Accounts Payable As-Is Processes
Main Functional Areas
September, 2002
Invoice
Payment
Process
Pre-Audit
Stop
Payment
Vendor
Relations
1099
Reporting
1
Accounts Payable As-Is Processes
Invoice Payment Main Processes
VPAM: Voucher
Payment and
Maintenance
Begin
Invoice
Auditing
Key
Payment
in VPAM
Verify
Payment
Editing &
Check
Printing
Distribute
Checks
End
Return to
Page 1
2
Accounts Payable As-Is Invoice Processes
Invoice Auditing
Begin
Receive
Invoice
from
Vendor
Has PO #?
Yes
Sort Invoice
in Alpha.
Order
No
Return
Invoice to
Vendor
Stop
Stop
Original to Be
Filed with Voucher
Copy to
Department
Copy to Vendor If
3 Copies Received
Payment in
International
Currency
Route to
Cash
Mgmt.
Return to AP
Main Process
Route to
Keying
Negative Approval
Less Than 30 Days
Payment
in Foreign
Currency
?
Match
Invoice with
PO
Copy to Vendor
Relations
Copy to Vendor
Copy to
Department
Prepare &
Distribute
Dispute
Letter
Distribute
Invoice for
Payment
Over 30 Days and
Interest >$5
Audit Invoice
No OK to Pay?
Yes
Positive Approval
Less Than 30 Days
Route
Invoice to
Manager
Route
Invoice to
Dept.
Returned
Within
One
Week?
Manager
Calculates
Interest
No
Call
Department
Yes
3
This diagram explains the
invoice auditing process.
The same process applies
to the invoice auditing
performed by “delegated”
departments.
Begin
Accounts Payable As-Is Invoice Processes
Audit Invoice
Verify Invoice
Vendor Name
Agrees with PO
Vendor Name
Verify Received
Document Is An
Invoice
Verify Invoice
Is Dated Post
Order Date
Blanket
Order?
If blanket order is past
ending date, use the 45-day
rule if a new order number
is not in the Purchasing
System.
Yes
Verify Order
Ending Date
No
Note Partial
Shipment on
PO Work
Copy
Yes
Partial
Shipment
?
Match
Invoice Items
with PO
Work Copy
Verify
Prices
Verify Items
Match with
PO Work
Copy &
Verify Prices
No
If Manual
Written Invoice,
Verify Extended
and Total
Amounts
Verify Ship-To
Address Agrees
with PO Work
Copy
Route Copy
of Invoice
to Property
Control
Yes
Class
Code
4000s?
No
Class
Codes
Split?
No
Mark Payment
Type in Audit
Box in Green Ink
(Final, Partial,
Misc.)
Class Code
3221, 3227
or 3228?
Yes
Route
Invoice to
RSP
Deduct Sales
Tax If Service
Was Provided
in WI
Route
Invoice to
Keyers
Record on PO
Work Copy Inv
#, Inv Date,
Audit Date &
Amount Over
$500
Return to
Main Process
Return to Invoice
Auditing Sub-Main
Yes
No
Write Out
Split Class
Codes for
Keyers
Verify
Freight
Terms
No
Positive
Approval
?
Yes
Apply
Sticker on
Invoice
Record Inv #
and Routing
Date on PO
Work Copy
4
Accounts Payable As-Is Invoice Processes
Key Invoices in VPAM
Note:
•Except for internal transfers, there
are no batch totals during data entry.
•A batch cover sheet is attached if it is
received. No batch cover sheet is used
for internal transfer batches.
Receive
Invoice from
Auditors
Begin
Receive
Invoice from
Delegated
Depts.
Key
Invoices
into VPAM
Problems
in Data
Entry?
Route
Invoice to
Auditor
Yes
No
Receive
Invoice from
Fin. Ops for
Internal
Transfers
System Generates
Voucher,
Remittance Copy,
Prelist in CARDS
Audit Invoice
Return to AP
Main Process
5
Accounts Payable As-Is Invoice Processes
Verify Payment
Begin
Receive Vouchers,
Remittance
Copies, Pre-list,
Reports from
DoIT
Lead Workers
Update
Changes in
Pre-List
(CARDS)
Keyers Make
Correction in
VPAM
Verifiers
Check
Amount,
Vendor &
Address
Lead Worker
Matches Voucher
etc. to
Documentation
Prepare
Correct Slip &
Route to
Keyer
No
Data
Entry
Correct?
Yes
Lead
Workers
Check
Batch Total
No
Corrections
OK?
Investigate
& Resolve
Select &
Release in
TMNT
Release Job
for
Overnight
Process
Organize &
Deliver
Vouchers
to Fin. Ops
Yes
Return to AP
Main Process
6
Accounts Payable As-Is Invoice Processes
Major Transaction Types:
Editing & Check Printing
•Budget: 20s
First 5-digit
of a VO# is
List #.
List Number
Totals
Batched by
payment type
& totals.
Check
Number
Range
Begin
Receive
Reports
from DoIT
Daily Edit &
Post Batch
Control Report
Transaction
Count Table
Review
Report
Type 50s
Transactions(
No $ totals).
•Revenue: 30s
•Encumbrance & Reqs: 40s
•Payment: 50s.
From
Purchasing
System.
Entry
Change
Report
Discrepancy
Between
Req & PO
Exceeds
$100?
Combination of
UDDS, Activity
& Class Codes.
No
Daily Edit & Post
Transaction
Exceptions Listing
Correct Errors
on 3270 EPCC
Suspense File
Yes
No
Type 47
Errors?
Fringe/OH
Encumb.
Errors.
Yes
Calculate &
Compare
Totals
Investigate
& Correct
Errors on
EPRQ
Totals
Agree?
Adjust
Reqs. On
3270
Request
DoIT Run
Job 0421A
View Job
Totals on
3270
End
Investigate
& Correct
Remaining
Errors
No
Yes
Request
DoIT Run
Job 0421F
Load File to
WisMART
State
Treasury
Signs Checks
Return to AP
Main Process
7
Accounts Payable As-Is Invoice Processes
Distribute Checks
Receive
checks from
State
Treasury
Sort Checks
Based on
Voucher
Batches
Begin
Fin. Ops
Verifies
WisMART
Transactions &
Totals
Match Check
to Remittance
Copy
No
Matched?
Route to
Supervisor
Yes
File Room
Label
Voucher Box
File Room
Mails Checks
&
Remittance
Copy
Sort
Envelopes
Based on
Distribution
List
Stuff
Envelopes
Supervisor
Investigates
& Resolves
International, domestic, campus
mail, courier pick-up, Canada,
Mexico, oversized Envelope, overstuffed Envelope, US mail pre-sorted,
etc.
File Room
Attaches Edit
& Post
Exception List
to Vouchers
File Room
File
Vouchers
File
Warrant
Registry
Return to AP
Main Process
8
Accounts Payable As-Is Processes
Stop Payment
Begin
Receive
Notification from
Dept. of
Duplicate or
Wrong Payment
Check
Mailed
Out?
No
Prepare Stop
Pay/Correction
Form
Yes
On average, there are
about 20 to 30 stop
payments per week.
Pull Out
Voucher,
Check &
Remittance
Copy
Route to Cash
Management
Request Proof
of Payment or
Stop Pay from
State Treasury
Auditor
Approves
Credit
Memo
Keyers
Apply Credit
Memo to
Next Invoice
Applied
Within 6
Months?
No
Vendor
Relation
Requests a
Refund Check
From Vendor
Vendor
Relation
Issues a
Credit Memo
No
Check
Stopped?
Keyers notify vendor if
applied credit amount is
more than invoice amount.
(Credit memo data is
maintained in Excel.
Yes
State Treasury
Reissues Check
to the Same
Vendor
Route Check
& Voucher
to Cash
Management
Payment
Correction
Yes
End
Return to
Page 1
9
Accounts Payable As-Is Processes
Payment Correction Process
Begin
Reissue
Check?
Yes
Reissue for
More Than
Original
Amount?
No
Yes
C.M.
Deposits
check
Deposit
Check
C.M.
Credits
Req. or
PO via
DREV
C.M. Credits
Req. or PO
via DREV
No
C.M
Deposit
s
Check
Check deposited to
contingent fund for the
correct amount, to the
Req. or PO for the
difference.
Reissue Check
from the
Contingent Fund
for the Correct
Amount
A/P Reissue
Check via
VPAM
End
10
Accounts Payable As-Is Processes
Payment in International Currency by Cash Management
Accounts
Payable
Invoices received
and batched for
one week
Two checks
result from VPam
1 - Reimburse
Contingent
Account
2 - Deposit to
coding used in
Contingent
Fund
Departments
PreAudit
Convert
invoice
amounts
to US
dollars
Go into
Ruesch
Web
Page
Will not be batched if
department indicates
immediate payment is
required
Enter vendor, country,
amount and submit Automatically adds $5
charge - quotes are good for
five minutes
To
Ruesch
Print Confirmation
for Records
To VPam
Copy for V-Pam
Copy for
Contingent Fund
Check for Ruesch
- 2 lines of coding
One line of coding for
amount of invoices
Second line of coding for
charges
Draft or Wire
Transfer?
Wire Transfer
Contingent Fund is
reimbursed in normal way
Write
check to
send to
Ruesch
Contingent
Fund
check Sent
to Ruesch
Report of V-Pam
Transactions
Ruesch
debits our
bank
account &
wires funds
Drafts
To Barb
Bausch
Return to AP
Main Process
Report of Daily
Activity
Report
Filed in
Binder
Drafts
Mailed
to
Vendors
11
Accounts Payable As-Is Processes
Vendor Relations Main Process
Begin
Receive from
Vendor Past Due
Invoices,
Statements,
Dispute Responses
Depts. Or Vendor
Notify Missing
Payments, Short
Pays, Tax Not
Paid, etc.
Depts. Notify
Problems with
Negative Approval
Invoices or Missing
Payments
Determine If
Need A Credit
Memo or
Payback Check
Need A Credit Memo
or Payback Check
Does Not Need A Credit
Memo or Payback Check
Past Due
Invoice
Process
Statements
Process
Return to
Page 1
Dispute
Response
Process
Verify with
Original
Voucher
Need
Payback
or Credit?
Adjust
Incorrect
Negative
Approval
No
Send Denial
Letter to
Vendor
Yes
Fill Out
Payback
Form Or
Credit Memo
Invoice
Payment
Main
Processes
End
File Copy of
Letter with
Voucher
12
Accounts Payable As-Is Processes
Vendor Relations – Statement Process
Begin
Check the
Dates of Items
on the
Statement
More
Than
60
Days?
Yes
Return to &
Request
Invoices from
Vendor
No
Stop
Return to Vendor
Relations Main
Process
13
Accounts Payable As-Is Processes
Vendor Relations – Past Due Invoice Process
Determine
If Invoice
Paid
Begin
Paid?
Yes
When
Was
Paid?
No
Over 30
Days
Pull Out
Voucher
Less Than
30 Days
Notify
Vendor of
Payment
Stop
Valid PO#
& Not in
Dispute?
Has Previous
Dispute
Verify
Check #
and Date
Return to
Vendor
File Copy
of Dispute
Document
Return to Vendor
Relations Main
Process
Yes
Invoice
Payment
Main
Processes
Prepare
Form 15
End
14
Accounts Payable As-Is Processes
Vendor Relations – Adjust Incorrect Negative Approvals
Begin
Dept.
Notifies
Incorrect
Payment
Determine
Required
Action
Stop Payment
Stop
Payment
Process
Adjust Payment
Determine
Type of
Adjustment
This process is
performed by Accounts
Payable, Fin. Ops or
Departments.
Credit Memo
or Pay Back
Return to Vendor
Relations Main
Process
Transfer
Between POs
Prepare NonSalary Cash
Transfer
Form
Route Form
to Fin. Ops.
Adjust POs
in VPAM
Return to Key
Payment in VPAM
15
Accounts Payable As-Is Processes
Vendor Relations – Dispute Response
Begin
Match Vendor
Response to
Dispute Copy
on File
Review
Dispute and
Vendor
Response
OK to
Pay?
Yes
Invoice
Payment
Main
Processes
No
Resolve with
Vendor,
Purchasing &
Dept.
Resolved
?
Yes
Return to Vendor
Relations Main
Process
No
Refer Dispute
to Purchasing
& Dept.
16
Accounts Payable As-Is Processes
Invoice Payment Additional Information
•
Data Verification Against Purchasing
System:
–
–
–
–
–
–
–
–
•
Order #
Ship-To Address
Vendor Contact
Change Order Information
Item Description
Dates of Requisition Processing Statuses
Pricing on Contracts
Connection to VendorNet.
•
Data Verification Against Legacy Systems
–
–
–
–
–
INQR: EPRQ Data Display (PO Status,
class code, PO Types, Dept Coding, etc.)
INQP: PO Data
GENT: Transaction 48 inquiries (Inquire
PO# to get department contact person
initials. Then though initials to get contact
phone numbers.)
INQC: to verify payment status on POs
INQV: To verify payment status on
vouchers.
List of Delegated Departments for Invoice
Auditing:
–
–
–
–
Chemistry
PSL
MDS
WDVL
Return to
Page 1
17
Pre-Audit
Requisition Auditing
Receive
Requisitions
from Dean’s
Office
Begin
Verify Class
Code is
Appropriate
for Item
Verify
Description Is
Complete
Verify
Accompanying
Documentation
Return to
Dean’s
Office
No
Verify Both
Dept. & Dean’s
Approvals
Verify Req. Is
for UW
Business
OK?
Yes
Return to
Procurement
Main Process
Verify
VO Entry
OK?
System Generates
Voucher,
Remittance Copy,
Prelist in CARDS
Route Reqs.
To
Purchasing
Other
Requisitions.
Approve
Requisitions
Postage Req.
Fund 133
Class Codes
4Ks, 2Ks, 3221,
3227 & 3228?
Create VO
in VPAM
No
Confirming Req
w/ Invoice
Attached
(<$5,000)
Yes
Editing &
Check
Printing
Distribute
Checks
Route to
RSP
RSP
Reviews &
Approves
Class Code
4Ks?
Yes
Property
Control
Returns
Req.
No
Correct
in VPAM
No
Yes
End
Reference Original
Equipment PO # and
Property Control # if
Purchase is a Component
of Capital Equipment.
Property
Control
Verifies
Req.
Route 4Ks
& 2Ks to
Purchasing
Issue Other
Reqs. Under
RSP
Negotiated
Contracts
18
End
Pre-Audit
Emergency Transaction Processing
Dean’s
Office
Approves
Dept. Prepares
ET Request &
Documentation
Begin
Route to
Purchasing
by 11am
Purchasing
Creates PO
Yes
Dean’s
Office Enters
Req. in
EPRQ
Dean’s Office
Delivers Req. to
Purchasing by
10am
PO
Required
?
No
Yes
Route to
AP Auditor
Invoice
Auditing
Any approval
by RSP is
routed by fax.
Cash
Management
Issues Check
From Cont.
Fund
Route to
Cash
Management
Deliver Check to
Purchasing
Front Counter
by 3pm
Pre-Audit Picks
up Req. from
Purchasing
Requisition
Auditing
No
Cash w/
Order?
Purchasing
Date & Time
Stamps the
Req.
Yes
Checks for
Pick Up
?
No
Purchasing
Mails PO
or Calls for
Pickup
End
Mail Checks
19
Pre-Audit
Direct Charge Processes
Dept.
Receives
Invoice from
Vendor
Dept. Code
Funding
Source on
Invoice
Dept. &
Dean’s
Offices
Approve
Invoice
This process applies to direct
charges for:
•Utilities
•Freight (except FedEx)
•Gas credit card
•Newspapers
•Subscriptions
•Travel agency invoices
•Memberships & Registrations
•DOA general service billing.
Dean’s
Office Route
Invoice to
Pre-Audit
Pre-Audit
Verify the
Amount Is
Correct
Begin
Pre-Audit
Receives
Invoice from
Vendor
Verify
VO Entry
System Generates
Voucher,
Remittance Copy,
Prelist in CARDS
Identify
Which Dept.
Made the
Purchase
Create VO
in VPAM
Call Dept. to
Get Funding
Source &
Approval
Verify
Type of
Travel
Expense
Copy
Invoice to
Dept.
Verify
Purpose of
Business
Verify
Funding
Code Is
Correct
Check
Appropriateness
of Purchase
No
Fund 133
Class Codes
2000s?
Yes
OK?
Yes
Route to
RSP
No
Correct
in VPAM
Editing &
Check
Printing
Distribute
Checks
End
RSP
Reviews &
Approves
20
Pre-Audit
Direct Charge Processes for FedEx Bills
Funding
Coded on
the bill
?
Receive Bills
from FedEx
Begin
Check INQM
or UNAM for
Dept. Contact
Name
No
Get Funding
Source from
Dept. Contact
Person
Code
Funding on
the Bill
Yes
Batch Bills
(100/Batch)
Normally a
week later.
Create
Transfer
Worksheet in
Excel w/ Dept.
Funding
Source Codes
Keyers
Enter
Transfers in
VPAM
Route
Invoice
Copy to
Dept.
Highlight
Funding
Source on
the Bills
Copy Bills
Contingent
Fund Check
to Vendor
Once a
Week
Calculate
Batch Totals
Create VO
in VPAM
from
Contingent
Fund
End
To replenish
contingent fund.
21
Pre-Audit
Payments to Individuals Report (PIR)
Begin
Individual
or Dept.
Prepares
PIR Form
Dept.
Approves
PIR Form
Dean’s
Office
Approves
PIR Form
Dean’s
Office
Routes to
Pre-Audit
This process applies to
payments to individuals for:
•Scholarships
•Travel expense
•Research subjects
•Speakers & other service
providers.
Fund
133?
Yes
Pre-Audit
Routes to
RSP
No
Calculate Tax
Withholding
(Based on
Treaty for
Foreigners)
Yes
Foreign
Payee or
US Resident
W/O SSN?
Verify If
Payee a US
Legal
Resident
Taxable
Yes Payment
Based on
Class Code?
Verify
Name &
Address
RSP
Approves
& Returns
to PreAudit
Verify
Dept. &
Dean’s
Approvals
No
No
Match Class
Code w/
Payment
Purpose
Calculate
Net Pay
Verify Other
Data
OK?
No
Contact
Dept. &
Correct PIR
Form
Yes
Complete Tax
Calculation
Sheet If It’s
Missing
Complete
PIR Form
w/ Tax
W/H Data
Class Code determines following
additional data needed:
•Home address for 1099 reporting
•SSN for tax reporting
•Visa information
•Copies of receipts
•If UW employee, whether payment
should be made via payroll, etc.
End
Key to
VPAM
No
Missing
Signature
?
Yes
Return PIR
Form to
Dept.
Distribute
Checks
Editing &
Check
Printing
Begin
22
Pre-Audit
Travel Expense Report (TER)
Begin
Individual
or Dept.
Prepares
TER Form
Dept.
Approves
TER Form
Verify
Reported
Amounts & Dates
Match w/
Receipts
Verify
Approvals
& Totals
Return to
Dept.
Dean’s
Office
Approves
TER Form
Dean’s
Office
Routes to
Pre-Audit
Verify
Nature of UW
Business
Verify
Funding
Code
This process applies to
payments for reimbursable
expenses to UW and non-UW
employees.
Fund
133?
Verify
Name &
Address
Yes
Pre-Audit
Routes to
RSP
RSP
Approves
& Returns
to PreAudit
Missing Receipts
Yes Or Approvals?
No
OK to
Pay?
System Generates
Voucher,
Remittance Copy,
Prelist in CARDS
Yes
Verify
VO Entry
No
End
OK?
Contact Dept
& Correct the
Form
Approve the
Form
Key to
VPAM
Yes
No
Correct
in VPAM
Editing &
Check
Printing
Distribute
Checks
23
Pre-Audit
Travel Advance (TA) Initiation
Begin
Dept.
Prepares
Request on
TA Form
Dean’s
Office
Approves
the Form
Dept.
Approves
the Form
Dean’s
Office
Routes to
Pre-Audit
Fund
133?
Yes
Pre-Audit
Routes to
RSP
No
Verify
Mail-to
Address
Verify
Amount <
80% of
Estimated
Expense
S/B less than 30
days of travel
completion date.
Verify
Contact Name
& Phone #
Determine and
Record
Pay Back
Date on the
Form
Verify
Funding
Code
Verify
SSN
Missing
Signature
?
Yes
Verify
Reason for
TA
Return Form
To Dept.
Begin
Record TA in
Excel
Worksheet
Key to
VPAM to
Issue Check
From Cont.
Fund
RSP
Approves
& Returns
to PreAudit
No
OK to
Pay?
No
Contact Dept.
& Correct
The Form
Yes
Travel Advance
Replenishment
End
24
Pre-Audit
Travel Advance (TA) Replenishment
Begin
Employee
Reports
Expense on
TER Form
After Travel
Completes
Monthly
Reconcile
TA Worksheet
With
WISDM
Employee
Put TA#
On TER
Pre-Audit
Record TA
Replenishment
In Excel
Worksheet
Use cont. fund
coding to offset
original TA.
Key TER
To VPAM
No
TA > Expense
?
CM Deposits
Check to
Cont. Fund
Employee
Submits
Personal
Check for the
Difference
Yes
Pre-Audit
Route Check
To CM
Yes
Check
Submitted
?
No
End
Follow Up
With Dean’s
Office
Yes
Check
Submitted
?
No
Notify Payroll
For Payroll
Garnishment
25
Pre-Audit
Non-Travel Cash Advance Initiation
Begin
Dept.
Prepares
Internal Req.
& Custodial
Agreement
Call Dean’s
Office
Custodian: is anyone who is responsible for
non-travel advance money or petty cash.
Custodian
Request CM to
Open a Bank
Account
Replenishable
Req?
This process applies to advance payments for
studies & research programs and for
replenishment of petty cash.
Dean’s
Office
Approves
Req.
Dept.
Approves &
Enter Req. in
EPRQ
Custodian
signs
Agreement
Over
$5,000?
Dean’s
Office Signs
Agreement
Yes
No
Yes
Verify
Custodial
Agreement
Missing
Document?
Verify
Funding
Code
Req. &
Agreement
Routed to
Pre-Audit
Verify All
Signatures
No
Dean’s Office
Submit
Missing
Document
OK?
Yes
Approve &
File Copy
In file
Room
Route
Documents
To Cash
Management
Cash
Management
Reviews &
Approves
CM Writes a
Check from
Cont. Fund
No
CM Routes
Check to
Custodian
Return
Documents
To Dean’s
Office
End
Begin
Non-Travel
Cash Advance
Replenishment
No
Replenishable Yes
Req?
CM Deposits
Check to
Custodian
Bank Account
26
Pre-Audit
Non-Travel Cash Advance Replenishment
Begin
Dept. Prepares
Non-Travel
Cash Advance
Accounting
Form
After Expenditures
Are Made
CM Closes Req. If
All Money Is
Accounted For
CM Routes
Form to
Accounts
Payable
CM Records
Exp. To Req.
In EPRQ and to
Non-Travel
Advance System
(Close If Final
Payment)
Custodian Signs
The Form &
Submits
Receipts
Approve &
Route to Cash
Management
Yes
Dept. Approves
Non-Replenishable
Req?
Dean’s Office
Approves
Verify Req.
In INQR
Form & Receipts
Routed to
Pre-Audit
Verify
Custodian,
Dept. & Dean’s
Signatures
Verify
Funding
Code
No
Non-zero $
Balance
Yes
Req. Needs
To Be
Closed?
No
Zero $
Balance
AP Enters
Payment
In VPAM
File Room
Sends Check to
Bank or
Custodian
System
Generates
Check
Enter
Payment
In VPAM
Approve
Payment
Verify
Receipts
System
Generates
Check
CM Deposit
Check to
Cont. Fund
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End
27
1099, 1042S & Supplemental W2 Reporting
Quick Book Process Overview
MDSN
Payment
File
(Legacy)
Monthly
QuickFile
Reports
Edits &
Fixes
W2: At Year-End
Begin
Other
Campuses
Payment
Files
(SFS)
Assign &
Edit
1042S
Paid PIR
Forms
Currently Not Being
Done Monthly
Edited
QuickFile
Print 1099
& 1042S
End
Tape File
To IRS
Payroll
File
Year-End
System
Year-End
Merges With
W2 Files
28
1099, 1042S & Supplemental W2 Reporting
Additional Notes
• Payments are identified by the use of certain Class
Codes (attached).
• W2 Identifier/Class Codes: 2110, 2125, 2126, 2162,
2164, 2262, 2264, 3161, 3163.
• 1042 Identifiers:
– From PIR forms paid to non-US residents
– Adjust in QuickFile based on information from paid PIR
forms
– Data edited in QuickFile: 1042S indicator (yes or no), 1042S
income type, tax rate, exemption status and withhold taxes.
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29