Accounts Payable Processes

Canceling and Reissuing Checks

The Accounts Payable office is responsible for canceling and reissuing checks which originate from any transaction processed in the UPS application of the BASIS module. To have a check canceled or reissued, please contact the Business Services at 575-2551.

Cash Management

The Accounts Payable office makes every effort to insure that vendor invoices are paid within the guidelines of vendor payment terms. Although there are payments that are due immediately upon receipt of invoice (Example: individuals), most vendor's payment terms are Net 30. As invoices are entered in the BASIS system for payment, the payment due date will default to 30 days from the vendor invoice date. The Accounts Payable office does have the ability of overriding the default date and moving a payment up as required. Once the invoice is disbursed, payment is issued to the vendor 5 days prior to the payment due date if sufficient time allows; otherwise it is issued the next day after it is disbursed.

Credit Memos

Credit Memos received from a vendor MUST reference a Purchase Order in order to be entered and applied. These credits will be entered in the BASIS system. All credit memos require approval by the department for which they are entered. Approvals are located by accessing webBASIS or utilizing 3270 BASIS. Department representatives will approve a credit memo entered. Once the credit has been disbursed, the company cost center/s from which the original invoice was expensed will be credited. This credit will be stored in the BASIS system until sufficient debits are available to use the credit. If a credit is not taken within 6 months, the Accounts Payable office will make every effort to have the vendor send a refund check for the amount of the credit. When a refund check is received prior to there being sufficient debits, the credit memo that was entered in BASIS will be canceled. Checks are deposited into the cost center from which the expense was originally paid.

Credit Memos processed by the University of Arkansas Bookstore are analyzed monthly by the Bookstore to determine if the vendor will continue to be utilized. If it is found that the vendor will not be used, a refund check is requested. If it is determined that the vendor will continue to supply inventory within the next 12 months, the credit memo will continue to be monitored and if found PRIOR to 18 months that there has not been sufficient activity, a refund check will be requested. There should not be any credit memos over 18 months old.

If it is found that it is not possible to collect a refund check OR buy additional inventory from the vendor, the credit memo amount will be handled through the University abatement process.

Direct Payments

Direct payments are those which do not require a purchase order. These payments are created in BASIS by the departmental user using the UPAY function. Payments made using this function are not subject to Receiving. Certain payments will require supporting documentation to be sent to the Business Services office prior to disbursement of the payment.

Invoice Requirements

All invoices MUST be billed to the University, not to an individual, and to also include the following additional information, if applicable:

  • The name and address of the vendor
  • Invoice Date
  • Invoice Number
  • Purchase Order Number (if applicable)
  • Itemized listing of purchases (if applicable). This should include a description of the merchandise and/or services, unit price, and extended line total.
  • If vendor remits sales tax to the State of Arkansas, and if the item (s) purchased are taxable, then sales tax should be included on the invoice.

Non-Resident Payment

Every effort should be made to contact the Non-Resident Taxation Specialist in Human Resources well in advance of any desired payment or reimbursement to a non-resident individual. This step will ensure that the appropriate tax documentation has been secured in order to make a timely and accurate payment and that the University is in compliance with the Internal Revenue Service regulations.

The Non-Resident Taxation Specialist will provide instructions to the requesting department on the appropriate tax deductions for any payment type to an NRA, if applicable.

Please contact Human Resources NRA Representative at 575-2099 or visit the Non-Resident Alien Information page.


The BASIS Receiving system enables departments to provide electronic acknowledgment of orders received. Before a payment will be issued to a vendor, Receiving MUST be performed (if applicable).

There are two types of Receiving that can be performed depending on how the user setup the Purchase Order line:

  • Quantity Receiving (QRPO)
  • Dollar Receiving (DRPO)

The Receiving system allows the user to post any quantity without regard to quantity ordered. In any case, the invoicing system will disallow a payment if it exceeds the PO Max on the Purchase Order. Receiving is disallowed for closed or canceled Purchase Orders. You may not post to the Receiving system, purchase dates which are prior to the PO Effective Date on the Purchase Order or past the PO Expiration Date on a blanket.

There are certain orders where Receiving is NOT required:

  • Check with Orders
  • Invoice Attached Orders
  • Direct Pays

Sales and Use Tax

The University of Arkansas is NOT exempt from paying sales or use tax except on those items and/or purchase transactions that are specifically exempted by law.

Sales Tax will be charged by those vendors located in-state and by out of state vendors if that out of state vendor remits sales tax to the State of Arkansas.

Use Tax will be calculated by the BASIS system on those purchases where tax is applicable; the vendor is located out of state, and the vendor DOES NOT remit sales tax to the State of Arkansas. Use tax is then remitted to the State of Arkansas by the Financial Affairs Office at the University of Arkansas.

State Claims

Arkansas State law requires that a claim be filed with the Arkansas State Claims Commission for invoices or services rendered that are more than two (2) fiscal years old. The vendor supplies a copy of the unpaid invoice to: Arkansas State Claims Commission, 101 E Capitol Ave., Ste 410, Little Rock, AR 72201-3823. The commission can be reached at: (501) 682-1619. The claim is reviewed by the commission and is forwarded to UAF for research. The department provides a cost center from which to pay the invoice. The Claims Commission issues payment directly to the vendor. This process can take up to four (4) months to complete.

Training and Customer Support

Accounts Payable staff are available to provide training. Each A/P staff member is responsible for particular Budgetary Units.