REAL-TIME FINANCIAL MANAGEMENT
BEST PRACTICE MANUAL
V1 Rev 0 (19 May 2005)
REAL-TIME FINANCIAL MANAGEMENT
BEST PRACTICE MANUAL
1. TABLE OF CONTENTS
1.
TABLE OF CONTENTS .................................................................................. 2
2.
PROCESSING CYCLE FOR REAL TIME FINANCIAL MANAGEMENT ................ 5
3.
BUDGET FUNDAMENTALS ........................................................................... 7
4.
5.
6.
7.
8.
9.
3.1.
Introduction ...................................................................................... 7
3.2.
Sales Tax and VAT (Value Added Tax) .................................................. 7
BUDGET ALLOCATION ................................................................................ 8
4.1.
Purpose ............................................................................................ 8
4.2.
Diagram ........................................................................................... 8
4.3.
Procedure ......................................................................................... 8
PURCHASE REQUISITION ........................................................................... 9
5.1.
Purpose: ........................................................................................... 9
5.2.
Diagram ........................................................................................... 9
5.3.
Procedure ......................................................................................... 9
PURCHASE ORDER CREATION .................................................................. 11
6.1.
Purpose .......................................................................................... 11
6.2.
Diagram ......................................................................................... 11
6.3.
Procedure: ...................................................................................... 11
6.4.
Amending an Order .......................................................................... 12
AUTHORISING/CONFIRMING AN ORDER ................................................. 13
7.1.
Purpose .......................................................................................... 13
7.2.
Diagram ......................................................................................... 13
7.3.
Procedure: ...................................................................................... 13
ORDERING ............................................................................................... 15
8.1.
Purpose .......................................................................................... 15
8.2.
Procedure: ...................................................................................... 15
8.3.
Internal suppliers ............................................................................. 16
GOODS RECEIPTING AND GOODS RETURN ............................................... 17
9.1.
Purpose .......................................................................................... 17
9.2.
Diagram ......................................................................................... 17
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10.
11.
12.
9.3.
Procedure ....................................................................................... 17
9.4.
Goods Returning .............................................................................. 18
PAYMENT ................................................................................................. 19
10.1.
Purpose ......................................................................................... 19
10.2.
Introduction ................................................................................... 19
10.3.
Diagram ........................................................................................ 19
10.4.
Procedure ...................................................................................... 19
10.5.
Agreed Tolerances at ordering, receipting and matching ...................... 20
BUDGET REPORTING ................................................................................ 21
11.1.
Purpose ......................................................................................... 21
11.2.
Diagram ........................................................................................ 21
11.3.
Procedure ...................................................................................... 21
BUDGET AMENDMENTS ............................................................................ 22
12.1.
Purpose ......................................................................................... 22
12.2.
Diagram ........................................................................................ 22
12.3.
Procedure ...................................................................................... 22
13.
EXCEPTIONS ............................................................................................ 23
14.
HOUSEKEEPING ....................................................................................... 25
15.
16.
14.1.
POP administrator ........................................................................... 25
14.2.
Finance ......................................................................................... 25
USER GROUP ............................................................................................ 25
15.1.
Scope ........................................................................................... 25
15.2.
Who will attend? ............................................................................. 25
15.3.
Frequency of meetings .................................................................... 25
15.4.
Updates to the procedure ................................................................ 25
15.5.
Communication to the users ............................................................ 25
OUTLINE OF REAL-TIME FINANCIAL MANAGEMENT JOB FUNCTIONS ....... 26
16.1.
PI/ RESEACHERS ............................................................................ 26
16.2.
POP ADMINISTRATORS ................................................................... 26
16.3.
AUTHORISERS ............................................................................... 26
16.4.
FINANCE ....................................................................................... 27
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16.5.
17.
HEAD OF SCHOOL .......................................................................... 27
CODING CONVENTION ............................................................................. 28
17.1.
R-Codes ........................................................................................ 28
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2.
PROCESSING CYCLE FOR REAL TIME FINANCIAL MANAGEMENT
Real Time Financial Management for Researchers
1. Budget
assignment
Science Foundation Ireland
2. Purchase
requisition
Central Finance
3. Purchase order
creation
P.I.
4. Purchase order
Approval
Procurement Officer
5. Goods /
Services ordering
POP administrator
6. Goods reception
PO Authoriser
7. Goods return
`Supplier
Accounts Payable
8. Supplier payment
Group Director
Housekeeping
9. Budget Reporting
ALL
Error correction
Head of Department
File Name:
MSU036 Purchase Order Cycle proposal
v1.vsd
Use Case:
pop v1
Update Date: 24 March 2005 14:21
Updated By:
Claude Saulnier
Page:
Page-1
Real Time Financial Management is a combination of:
-
Procedures;
-
Staff adequately trained;
-
eFinancials Purchase Order Module;
-
Regular Housekeeping;
-
Business Objects reports
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There are two aspects to purchasing:
-
System: accuracy of data and accurate reporting;
Procurement
o Getting the best value for UCD;
o Ensuring that expenditures are authorised by relevant authorities;
o Freedom of information;
This procedure focuses on the System end of purchasing.
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3. BUDGET FUNDAMENTALS
3.1. Introduction
3.1.1. Reminder:
Commitments = Orders authorised not received
Accruals = Orders received not invoiced
3.1.2. Budget control
You cannot spend more than your allocated budget.
3.1.3. Residual Budgeting provides on-line budget control within the Purchase Order
Processing module.
Budget Amount
- Actual Expenditure
- Commitments (Orders authorised not received)
- Accruals (Orders received not invoiced)
= Residual Budget
Residual Budgeting is invoked on order authorisation.
3.2. Sales Tax and VAT (Value Added Tax)
3.2.1. Introduction
Goods or services purchased by UCD are subject to VAT. UCD does not claim VAT
back on a general basis. Some Research projects can claim VAT back. PIs will be
made aware at budget approval. Most suppliers give prices exclusive of VAT since
they claim VAT back. This has significant impact on the budget.
3.2.2. Purchases from Ireland
VAT is paid to the supplier
3.2.3. Purchases from Europe
For suppliers in Europe, VAT is paid to the Revenue.
3.2.4. Purchases from the United States of America
For suppliers in the US, Tax is paid at point of entry.
It is important that departments organise for Tax payments to be ready when the
goods are delivered
3.2.5. Budget implication
It is important to ensure that Sales Tax or VAT is included in the price of goods or
services when checking budgets.
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4. BUDGET ALLOCATION
4.1. Purpose
4.1.1. To ensure budget allocation is set in eFinancials.
4.2. Diagram
1. BUDGET ALLOCATION WORKFLOW
S.F.I.
P.I.
P.I.
VP for Research
Central Finance
Science Foundation Ireland
Budget
submission
Value X
Central Finance
Grant
awarding
Value Y
[Grant is
Awarded]
Account creation
[Grant is Not Awarded]
Budget
creation
in eFinancials
PI
Manage Research funds
4.3. Procedure
4.3.1. P.I. will submit a research grant to SFI for funding for a value of X.
4.3.2. SFI will decide whether or not to approve the grant. The approval may be for a
different value (Value Y)
4.3.3. Upon approval, the Office of Funded Research Support Services will create an
account in their database.
4.3.4. Office of Funded Research Support Services has a mechanism to transfer the
projects to eFinancials. The Bursar’s office is informed by email when jobs are
ready.
4.3.5. The bursars office will then load the research account to eFinancials
4.3.6. Office of Funded Research Support Services will then assign a budget in eFinancials. PI is formally informed.
4.3.7. PI can be assigned a login for Business Objects Reports for refreshing real time
financial information.
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5. PURCHASE REQUISITION
5.1. Purpose:
5.1.1. To ensure price accuracy of purchase orders raised in eFinancials.
5.2. Diagram
2. PURCHASE REQUISITION WORKFLOW
Researcher
Supplier
`Supplier
Researcher
POP administrator
POP administrator
Goods or services required
Check if budget
is available
[Budget is
Available]
Get quote
from supplier
Sends quote
to PI
[Budget is Not Available]
Check if purchase
is within available budget
Funding body /
Budget amendment
[Budget is Available]
Submit completed
Purchase Requisition Form
to POP administrator
[Budget is Not Available]
Raise
Purchase Order
in e-Financials
Funding body /
Budget amendment
5.3. Procedure
5.3.1. The P.I. will ensure that budget is available.
Note: To achieve value for money and compliance with Internal procedures,
national and EU legislation, thresholds are in place:

€1,300 to €4,000: Min 2 verbal quotations

€4,001 to €60,000: Min 3 written quotations

Over €60,000: A competitive tender is required (advertise on the etenders
website)

Over €236,945: EU tender procedure managed by procurement & contracts
office
5.3.2. Pricing is requested from the supplier.
Note 1: Arrangements are in place with preferred suppliers. When possible, try to
stick with them.
Note 2: To avoid error correction, it is important to ensure the following are
included:

Product references of goods/service required

Delivery and other charges

VAT and tax rate
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5.3.3. If the quoted price is within the remaining budget, the PI will submit a Purchase
requisition form to the POP administrator. The Purchase requisition form is either:



an Excel spreadsheet or
a paper form or
a requisitioning system
It is important to ensure the following are included:







Itemised product references of goods/service required
Supplier name, address and contact details
Delivery and other charges
Currency
Delivery address
VAT and tax rate
cost centre/job and expenditure code to be charged.
Note: The method by which this Manual Requisitioning is enforced will be at the
discretion of the Department or Research Centre.
5.3.4. The requisition is signed by the requester or emailed.
5.3.5. When budget is not available, permission must be sought from the funding
organisation. The procedure is explained in an other chapter.
5.3.6. The requisition is forwarded to the POP Administrator who raises the order in
eFinancials. The purchase order then undergoes the normal authorisation process.
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6. PURCHASE ORDER CREATION
6.1. Purpose
6.1.1. To ensure the Purchase Order is accurately raised in eFinancials.
6.2. Diagram
3.PURCHASE ORDER CREATION WORKFLOW
POP administrator
Accounts Payable
POP administrator
P.I.
Reception of completed
Purchase Requisition Form
from P.I.
Raise
Purchase Order
in e-Financials
POP administrator
should check
24h later
Check Supplier exists
in e-Financials
[Supplier does not exist]
Request
Supplier creation
to Accounts Payable
Create
Supplier
in e-Financials
[Supplier exists]
6.3. Procedure:
6.3.1. The POP Administrator checks the supplier exists in eFinancials.
6.3.2. If the supplier does not exist, a request is submitted to the Accounts department
for creation.
Note 1: The request must be completed on a specific form.
Note 2: This is important to ensure that there are no duplicates.
6.3.3. The accounts department creates the supplier within 24 hours.
Note: The accounts department will maintain regular housekeeping to ensure old
suppliers are removed from the system.
6.3.4. The POP Administrator raises a purchase order for either Goods or Services in the
Purchase Order Processing module of eFinancials.
Note: Purchase orders should not be requested over the phone as this may lead to
errors at a later stage.
6.3.5. Order information is filled in on the e-Financials order header page including order
type, sub-ledger, supplier, cost centre (& sometimes job), invoice and delivery
address details.
6.3.6. The purchase order is itemised to detail each product or service being ordered on
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the e-Financials order details page. Details of quantity (& cost) or value and VAT
rates are entered at this stage. An actual or estimated price (either cost or value)
should be entered against each item. This ensures on authorisation (see below)
that a commitment can be raised against each line of the purchase order.
6.4. Amending an Order
6.4.1. If an order is not confirmed, amendments can be made to the order value within a
certain tolerance range (imposed by eFinancials).
6.4.2. If an order has been confirmed amendments can only be made to the order value
within a certain tolerance range.
6.4.3. If an amendment is made to an order that was confirmed the order must be re
authorised by the designated authoriser.
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7. AUTHORISING/CONFIRMING AN ORDER
7.1. Purpose
7.1.1. The most important and critical difference that using Real Time Financial
Management dictates is that the sanctioning to spend the money takes place when
the order is raised – rather than when the invoice is received and subsequently
paid. This is why authorisation of the order is so important. Only on authorising the
order does the commitment get raised against the cost centre or job.
7.2. Diagram
4.PURCHASE ORDER APPROVAL WORKFLOW
PO Authoriser
P.I.
POP administrator
PO Authoriser
P.I.
POP administrator
Head of School
Purchase Order
Authorisation
in e-Financials
[Non Budget Amendment]
[Budget Amendment]
[Budget is Not Available]
Escalate to residual
budget Level 2
Budget
ammendment
POP administrator Informed
PO Denial
[Budget is Available]
Purchase Order
Authorisation
[Non escalation to Level 2]
[Level 2 escalation]
PO termination
from eFinancials
[Puchase Order denied]
[Puchase Order Allowed]
7.3. Procedure:
7.3.1. Good accounting practice (as well as common sense) dictates that the individual
who requisitioned the order should not authorise the order. This good practice is
adhered to in most departments at present where all orders raised are signed off
by the Head of Department. eFinancials facilitates this practice via assigning roles
against users so that some can only create orders whereas other can authorise
them.
7.3.2. Where an order is amended – say an estimated price gets updated to an actual
price - the order needs to be re authorised. The increased commitment against
the cost centre in question will only take effect when the order has been re
authorised.
7.3.3. The POP administrator is accountable for any order placed with the suppliers that
have not been authorised.
7.3.4. The designated Authoriser logs onto to the EFinancials Purchase Order Processing
module on a daily basis and performs a query on orders with a status of entered
with an order type particular to the POP centre.
7.3.5. The Authoriser reviews the order and can either terminate the order if it is
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unsatisfactory or else Confirm the order.
Note: If the order number was issued despite the order not being authorised, it
must not be deleted for audit purposes. Contact The Finance department.
7.3.6. Confirming the order involves the Residual Budget checking processing ensuring
that there is sufficient residual budget to meet the order.
7.3.7. Where there is sufficient Residual Budget the order is automatically confirmed, the
commitment raised against the cost centre/job and the order ready for printing.
7.3.8. Where there isn’t sufficient Residual Budget at level 2 the Authoriser is informed
via a message in eFinancials. Permission must be sought from Finance and in
certain cases, the funding organisation. Refer to the budget amendment section.
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8. ORDERING
8.1. Purpose
8.1.1. To order the goods or services, insuring that the suppliers – internal or external are aware of the terms and conditions and order value.
8.1.2. Diagram
5. GOODS / SERVICES ORDERING WORKFLOW
POP administrator
Supplier
`Supplier
POP administrator
Print
Purchase orders
on PO headed paper
Goods / Services
Delivery
Send order
to supplier
Proposed Purchase Order Procedure Flowchart - Page 1 of 11
8.2. Procedure:
8.2.1. Once the purchase order has been confirmed it can be printed off either by the
Authoriser – or the POP Administrator – which ever is more appropriate. Orders
are printed on pre printed laser stationery. The order must be sent / Faxed /
emailed to the supplier to ensure they are fully aware of billing and shipping and
order value.
8.2.2. Where multiple copies of orders are required – then either photocopying the
original order – or otherwise printing a number of times on pre-printed stationery.
It is important that the supplier understand the terms and conditions as well as the
amount authorised on the order. Preferred suppliers have already been through
procurement process and don’t need to be reminded of terms and conditions.
8.2.3. Suppliers should be aware that no payment would be made if they do not comply.
8.2.4. Never sign the suppliers’ terms and conditions. Instead, contact the Procurement &
Contracts Officer.
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8.3. Internal suppliers
8.3.1. Introduction
In the case of orders placed with internal suppliers e.g. Copi-Print, AVC,
Restaurant, Computing Services, Biomedical Facilities etc. the above description of
the order process operation is slightly different.
The internal charges system varies from the normal purchase order process in that
there is no invoice issued.
Instead the charges are put through automatically to the department’s account via
a journal transfer.
For this reason it is impossible to do the Invoice Entry and Matching step in eFinancials for this order type.
Because the e-Financials Purchase Order module involves receipting by the
Department and invoice matching by the Accounts Payable some modification is
needed in order to deal with internal charges type purchasing.
8.3.2. Method
The suggested method to raise an order against the internal supplier.
This will facilitate commitment accounting and also residual budget checking. The
internal charges would still go through monthly as described above.
These Orders should not be Receipted on the System.
When the department receives its monthly report the POP Administrator should
then check which internal orders have been paid by general transfer. The POP
administrator must terminate the orders created for the purpose of commitment
accounting on the system (i.e. remove the commitment).
If the order were not terminated then there would be double counting as
the amount would both be in Commitments and Actuals.
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9. GOODS RECEIPTING AND GOODS RETURN
9.1. Purpose
9.1.1. To ensure that goods receipted are acknowledged in eFinancials prior to being
paid.
9.2. Diagram
6. GOODS / SERVICES RECEPTION WORKFLOW
Supplier
Receptor
`Supplier
Goods / Services
Delivery
POP administrator
Receptor
POP administrator
Checks delivery complies to order
[Goods receipt complies to order]
Raise
Goods Receipt Note
(Full or Partial)
in e-Financials
[Goods receipt does not comply to order]
Contact Supplier
to replace faulty goods
Raise
Goods Return Note
in e-Financials
Goods are returned
to supplier
Raise
Goods Receipt Note
faulty goods
in e-Financials
With note to explain
Delivery
Goods / Services
Replacement
Order cancellation
9.3. Procedure
9.3.1. The goods are delivered to the location as indicated on the Purchase Order
accompanied by a Delivery Note and received by an individual at that location. The
suppliers delivery slip is stamped with the “GOODS RECEIVED NOT CHECKED”.
9.3.2. Where the receiver is not the POP Administrator then the Delivery Note (or Service
Record Docket) must be forwarded to the POP Administrator who, having satisfied
him/herself of the validity of the goods or service, performs the Goods Receipting
on EFinancials.
Note: There may not always be an official Delivery Note issued. Internal
procedures & controls must be implemented so that the POP Administrator is
aware of the satisfactory delivery of goods/completion of service. This internal
procedure is at the discretion of the particular department or research centre
implementing POP.
9.3.3. The Delivery Note must be sent to the POP Administrator in all cases i.e. whether
goods are found to acceptable or unacceptable. The reason for this is that a Goods
Receipt Note should be entered for all goods/services received in order to maintain
a record of the delivery on the EFinancials system.
9.3.4.
A Goods Received Note (OG) is raised for goods/services via the Goods Receipting
screen in the Purchase Order Processing Module of EFinancials.
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9.3.5. A Goods Received Note (OG) can be raised for full or partial receipt of an order.
9.3.6. Goods/services are receipted on a line item basis on the Goods Received Note
details page. In general the goods receipting step will match against quantity for
products and against value for services. In the case of receipting against value, the
Net Amount (amount less Vat) is the value entered.
9.3.7. A Goods Received Note (OG) can be amended at any point prior to confirmation. A
Goods Received Note (OG) cannot be amended after confirmation. Any new
receipts or subsequent returns for an order must be entered on a new Goods
Received Note (OG).
9.3.8. The entry and confirmation of a Goods Received Note (OG) (and subsequent
running of Refresh Commitments Routine) removes the amount receipted out of
Commitments and into Accruals (i.e. received not invoiced).
9.4. Goods Returning
9.4.1. A Goods Return Note (OR) should be raised in all cases where goods are found to
be unacceptable. The procedure in all cases is to enter a goods receipt note for
the value of the total delivery and then enter the goods return note to the value of
the unacceptable goods/service as soon as they are discovered.
Note: It is important for record purposes and ability to track the order that both
sides of the transaction are entered on the system
9.4.2. If a Goods Return Note (OR) is entered against a confirmed Goods Received Note
it will render the Goods Received Note void and invoice processing will be blocked
until a new Goods Received Note is entered against the purchase order.
9.4.3. The entry of a Goods Return Note (OR) removes the amount returned out of
Accruals (placed there by Goods Received Note) and back into Commitments
(again the Refresh Commitments Routine needs to be run before this can be
viewed).
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10. PAYMENT
10.1.
Purpose
10.2.
Introduction
Under a Real Time Financial Management scenario Departments no longer see the
physical invoice and the emphasis shifts from coding and invoice payment back to the
ordering stage. The sanction for the expenditure is given when the order is raised &
authorised and coding is implemented at that stage. The sanction to pay in respect of a
particular order is given when the goods receipting is performed for that order.
10.3.
Diagram
8. SUPPLIER PAYMENT WORKFLOW
Accounts Payable
Supplier
`Supplier
Supplier sends
Invoice
to Central Accounts
Accounts Payable
POP administrator
Get
Purchase Order
approved
POP administrator
Ensure Purchase Order Exists
and approved
[Purchase Order does not exist]
[Purchase Order exists]
Raise
Purchase Order
in e-Financials
Ensure
Goods Receipt Note (OG)
exists in eFinancial
[Price difference > €635]
[Goods Receipt
Note (GRN)
does not exist]
Raise
Goods Receipt Note (OG)
in e-Financials
[Goods Receipt Note (GRN) exists]
Check price difference
between Supplier Invoice
and Purchase Order
Supplier is
paid
10.4.
[Price difference < €5]
[Price difference < €635]
[Price difference > €5]
Check price difference
between Supplier Invoice
and Purchase Order
Procedure
10.4.1. The central Accounts Payable Office receives invoices in respect of orders raised by
the Department/Research centre using Real Time Financial Management. Full
invoice matching and payment can only take place where the POP Administrator
has completed goods receipting for the order in question.
10.4.2. The invoices are entered and matched on Invoice Entry & Matching within the
Purchasing Order Processing module of EFinancials.
Note: Where matching of invoices is not successful, invoices can be stored
temporarily in what is known as “the Invoice Register”.
10.4.3. Purchase Order Invoices (identifiable by their order number reference) are stamp
dated upon receipt and grouped together into batches for entry purposes.
10.4.4. Batch Control totals (inclusive of Vat) are entered on the batch header screen
before proceeding to the individual invoice entry stage.
10.4.5. The sum of all the transaction totals in the batch must equal the control totals in
the batch header.
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10.4.6. The invoices are then posted, which makes them available for payment. The
payment process usually takes place once a week and involves the creation of a
Payment batch, posting the Payment Batch and requesting a EFT/Cheque Run via
the Payment Document Print & Control screen.
10.4.7. When scanning is in operation (expected end of 2005), the invoices will be scanned
and an image copy will be available in eFinancials.
10.4.8. On a weekly basis a report should be run of from the Invoice Register on a cost
centre basis, listing the invoices that could not be matched. A Business Object
report will be made available to the POP Administrators so the lists of unmatched
invoices are sent from Finance to the POP administrator for resolution.
10.5.
Agreed Tolerances at ordering, receipting and matching
10.5.1. POP Administrators:
10.5.1.1. To facilitate POP administrators amending orders (and in the scenario
where amended orders need to be reconfirmed in any case) the tolerance
assigned against a POP Administrator for Order amendments is €635.
10.5.2. Accounts Payable:
10.5.2.1. Accounts Payable staff will have no Order Amendment tolerance as they
have no requirement for it.
10.5.2.2. Accounts Payable staff will have no Receipting tolerance as they have no
requirement for it.
10.5.2.3. Accounts Payable staff will have no Under/Over Invoice tolerance but will
have an Invoice write off value of €5 (five). This is to facilitate where there may
be minor price adjustments for items such as freight or carriage.
However where there are price differences (especially where there are price
increases) these must be referred back to the POP Administrator and the
Invoice forwarded to the Invoice Register.
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11. BUDGET REPORTING
11.1.
Purpose
11.1.1. To ensure every user of Real Time Financial Management system is aware of their
residual budget
11.2.
Diagram
9. BUDGET REPORTING WORKFLOW - TO BE COMPLETED
PO Authoriser
Central Finance
Head of Department
Group Director
P.I.
P.I.
PO Authoriser
Central Finance
POP administrator
Report
status funds
Reports
dispatched
Science Foundation Ireland
Run
Business Objects
Reports
Run
Business Objects
Reports
Real times
budget information
Real times
budget information
Proposed Purchase Order Procedure Flowchart - Page 1 of 11
11.3.
Procedure
11.3.1. The accounts department will formally be reporting Budget on a monthly basis
11.3.2. In addition, real-time reporting tools will be made available to P.I., POP
administrators (business object)
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12. BUDGET AMENDMENTS
12.1.
Purpose
12.1.1. To ensure adequate budget control is in place.
Budget amendments may require approval from funding body.
12.2.
Diagram
10. BUDGET AMENDMENT WORKFLOW
P.I.
Central Finance
S.F.I.
Science Foundation Ireland
Central Finance
P.I.
Request
for Budget
Amendment
Is change
equipment
related
[Amendment is
equipment related]
[Amendment is not
equipment related]
[Not Within
authorised threshold]
PAY
to non PAY
Amendment
Grant
amendment
[Within authorised
threshold]
PI
Manage Research funds
Budget
amendment
in eFinancials
[Amendment is
Authorised]
[Amendment is
Not Authorised]
12.3.
Procedure
12.3.1. As elucidated above the gross non pay budget and the detailed budgets for a POP
centre will be determined jointly by the POP centre and the Finance Office and
subsequently Finance Office staff will load the budgets.
12.3.2. For any amendments to those budgets a request must be sent into the Finance
Office who will evaluate the request and then proceed or otherwise with a Budget
journal. It is likely however that request to amend budgets will only arise in cases
where the gross non pay budget needs to be exceeded – as this is the only case
where the POP Administrator will be prevented from raising an order. Similarly it is
likely that this request will come from the Dean of a Faculty rather than the Head
of Department in question. Obviously where cost centres are prevented from
exceeding their gross non pay budgets and where control of budgets and their
amendment is a central function a procedure must be implemented within the
Finance office to evaluate and in some cases facilitate budget amendment on a
case by case basis.
12.3.3. Where a cost centre exceeds some of the detailed budgets (i.e. the Residual
budget check at level 1) they will be permitted to proceed with the order provided
they do not exceed the total non pay budget (the Residual budget check at level
2). This feature provides the POP centres with flexibility in respect of budgeting at
the detailed level and will be useful particularly in cases where those detailed
budgets are first guesses or estimates and may not be especially accurate.
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13.EXCEPTIONS
13.1.1. Invoices sent to an individual or School instead of UCD Finance Office
o
o
Should be forwarded to Accounts within 24 hours
Notification to supplier to amend invoice address details
13.1.2. Incomplete Supplier invoices
Procedure to be determined and formalised
13.1.3. Item ordered is discontinued
Follow the order amendment procedure
13.1.4. Goods received have nothing to do with the order
eg you order a table a receive a chair
The POP Administrator/Authoriser should deal with this matter
13.1.5. Dealing with internal suppliers
See standard procedure
13.1.6. Dealing with services (photocopiers etc)
See standard procedure
13.1.7. Goods receipted against the wrong supplier
This happened due to a bug in CFACS (software in place before e-Financials).
Should this happen again, report to the systems administrator who will liaise with
the software supplier to fix the problem.
13.1.8. Credit Notes
Contact the Payments Supervisor for advice on dealing with Credit Notes
13.1.9. Dealing with multiple currencies eg Order in Sterling, supplier invoice in Euro
There is no issue dealing with multi-currencies. The currency should be determined
at order entry point and agreed with the supplier. If for some reasons the currency
were to change, the initial order must be cancelled and a new purchase order must
be entered and authorised in the new currency.
13.1.10.



13.1.11.
Pro-Forma invoicing – pre payment
PO Ccreation
GRN
Cheque issue
Year End
Transition between financial years dealt with using Period 13
13.1.12.
Month end
Closure of purchase order ledger
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13.1.13.
Discounts
Are not an issue when known at the point of order entry
Or
Follow standard PO amendment procedure
13.1.14.
Order allocated to the wrong ledger code
Order should be terminated and re-entered correctly
13.1.15.
PO Amendment
Tolerance order value of €635 allowed in system
If value of order amendment required is greater than €635, contact
the Payments Supervisor or Systems Accountant for assistance.
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14.HOUSEKEEPING
14.1.
POP Administrator Responsible
14.1.1. Non-authorised orders should be reviewed on a weekly basis and terminated
accordingly from the system.
14.1.2. Confirmed orders not finalised
14.1.3. Orders over 30/60 days that are not complete, GRN not confirmed
14.1.4. Blank purchase orders
14.2.
Finance
14.2.1. Old suppliers
15.USER GROUP
15.1.
Scope
15.1.1. To improve and revise the procedures on an on-going basis.
15.2.
Who should attend?
15.2.1. Finance + representative of users. Users will attend in rotation.
15.2.2. The user group will be split into 2 categories:
15.2.2.1.
New users
15.2.2.2.
Experienced users
15.2.3. Users will be invited to bring reports of orders with issues.
15.3.
Frequency of meetings
15.3.1. Bi-monthly
15.4.
Updates to the procedure
15.4.1. Use of the dedicated website
15.5.
Communication to the users
15.5.1. Website (to be designed/developed)
15.5.2. Electronic Newsletter (at a later stage)
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16.OUTLINE OF REAL-TIME FINANCIAL MANAGEMENT JOB FUNCTIONS
16.1.
PI/ RESEACHERS
16.1.1. Description:







Obtain comprehensive, accurate and budget friendly pricing from suppliers
Ensure they give accurate pricing to the POP administrators
Monitor the budget
Comply to budget requirements
Comply to procurement procedures (including freedom of information act)
Join the user group
Check emails and real time financial management website
16.1.2. Training required:





16.2.
Explain concept of Real-Time Financial Management, workflows
Principals of budget management
Business Objects Reporting
Using Purchase Requisition form or quotes from suppliers
Procurement: Negotiation, quotes from various suppliers etc.
POP ADMINISTRATORS
16.2.1. Description:








Key in purchase orders in eFinancials
Key in Goods Receipting in eFinancials
Deal with case studies
Liaise with the Finance department to solve issues
Comply to procurement procedures (including freedom of information act)
Join the user group
Accountable for non-authorised expenditures
Liaise with suppliers to resolve issues
16.2.2. Training required:





16.3.
Explain concept of Real-Time Financial Management, workflows
Principals of budget management
Understanding and using eFinancials
Business Objects Reporting
Procurement: Negotiation, quotes from various suppliers etc.
AUTHORISERS
16.3.1. Description:


Authorise / Deny Purchase Orders in a timely manner in eFinancials
Comply to procurement procedures (including freedom of information act)
16.3.2. Training required:




Explain concept of Real-Time Financial Management, workflows
Principals of budget management
Understanding and using eFinancials for authorisers
Business Objects Reporting
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16.4.
FINANCE
16.4.1. Payment
16.4.1.1.
o
o
o
16.4.1.2.
o
o
o
Description:
Pay suppliers
Liaise with users
Co-host the user-group
Training required:
Explain concept of Real-Time Financial Management, workflows
Use of eFinancials
General processes and exception
16.4.2. Systems / Operations
16.4.2.1.
o
o
16.4.2.2.
o
o
o
16.5.
Description:
Chair the user-group
Provide e-Financials POP help line
Training required:
Explain concept of Real-Time Financial Management, workflows
Use of eFinancials
General processes and exception
HEAD OF SCHOOL
16.5.1. Description:



Responsible for PI’s research
Responsible for department’s budgets
Ensure PI’s stay within funding limits
16.5.2. Training required:



Explain concept of Real-Time Financial Management, workflows
Understanding Business Objects reports
Understanding the financial calendar
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17.CODING CONVENTION
17.1.
R-Codes
Department 1
Department 2
Manager 1
Manager 2
Research Fund 1
Research Fund 2
["R" code 1]
Researcher 1
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["R" code 2]
Research Fund 3
["R" code 3]
Research Fund 4
["R" code 4]
Researcher 2
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