Accounts Payable Procedure

Version Approved by Approval date Effective date Next full review

2.1 Vice-President, Finance and Operations 15 May 2019 15 May 2019 July 2019

Procedure Statement

The purpose of this document is to outline the Accounts Payable process

Purpose
including payments that are applicable to UNSW

This Procedure is University-wide and applies to all University staff regardless

Scope
of their level or seniority

Are Local Documents on this ☐ Yes, however Local Documents must be consistent with this ☒ No
subject permitted? University-wide Document

Procedure Processes and Actions

Contents
1. Accountabilities ......................................................................................................................................... 1
2. Vendor creation ......................................................................................................................................... 2
3. Invoice Processing .................................................................................................................................... 2
3.1. Invoice Requirements ........................................................................................................................ 2
3.2. Payment Request Form (PR1) .......................................................................................................... 2
3.3. Invoice Processing Time.................................................................................................................... 2
3.4. Advances ........................................................................................................................................... 3
3.4.1. Travel Cash Advances (TR3 Form) ................................................................................................... 3
3.4.2. Non-Travel Advances (NT1 Form) .................................................................................................... 3
3.5. Staff and Student Reimbursements ................................................................................................... 3
4. Other ......................................................................................................................................................... 3
4.1. Asset Instalments .............................................................................................................................. 3
5. Payment .................................................................................................................................................... 4
5.1. Payment Terms ................................................................................................................................. 4
5.2. Payment channels ............................................................................................................................. 4
5.3. Express Payments ............................................................................................................................. 4
5.4. Payment cycle ................................................................................................................................... 4

1. Accountabilities
The roles and responsibilities under the Accounts Payable Procedure are as follows:
Department Accountabilities
Finance  Invoice processing and payment
Shared Services  Maintain Vendor master data in NSF

University staff  Purchase order creation and goods receipting

 Prompt submission of invoices with correct information to enable
processing of invoices and payments by Accounts Payable
 Submit vendor creation request

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2. Vendor creation
University staff can create a new vendor by completing the Online Vendor Request form available on the
Accounts Payable Vendor Creation website. The following details are required:
• Type of request - create new vendor or change existing vendor
• Location where the vendor will be processed – Sydney or Canberra
• University staff primary and secondary contact details
• Secondary contact details are only required as an alternative contact, if the primary contact is
expecting to be on leave
• Vendor/Supplier email address
The vendor will receive an email containing the vendor application form for completion. Once the vendor
completes the form, the UNSW requestor will review the information provided by the vendor and then
submit the request to Accounts Payable for creation in NS Financials.
Note: If the vendor cannot complete the online form, you should contact vendors@unsw.edu.au for
assistance and guidance.

3. Invoice Processing

3.1. Invoice Requirements

The following criteria must be met before invoices can be processed:
• Invoice must be addressed to UNSW.
• Invoice should include Vendor/Supplier name, business address, amount and description of goods
and or services provided.
• Australian Vendors must provide a Tax invoice. A Tax invoice must include the price of sale, whether
it includes GST and the vendors Australian Business Number (ABN).
• If goods and or services are ordered using a UNSW purchase order the Vendors/Suppliers invoice
must contain the relevant purchase order number.
• Invoices with UNSW purchase orders must meet matching requirements.
Unsuccessful three-way or two-way matching in NS Financials will result in exception errors. Invoices
with exceptions are put on hold until the exceptions are resolved. Accounts Payable coordinates with
the relevant University staff member to resolve these exceptions to enable posting and payment of
invoices on hold.
Electronic PDF invoices are required and should be emailed to invoiceap@unsw.edu.au. If paper
invoices are received in Accounts Payable, these will be returned to the relevant staff member to scan
and submit as a PDF.
When goods or services have been delivered and accepted they must be receipted in NS Financials.
You do not require a tax invoice to receipt the goods/services. Receipting should be completed on the
delivery of goods/services.

3.2. Payment Request Form (PR1)

UNSW’s preferred method of paying vendors is through the use of Purchase Orders accompanied by a
vendor invoice. However, it is recognised that there are certain approved (one off exception) payment
types where a purchase order and invoice are not appropriate. In these exceptional circumstances, the
form to be used for payment is the Payment Request Form-PR1.

3.3. Invoice Processing Time

Invoices and other requests received by Accounts Payable that meet all invoice and purchasing
requirements will be processed in NS Financials within 3 business days. Payments will be made
according to agreed terms and schedule listed in section 5.

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 3.4. Advances

3.4.1. Travel Cash Advances (TR3 Form)

In exceptional circumstances, a travel cash advance may be required to cover significant expenses
of a business nature that are not covered by a travel allowance (TR2). A travel cash advance must
be approved by a financial delegate and is paid before the date of travel. Acquitting the travel cash
advance (TR4) occurs when the staff member submits all tax invoices and receipts no more than 30
days after the returned date of travel.
• TR2 – Travel allowance for meals, accommodation and incidentals. Can be paid in advance and
is not required to be reconciled or acquitted.
• TR3 – Travel cash advance for business expenses. Must be reconciled and acquitted upon
return. Any unused funds to be repaid.
• TR4 – Travel cash advance settlement form.
A further travel allowance advance will not be issued to an employee until their outstanding travel
advance has been acquitted. Furthermore, there are also FBT implications if a travel allowance
advance is not acquitted in a timely manner.
Please refer to the UNSW Travel Policy and Procedure.

3.4.2. Non-Travel Advances (NT1 Form)

Non-travel advances are paid to employees for other sorts of business related advances where a
UNSW credit card or other purchasing method are not available (excludes travel). The requestor for
non-travel advances must seek approval from a financial delegate.
All non-travel advances must be acquitted within 6 months from the date of the request to avoid FBT
liability charges.

3.5. Staff and Student Reimbursements

The purpose of reimbursements is to refund staff or students when personal funds are used to incur
UNSW related expenditure.
Reimbursements can be completed in NS Financials by the staff member who incurred the expense, or
entered on behalf of a student or other staff member. Approval of these claims must be submitted to a
person with financial delegation.
To ensure prompt and efficient payment, any changes to your personal details must be updated via
myUNSW.
The approver must ensure that the expenditure is appropriate in accordance with the Business Expense
Procedure and that receipts and tax invoices are attached to the claim.
Once a claim is approved payment will be made in the next payment run.
All enterers will receive a system generated report on a monthly basis to review and action all aged
expenses.
For further information please use this link.
Supporting documentation: Receipts and tax invoices must be obtained for all transactions for
advance acquittals and expense reimbursements. In the event of lost or obtainable invoices/receipts a
Transaction Declaration Form ( PCDT) must be completed and submitted unless the transaction value is
less than AUD$75.00 ( including GST). This is in accordance with the Credit Card Procedure.

4. Other

4.1. Asset Instalments

A multi-line purchase order indicating milestone payments is required for asset instalments. Receipting
should be completed according to payment due dates. A copy of the invoice or pro-forma invoice marked
as “PREPAYMENT” should be sent to Accounts Payable for processing.
For further information please review Asset Instalment

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5. Payment

5.1. Payment Terms

UNSW complies with agreed payment terms and endeavours to take advantage of discounts offered for
prompt payment.
UNSW’s default payment terms are 30 days end of month from invoice date. Where payment terms are
less than 30 days, a higher payment term should be negotiated wherever possible.
If no payment term is specified on the invoice, UNSW shall pay within 30 days of the end of the month in
which the vendors invoice is received. Any changes to the standard payment terms must be channelled
through the Accounts Payable Team Leaders with an explanation so that the vendor master data
information can be amended.

5.2. Payment channels

UNSW maintains multiple payments methods as part of its commitment to efficiently pay for goods and
services. The payments channels are to be used appropriately to maintain payment efficiency and
effectiveness for UNSW.
The payment channels are as follows:
i) Staff and Student Reimbursement - the expense module in NS Financials must be used for
staff and student reimbursements.
ii) Credit card - UNSW credit cards are intended to provide an efficient method of purchasing
travel, accommodation and low value goods and services where no preferred supplier
agreement is in place for UNSW business purposes. Use of credit cards should strictly follow the
Credit Card Policy and Procedure.
iii) Supplier Payment method:

Domestic • Electronic Funds Transfers - this is the preferred payment method for all
Payments domestic payments.
• Cheques - these should be used in exceptional circumstances only (e.g.
when the preferred payment method (EFT) is not available, for instance
for Student Prizes

Overseas • WIRE payments - this is the preferred payment method for all
Payments international payments (including transfer if appropriate for visiting
academics).
• Drafts - these should be used in exceptional circumstances only.

5.3. Express Payments

Express payments may only be requested from Accounts Payable if the following criteria are met:
• Significant penalty or late fees will be incurred or discount foregone.
• Meeting UNSW statutory or compliance obligations (e.g. tax or payroll).
All express payments must be approved by the Manager Purchase to Pay – Finance Operations or
nominated delegate.
The method of express payments is limited to electronic funds transfer (EFT) only.

5.4. Payment cycle

Payments are processed every Tuesday and Friday for local vendors including staff and student
reimbursements and overseas vendors. All payment remittances are emailed electronically.
If the payment run fall on a public holiday, the payment run will be processed the next business day.
A $20 processing fee will be charged to business units that have requested cheques or drafts. This fee
will not be charged if the option to pay electronically is not available.

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 Accountabilities

Responsible Officer Director of Finance Operations

Contact Officer Manager Purchase to Pay, Finance Operations (Finance Help Desk)

Supporting Information
This Procedure supports the University’s compliance with the following legislation:
Legislative Compliance
Nil

Parent Document (Policy) Nil

Supporting Documents Nil

Credit Card Policy

Credit Card Procedure
Online forms | UNSW Finance
Related Documents
Procurement Policy and Procurement Procedure
Travel Policy and Travel Procedure
Asset Guidelines

Superseded Documents Accounts Payable Procedure, v2.0

File Number 2015/19273

Definitions and Acronyms

Accounts Payable UNSW department responsible for processing invoices and payments.

Asset Instalments Milestone payments made in advance of receipt of equipment or similar assets.

Express payment A payment process used by Accounts Payable if an urgent payment is required.

NS Financials (NSF) UNSW’s finance system, which is a software application, provided by

Oracle/PeopleSoft. The system is referred to as NS Financials at UNSW. It is the
technology used for purchasing (and other) financial processes and transactions.

Payment Terms Agreed number of days between delivery and payment.

Formal document issued by UNSW to vendors specifying goods and or service

Purchase Order
requirements.

Tax Invoice A document which shows the supplier charges for goods delivered or services provided.
It contains pricing, details of types of goods or services sold, Australian Business
Number, indicates whether it includes GST and the total charged.

Three-way matching Matching the invoice price and quantity against the purchase order price and quantity
and matching receipts. If not three-way matched the invoice will appear in the matched
exception report for resolution.

Two-way matching Matching the invoice price and quantity against the purchase order price and quantity. If
not two-way matched the invoice will appear in the matched exception report for
resolution.

All employees of UNSW including fixed-term, casuals and persons who are engaged to
University Staff perform work as independent contractors authorised to undertake purchasing on behalf
of UNSW

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 The external party or entity providing goods and or services to UNSW. They include
Australian and non-Australian entities, sole-traders, firms, incorporated and publicly
Vendor listed companies, GST registered and non-registered entities. They can be
manufacturers, distributors, franchisors, retailers, resellers, merchants, agents and
individuals. UNSW employees are not considered vendors.

Revision History
Version Approved by Approval date Effective date Sections modified
Acting Vice-President, Finance
1.0 12 February 2015 1 January 2015 This is a new Procedure
and Operations

Vice-President, Finance &

2.0 14 July 2016 18 July 2016 Full review
Operations

Section 3.2 amended; position

Vice-President, Finance &
2.1 15 May 2019 15 May 2019 titles updated in Section 5.3
Operations
and Accountabilities.

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