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  5. XII.9.F Correcting Payments Processed Against the Incorrect Purchase Order

XII. Expenditures

Guide to Financial Operations

XII.9.F Correcting Payments Processed Against the Incorrect Purchase Order

XII. Expenditures
Guide to Financial Operations

SECTION OVERVIEW AND POLICIES

The purpose of this section is to provide guidance to Business Units related to the process for correcting payments processed against the wrong purchase order when funds are still active. Paying against the wrong purchase order will impact the available purchase order balances for the two purchase orders affected. Therefore, it is important for Business Units to correct these errors upon detection.

With the implementation of the Statewide Financial System (SFS), Business Units will no longer liquidate payments directly against a contract. Instead, Business Units will use a purchase order to encumber funds against the contract, and then liquidate against the purchase order through the voucher process. As a result, correcting payments made against the wrong purchase order when the purchase order references a contract must also be corrected through the following process.

In the event that funds have since lapsed, please see Chapter XI, Section 7.D - Refund of Appropriations Against Contract Expenditures.

Process and Document Preparation:

In the event that a Business Unit issues a payment against the wrong purchase order, and the funds in question are still active, the Business Unit must correct the accounting by processing a voucher with two separate transactions netting to zero, as follows:

  • Process a credit memo voucher in the amount of the original payment referencing the incorrect purchase order number and the original voucher number.
  • Process a regular voucher referencing the correct purchase order.

The credit memo will reverse the accounting of the original voucher. Depending on the timing, this process may offset future payments to this vendor.

Business Units must keep in mind the requirement for unique invoice numbers. Please see Section 5.B - Unique Invoice Number Requirements of this Chapter, for more information on processing a regular voucher, including the requirement for unique invoice numbers.

See Section 9.D – Refunds Owed to the State of this Chapter, for additional information on credit memos.

For questions related to correcting vouchers paid against the wrong purchase order, please contact the Bureau of State Expenditures’ Customer Service Help Desk at (518) 474-4868, or by email addressed to [email protected].

Guide to Financial Operations

REV. 02/27/2015