Suppliers will only be paid when the receipt process (outlined below) is completed. A Workday receipt, completed after the delivery of goods or services, is required. Keep the following in mind during this process to avoid delays:
- Requisition numbers cannot be used by Accounts Payable to authorize payment.
- Suppliers must include a UA Little Rock purchase order number on the invoice.
- All invoices should be sent to Accounts Payable by the supplier.
If a delivery is being attempted to your department for an item that has not been ordered contact Procurement Services immediately. Do not sign for any items you did not order.
After services have been completed or the merchandise has been opened, evaluated, tested, and passed all acceptable examinations, conduct the “receiving” process. Items must be received in Workday before payments can be processed.
To indicate that ordered goods/services were received and ready for payment, departments must create a receipt in Workday.
Departments should also run a report, “RPT – Supplier Invoices in Match Exception – Missing”, once a week to identify POs that still need a receipt created.
A match exception occurs when there is a discrepancy between a Supplier Invoice and other procurement documents such as a purchase order (PO). For example, if the PO is issued for $100 and the invoice is received with a greater value, this is what causes a match exception.
It is important to run the following reports weekly to resolve any match exceptions that are delaying your department’s invoice payments and to contact Suppliers for invoices that are needed.
RPT – Supplier Invoices in Match Exception: view all exceptions for your department’s cost center(s)
RPT – Supplier Invoices in Match Exception – Missing Receipts: view exceptions for PO’s that are missing receipts
RPT – Uninvoiced Purchase Orders with Receiving Entries: lists all PO’s with a receipt but no invoice. For PO’s listed in this report, you will need to request an invoice from the supplier, then submit the invoice to Accounts Payable through the AP document submission portal.
Damage to delivered or shipped goods is a common occurrence. All incoming shipments must be immediately inspected for damage (shortages, overages, etc.).
It is very important that the individual receiving departmental deliveries attempts to inspect and determine if damage has occurred prior to signing the delivery receipt. Undetected or concealed damage may result in the department having to assume all or part of the responsibility for repairs or replacement of the item(s). For this reason, it is just as important to note any carton or crate damage on the receipt even if the merchandise is not damaged. Failure to follow damage claim procedures will likely result in a loss to the department. It is suggested that departments limit the number of individuals who can receive freight to those familiar with the above procedures.
Any apparent damage, including but not limited to dents, scratches, and punctures should be noted on all copies of the freight bill (supplier copy, receipt copy, and consignee copy) by the receiving party before signing the bill. If items are missing from the shipment, the freight bill should be noted.
Concealed damage that is not known until the carrier has left must receive prompt attention because a claim should be filed within 15 days of the delivery. NOTE: Do not destroy cartons or other materials used in packing when damage is noted.
- Departments must immediately call Procurement Services who will then contact the delivery carrier and request an inspection of the damaged item(s).
- The department should take detailed notes of all damages and include pictures if possible.
- The agent of the carrier should see the packaging and merchandise and complete a concealed damage report.
- A copy of the damage report, freight bill, purchase order number, and exact items in need of repair or replacement must be forwarded by the supplier to Procurement Services.
- Procurement Services will file the claim for repair or replacement of the damaged item(s).
Poor or non-performance of services should never be accepted or received in Workday until resolved. All service performance problems or issues should be documented and addressed quickly before issues grow or the receipt is completed.
Departments should document any issues and contact Procurement Services for assistance in determining how to solve the problem in accordance with the contract or purchase order.
The general steps in the dispute resolution process are described below. However, nothing in this section will supersede the terms of the contract with respect to dispute resolution.
- Identify the Problem: Obtain all the information regarding the potential problem from all relevant sources, including the project manager, representative customers, and the contractor.
- Research Facts: Once the problem is identified, contact Procurement Services. The buyer should review the contract/ purchase order to confirm that the issue is a part of the contract. If the issue is not covered by the contract/ purchase order, the university cannot expect the contractor to perform outside the agreement.
- Evaluate: The Buyer should review all the facts in conjunction with the requirements and terms and conditions of the contract. The Buyer should then confer with the APO to determine the appropriate course of action.
- Discuss with the Supplier and Write the Plan of Action: Identify the problem to the supplier and discuss a resolution. Frequently, what may appear to be a problem can be resolved by providing the supplier with information. The resolution should be in writing.
- Meeting Strategy: If a meeting is necessary, the university should prepare a plan and consider how to conduct the meeting, the desired result, the minimum acceptable result, likely responses, etc. Be sure to complete a Supplier Performance Report to accurately document the issues.
The Supplier Performance Report is used to record supplier issues and provides a method by which suppliers can respond to those issues. It is not the only documentation which may be required, but is the preferred method of documenting supplier performance. It is very important that Supplier Performance Reports be submitted when problems arise, as it is difficult to avoid doing business with a non-performing supplier unless chronic problems are clearly and completely documented.
When having a problem with a supplier, the requisitioner should complete a Supplier Performance Report and submit it to Procurement Services for processing.
Procurement Services shall report, using the form prescribed by the State Procurement Director, a supplier’s performance if the supplier fails to satisfy the performance-based standards in the contract in a manner that represents a material deviation.
- The report required under this section shall be:
(1) Filed with the Office of State Procurement and maintained for a minimum of three (3) years from the termination of the relevant contract, including any extensions and amendments; and
(2) Signed by the Agency Procurement Official or his or her designee; and
(3) Filed monthly until the supplier has performed satisfactorily under the contract for a period of at least ninety (90) consecutive days.
(c) A state agency may report a supplier’s performance in the manner prescribed under this section for any contract that would not require reporting of a supplier’s performance under this section if the university encounters an issue with the supplier’s performance of a contract.
(d)The university may use a supplier performance report submitted under this section to evaluate an offeror to the extent that the past performance of an offeror may be considered under the law and the rules adopted by the office.