OSU FIS 408: Centralized Processing of Expenditures

408 Centralized Processing of Expenditures (Auto Pays)

On a pre-arranged basis Auto Pay Vendors submit to the Business Affairs Accounts Payable office the following information:

• a hard copy statement
• copies of all invoices listed on the statement
• an electronic billing file

Payment information is obtained from individual invoices that are retained as backup documentation.  Invoices submitted for payment must legibly show the printed name of the person initiating the credit purchase, their signature, telephone number, department name, six digit Index code and activity code if desired.  Vendors who submit invoices containing invalid or missing information may be requested to remove the charge from the OSU account.  Direct charges to the Agriculture Research Foundation (ARF) and OSU Foundation should never appear on Auto Pay accounts.  These foundations are separate entities from OSU.

Business Affairs Accounts Payable office processes the payment to the vendor, then redistributes the charges to the charging department via journal voucher.  A copy of the JV with detail backup is forwarded to the department for their internal audit and reconciliation purposes.

1. Type of business:
   Purchases made by OSU staff, faculty, and students from an auto pay vendor are not audited for appropriateness prior to purchase, therefore not all merchants are suitable to become a part of the Auto Pay system.  Merchants providing 1099 tax reportable services or equipment over the $5,000 purchasing threshold are not eligible to become Auto Pay vendors because of purchase order, audit, and tax reporting requirements.

2. Volume of Business:
   Monthly payment history should substantiate a minimum of twenty invoices, paying more than four separate OSU departments

3. Default account code:
   Central payments require the use of a generic account code, therefore credit purchases with individual merchants need to fall into one account code category

4. Ability to provide and maintain required billing procedures:
   An electronic billing file with a minimum of modifications needed, individual invoices with correct information, correct posting of payments to invoices.

5. Signed Agreement acknowledging requirements/provisions of Auto Pay Vendors:
   All contracts need to be negotiated through Purchasing and approved by the Business Affairs Accounts Payable office prior to set up. 

Contact Business Affairs Accounts Payable office about setting up a new Auto Pay vendor.   

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408-01 Procurement Cards

The Oregon University System contracts with a bank to provide the Purchasing (procurement) card and the Corporate (Travel and Entertainment) card programs.

The procurement card is a quick and convenient way for departments to obtain many of the items needed for day-to-day operations.  However, their usage requires management and oversight.

OSU VISA Departmental Purchasing cards should never be used for OSU travel or entertainment expenses.  This includes the reservation of conference lodging and rental cars.  The only time lodging can be paid with the purchasing card is when the conference/seminar registration includes lodging (registration, room and tax paid in one transaction to a conference center).  If a card number is needed to reserve conference/seminar lodging or rental cars, the traveler’s OSU Corporate card number should be used.

Additional information on the OSU VISA Purchasing along with restricted uses can be found at on the Accounts Payables website.  See TRA 202: Corporate Travel Card in the Travel (TRA) Manual for information on the Corporate Travel Card.

Reference: OUS Fical Policy Manual 70.100 Purchasing - Procurement.

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408-02 Car Rentals

Charging car rentals to OSU is allowed only for employees on University business.  The AutoPay vendor program is used to charge rental cars to the university.  Do not charge rental cars to the Department Purchasing Card.  Do not charge car rentals for non-employees; the State of Oregon self-insurance program does not cover non-employees for liability.

When a department brings someone onto campus as an independent contractor, or a visitor of any kind, including interviews, do not agree to pay for the car rental charges on an AutoPay basis.

Non-employees coming to OSU are able to receive the discounted rates, but payment needs to be made directly by them, no exceptions.

Departmental personnel can make rental arrangements for non-employee, but inform the visitor that they are responsible for payment of the rental charges, including any damage that is incurred while the vehicle is in their possession.  Non-employees will need to present a credit card as a form of payment.

For further information, see the following web sites:

• TRA 205: Ground Transportation
• See "Car Rental" or "Enterprise" on the PaCS website for OSU Contracts

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408-03 Travel Agencies – airfare

All travel, international and domestic, by OSU employees, people doing business on behalf of OSU, and persons coming to Corvallis for job interviews may be booked through one of the contracted agencies.  The City Pairs program can be used by both employees and non-employees who are traveling on OSU/state business.  However, City Pairs program and OSU contracted travel agencies cannot be used for someone on a Personal Services Contract (PSC) or a vendor.  Departments may choose whichever travel agency does the best job for them and may change between them as often as they like.  Each travel agency bills centrally and the charges are then redistributed to OSU departments.  See the Travel (TRA) Policies and Procedures manual for the list of current contracted travel agencies. 

Reference: IMD 4.020

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408-04 OSU Bookstore

Campus departments may purchase items from the OSU Bookstore for departmental operations, and charge them to the department.  The employee must show his/her staff ID and provide a departmental index.  The receipt should be given to the departmental accounting staff so the billing can be reconciled at the end of the month.

Auxiliary enterprises are also able to use the OSU Bookstore for purchases of items used by the department in daily operations.  However, student books cannot be charged via the auto-pay process.  Books must be paid for directly by the department.  For example, when Intercollegiate Athletics purchases books for student athletes on scholarships (grant in aid program).

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