SUBMITTING CLAIMS AND VOUCHERS FOR PAYMENT - 8422.100
Agencies/departments will monitor and review transactions to ensure that claims and vouchers are proper and correct. The internal procedures of an agency/department should be designed to ensure timely, accurate, and cost-effective payment of obligations to vendors. Special attention should be given to the following:
Making Timely Payments and Monitoring Vendor Due Dates
Payments will be considered timely when an agency/department pays 95 percent or more of its obligations to vendors by the due date. Agencies/departments will maximize effective cash management by paying as close to the due date as workable. Vendor payments will be made by the due date. Due dates for payments are established by the terms of the purchase document, invoice, or contract between the agencydepartment and vendor(s). If the purchase document or contract is silent concerning terms or there is no written authorizing document, the terms are net 30 days. The 30 days, or other terms, begin upon receipt of the goods or services or a properly completed invoice, whichever is later.
As prescribed in SAM section 8474, agencies/departments are required to comply with the California Prompt Payment Act, which requires state agencies/departments to automatically calculate and pay late payments if they fail to make payment by the date required in the Act. See Government Code 927
Evaluating Vendor Discounts
Discounts offered by vendors are considered in evaluating competitive bids; failure to earn such discounts through prompt payment increases the effective price to the state. Agencies/departments are to pay all obligations in time to take advantage of the maximum discounts offered by vendors.
When agencies/departments accept partial delivery of goods or services without reservation, prompt payment is to be made for the goods or services received upon receipt from the vendor of a properly completed invoice or per the purchase document or contract terms covering the partial delivery.
Prompt Vendor Notifications (Disputes)
Prompt and proper notification to a vendor of receipt of unsatisfactory goods or services or an incorrect invoice defers the due date. The due date is recalculated from the date the problem is resolved. Proper authorization is required when material changes are made.
Also, state agencies/departments will verify the calculation of discounts, if applicable, price extensions, and sales tax and the arithmetical accuracy of totals on all invoices, including travel expense claims.
The document number providing the purchase authority (e.g., purchase order number, contract number, lease number) will be shown on original invoices submitted to the State Controller’s Office (SCO).
The agency/department may notify the vendor/claimant of any corrections to invoices by correspondence (e.g., letter, email) which should accompany the remittance advice on manual claims. For FI$Cal vouchers, a message can be added to the remittance advice indicating the correction. Whether the invoice is to be paid by FI$Cal voucher or manual claim, the agency/department must send an Invoice Dispute Notification, STD. 209, notifying the vendor/claimant within 15 working days from receipt of the invoice, as described in SAM section 8474.1.
Utility Services Invoices
Utility services invoices may contain a service period that overlaps two calendar months. This billing procedure does not cause any problems except at the end of a fiscal year. For uniformity, agencies/departments will charge utility invoices to the fiscal year in which the majority of the service falls. For example, if the service period is from June 10 through July 9, the total amount of the invoice will be charged to the fiscal year just ended. If the service period is from June 21 through July 20, the total amount of the invoice will be charged to the new fiscal year. If the period of service is of equal duration in each fiscal year, the invoice may be charged to either fiscal year.
DGS Fleet Services Invoices
Fleet services are billed by DGS on a calendar month basis. Occasionally minor amounts representing adjustments and delayed billings of the prior year are included in an invoice for the current year. Under these circumstances, the entire invoice may be charged to the current year appropriation.
Submitting Invoices in FI$Cal
Invoices processed in FI$Cal must be scanned in the PDF format and attached to the related voucher. Invoices cannot be consolidated into one voucher and submitted to SCO for payment request (e.g., many invoices to one voucher). If an invoice is marked as duplicate, it will need to be certified with the language below.
Submitting Manual Claims
If invoices are being submitted to the SCO through the manual claim process, the original invoices must be included with claim. If agencies/departments cannot obtain original invoices, the SCO will accept photocopies. Invoices marked as copies will include the same detailed information as provided on the original invoice, such as items purchased, quantity, delivery address, etc. In addition, the copies will be accepted by the SCO only if the following information is placed on the copy:
This bill has been checked against our records and found to be the original one presented for payment and has not been paid. We have recorded this payment so as to prevent a later duplicate payment.
No Revisions for this item.