Supplier Payment and Goods Receipting Procedure
(MPF1090)
GOVERNING POLICY
This procedure is made under the Procurement Policy.
SCOPE
This procedure applies to all staff at the University involved in the purchase, processing and
approval of goods, services and building works irrespective of the payment’s funding source.
PROCEDURE
1. Purchasing methods
1.1.
The University provides staff with three purchasing methods:
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the Themis iProcurement module – this must be used for procurement of all goods and
services, including building works, except those listed in the List of Exceptions to
iProcurement
travel cards – these purchasing cards may only be used in accordance with section 3.4
of the Procurement Policy
purchasing cards used for procurement as nominated by a head of budget division
– these may only be used in accordance with section 3.5 of the Procurement Policy
Refer to the Procurement Policy, the Procurement of Goods and Services Procedure and the
Procurement of Building Works Procedure for further information on purchasing methods.
1.2. Holders of University purchasing/travel cards must comply with the requirements relating to
these cards outlined in the Procurement of Goods and Services Procedure.
2. Financial delegations
2.1. Financial transaction delegation levels are detailed in the Delegations Policy, Schedule A –
Financial Delegations.
2.2.
Staff must not:
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enter into agreements
authorise payments to a related party
approve payments to themselves or third parties
where the expenditure was incurred in relation to themselves (e.g. airfares, hotel
accommodation).
3. Purchase processing and authorisation
3.1. Staff will issue purchase orders through the Themis iProcurement module. The principle
authorisation for the procurement of goods and services occurs during the online requisition
process via a predetermined work flow that prevents purchase orders from being printed or
emailed until authorised.
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3.2. Purchase requisitions initiated by a staff member that exceed their financial delegation
must be authorised via the Themis iProcurement module by a staff member with the appropriate
financial delegation, as nominated in the predetermined workflow. Purchase orders will not
require a second authorisation once the purchase requisition authorisation has been completed.
3.3.
Staff will manage purchasing card approval process via the Themis iExpenses module.
3.4. Staff will manage petty cash in accordance with the Payments and Reimbursements
Procedure.
3.5. In approving a purchase requisition, authorisers must ensure that goods and services
purchased are for legitimate University purposes and that:
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preferred suppliers have been used where they exist
appropriate quotations have been attached, in accordance with the Procurement Policy,
Schedule A - Goods and Services Purchase Levels and Processes.
3.6. The Vice-Chancellor, Senior Vice-Principal or Chief Financial Officer must authorise the
following types of expenditure from University funds:
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payment for, or reimbursement of, parking or traffic fines
membership subscriptions to University House or the Graduate Union
gifts to staff at Christmas or on termination
donations to any organisation (due to the University’s legal status as a charitable
organisation)
gratuities, including tips given within Australia
non-business related payments from business centre or budget unit consulting income.
3.7. Staff must issue a purchase order for the acquisition of all goods and services unless they
are listed on the List of Exceptions to iProcurement,
3.8. Staff must complete a Missing or Lost Receipts Under/Over $200 form, where original
invoices or receipts are not available.
4. Purchase orders for regular supply orders
4.1. Staff may use the Themis iProcurement module to confirm a service agreement with a
supplier to fill an order on a regular basis for a 12 month period from 1 January to 31 December.
4.2. When a purchase order for a 12 month period is raised in the Themis iProcurement
module:
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a requisition is raised for the estimated total cost of goods or services to be supplied over
the 12 month period (the estimate must not be for nominal amounts)
the requisition must be approved by a staff member with appropriate financial delegation
a purchase order is sent to the supplier via email upon approval of the requisition (either
a standard purchase order or blanket purchase order can be used).
4.3. Staff must not use University purchasing cards for the regular supply of goods and
services.
5. Prepayment of supplier invoices
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5.1.
Prepayment of supplier invoices is only permitted for subscriptions and maintenance.
5.2. Legal proceedings may be taken against anyone falsifying documentation to fully expend a
government grant within the current financial year.
5.3. The Tender Board Secretary may facilitate a prepayment in conjunction with a bank
guarantee or international letter of credit in limited circumstances in order to protect the University
against non-delivery of goods and services.
6. Outstanding purchase orders
6.1.
Commitments on open purchase orders are carried forward to the next accounting period.
6.2.
Business centre finance managers must:
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regularly review purchase orders that have been open for more than 6 months with an
inactive encumbrance
report any purchase orders left open longer than the 6 month period with an inactive
encumbrance to the Finance and Planning Group with an explanation as to why they are
to remain open.
6.3. Purchase orders with an unmatched amount, which are no longer required, are to be
closed.
6.4. A purchase order must be cancelled where a supplier has indicated that the order will not
be supplied.
7. Internal suppliers - cost allocation process
7.1. The Strategic Procurement website lists all preferred suppliers of goods and services. This
includes internal suppliers, which are the preferred suppliers for similar goods and services.
7.2. Allocation of the cost of goods and services supplied by internal budget units is to be
recorded within the natural account range 7000–7999. See Practice Guide to the Chart of
Accounts.
7.3. A Themis internal requisition will be raised online when ordering goods or services from an
internal supplier.
7.4. The charge will be allocated when the service and or supply is provided to the requesting
budget unit.
7.5. Costs accumulated for other types of requests are processed on a monthly basis with a
report issued to the paying budget unit.
8. Supplier payment requirements
8.1. A supplier must be created in Themis before the issue of a purchase order, or the entry of a
supplier invoice (e.g. a contractor or a thesis marker).
8.2. To create a new supplier, one of the following forms must be completed and attached to
the online supplier create process in Themis:
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New Supplier Request / Amendment
New Overseas Supplier Request
8.3. The Finance and Planning Group will create new suppliers in Themis within 48 hours of
receipt of the relevant form outlined in section 8.2. Procurement related suppliers will be created
and approved within 24 hours.
8.4. An individual with an Australian Business Number (ABN), will be paid through Accounts
Payable via electronic funds transfer (EFT) or cheque, provided they meet the criteria of an
independent contractor (refer to the Engaging Independent Contractors Procedure).
8.5. An individual without an ABN must be paid through HR Payroll as a casual employee (refer
to the Categories of Employment Procedure).
8.6. ‘No ABN declarations’ will only be accepted if the individual is able to claim one of the
following exemptions:
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the payment is less than $75 (excluding GST)
the supplier is not entitled to an ABN as they are an overseas resident, not carrying on a
business, but marking a thesis, in Australia.
8.7. Payments to overseas thesis markers are to be made through Accounts Payable via wire
or cheque.
8.8. Where the supplier is a contractor, the contractor will be ineligible to sign the exemption
declaration if:
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the contractor’s income for work performed in Australia is greater than $50,000 for any 12
consecutive months
the contractor has a place of business in Australia, including an office on the University
premises for longer than six continuous months or where the contractor is returning to the
same office over a period longer than six months.
8.9. If an independent contractor does not supply a valid ABN or ABN exemption declaration,
the University will withhold tax at the maximum rate of 48.5% as per the Australian Taxation
Office requirements.
8.10. Where a new supplier is an overseas supplier:
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the address must be the contractor’s permanent overseas address
the bank account must be in the name of the contractor
where an ABN exemption is being sought, the bank account must be held overseas.
8.11. Compliant tax invoices are required to enable the claiming of Goods and Service Tax
(GST) paid on purchases. The Treatment of Tax Procedure provides further information on the
GST.
9. Payment of invoices
9.1. Suppliers must forward invoices relating to purchase orders directly to Accounts Payable
via a generic email address specified by the University or direct mail to Accounts Payable,
Finance and Planning. Departments who receive invoices for purchase orders must forward the
invoices to Accounts Payable via internal mail.
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9.2. On receipt of an invoice relating to a purchase order, Accounts Payable will enter the
invoice into the AP Imaging system for automated matching with the purchase order and the
record of receipt of goods. Payment will be made in accordance with the University’s payment
terms provided that:
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9.3.
the purchase requisition has been authorised
the purchase has been receipted by the requisitioner or local budget unit.
Staff must contact Accounts Payable about cancellation or deletion of imaged invoices.
9.4. Suppliers may forward invoices for goods and services for which there is no purchase order
(purchase order exceptions) directly to the department.
9.5. Departments must add distribution details to invoices for purchase order exceptions and
forward the invoices to Accounts Payable for scanning and processing.
9.6. Accounts Payable will scan purchase order exception invoices into the Readsoft Imaging
system, code the invoices and forward them to the business or academic centre for coding and
approval. Business centres may refer to the Readsoft Training manual for further information.
9.7. Invoice batches prepared by the Finance and Planning Group will be approved in line with
the Delegations Policy, Schedule A – Financial Delegations.
10. Supplier payment terms and methods
10.1. The University’s trading terms are to pay trade accounts 30 days from the end of the
invoiced month. Acceptance of a University purchase order by a supplier indicates acceptance of
these terms.
10.2. The supplier payment terms in Themis will determine when an invoice is selected for
payment.
10.3.
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Payment can be made to suppliers via the following payment methods:
a non-negotiable cheque addressed to the supplier / independent contractor
electronic funds transfer (EFT) – preferred option for local
overseas draft
overseas telegraphic transfer – preferred option for overseas.
10.4. Business centres can check payment details and track the progress of a payment in
Themis.
10.5. Draft or wire transfers may be used for overseas payments. Wire transfers are preferred
and ensure the recipient receives the funds as quickly as possible. Drafts are suitable only for low
value payments when bank account details are not readily obtainable, as they are forwarded to
recipients via international mail.
10.6. Business centres dealing with overseas suppliers should request invoices be issued in the
overseas currency, unless there is a contractual requirement to issue the invoice in Australian
dollars.
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10.7. For invoices greater than $20,000, foreign exchange (FX) protection should be considered
and the Managing University Finances Policy should be consulted with regard to FX
requirements.
10.8. The foreign currency amount, and not the Australia dollar equivalent, should be entered
on the requisition in Themis iProcurement for overseas purchases in the following currencies:
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CAD: Canadian Dollar
CHF: Swiss Franc
CNY: Chinese Renminbi Yuan
EUR: Euro
GBP: British Pound
HKD: Hong Kong Dollar
IDR: Indonesian Rupiah
INR: Indian Rupee
JPY: Japanese Yen
MYR: Malaysian Ringgit
NZD: New Zealand dollar
SGD: Singapore Dollar
USD: US Dollar.
10.9. Invoices in all other foreign currencies (not listed in 10.8 above) must be converted to
Australian or US dollars before entering into Themis.
10.10. The University processes foreign currency payments via Western Union Global Payments
System. Use the OANDA currency converter at the following web address if you need to convert
payments in other than the currencies listed above to AUD or USD.
http://www.oanda.com/currency/converter/
10.11. Foreign currency expense reimbursements should be converted to Australian dollars
before entering the reimbursement into Themis iExpenses.
11. Receiving and receipting goods
11.1.
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Departments purchasing goods must:
inspect the goods upon receipt and confirm that the quantity and quality of goods is
consistent with the purchase order
record receipt of the goods in the Themis iProcurement module.
11.2. Accounts Payable will only pay suppliers for goods that have been receipted by the
purchasing department via the Themis iProcurement module. Failure to receipt goods will result
in system holds being placed on the invoice to prevent payment and may result in late payment of
the invoice.
11.3. Goods receipted via the Themis iProcurement module will be added to the Asset Register
via a bulk system function.
11.4.
The officer signing for a delivery must:
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either sight the goods or have possession of a delivery document signed by another
officer
confirm supply of the service to the department
be in a position to confirm that the department has in place a procedure which ensures
that goods delivered have been reviewed for conformance with purchasing specifications.
12. Importation of goods
12.1. Customs duty is payable on the importation of goods from overseas unless the entry of
the goods is exempt. A Customs Tariff form must be completed. Please refer to the Finance and
Planning Group website for details of Customs agent.
12.2.
The University has Australian Taxation Office approval to defer GST on imported goods.
12.3. Budget units who import biological material, including genetic material, must apply for a
Permit to Import Quarantine Material from the Australian Quarantine Inspection Services (AQIS)
before importation. AQIS permits require:
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12.4.
payment of a fee and
validation by a Quarantine Officer in the Department of Agriculture, Fisheries and
Forestry in the state of entry.
Normal quarantine fees apply in addition to the fee for each biological permit.
RELATED DOCUMENTS
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Asset Management Policy
Bank Accounts and Foreign Exchange Procedure
Categories of Employment Procedure
Contracts Policy
Contracts Procedure
Customs Tariff form
Delegations Policy, including Schedule A - Financial Delegations
Employee Expense report
List of Exceptions to iProcurement
Managing University Finances Policy
Missing or Lost Receipts under $200 Declaration Form
Missing or Lost Receipts over $200 Declaration Form
New Overseas Supplier Request Form
New Supplier Request / Amendment form
Practice Guide to the Chart of Accounts
Procurement of Goods and Services Procedure
Procurement Policy
Strategic Procurement website
Themis financial transaction processes
Treatment of Tax Procedure
DEFINITIONS
Term
Definition
preferred
supplier
Supplier who provides goods or services under agreements established through a
competitive tendering process.
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purchase
order
An online order for the authorization and purchase of goods, services or building
works generated from the Themis Finance System.
purchasing
card
A National Australia Bank Visa card issued to a staff member under authorisation
from the University for employment-related expenditure in accordance with the
Procurement Policy. Purchasing cards are not linked to membership reward
programs.
A type of purchasing card for which authorised expenditure is limited to:
travel card
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expenses related to travel on University business
entertainment
books, subscriptions and journals.
IMPLEMENTATION OFFICER
The Manager, Accounting Operations, Finance and Planning Group is responsible for the
promulgation and implementation of this procedure in accordance with the scope outlined above.
Enquiries about interpretation of this procedure should e directed to the Implementation Officer.
REVIEW
This procedure is to be reviewed by 30 November 2014.
VERSION HISTORY
Version Approved By
Approval
Date
Effective
Date
Sections Modified
1
Senior Vice-Principal
24 Aug
2012
24 Aug
2012
New version arising from the Policy
Simplification Project. Loaded into
MPL as Version 1.
2
Vice-Principal
Administration and
Finance
on behalf of Senior
Vice-Principal
Amendments throughout document to
reflect new procurement processes.
4 Apr 2014 7 Apr 2014 Definitions and Related Documents
sections updated.
Responsible Officer section removed.
3
University Policy
Officer
No changes - version 2 archived in
error.
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