8.-8.4. Purchase Documentation
8.1. Concur Transaction System
天堂鸟先生 uses Concur to post payment card transactions from Mastercard. Posting a transaction in Concur simply means that is now visible to the cardholder or delegate for verification purposes. Any processing dates associated with reconciling and approving the card transaction are calculated from the post date in Concur.
Example: Cardholder purchases office supplies from a vendor on 1/31/2022. The transaction posts in Concur on February 4, 2022. The cardholder has 28 calendar days to reconcile and substantiate the transaction in Concur from February 4, 2022.
When the transaction report is submitted in Concur and subsequently approved by the approver, the transactions will be posted to the university financial statements.
8.2. Establishing Concur Default Accounts
Pcard default account numbers are stored in Oracle for each cardholder. These default accounting strings can be changed by the planning unit Chief Financial and Administrative Officer (CFAO) or designee in Oracle (see the eBiz - Concur Default Cost Center Quick Reference Guide for instructions). The default account should be either the cardholder鈥檚 main departmental account number or the account number most often charged. It is advisable to not use a grant account number as the default account number (those Award values starting with a 1, 2, or 3) for a cardholder. However, if a department chooses to do that, they need to ensure they have appropriate controls in place (particularly when transactions are reviewed by the financial approver) to ensure that charges to the grant account are allowable in accordance with the sponsors spending guidance and Uniform Guidance.
8.3. Itemized Receipt
Pcard purchases must be supported by itemized receipts, which list the items purchased, the dollar amount of each item, and the total amount of each transaction. Internet orders require a copy of the order that itemizes all costs. (Exceptions apply for some types of business travel transactions if the expense is less than $75. See Policy 41.121, "Reimbursement for Official Travel and Entertainment," for details.)
An itemized receipt is defined as an invoice, cash register receipt, sales slip, or packing slip which contains the following information:
- Business/Vendor Name and location
- Date of Purchase
- Description of items purchased
- Price of each item purchased
- Total amount of purchase
- Method of payment (sometimes is included but not always)
- Attach the packing slip (if available)
Electronic copies of receipts are acceptable. Handwritten receipts must be signed by an employee of the supplier. If the cash register tape does not itemize what was purchased, this should be legibly written on the tape so that an adequate description is provided for what was purchased. If you have a packing slip you should also attach that as backup to the purchase.
Tips for ensuring you have itemized receipts for your transactions:
- Purchases made in person 鈥 retain the itemized receipt in addition to the credit card copy to properly substantiate the purchase. Note: a credit card slip is not an itemized receipt!
- Faxed or mailed purchases 鈥 retain a copy of the order as faxed or mailed and the fax confirmation for your records.
- Online purchases 鈥 keep copies of the online ordering form and the email confirmation received from the supplier (if available).
| Example | Documentation Required | Comments |
|---|---|---|
| Goods | Itemized receipt that shows the date of purchase, an itemized list of the goods purchased, with dollar amounts and the name and location of the supplier | All purchases must be in compliance with University Purchasing policies (Generally those that start with 鈥55鈥); University Spending Guidelines and any other relevant University policy associated with the purchase |
| Business Meeting Meal | Itemized receipt for the meal showing the date of purchase, itemized list of meals/beverages purchased, with dollar amounts and the name and location of the supplier; attach a copy of the business meeting agenda; list the participants of the business meeting | Remember to follow University Spending Guidelines when having business meetings; An itemized receipt does not include the credit card slip that the cardholder signs (the credit card slip does not provide the itemized detail to adequately document the purchase) |
| Professional Dues or Membership | Itemized receipt showing the date of the purchase, the amount paid, the supplier name, and a description of what was paid (preferably one that includes the effective start and end dates of the purchase) | Follow University Spending Guidelines as it relates to memberships and dues; Policy 03.020 Payment of Memberships and Dues in Selected Organizations |
| Equipment | Itemized receipt showing the date of purchase, the itemized detail of the equipment purchased, with dollar amount and the name and location of the supplier | Follow Policy 19.054 Equipment Inventory Control and be sure to list all of the information necessary to capitalize the equipment if the cost is $5,000 or more |
If the receipt is misplaced, the cardholder is responsible for contacting the merchant to request a duplicate. Any transaction that is not supported by an itemized receipt may have to be reimbursed to the university since there is not supporting documentation for the purchase.
When attaching the itemized receipts in Concur the reconciler needs to ensure that the receipt copy is legible. Since electronic receipts are often the only copy that is maintained, it is critical that internal and external auditors and reviewers can clearly see the receipt details.
8.4. Business Purpose
Business purpose is a critical piece of information that is necessary with every purchase you make on a pcard. When using university funds or requesting a reimbursement from university funds, documentation of a clear business purpose is required so that an approver, and /or auditor may reasonably conclude and agree that the expenditure is an appropriate business expense.
The business purpose is a statement that adequately describes the expense as a necessary, reasonable, and appropriate business expense for the University. All expenses must support or advance the goals, objectives, and mission of the University.
Expense approvers are responsible and accountable to determine whether expenses comply with the business purpose guidelines and the expenses are necessary business expenses.
When defining a business purpose, the 5 鈥淲s鈥 (Who, What, Where, When, Why) can help you create a well-documented business purpose:
- Who: The documentation must note specifically who the expense is for or who was at the event funded by the university.
- Examples:
- Business Meal: John Smith (external guest of the university) and Susie Bobcat.
- Classroom Supplies: History 101, Professor Smith
- Examples:
- What: The University needs to know what type of event or activity occurred, or what was purchased. All receipts or invoices should be itemized.
- Examples:
- 2 dinner entrees, 2 beverages, and 1 desert
- 3 notebooks and box of yellow highlighters
- Examples:
- Where: Document where the business activity took place. For example: Hotel room for Conference XYZ in Atlanta
- When: Document when an event occurred. For example: 5/3/2022 Graduation reception.
- Why: Most importantly, substantiate why the expenses are reasonable and appropriate for the university. The 鈥淲hy鈥 should include the primary reason for the expense. The table below provides examples of both appropriate and insufficient business purposes for the same expense.
| Type of Expense | Adequate Business Purpose | Inadequate Business Purpose | Comments |
|---|---|---|---|
| Business Meal | Met with Conference Co-Chair to finalize budget and agenda for Conference 123 being held June 1, 2022 through June 5, 2022 in Atlanta, GA | Business meeting | Remember to follow university policy for business meals as well as University Spending Guidelines |
| Event | Reception for visiting lecturer and author, Dr. Joe Smith, who presented a lecture in Art 403 on April 10, 2022 | Reception | All attendees should be listed. If you are dealing with large groups you may instead describe the group (i.e., Cardholder plus Art History department faculty and graduate students 鈥 spring 2022) |
| Travel | Conference | ||
| Purchases | Conference registration fee for Conference XYZ on 4/15/2022 through 4/18/2022 | Office supplies | Remember, office supplies should be purchased through BobcatBUY whenever possible |
The business purpose field is very important and should be as specific as possible without exceeding the 48 character limit. If the purpose is longer than the 48 character limit, use the Comment field below the business purpose field in Concur to provide additional information.
Note: when you are spending grant dollars, it is best practice to include in your business purpose why the expense is of benefit to the grant. Most granting agencies that review pcard transactions want to understand how the purchase has benefited the work being paid for by the grant.