Accounts Payable Topic: Check With Order

Description

What is a "Check-With-Order"?
UNLV requires that an approved purchase order is used for every order that we place.  However, there are occasions when a vendor may not accept a purchase order or P-card as a method of payment.  In most cases, a substitution of vendors can alleviate this problem.  Still, UNLV does allowed a check to be issued to the vendor as a prepayment when no other options exist.

What are acceptable reasons to issue a prepayment?

• UNLV will not open an account with this vendor based on credit terms
• a vendor needs to establish our credit worthiness before accepting future orders
• the order form states that a check must accompany the order
• our Purchase Order is returned with a request for prepayment

When should we not issue a prepayment?

• the order has already been placed
• the goods or services have already been provided
• the vendor is going out of business
• we have a contract or account with a suitable substitute vendor
• the vendor has been placed payment hold
• the vendor refuses to submit a vendor application
• Accounts Payable does not approve the use of this vendor

If you feel that a check request is in order, please follow the procedure below.

Procedure

How to obtain a Check-with-order:

• Verify that an approved vendor is being used
  • Review the data warehouse or contact A/P or Purchasing for a vendor code
  • For new vendors, a vendor application and W-9 will need to be on file
• Obtain a price quote or order form
  • If not stated, verify that the vendor requires prepayment
  • Ask for a written price quote if an order form is not being used
  • Be certain to add shipping and handling charges when appropriate
• Prepare your request on an approved requisition (RX) for PO generation and fund encumbrance
  • There is no monetary exception all CWO's must be requested by RX.
  • Attach the price quote or order form
  • Write your check disposition on the RX (include a name and phone number if someone is to be contacted)
  • DO NOT SEND ANY DOCUMENTATION TO THE VENDOR
• Submit your request to Purchasing at least five business days before the check is needed
  • Leave time for Purchasing to process the request, and Accounts Payable to issue the check
  • Keep a copy of the documentation for your records
  • Emergency requests can not be made due to lack of planning
• After five business days, verify that the check was issued
  • View the transaction records in Advantage
  • Contact Accounts Payable if you requested to be notified
• For local vendors...
  • Take a copy of UNLV's tax exempt certification with the check
  • obtain a receipt for your transaction
  • return the receipt to Accounts Payable within five days of check issue

Some things to keep in mind:

• UNLV is Nevada sales and use tax-exempt, regardless of method of payment
• sale prices are usually in effect for one week - obtain a written quote to lock your price
• the time to receive checks back varies - please allow at least five business days - after which, you may contact us on the check status
• prepayment is a risk - verify that all other options are sought first
• subscriptions, registrations, and memberships should be processed on a PV
• new vendors must be approved before a check request can be processed - take this into consideration when you submit your PV or RX
• the vendor must request prepayment in writing
• if you need the check in less than five business days
  • try to negotiate with the vendor for a delayed payment
  • If the order is less than $500, consider paying out-of-pocket and then request a reimbursement on a Payment Voucher
  • obtain, both, Purchasing and Accounts Payable approval to expedite - departmental work load will be a determining factor 
• unless you ask to hold the check, all payments and paperwork are mailed to the vendor
• we can not send vendor checks through intercampus mail - if the check is not being mailed to the vendor, we need someone to sign for them
  
• contact Accounts Payable or Purchasing for any clarification on these procedures