Create a Website Account - Manage notification subscriptions, save form progress and more.
UNDERSTANDING THE WORKFLOW OF AP PROCESSING AND INTERNAL CONTROL
Each department submits their invoices to AP using two different workflows. First through the AP invoice submittal folder in which the invoices and a coversheet, with the Department Head's initials, are scanned and placed in the Department folder (AP-Scan-Invoices [Fileserver]) with their assigned 'Purchase Order' numbers (PO #) and receiving report.
AP personnel enter the PO # in the AP module invoice entry. Once the PO # is entered, the vendor associated with the PO is populated and the remittance address for the vendor is compared with the invoice remittance. The required invoice information is then entered and the PO is reduced by the invoice amount to complete the invoice entry. The documents are then submitted electronically to the Chief Accountant for review and approval.
Second, through the check request module, the invoices are keyed in by department-assigned personnel and routed through their departmental approval process. Once approved by their Department Head, the file is released and a dropdown box named 'Check Request' appears for selection directing AP personnel to the electronic invoices entered. The check requests are selected and converted in the AP module as a batch in invoice entry for processing. AP personnel verifies the data entry against the invoice in RFC/ TCM and makes corrections, if necessary. This process, once released by AP personnel, is approved automatically since the Department Head has already reviewed and approved the expenditures.
After the completion of the invoice entries and approvals, the invoices are all selected for payment. A report is generated in PDF format that is submitted to the Finance Director for review and approval as part of the workflow approval in MUNIS. Once approved, AP personnel are able to print checks. However, all vendors are not paid by check. Some are paid by Electronic Fund Transfers known as EFT. AP Personnel also select all of the vendors with EFT payments and generate the file in PDF format with the EFT’s invoices. AP Personnel then submit the PDF documents to the Finance Director for review and approval following the same workflow process as the checks. Once approved, the EFT notices are printed and the ACH file is created and uploaded to the bank, identifying the vendors and amount authorized for payment.
The Director, once again, has to approve the ACH file submitted to the bank prior to the bank releasing the funds to the vendors. Checks are sorted and mailed with the EFT notices. However, before releasing the checks, AP generates a file named Positive Pay that is also uploaded to the bank identifying all the vendors, check numbers, and amounts. This file is used to prevent fraudulent checks from being cashed from the City’s account. Once the Positive Pay file is uploaded and approved by the bank, the City is no longer accountable for any fraudulent checks not listed in the Positive Pay file.