Ordering from Suppliers 2012/13 Edition
imperialcollegeunion.org
Ordering from Suppliers Page 1 imperialcollegeunion.org/training
Contents Contents
2
Introduction
3
Payments to Companies
4
Creating Purchase Orders
6
Downloading Purchase Orders
10
Goods Receipting
11
Requirements for Invoices
13
Unusual payments
17
Miscellany and Summary
18
Help and Assistance
19
Š 2012 Imperial College Union Version 1.0 - 01 June 2012
Ordering from Suppliers Page 2 imperialcollegeunion.org/training
Introduction The purpose of this booklet The Ordering from Suppliers booklet is a guide to ordering goods and services for your Club, Society or Project from external suppliers. It will cover raising Purchase Orders, submitting Supplier Invoices for payment and the Goods Receipting process.
Points of contact If you are looking for help with using eActivities please contact your Club, Society or Project Chair or Treasurer in the first instance. If you discover a technical problem with the system, you should contact the Union’s Systems Coordinator by emailing club.web.enquiries@imperial.ac.uk.
Stefan Nubert Deputy President (Finance & Services) E: dpfs@imperial.ac.uk T: 020 7594 8060, extension: 58062
Warnings The Union places a large amount of trust in its Club Officers and members. In return we expect you to act honestly and transparently when making financial transactions. When using money from the Union you should be aware that all fraud is taken very seriously and will lead to disciplinary action. A result of disciplinary action may be logged on your permanent College record, which may include a hearing on fitness to practice. This may affect your future job prospects – so think about your actions and ask if you are unsure.
Ordering from Suppliers Page 3 imperialcollegeunion.org/training
Payments to Companies Purchase Orders The ideal way of paying for items over about £200 is by agreeing credit terms with the supplier you are purchasing from. Prior to placing an order you should obtain a quote from the supplier and then create a Purchase Order. A Purchase Order is a document issued by the buyer, in this case the Union, which dictates the type, quantity and agreed price for goods or services required. It contains a unique Purchase Order Number and delivery instructions. Purchase Orders require approval in line with the approval chart in the overview section in Approving Expenditure. Acceptance of the Purchase Order is an agreement which ensures that the supplier will not demand payment for any extra goods or services that were outside the original specification. Please note that when booking rooms within College that incur hire charges or booking fees, Purchase Order Numbers will be required.
Invoices & Pro-Forma Invoices There are circumstances where a supplier will demand payment for goods or services before they are delivered. The supplier will then issue what is known as a Pro-Forma Invoice. When you receive Ordering from Suppliers Page 4 imperialcollegeunion.org/training
this you should create a Purchase Order and have this suitably approved, if you haven’t already. You should then write the Purchase Order number on the ProForma Invoice and upload it as normal, checking the box indicating that goods or services will not be delivered until payment is made. Details are given in the Goods Receipting section. There is no need to send the purchase order to the supplier. This invoice will be paid in the normal way. After the goods or services have been delivered, you should receive a full VAT Invoice. Although this is not a demand for payment, it is important that this full VAT invoice is delivered to the Clubs & Societies Finance Administrator, otherwise your Club, Society or Project will be charged the amount on the invoice. If the supplier is willing to provide the goods on credit then you will not need to obtain a Pro-Forma Invoice, instead they will send a VAT Invoice with the goods. This VAT Invoice can then be uploaded to eActivities as described in this section. If an invoice from a supplier arrives without the Union’s Purchase Order number printed on it then write the number onto the invoice, scan it and upload it. If such an invoice arrives directly with the Clubs & Societies Finance Administrator then he will contact you to ascertain the Purchase Order number.
Payments to Companies cont... Is someone going to pay out of their own money?
Yes
Use the reimbursement to individuals method instead
No
Does the group have money for the purchase?
No STOP NOW!!
Yes Create a Purchase Order online using eactivities.union.ic.ac.uk
This flow chart is a summary for the process for making payments to companies
Purchase Order is approved by the relevant student officers
Expenditure appears on transaction pages on eactivities.union.ic.ac.uk
Purchase order sent to supplier by Club, Society or Project Treasurer
Goods or services received by the Club, Society or Project
If invoice received by the Club, Society or Project
Goods receipting process completed by the Club, Society or Project
Invoice uploaded by the Club, Society or Project
Payment by online transfer directly to bank account of the supplier by Clubs & Societies Finance Administrator
If invoice received by Clubs & Societies Finance Administrator
Ordering from Suppliers Page 5 imperialcollegeunion.org/training
Creating Purchase Orders Requesting a Purchase Order You will only be able to request a Purchase Order if you are a committee member in a Club, Society or Project. To request the Purchase Order, log into eActivities and select your role in the Club, Society or Project for which you are requesting the Purchase Order. Details of how to do this are given in Core Finance. Select Finance from the top menu, then click Expenditure then Purchase Orders. The screen will default to the New Submission tab. Fill in details as below to request the Purchase Order.
You must be a committee member of that Club, Society or Project and have completed the relevant training to do this. Make sure you enter the total value of the desired expenditure including VAT.
Select the supplier from the drop down list. If your supplier is not in the list see the section on Requesting a new supplier
You should enter the delivery instructions and any other information relevant to the Purchase Order in this box.
Complete details of the description of what you are ordering using the boxes at the bottom of the page: the account, activity, funding and consolidation codes as well as the price including VAT, quantity and relevant VAT code. Double check with the supplier that the quantity and total amount matches with the supplier’s quote. Then click Commit.
Ordering from Suppliers Page 6 imperialcollegeunion.org/training
Creating Purchase Orders cont... Requesting a new supplier The process described in the previous section will only allow you to create a Purchase Order to a supplier the Union already has recorded on its finance systems - basically, ones it has done business with in the past. If the supplier you wish to use is not in the list, you need to request that it is created before you can raise a Purchase Order. To request a new supplier, select Purchase Orders from the menu, then the Request a New Supplier tab. Complete the details on the form, and click the submit button.
A supplier will take up to five working days to set up. If you have any queries about the progress of a supplier being set up on the system these should be directed to the Clubs & Societies Finance Administrator.
Ordering from Suppliers Page 7 imperialcollegeunion.org/training
Creating Purchase Orders cont... New supplier request progress To view progress of a new supplier being set up, select Purchase Orders from the main menu, then Request a New Supplier, then New Supplier Status tab. A list of all the suppliers you have requested to be created will appear. ‘Created’ means that the supplier has been set up on the Union’s finance system and will appear in the drop down list of suppliers when you create a purchase order. ‘In Progress’ means that the Clubs & Societies Finance Administrator is still dealing will the request, all queries should be directed to them regarding your request.
Ordering from Suppliers Page 8 imperialcollegeunion.org/training
Creating Purchase Orders cont... What does the status of my request for a Purchase Order mean? As your request for a Purchase Order progresses through the authorisation and invoice payment process, the status on eActivities will change.
Pending
Your purchase order is awaiting authorisation by student officers.
Rejected
Awaiting Invoice
Your purchase order has been approved by the relevant students. It is now awaiting the upload or receipt of an invoice so that payment can be made.
Your purchase order has been rejected. The reason will be shown.
Your Purchase Order request is being dealt with by student officers. Check on your My Submissions in Progress page to see who.
If you have created a Purchase Order your supplier WILL NOT BE PAID until you have finished the Goods Receipting process . It is essential you remember to complete this step. Awaiting Payment
The purchase order has been fully authorised and goods receipted, and is awaiting a payment date.
Sent for Payment
The invoice will be paid for you.
Payment of the invoice is dealt with by the Clubs & Societies Finance Administrator. If you have any problems please contact clubs.finance@imperial.ac.uk.
Invoices with credit terms will be paid according to the terms. Pro-forma invoices and invoices without payment terms will be paid on the next payment run.
Ordering from Suppliers Page 9 imperialcollegeunion.org/training
Downloading Purchase Orders Once a purchase order has been fully approved, it will be available for downloading as a pdf document. The person who requested the Purchase Order will be able to download it, as well as the Club, Society or Project Chair and Treasurer. To download the Purchase Order, log into eActivities, navigate to Finance followed by Expenditure, then Purchase Orders. Click on the Authorised Purchase Orders tab: the information below will appear. The Purchase Order can be downloaded by clicking on the pdf symbol on the far right of the screen.
It is the responsibility of the person creating the Purchase Order to send it to the supplier you are dealing with, either by email, fax or in the post. The Chair or Treasurer of the Club, Society or Project can also do this. The approved Purchase Order will look like the example below. Do NOT just give the Purchase Order number to the supplier, always send the actual document. Until you are able to download the pdf file of the Purchase Order it is not sufficiently authorised.
Ordering from Suppliers Page 10 imperialcollegeunion.org/training
Goods Receipting Goods receipting is a critical part of the Purchase Order process. It is the means by which the person requesting the goods or services (by creating the Purchase Order) communicates to the Clubs & Societies Finance Administrator that those goods or services have been provided. Payment can then be made to the supplier. To carry out the goods receipting process log into eActivities, navigate to Finance, followed by Expenditure, then Authorised Purchase Orders. Click on the Goods Receipting tab and the Purchase Order you wish to goods receipt. The information below will appear. Enter the number of items you have received in the relevant box on each line, and any notes you wish to make. When all the items or services requested via the Purchase Order have been received click Finish Goods Receipt. This step is critical—it is the instruction to the Clubs & Societies Finance Administrator to pay the supplier’s invoice. You cannot edit the number of items received after clicking this.
The Clubs & Societies Finance Administrator will deal with paying companies for the goods or services you have received—you do not need to do anything. If you have received any invoices you should use the Invoice Uploader detailed in the next section, which will pass them to the Clubs & Societies Finance Administrator. If the goods receipting process is not completed, then invoices will not be paid. If no invoice has been received by the Clubs & Societies Finance Administrator, then payment cannot be made. In the case of payments needing to be made before goods or services are provided, you should upload the Pro-Forma Invoice as normal, checking the box indicating that goods or services will not be delivered until payment is made. Ordering from Suppliers Page 11 imperialcollegeunion.org/training
Goods Receipting cont... Uploading an Invoice If you receive an invoice yourself you should upload it to eActivities. Click on the Authorised Purchase Orders tab, and then Upload Invoice. The screen below will appear.
Select the Purchase Order you wish to upload the invoice to.
From here you can upload your PDF or JPEG of the invoice. If you are uploading a pro-forma invoice, click on the Mark as Pro-forma tab then check the box indicating you will not get your goods or services until payment has been made. This will include the invoice on the next payment run.
Ordering from Suppliers Page 12 imperialcollegeunion.org/training
Requirements for Invoices VAT Documentation
Address for invoices
In order to recover VAT on our expenditure we must have evidence that VAT was paid in the first place. This usually exists in the form of a VAT invoice or receipt.
Invoices MUST be addressed to:
For an amount less than £250, it must contain: • Name and address of supplier. • Date of supply. • VAT registration number of the supplier. • Description of goods/services purchased. • Total, including VAT amount and VAT rate. If the receipt or invoice is over £250 it must also have the following: • Invoice MUST be made payable to: Imperial College Union, Prince Consort Road, London, SW7 2BB. • Invoice number and date. • For each description of a good or service; • VAT rate, Net cost, unit price, quantity, total Net cost. • Total VAT Amount. • Cash discount (if any). • Invoice total, including VAT. An example of a typical VAT Invoice from a supplier can be seen on the next page; the various items required are indicated.
Imperial College Union Finance Department Beit Quad Prince Consort Road London SW7 2BB If a supplier asks you for an official address it is this. You can give a different delivery address (for example if you need items delivering to another campus), but the invoice address MUST be as given above. If you receive an invoice from a supplier please scan it and upload it through eActivities. Details of how to do this are given in the previous section. If a supplier contacts you regarding the status of payment of an invoice please ask them to contact the Clubs & Societies Finance Administrator. Simply uploading the invoice to eActivities does not mean it has been paid. Invoices are paid according to the credit terms specified on the invoice; if no credit terms are specified the invoice will be paid at the next available opportunity.
Ordering from Suppliers Page 13 imperialcollegeunion.org/training
Requirements for Invoices cont... Example - invoice over ÂŁ250 This invoice contains the correct address of the Union, the Purchase Order number which was generated from eActivities and the other requirements of a VAT invoice.
Ordering from Suppliers Page 14 imperialcollegeunion.org/training
Requirements for Invoices cont... Example - invoice over ÂŁ250 This invoice contains the correct address of the Union, the Purchase Order number which was generated from eActivities and the other requirements of a VAT invoice.
Ordering from Suppliers Page 15 imperialcollegeunion.org/training
Requirements for Invoices cont... Example - invoice under ÂŁ250 This invoice contains the correct address of the Union, the Purchase Order number which was generated from eActivities and the other requirements of a VAT invoice.
Ordering from Suppliers Page 16 imperialcollegeunion.org/training
Unusual Payments Some payments you have to make will not fit into this system. The primary examples are donations to a charity and payments to international companies. Charitable Donations When giving money to a charity, it is unlikely that you will have an invoice from them, and nor will you have raised a Purchase Order. You should therefore contact the Clubs & Societies Finance Administrator will guide you through the process if you book an appointment. You will need to know the name, bank details and amount before you go, so that payment can be made by bank transfer. Paying Overseas Suppliers Overseas suppliers cannot currently be entered as suppliers on eActivities due to the different format of international bank account numbers, so you will have to use a similar paper–based system to pay them. Again, you should book an appointment with the Clubs & Societies Finance Administrator for guidance. You will need the supplier’s name, address and bank details, as well as a full invoice.
Cash floats If you require a cash float for an event, for example selling tickets on the door for a show you should contact the Clubs & Societies Finance Administrator to arrange the required float at least least a week in advance of the event.
Imprests When goods or services must be paid for by cash in-hand, it is possible to obtain an Imprest which is essentially an advance of money. Imprests may only be given to a current student who agrees to be held personally liable for the amount advanced. Details of the requirements for obtaining an imprest are given in the Approving Expenditure booklet.
You should note that you will not be able to reclaim VAT from overseas purchases. Do account for this if you plan on buying goods internationally to save money.
Ordering from Suppliers Page 17 imperialcollegeunion.org/training
Miscellany and Summary The table below consolidates all the approval requirements for purchase orders of different values.
Order value
Approvals needed
£0–£199.99
Use the claim reimbursement system unless no one in the Club, Society or Project wants to pay for the item, or the supplier won’t take personal payments.
£200–£999.99
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer
£1000–£49,999.99
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer AND Union Deputy President
£50,000–£499,999.99
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer AND Union Deputy President AND Resolution of Executive Committee
£500,000+
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer AND Union Deputy President AND Resolution of Executive Committee AND Resolution of Trustee Board
Ordering from Suppliers Page 18 imperialcollegeunion.org/training
Help and Assistance Help and assistance You may need some help with what is discussed in this booklet. The table below summarises who can help. Stefan Nubert Deputy President (Finance & Services) dpfs@imperial.ac.uk 020 7594 8060, extension 58062
Stefan is the Sabbatical responsible for finances. He is also responsible for approving all expenditure over ÂŁ1000
Henry Whittaker Deputy President (Clubs & Societies) dpcs@imperial.ac.uk 020 7594 1763, extension 41763
Henry is the lead Sabbatical for nonfinancial matters for Clubs, Societies & Projects.
Ally Cott Systems Coordinator club.web.enquiries@imperial.ac.uk 020 7594 6412, extension 46412
Ally is responsible for eActivities, speak to him if you discover an error with the system, he cannot help with financial content queries.
Aziz Bilgrami Clubs & Societies Finance Administrator clubs.finance@imperial.ac.uk 020 7594 1514, extension 41514
Aziz is responsible for administering the finances of Clubs, Societies & Projects.
Malcolm Martin m.martin@imperial.ac.uk Head of Finance 020 7594 8069, extension 48069
Malcolm is the lead finance staff member. He can help with complicated finance queries.
Ordering from Suppliers Page 19 imperialcollegeunion.org/training
Imperial College Union Beit Quadrangle Prince Consort Road London SW7 2BB
Tel: 020 7594 8060 Fax: 020 7594 8065 Email: union@imperial.ac.uk Twitter: @icunion imperialcollegeunion.org