25.25 Invoices, Chancellor's Office Business Policies & Procedures


To establish policies and procedures associated with processing invoices.


The following procedures will be used for processing invoices.


Consideration should be given to the Internal Control Guidelines included herein.

  1. To prepare an invoice for payment, Business Processing Staff:
    1. Assembles supporting documents (price quotes, purchase orders, receiving documents, invoices, etc.) as an invoice packet;
    2. Matches descriptions, quantities, etc. between what was ordered and what was received;
    3. Attaches a Payment Voucher form or a Payment Sticker(the sticker can be formatted to print on labels and printed off sheets at a time) (both of these are optional);
    4. Assigns the index from which the payment should be made; and
    5. Signs/initials and dates invoice packet as "verified."
  2. The Business Processing Staff routes the invoice packet to the Department Head or Department Approver for approval.
  3. The Department Head or Department Approver approves the invoice packet for payment by his or her signature/initials and the date. The Department Head or Department Approver approves invoices for payment within the following parameters:
    1. Approval means attesting that the payment is (1) within his or her delegated authority to approve; (b) a lawful, legitimate, and necessary expenditure of state/OUS funds; (c) an appropriate charge to the index designated; and (d) within budget.
    2. The approval is made within delegated authority on file with Business Processing staff. If the payment is over the designated dollar limit for that index, the Department Head performs this approval. For payments less than or equal to the designated dollar limit, the Department Head or Department Approver performs this approval.
  4. The Department Head or Department Approver routes the invoice packet to Business Processing Staff for input into FIS.
  5. Upon confirming that the invoice packet has all necessary approvals, the Business Processing Staff assigns the appropriate account code*, inputs the payment in FIS, and records the FIS invoice number.
    *NOTE: If the item being purchased is a fixed asset there are additional procedures that need to be followed at this point in the process. See section 25.35 Fixed Assets for additional information and procedures that need to be followed.
  6. The Business Processing Staff routes the invoice packet to the FIS Approver.
  7. The FIS Approver approves the payment in FIS if, upon examining the invoice packet:
    1. All necessary approvals have been made.
    2. The information which has been entered into FIS agrees with information on the invoice packet.
    3. The invoice appears reasonable and within the normal range of business activity for the Department.
    4. Prior to final approval in FIS, the Approver brings any unusual items to the attention of the Business Services Manager for resolution. The Business Services Manager:
      • reviews the unusual items,
      • clarifies the facts and circumstances (as needed),
      • researches applicable laws, rules, regulations, policies, past practices, and approved exceptions,
      • consults with Controller's Division staff and Controller (as needed) to determine resolution, and
      • coordinates communication of resolution to Department Head and appropriate Department Approver.
  8. Periodically (at a minimum of quarterly), Business Processing Staff reconciles documentation with activity in FIS.
  9. Following the reconciliation, Business Processing Staff files the invoice packets in accounts payable archive files.

Late Charges:

State law, ORS 293.462(3), limits the amount that state agencies can pay in overdue account charges to 2/3 of 1% (or .006667), but not more than 8% annually. Each vendor, however, has established their own standard rate to charge for past-due accounts. If a department receives an invoice with a past-due charge greater than is allowed by state law, the department must contact the vendor, explain that situation, cite the state law, and ask the vendor to send a corrected invoice or get agreement to pay the lesser amount.

Internal Control Guidelines:

One individual must not have the ability to:

  • place orders with vendors,
  • receive items purchased,
  • pay invoices,
  • keep the accounting records, and
  • review the accounting records.

An individual performing all five steps has the ability to abuse the system and misappropriate funds without timely detection. It is recommended that a different employee (e.g., supervisor) perform at least one of the five steps so that all transactions have the involvement of two persons.


Banner Input Forms:

FAAINVD Invoice/Credit Memo Cancel Form
FAAINVE Invoice/Credit Memo Form
FOADOCU Document by User
Used to query by originating user ID (inputter) all documents that are completed, approved, incomplete, or cancelled. This screen is helpful when the inputter wants to make a correction to a completed document prior to it routing for FIS approval. The inputter can use this screen to deny (disapprove) a completed (but not approved) document so that corrections can be made.
FOAUAPP User Approval Form
Remove name displayed to view all documents in all queues

Banner Query Forms:

FAICHKH Check Payment History Form
Shows status of check (e.g., check date and date cashed for final reconciliation).
FAIINVL Invoice/Credit Memo List Form
(Open, Paid, Suspense, or Hold)
FAIVNDH Vendor Detail History Form
More specific information can be obtained by querying on elements in the lower block.
FGIDOCR Document Retrieval Inquiry Form
Query on posted invoices with option of seeing FGQDOCP document postings (accounting detail information)
FGIENCD Detail Encumbrance Activity Form
FOIAPHT Approval History Form
Query by document code to display originating user and approver.
FOIDOCH Document History Form
Query by Invoice number to show status (incomplete, complete, approved) Shows other documents tied to the payment (e.g., PO, check, and asset tag)

Banner Reports:

FARINVA Invoice Activity Report
Print detail and summary invoice activity for a specified period of time.
CAUTION: Remember to enter 05 option of Vendor ID to avoid getting ALL vendors activity within a given time period.
FWRODTH Transaction Detail History
Similar to FGRODTH, with the following differences:
  • It can be generated across the fiscal year
  • It includes ALL transactions before and after a change that occur in the defaults of the index
  • The output can be in the form of a printed report or downloaded into a spreadsheet
  • It does not have the budgetary error inherent in FGRODTH

Be sure to complete the parameter for the Index or Organization Code (from and to) to print only your department's transaction detail.

FWRVHST Single Vendor History Report
Print detail and summary invoice activity for a specified period of time.

Last Updated: 06/06/06