passed on to a senior payment staff person, a Library Technician II, for 'authorization'. Invoices are authorized for payment online in the Fiscal Maintenance module of CARL. Each invoice is authorized separately in Invoice Maintenance. The system allows for a second cursory online review of each invoice, chiefly in order to make sure the totals online and on paper match. If so, the operator authorizes each invoice using a password, and the invoice is 'approved for payment'. If the totals do not match, the invoice must be reviewed to see what the error is. Usually it is an input error, and the operator just needs to re-enter the invoice in Invoice Maintenance with the correct total amount.

Overnight, ITD produces an 'Invoice Payment List'. This is a list similar in format to the Not Approved List. All the invoices that were authorized the previous day should appear on this list alphabetically by vendor name; this is called a 'batch'. (See attachment 2). The system-assigned 'Batch' number is seen at the top of the page. Two other reports are generated overnight. The Check Request Summary lists the vendors alphabetically and gives the total check amount that will be paid to the vendor. The CP Payments report is the data stream as it is transmitted to Accounts Payable. (See attachments 3 and 4)

Invoices are reviewed again against the Invoice Payment List. If any errors are found at this point, they cannot simply be corrected in the Business Section. ITD has already transferred the payment information to Accounts Payable at 1:00 that morning. ITD must be notified of the error as well as Accounts Payable. Most post-authorization errors are vendor-connected and unseen by the Business Section until this point. Corrections must be made by Accounts Payable. There is significant interaction between the supervisor of the Business Section (LT III) and Accounts Payable in order to make corrections in a batch.

As the invoices are reviewed, the original invoice is removed from the back of the file copy. The originals are kept in order as listed on the batch. The originals are placed with a two-part cover sheet (see attachment 5) into a large manila envelope. The batch number and date are written on the outside of the envelope. The envelope is hand delivered each afternoon to Accounts Payable, usually by a student using the library van. The envelope is handed over to Accounts Payable and a receipt for the batch is dated and initialed by the Accounts Payable staff person who receives it. The batch is released online by Accounts Payable into FRS (the campus fiscal accounting system) which sends the payment on through the University and State payment systems.

The file copies with their attached MRFs are rubber-banded together. The batch number and run date are written on a post-it note and affixed to the top file invoice. Students will then hand stamp the batch number and date on each invoice using a numbering machine before it is filed in the paid invoice files.

After stamping, invoices are filed in the current fiscal year payments files, usually by student assistants. They are filed alphabetically by the vendor name, then numerically with the highest invoice number in the front of the file, lowest number at the back of the file.

From time to time, Acquisitions must deal with prepaying for material. This is usually only done at the requirement of the publisher/supplier of the firm order. This is different from the routine prepayment of journal subscriptions that are paid through the Serials module, usually to our subscription agent, Faxon. The prepayment function in CARL is also used to pay for material received without a purchase order such as ILL invoices.

CARL Acquisitions allows a prepaid order to be created in the Fiscal Main-tenance module. The order screen is identical to the regular order screen except for the status of the order. A completed prepaid purchase order has the status 'PP'. The letters 'PP' are part of the purchase order number that is written on the invoice at the time of payment. The note field is annotated with the original purchase order number. The original purchase order's note field is annotated with the prepayment order number and the date of payment. This creates a cross-reference between the original purchase order and its payment record. It is important to erase the amount in the cost field of the original purchase order. If this step is not done, the fund for the prepaid order gets encumbered twice, once at the time of ordering and again at the time of prepayment. The invoice is authorized as per the normal payment process.

Standing orders are paid as they arrive by the standing order clerk (Library Technician II). These are unnumbered series that cannot be tracked through the serials check-in module or the serials payment process. Invoices usually arrive with the material. These are stamped and coded as per the usual procedure by the standing order clerk. She creates a purchase order for the item in the Acquisitions module. It is then passed on to the Business Section for the normal invoice authorization process.

Interlibrary loan invoices are mailed direct to the Interlibrary Loan office by the suppliers. The invoices are photocopied and partially coded by ILL staff. The invoices are hand-delivered to the head of the Business Section with a cover sheet listing each invoice. The cover sheet is filed in the correspondence file by date. The Business Section staff completes coding of the invoices. Vendor searching requires particular care with these invoices since many of them do not exist in the vendor file and will have to be added. A prepayment purchase order record is created for each invoice in order to pay these. Payment then proceeds as per the usual authorization procedure.

New orders, whether monographs or serials, must be created in the CARL Acquisitions function. Therefore, the first payment of any new serial title is always done in the Acquisitions module. The payment process is the same as for any monographic order except notes are added to the note field indicating coverage of the first payment. Then, a note is added to the title's temporary record in the Serials payment module stating that the first payment has been made in the Acquisitions module including the date of payment, amount and invoice number. Authorization proceeds as usual.

Back issue invoices are received in the Business Section from the Serials Back Issues clerk. These are invoices for an individual piece or pieces of a subscription title which the publisher or vendor has sent in response to an inquiry from the Libraries. These invoices are mailed direct to the Back Issues clerk who prepares them for payment by coding the invoices and making sure the vendor exists in the vendor file. The invoices are sent to the Business Section for payment. A prepay payment record is created by the payment staff. Authorization proceeds as usual.

Not all of the serials invoices Acquisitions handles are done by computer tape through Faxon. Many invoices come from numerous other vendors. Some publishers do not deal through vendors, and payment is made directly to them. Payments are made on the serial record in the CARL serial module. The order is searched in the Serials module, usually using the order number that is supplied on the invoice. If the order number is not available, the serials payment clerks search the title. Once the correct record is found, the serials payment function is accessed for that record. A brief serial payment screen is displayed that contains the vendor to be paid, state vendor number, vendor code, purchase order number, fund, object code, previous payment information and any notes particular to the title. Other fields may or may not contain information and are optional depending on the vendor such as account number or title number. In order to make a payment, the operator must create a 'new form'. This screen enables new payment information to be entered and to pay for the new billing. The operator will fill in the purchase order number, invoice number, invoice date, coverage and amount fields on the brief payment screen. Notes may be entered if necessary. The invoice is coded by the serials payment staff. The invoice is then passed on to the Business Section for routine authorization.

Bindery invoices are mailed directly to the Preservation Department from the vendor. This department checks to make sure the billing is correct, indicates the fund to be used for each invoice, then sends the invoices to the Business Section for payment. A serial record has been established for the payment of bindery invoices. Each fiscal year a new item is created on this record for that fiscal year's payments by the head of the serials unit. Bindery invoices are paid in the Business Section following the procedure described above in General Serials Payments.

CARL allows the capability to create a payment record without sending that payment on to the campus or state system for the cutting of a check. This is used primarily for keeping the library budgets balanced when transactions take place outside the library payment system such as the Faxon prepayment or credit card payments. All the usual payment processes occur. At the time of authorization, the head of the Business Section, head of the Order/Search unit or the senior payments clerk uses HC instead of Y at the step of authorizing payment. This type of payment changes the status of a record to 'Paid' without an actual payment, in the form of a check, being made. The operator needs to do some manual changing of status of the Invoice Receipt screen in order to prevent the invoice reappearing on the unapproved invoice list. This is a glitch that has been in the system since the beginning of CARL in the libraries.

The State of Maryland will not allow one state agency to pay another state agency within the State of Maryland with a check. All payments must be made with a journal voucher or an electronic transfer. An RSTARS payment is simply another term for an electronic transfer of funds between two agencies. The head of the Business Section handles these payments. The provider agency must include the budget and sub code to be credited on its invoice. The receiving agency codes the invoice for payments as usual. The budget and sub code to be debited must be written on the original invoice. The invoice is paid through the usual channels, using an HC authorization. The original invoice is sent to the attention of the head of Accounts Payable who completes the transaction.

Payment Support Activities

There are numerous payment support functions done in Acquisitions. These are separate from the payments processes. Some may be the direct result of ordering or payment problems.

Most of the library's vendors issue account statements, usually on a monthly basis. These may include all or part of the following elements: list of outstanding invoices, disputed charges, paid invoices, overdue invoices. Each statement is compared to the on-line payment records in CARL, whether firm order or serials. If a listed invoice is unpaid, the staff investigates why. If a listed invoice has not been received, a copy is requested. Disputed invoices usually have some sort of correspondence filed concerning the problem. Further action, such as a telephone conversation or sending additional documentation, may be taken as warranted in order to resolve the problem. Depending on the nature of the problem, it may take only a few minutes to solve or it may take several hours of investigation and/or communication to resolve. Statements are filed in the 'Statement file' in the Business Section. Serials files theirs in the bottom drawer of their correspondence file. Filed statements are frequently referred to in subsequent months, especially when a problem is not solved immediately.

Credits are often issued by vendors for returns of ordered material whether monographs or serials. Rather than issue a reimbursement check, it is easier and more secure to send a credit memo. A credit memo lets the payment staff know that a vendor has made an adjustment in the library's account. If the Libraries returned a paid item for any reason, the vendor will issue a credit memo for the return. This credit can be applied to any future purchase greater than the amount of the credit memo. If an invoice is billed on one fund and the credit is on another fund, the CARL payment module allows a credit memo to be created during payment that will credit the appropriate fund.

Sometimes, a vendor will issue a credit memo for an item that was returned before the payment process began in the library. This is non-negotiable credit and cannot be applied to a future payment since no funds were transferred from the library to the vendor. These credits are attached to the correspondence as part of the documentation and resolution of the problem. Both the serials and Business Section staff handle credits.

Files are maintained for paid invoices, unpaid invoices, statements, bill listings, correspondence, credit memos, unpaid received orders, and incomplete orders. Student assistants do the bulk of the filing although staff at any level may be called upon to assist as necessary.

At the end of each fiscal year, the oldest payment files are disposed of. This includes all correspondence, invoice files, bill listings and related reports. The rest of the payment files are moved to create room for the new fiscal year files. This process takes about a week of student assistant time to complete.

The head of the Business Section does all check tracing. The request for proof of payment may come from any payment source including the vendors, serials, ILL, bindery, Maryland Room, etc. Usually it is because a vendor has not received a payment according to its account records. The payment is researched in Acquisitions records to determine date of payment. The check number is requested from Accounts Payable to forward to Annapolis to request a copy of the canceled check. This information is also logged in Acquisitions files pending receipt of the canceled check. Once the check is received a copy is sent to the vendor to reconcile the account. The check and all documentation are kept on file in the Business Section for five years.

In the past, Acquisitions payment records could be audited several times per year by campus, state or legislative auditors. The most recent audits have been of accounts that are contract accounts such as the Blackwells promptcat contract. The auditor works closely with the head of Acquisitions and the head of the Business Section to satisfy all questions that the auditor may have. This process may take several days to a week.

Attachments:
Flowcharts
Appendix 1 - Correspondence Filing
Appendix 2 - Filing Instructions
Appendix 3 - Return Procedure
Appendix 4 - Return of Materials
Appendix 5 - Shipping Procedures