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Making Payments Using Single Payment Vendor Numbers

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Establishing a permanent vendor record on the EFS vendor file ensures accurate information for tax, reporting and management purposes. However, there are occasions where it may not be practical to set up a permanent vendor record, e.g., one-time payments, transactions having no tax implications. The use of the Single Payment Vendor (SPV) number(s) may be used in those instances but is restricted to the items listed in Single Payment Vendor Payment Types Allowed grid. Clusters are assigned a unique SPV number that may be used only by authorized users (Voucher Specialists) in each Cluster. It is the responsibility of the Cluster Director and Voucher Specialist to ensure the proper use of the SPV, that adequate control is in place and the SPV activity is closely monitored.

SPVs may not be used for the following types of payment:

  • University Employees (except for human subject payments)
  • University Students (except for human subject payments; prizes and miscellaneous expense) reimbursements $100.00 or less. Must use vendor code SPVSTUDENT for prizes and reimbursements)
  • Vendor is already set up
  • Payment requires a Purchase Order or Contract
  • Professional Service Providers (except as indicated on the SPV grid)
  • Foreign Address, foreign national, 1042S or Military PO Boxes. A US address does not validate that the payee is not a foreign national.
  • Royalty payments
  • Assets
  • Expenses relating to family members of University employees

Processing SPV Payments:

  1. Department personnel send prepared/completed Check Request Form or invoice to their Cluster for processing.
  2. The support documents are imaged in the Cluster.
  3. Voucher Specialist reviews payment documentation, payee support information and justification.
  4. The Voucher Specialist searches the EFS vendor file for the payee’s name and address. The Single Payment Vendor number should not be used if there is an existing vendor number. If the vendor is established but the address is not set up, a Vendor Authorization Form should be completed requesting the new address.
  5. If there is not a vendor record found on the vendor file for the payee, the Voucher Specialist will check the listing for the types of payments that are allowed to be paid using the SPV, listed in Single Payment Vendor Payment Types Allowed.
  6. Under this procedure, the University's reimbursement policies for employee travel and business expenses should be followed for non-employees under the parameters indicated in Single Payment Vendor Payment Types Allowed. The University will not report these reimbursements as taxable income to the person being reimbursed. Accordingly, care needs to be exercised by all department personnel, Voucher Specialists and Cluster Directors to make sure that expense reimbursements to vendors using the SPV process follow the same University travel and expense reimbursement policies appertaining to employees including the documentation of the business reason for the expense reimbursements. Otherwise, the reimbursements are reportable as taxable income to the vendor.
  7. If the type of payment is not allowed on the SPV, the Voucher Specialists should work with the appropriate department staff to complete the necessary forms to set up a vendor in EFS.
  8. When the type of payment is allowed on a SPV, the payment support documents should be scanned and the Voucher Specialist enters the payment information using the Single Payment Vendor Entry Standards, and links the voucher to the image.

Single Payment Vendor Entry Standards:

The following standards have been developed for entering payee information for Single Payment Vendors. Adherence to these standards will help to ensure the integrity of the payee file. These standards take in to consideration the business or individual name and are based United Postal Addressing Standards.

  • All payee information should be entered in CAPITAL LETTERS.
  • Do not use punctuation in any of the fields, (no apostrophes, commas, periods, etc).
  • The payee’s full first and last name should be entered in this order in the Name 1 field only with no punctuation. EX: ROBERT JOHNSON
  • When using suite or building numbers in addresses, it should be placed on the same line as the street address without commas. According to postal regulations the street number address should come first, followed by the suite or building number.
  • Spell out all city names, do not abbreviate or punctuate.
  • Always use zip codes with zip plus four when available, inserting a hyphen in this field, e.g., xxxxx-xxxx.
  • *Note*: The comments field is a required field for all Single Payment Vendor vouchers. "Details on file" should only be used for human subject related payments.

    Oversight and Monitoring SPVs:

    Cluster Directors are responsible for the accuracy and integrity of all payments made using the cluster SPV vendor numbers. The vouchers should be reviewed in the Production instance, preferably the same day as they are entered. Based on a Cluster's payment processing volume and frequency of using the SPV number for processing payments, the Cluster Director or their designee must perform timely reviews of their SPV activity.

    Two options for reviewing Single Payment Vendor daily Transactions:

    • PeopleSoft Public Query - UM_FAP_PAID_SPV_DATE_ORIGIN
    • PeopleSoft Voucher inquiry –
    • Navigation: Accounts Payable>Review Accounts Payable>Vouchers>Voucher, Enter Business Unit, Entered date, Origin Set ID, Origin Number and Voucher Style = Single Payment Vendor Search – Increase Max Rows if the number of vouchers entered to > 300

    After the Cluster Director's review, immediate action must be taken on any anomalies, payment types that are not allowed, any transactions that do not follow the Single Payment Vendor Entry Standards. Any questionable transactions should be placed on payment hold immediately. Any indication of potential fraud should be reported to the U police and Disbursement Services immediately.

    How to handle exceptions:

    Finding Status Action
    Voucher is not valid Voucher is Posted Close voucher
    Voucher is not valid Voucher is Unposted Delete voucher
    Payee information is not correct Voucher is Posted Unpost the voucher, correct the invalid information and Save.
    Payee information is not correct Voucher is Unposted Correct the invalid information and Save.
    Voucher is valid Voucher is Posted Remove Payment Hold and Hold Reason. Enter Payment Note that research was completed and voucher is valid
    No image in ImageNow Verify invoice is linked to the posted voucher Have voucher linked.
    Research completed and payment was already issued Paid Contact Disbursement Services (disbsvcs@umn.edu)to determine options for recovering funds.

    Cluster Director should also run the reports developed and distributed by Disbursement Services to review all SPV payments on a weekly, monthly, quarterly or annual basis, looking for trends, compliance, issues, etc. Based on the results of their review, the Cluster Directors should notify Disbursement Services of any payees where their payments should be reported to the IRS (MISC1099) or when fraud is suspected. Disbursement Services will also perform audits on all SPV activity.

    Contact Disbursement Services for additional information regarding Single Payment Vendor processing, for additional queries and inquiry instructions related to managing this activity.

    Additional Information:

    1. Appendix - Single Payment Vendor Payment Types Allowed
    2. Appendix - Single Payment Vendor Review of Daily Entries
    3. PeopleSoft Public Management Resources for Single Payment Vendor Review
      • UM_FAP_PAID_SPV_DATE_ORIGIN
      • Navigation: Accounts Payable>Review Accounts Payable>Vouchers>Voucher, Enter Business Unit, Entered date, Origin Set ID, Origin Number and Voucher Style = Single Payment Vendor Search – Increase Max Rows if the number of vouchers entered to > 300

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Last modified on August 28, 2012