Which payment method to use?
1. Payments to recognised organisations that will be used more than once.
When the University is to trade with a supplier more than once, the supplier must
have a vendor master record set up on SAP. Schools, institutes and support services
must use SAP to:
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issue a purchase order;
input the goods received; and
process the invoice.
To create a Vendor Master record, complete the application to create a Master Record
form on the web and return to procurement;
http://www.ncl.ac.uk/internal/purchasing-services/sap/documents/vendorform.doc
2. One off payments to recognised organisations
If a cheque needs to be raised to a Recognised Organisation for a one off payment to
an organisation that will not be used again such as an attendance at a conference then
a UK Payment Request Form (FI008) should be completed. This form CANNOT be
used for payments to individuals and the payment should not exceed £2,000. A
recognised organisation can be defined as a named organisation that is not an
individual. Joe Bloggs and Sons would be acceptable whereas Joe Bloggs would not.
In the case where the value exceeds £2,000, the payment will need to be co-signed by
the Assistant Director of Finance (Income & Expenditure).
The completed request form, plus supporting documentation (which is to be
attached to the reverse of the form) should be sent to your Finance Faculty
Support Team.
http://www.ncl.ac.uk/internal/finance/sap/documents/FI008A.pdf
This form should be used on those occasions when an invoice is not available but a
payment is required, in sterling, within the UK. It should be clear that the vendor will
not be used again and does not already exist on SAP.
If the Vendor already exists on SAP then please refer to 1 above. If the request is
urgent then once the invoice has been entered on the system please contact finance on
payments@ncl.ac.uk to request that this be treated as such. All documentation needs
to be on the system and finance contacted by 10.00 a.m. daily for a sterling cheque to
be produced the same day. BACS payment are produced every Wednesday and input
can take place up until 10.00 am
Cheques will no longer be sent out in the internal mail, if you want to collect a cheque
before it is sent out, please put a note on the Payment Form, and Cashiers will
contact you when it is ready to collect from Finance Reception.
Please note that Purchasing Services have agreements set up for most categories of
goods and services, and these vendors should be used in all instances, i.e. with
catering, vendors which are not on the approved list should not be used for health and
safety purposes. For a list of all agreements please see the Purchasing website (link
below) contact Dave Anderson with any queries you may have (x 5360)
http://www.ncl.ac.uk/internal/purchasing-services/agreements/index1.php
3. Fees and Associated Expenses Forms (FI004)
This form can be used for Non Employees (Employees should claim back any
expenses through the e-expenses system)
Non Employees – this form should be used for work which is of an irregular basis. If
the work forms a regular pattern, for example, 3 x 1 hour lectures per month for 6
months, then a contract should be organised with your HR Officer and again this form
should not be used.
Tax and National Insurance will be deducted from all payments.
http://www.ncl.ac.uk/internal/finance/sap/FI004.rtf
4. Procedure for Paying Self Employed Individuals
Payments to individuals and not recognised organisations should be done via the
Vendor route in ALL circumstances if tax and NI are thought not to be applicable.
The One Off Payment/Daily Cheque method should not be used.
An invoice should be received from the individual and the following forms completed.
1) Application to create a Master Record
http://www.ncl.ac.uk/internal/purchasing-services/sap/documents/vendorform.doc
2) Employment Status Chart
http://www.ncl.ac.uk/internal/purchasingservices/sap/faq/documents/EmploymentStatus.doc
The forms should then be sent to the Procurement Office, if there is any doubt
concerning self employed status the forms will then be sent on to Finance who will
make the final decision . Please attach all relevant documentation to the completed
forms.
5. Request for Prizes to Students (TF001)
A UK Payment Request Form should be completed, documentation attached and
authorisation obtained. The request should be sent directly to the Finance Income
Section marked for the attention of James Fox.
Please note that the Endowment Accounts are now held at School Level so they do
not need to come to the Faculty for Authorisation before being sent to James Fox.
Please remember to put the Student’s bank details on the form, as cheques will only
be raised where authorised by Craig Oliver, Head of Payments.
http://www.ncl.ac.uk/internal/finance/documents/TF001.pdf
6. Procedures for Payment for Teaching and Demonstrating Duties
The Inland Revenue has insisted that the University pay all full time and part time
postgraduate student demonstrators through the payroll system. All postgraduate
demonstrators must therefore be issued with appointments by the Human Resources
section.
It is not appropriate to use this mechanism to remunerate staff holding full-time or
part-time contracts of employment with the University.
You are referred to the statement of Good Practice in Provision for Doctors Students
which was approved by Senate at its meeting on 6th July 2004. Section 11 of this
document which refers specifically to Teaching and Demonstrating opportunities, is
particularly relevant.
7. Ex Gratia/Ad Hoc Payments
Staff incurring additional responsibilities by undertaking extra work of the same grade
for a continuous period exceeding four weeks may, at the University's discretion, on
the recommendation of the Head of School and with the authorisation of the Provost,
be granted an ex gratia/ad hoc payment. If an ex gratia/ad-hoc payment is to be made
to an employee then this should be organised via your HR officer.
8. Foreign Currency Payments
Payment of invoices received from overseas suppliers, or individuals abroad may
need to be made in Foreign Currency. Some of these payments are made to suppliers
on a regular or occasional basis, whilst others are 'one off' payments to organisations
or individuals with which we will only trade once.
One off Foreign Payments:
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Send the invoice and completed foreign payment request form and invoice
backing slip to Jan Hunter, Treasury Section of the Finance Department and
she will input the request into SAP.
Specify whether a draft, bank transfer or cheque is required
State where the draft or cheque is to be sent, i.e. directly to the beneficiary (in
which case clear address details are required) or returned to the department. If
a bank transfer is required, it is essential that the beneficiary's bank details are
clearly stated on the foreign payment request form
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Finance will order or prepare the drafts, foreign cheques or bank transfers and
issue as requested.
Regular Foreign Payments:
If regular or occasional payments are issued to foreign suppliers, such suppliers
should be set up on SAP in the same manner as UK. Once the vendor has been set up
on SAP:
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Issue a purchase order and process the invoice as for a UK invoice, but
making sure you select the appropriate foreign currency on the system.
Take a photocopy of the foreign payment invoice, which should include all
relevant references (for example, invoice number) so that the beneficiary can
easily identify the payment. In addition, it is important to write onto the copy
invoice the SAP document number.
Send the copy invoice to James Fox in Cashiers, so that he can ensure that the
relevant identifiers are included with the foreign payment.
Forward the original foreign payment invoice to Finance, together with UK
invoices, for filing.
ALL foreign currency payments are issued by the Treasury Section of the Finance
Department, the completed form should to be forwarded for the attention James Fox.
http://www.ncl.ac.uk/internal/finance/sap/FI008B.pdf
General Points to Note
When you are filling in these forms, remember you must complete all fields and state
clearly:
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Payee
Address to send Payment to
Value of Payment
Payment Method (Cheque / Bank Transfer – Bank Details)
Authorisation
GL Code
Cost Centre / WBS Element
Reason for Payment
Vat Code
If these Fields are incomplete, payment may be held and the form returned to you for
completion.