ADMINISTRATIVE PROCEDURE

Depositing Supplier Checks (sponsored and non-sponsored accounts) and Depositing Refunds of Sponsored Employee Expense Overpayments

Purpose

Process for depositing and recording a supplier or sponsored expense reimbursement check.

Exclusions

  • Cash Advances
  • Loan Repayments or Program Income
  • Refunds of non-sponsored employee expense overpayments.
  • Supplier Rebates - contact Disbursement Services at disbsvcs@umn.edu if you have questions.

Frequency

Upon receipt of a check.

Definitions

TermsDefinition
Supplier check A check from a supplier that compensates the University for an erroneous expense or duplicate payment.
Refund of sponsored employee expense overpayment. A check returned by an employee for overpayment of expenses.

Responsibilities

GroupTask
University Departments
  • Deposit funds using Departmental Deposit
  • Notify Disbursement Services
  • Problem resolution
Disbursement Services
  • Process Journal Voucher in the Accounts Payable module (for sponsored accounts) to allow cost collection
  • Place a payment note on the supplier/voucher record to indicate the funds have been returned
  • Notify department with completed Journal Voucher information
  • Problem resolution
Sponsored Financial Reporting
  • Problem resolution

Procedure: Sponsored Account - Supplier or Expense Reimbursement Check Received.

Step 1 (University department role)
  1. Upon receipt of a supplier or sponsored expense reimbursement check the department preparer will create a Departmental Deposit in the Enterprise Financial System (EFS). 

    Navigation: Accounts Receivable > Payments > Online Payments > UM Prepare Deposit

    • The check is deposited into the AP Sponsored Payments account. Distribution line should be completed as follows:
      AmountFundDept IDAccount
      Dollar amount of check 1000 12094 110022
      *All other fields on the distribution line should remain blank.*
    • In the "Comments" section of the Departmental Deposit indicate AS (for Accounts Payable Sponsored), and the chart field string (Fund, DeptID, Account, PCBU, Project, Activity) to credit the Sponsored Account.
    • • Attach check(s) to the Deposit Detail Report from EFS and forward it to the person in the department that electronically scans and deposits the checks. For information regarding the deposit process, go to: http://www.finsys.umn.edu/bursar.html
    • The deposit preparer processes the deposit and emails Disbursement Services at, disbsvcs@umn.edu including: Dept. Deposit ID, check number, dollar amount, requester name, phone number, and original voucher or expense report number.
    • Indicate "Sponsored AP/Expense Check" in the email subject line.
Steps 2, 3 and 4 (Disbursement Services role)
  1. Disbursement Services receives an email notice and processes a Journal Voucher in the Accounts Payable module. This step is necessary to allow the sponsored funds to be cost collected.

    Navigation: Accounts Payable > Vouchers > AddUpdate > RegularEntry > Voucher > Journal Voucher

    • The Journal Voucher debits the AP Sponsored Payments account string, (1000-12094-110022) and credits the department designated sponsored account, (Fund, DeptID, Account, PCBU, Project, Activity).
  2. Disbursement Services emails the preparer with the Journal Voucher ID.
  3. Disbursement Services enters a note on the supplier/voucher that a supplier check has been received.

Procedure: Non-Sponsored Account - Supplier Check Received.

Step 1 (University department role)
  1. Upon receipt of a supplier check the department preparer will create a Departmental Deposit in EFS.

    Navigation: Accounts Receivable > Payments > Online Payments > UM Prepare Deposit

    • The check is deposited by the preparer crediting the original expense chartfield string.
    • In the "Comments" section of the Departmental Deposit, the preparer indicates AN, (for Accounts Payable non-sponsored account).
    • Attach check(s) to the Deposit Detail Report from EFS and forward to the person in the department who electronically scans and deposits the checks. For information regarding the deposit process, go to: http://www.finsys.umn.edu/bursar.html.
    • The deposit preparer processes the deposit and emails Disbursement Services at disbsvcs@umn.edu with the Dept. Deposit ID, check number, dollar amount, requester name, phone number and original voucher number.
    • Indicate "Refund Check" in the email subject line.
Step 2 (Disbursement Services role)
  1. Disbursement Services enters a note on the supplier/voucher that a supplier check has been received.

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