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Home FAQ How to Get a Card Index Online Reconciliation User Guide/Forms Using the Card What's New | Online Reconciliation 
Introduction Purchasing Card transactions are reconciled by using the Purchasing Card (PU) system in ADIN. The system receives electronic transmissions from the credit card company showing posted card transactions. These transactions need to be validated for accuracy and receipt of goods. Once validated, these transactions will be routed electronically to someone who can reallocate the correct fund number and class code splits. The transaction is then forwarded electronically to a person designated to serve as the approver. Once approved it is moved into the accounting system and appears in the Financial Management system. This all takes place electronically with e-mails for notification at every step. The system has been designed so each system user will receive reminders by e-mail if transactions have not been processed. A series of reminder e-mail messages begin seven working days before the last working day of the month. If a transaction has not been reconciled, users will receive follow-up e-mail messages corresponding to the transaction status. For additional information on how to use the PU system, see the Purchasing Card Program User Guide, Section B. (top) System Users The System Users are identified on the Cardholder Application Agreement form. This information is entered into the Purchasing Card System database. Each System User has a unique and essential function within the reconciliation process. In order for this on-line system to perform, all System User information must be current and correct. Send any departmental changes, e-mail address changes, status changes, or terminations to the Purchasing Card Program Administrator at llackore@iastate.edu. Cardholder: The person to whom the card and its responsibilities belong. All purchase transactions processed against the Purchasing Card must be made by the Cardholder. The card is not to be used by support staff or students on behalf of the Cardholder. The Cardholder has full liability for any improper charges that result from allowing others to use the card. Validator: The person responsible for validating the charges against the card and maintaining proper documentation. The Validator will verify the charges per transaction are authorized charges, amounts are correct, and materials have been received. The Cardholder may be the Validator, or a department may have a Validator who validates the transactions for one or more cardholders. Reallocator: The person responsible for entering the accounting information on-line for each transaction. A default fund/account/section/project number and class code is identified at the time of application. The Reallocator may reallocate the charges to one or more fund/account numbers. The department may have a Reallocator who reallocates the transactions for one or more Cardholders within the department, or Cardholders may reallocate their own transactions with department approval. Approver: The person responsible for evaluating the allowability and appropriateness of a particular transaction and approving the specific fund and account number assigned to that transaction. This person may or may not be in the same departmental area as the Cardholder as it is determined by the fund/account assigned to the transaction. Each Approver must be in the Purchasing Card System database or an error will result. Please note: The Cardholder may not be the approver for their own card’s transactions. Proxy: The person designated and authorized to perform any of the above functions, except Cardholder, in their absence or by delegation. A Proxy for each System User shall be identified at the time of purchasing card application. The system’s use of the Proxy facilitates the timely on-line processing of all transactions. (top) Training Cardholders and individuals new to the reconciliation and approval process will be required to attend a brief orientation session, after which, the cardholders will receive their cards. Online reconciliation system training is scheduled by the Purchasing Card Program Administrator. For upcoming training dates, contact the Purchasing Card Program Administrator at 515-294-4589. (top) Status Codes Transactions are processed in the PU system by system users entering transaction descriptions and status codes as the transaction moves through validation, reallocation, and approval. Status codes for Validators: ‘V’ – validates the transaction is accurate and goods have been received. ‘N’ – not received causes the transaction to stay on the summary screen until status is changed to ‘V’. ‘D’ – disputed transactions will not process through the system; use only when the transaction is not the Cardholder’s or the vendor refuses to issue a credit. Status codes for Reallocators: ‘R’ – reallocates the transaction to the appropriate fund/account and class code. 'F’ – forwards the transaction to another Reallocator. ‘P’ – paid is used by the Reallocator only when a transaction has been identified as unallowable by an Approver. A personal reimbursement is necessary. At the time payment is cash reported, the transaction may be changed to ‘P’. ‘N’ – not received causes the transaction to stay on the summary screen until status is changed to ‘V’. ‘D’ – disputed transactions will not process through the system; use only when the transaction is not the Cardholder’s or the vendor refuses to issue a credit. Status codes for Approvers: ‘A’ – approves the transaction to be posted to accounting. ‘U’ – unallowable university expenditure to be reimbursed by the Cardholder. ‘O’ – objects to this transaction being paid by the designated fund account or class code. Transaction is sent back to Reallocator. ‘C’ – the completed transaction has been entered into the Financial Management (FM) system. Only ‘A’ approved and ‘P’ paid transactions will be posted to the accounting General Ledger system. It is the department’s responsibility to process unallowable transactions properly. The Purchasing Card Program Administrator will be notified by the system immediately of any ‘D’ disputed transactions, invalid users, or ‘U’ unallowable transactions. (top) Statement Reconciliation The electronic reconciliation system receives daily electronic transmissions (from the credit card company) showing posted card transactions by cardholder. The person designated to validate the accuracy and receipt of the items associated with that card will be notified by e-mail that they have one or more transactions to review. Once validated it will be routed electronically to someone who can assign or reallocate the correct fund numbers and class code splits. The transaction will then be forwarded electronically to a person designated to serve as the Approver, who will approve or deny the transaction. Once approved it will be moved into the accounting system and appear in the Financial Management (FM) system. If there are incorrect totals or disputed charges, the total amount must be paid. Do not ignore the transaction (see Transaction Discrepancies). Corrected amounts for disputed charges will be reflected on subsequent statements. See the Purchasing Card User Guide Section B for detailed instructions on the use of the system. (top) Transaction Discrepancies If there is a charge that is not recognized by the cardholder or if a transaction appears to be incorrect, the cardholder should first seek resolution with the merchant. Should this prove unsuccessful, the cardholder shall e-mail the Purchasing Card Program Administrator a notice with supporting information at llackore@iastate.edu. All discrepancies/questioned items shall be communicated to the Purchasing Card Program Administrator within 30 days of the monthly statement date. Your request will be sent directly to USBank/Élan for review. Once the charge is disputed, USBank/Élan will suspend the charge and request documentation from the merchant. If the merchant fails to provide suitable documentation within thirty (30) days, the charge will be removed from our account and appear as a credit on the next statement. (top) Processing Credit Transactions If you have a transaction against which you will receive full or partial credit, the Validator or Reallocator should note this in the transaction description field and use the status code ‘N’ – Not received – to hold the transaction on the SU screen and suspend e-mail messages. Once the credit transaction is transmitted to the SU screen (identifiable as a negative amount from the same vendor as the original transaction), both transactions must be validated, reallocated, and approved. Make sure to use the same fund account number and class code on both the original and the credit transaction. (top) Purchasing Card Administrator Assistance Users may contact the Purchasing Card Program Administrator at 294-4589 or Associate Director of Purchasing at 294-8757 for assistance. The Administrator and Associate Director have the ability to view the same screen you see, but only the user can update the information. | |||||||||||||||||||
Purchasing Department, purchasing@iastate.edu Copyright© 2002, Iowa State University, all rights reserved Revised 02/28/2005 12:32 PM | ||||||||||||||||||||
