Invoices

An invoice is an itemized statement of products and/or services provided by the vendor Vendors shall submit invoices directly to Finance by emailing the invoice to accountspayable@ci.southlake.tx.us. If email is not available, invoices may be mailed directly to Finance Vendors should not email and mail an invoice The vendor may send a copy of the invoice to the Department

Accounts Payable Discrepancies

Before Accounts Payable (AP) can pay an invoice, there must be a 3-way match of the Purchase Order (PO), receiving records and vendor invoice The PO authorizes the purchase, and the receiving records show the quantity/amount the City received from the PO, and if the invoice matches both the PO and the quantity/amount received by the Department, AP is automatically authorized to pay the invoice. If they do not match, an accounts payable workflow kicks off. The City uses the following Munis accounts payable workflows: • Accounts Payable Invoice (API) • Accounts Payable Discrepancy (APD)

Accounts Payable Invoice (API)

When AP enters an invoice and there is no associated PO, Munis kicks off an API workflow. Munis determines the assigned approvers based on Org code (and sometimes the Object code), the dollar value of the invoice, and the Department Director’s assignment of Approvers The Approvers approve or reject the payment of the invoice These approvals authorize AP to pay the invoice If the Department rejects the API, then the Department works with AP on resolving the issue, including the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook)

Accounts Payable Discrepancy (APD)

When AP enters an invoice with the associated PO number and there is not a three-way match between the PO, receiving records and invoice, Munis kicks off an APD workflow. The three basic reasons are insufficient receiving on the PO, unit price variance, or quantity variance Munis determines the assigned approvers based on the assigned purchasing department during the creation of the requisition and the Department Director’s assignment of Purchasing Liaison (PL) and Department Approvers for the APD workflow.

The workflow first goes to the PL to either correct the outstanding variance and reject the discrepancy or approve the discrepancy as appropriate. If the PL approves the discrepancy, then it flows to the assigned Department Approver to approve or reject the discrepancy If approved, it authorizes AP to pay the invoice with the discrepancy (See Appendix - Munis section of the Playbook)

The APD screen shows the quantity and unit price or the amount from both the PO and the invoice but does not give the quantity/amount received on the PO Therefore, it may be helpful for the PL to also pull up the PO receiving records to understand the discrepancy (See Appendix - Munis section of the Playbook)

Insufficient Receiving

Insufficient receiving means that the Department has not received enough quantity/amount on the PO to authorize the quantity/amount on the invoice. When the PL receives an APD for insufficient receiving, the PL reviews the attached invoice and checks with the appropriate Department personnel to determine if the Department received the product/services and how much If the PL determines the Department received the product/services, the PL completes the receiving on PO process as normal, then notes the resolution on the APD under Notes and rejects the discrepancy This returns it to AP AP reactivates the discrepancy in Munis and if resolved, continues the accounts payable process to pay the invoice If the discrepancy is not resolved, the APD returns to the PL

If the PL determines the Department has not received the product/service, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution If the resolution is that the invoice was inappropriately sent to the City (should not have been invoiced or incorrectly invoiced and the vendor will send a new

invoice), the PL rejects the APD with the resolution noted under the Notes section AP then deletes the invoice If the resolution is that the vendor will provide the product/service, the PL notes that under Notes and the PL holds the APD until the product/service is received, then when the product/service is received, the PL receives on the PO, notes the resolution on the APD and selects Reject

Unit Price Variance

An APD for unit price variance occurs when Quantity was selected for Received by during the creation of the requisition and the unit price on the invoice is greater than on the PO or when Amount was selected for Received by during the creation of the requisition and the invoice amount is greater than the PO authorized The unit price on the PO should come from a contract or quote, and therefore, should be accurate The PL works with the appropriate Department personnel and Vendor to determine why there is a unit price variance If it is determined that the Vendor billed using an incorrect unit price, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution If the resolution is that the Vendor will send a corrected invoice, the PL rejects the APD with the resolution noted under the Notes section AP then deletes the invoice

If the Department determines that the unit price on the PO is incorrect, PL either processes a PO Change Order to correct the unit price (recommended solution when there will be other invoices against the PO); or if this will be the only invoice processed against the PO, the PL may note under the Notes section the reason why there was a unit price variance, why the invoice unit price is correct, and approve the unit price variance Be aware that the variance cannot put the annual spend with the vendor into a different bidding parameter without additional procedures Discuss this with Finance if that could happen

If the PL approves the discrepancy, then it flows to the Department Approver to approve the discrepancy. If approved, it authorizes AP to pay the invoice with the discrepancy

Quantity Variance

An APD for quantity variance occurs when AP enters an invoice with the associated PO number and the quantity on the invoice is greater than the PO authorized If the Department determines that it received more product/service than the PO authorized, the PL either processes a PO Change Order to correct the quantity or the PL may note under the Notes section that the Department received the invoiced quantity and is going to keep the product/service and approve the quantity variance Be aware that the variance cannot put the annual spend with the vendor into a different bidding parameter without additional procedures Discuss this with Finance if that could happen

If the PL approves the discrepancy, then it flows to the Department Approver to approve the discrepancy. If approved, it authorizes AP to pay the invoice with the discrepancy

If the Department determines that the quantity variance is incorrect or the Department is returning the additional products, the PL/Department starts the invoice dispute process (see the Invoices – Invoice Dispute Process section of the Playbook) and notes it on the APD under Notes and holds the APD for resolution If the resolution is the Vendor will send a corrected invoice, the PL rejects the APD with the resolution noted under the Notes section AP then deletes the invoice

Invoice Dispute Process

State law requires the City to pay for goods and services received within thirty (30) days after the later of the delivery of the product/services or the invoice date, otherwise the City is required to pay the vendor interest Therefore, it is important for Departments to enter their quantity/amount received promptly

An invoice may need to be disputed for such reasons as product not received, product damaged, services not received, and invoice amount incorrect Under State law, the City is required to notify the vendor of a disputed invoice Therefore, a Department shall work with the vendor to resolve the issue but shall not wait more than 10 days after AP notifies the Department of an invoice discrepancy to complete and send an Invoice Dispute letter to the vendor (template for the letter may be found on the Finance intranet page) It is recommended that the Department email the letter to the vendor with a read receipt requested to verify the vendor has received the notification. The Department shall send AP a copy of the letter