Policy/Procedure Document for Finance Team

1. <organization name deleted>
Policies and Procedures for Financial Processing and PeopleSoft
Transactions
Writing sample of Mark R. McCabe

2. 2
<organization name>
Division of Policy and Planning, Finance
Policies and Procedures for PeopleSoft Financial Transactions
Table of Contents
SUMMARY......................................................................................................................3
Detailed Description of Processes...............................................................................4
1. Request of Goods and Services......................................................................................4
2. Requisition Writing ..........................................................................................................4
3. Requisitions Approval......................................................................................................5
4. Purchase Order Creation ................................................................................................6
5. Invoice Processing ..........................................................................................................6
6. Receiver Creation ...........................................................................................................9
7. Voucher Creation ............................................................................................................9
8. Financial Reporting .......................................................................................................10
9. Tracking Budget to Actual Progress/Controlling Budget ................................................10
10. Granting, Tracking, Terminating Access to PeopleSoft..................................................10
11. Training New Users.......................................................................................................11
12. Contract Management/Process Management ...............................................................11
Document History
Revision Date Description Name
1.0 2/25/2013 Initial document creation McCabe
3/20/2013 Updated McCabe
5/15/2013 Updated McCabe
2/25/2014 Updated McCabe

3. 3
SUMMARY
This document describes financial policies and procedures for the <organization>. The goals of the finance team
include:
1. Adherence to all legal requirements and financial policies and procedures of the <organization>.
2. Pursuit of timely processing of financial transactions in the PeopleSoft (PS) Financial System.
3. Facilitation of effective budgetary control and spending/expenditure planning.
4. Exercise proper internal control and review over financial processes.
5. Provide accurate and timely financial analysis and reporting.
Financial Procedures
This document defines the specific financial procedures and policies around those procedures. In sum, those
procedures and responsible parties include:
# PROCESS (a) RESPONSIBLE PARTY (b)
1 Request of goods and services Division Manager/Administrator
2 Requisition writing Office Assistant/Admin Staff/or
Designated Individual
3 Requisition approval Approver
4 Purchase Order creation (Department
Buyer role)
Accounting Manager / Accounting
Coordinator (PS Department Buyer Role)
5 Receipt of Invoices from vendor; Invoice
Processing (in PS)
Office Assistant/Admin Staff/or
Designated Individual
6 Receiver Creation Office Assistant/Admin Staff/or
Designated Individual
7 Voucher Creation Office Assistant/Admin Staff/or
Designated Individual
8 Financial Reporting CFO/Finance Division
9 Tracking Budget to Actual
Progress/Controlling Budget
Division Manager/Administrator and
Accounting Manager
10 Granting , Access to PeopleSoft CFO/Finance Division
11 Training new users CFO/Finance Division
12 Contract/Process Management Division Manager/Administrator
(a) Processes defined in this document are guidelines established by the CFO. Financial policies and
procedures within the PeopleSoft system are set and overseen by <finance and IT agencies>.
(b) This document focuses on the procedures within and related to the PeopleSoft Financial system. Note
that “Responsible Party” might have variability between the different Divisions and Sections, and within
the rules of access in the PeopleSoft Finance system. Managers can recommend personnel to perform
processes in PeopleSoft Finance system; the CFO must approve any request to gain access to PeopleSoft
Financials.
NOTE: Training Documentation Available on DPW Sharepoint site:
http://gateway...

4. 4
Detailed Description of Processes
1. Request of Goods and Services
Responsible Party Manager/Administrator
Process Description Manager/administrator with appropriate authority identifies a need for a good or a
service. The manager communicates this need to the Requisition Writer.
For Operations Division, a “Request for Purchase” form should be used.
If the purchase item is an unplanned/unbudgeted item, or of a significant dollar
amount, the Manager/Administrator should be prepared to identify the available
budget for the requested item, or where to find budget that can be transferred if
necessary.
Reference/Training
Material
Finance Training for Managers
2. Requisition Writing
Responsible Party Office Assistant/Admin Staff/or Designated Individual
Process Description Writing a requisition in PeopleSoft. Requisition Writers must have appropriate access
to PS Financials to write requisitions, and should have training.
Requisition writers are responsible for knowing the chartfields (Department, Fund,
Account) used in transactions.
Requisitions should have sufficient documentation attached to provide the approver
with enough information to justify the transaction.
Note that Requisitions cannot be written and approved by the same user.
Reference/Training
Material
Requisitions_Creating
Requisitions_Creating contract related
Requisitions_Entering a Category-Only Contract-Related Requisition
Requisitions_issues with multi line same cat code from cat only contract
Requisitions_purging source errors

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3. Requisitions Approval
Responsible Party Approver (must be a designated approver in PeopleSoft)
Process
Description
Approval of requisitions and vouchers in PeopleSoft.
Approver reviews worklist items and selects the appropriate document to approve
(multiple documents are in a worklist; approver must be trained to know which documents
are the correct ones to approve).
The action of approval is one step in authorizing the Department to spend the funds in
question. Approver is responsible for reviewing correctness of chartfield information,
including Department, Fund, Account, and Project Code (if used).
Approver must understand budgets and the process of authorizing dollar amount in
question on the document up for approval. Approver should question Requisition Writer
or Voucher Writer if any information is questionable or missing.
Requisitions under $2,500, or any requisition associated with an existing contract, will be
approved at the Department level. Any requisition over $2,500 and not on contract will be
approved by DPW then go to Purchasing Division for final approval. The requisition
workflow goes to the Department Buyer based on the Category Code in the req.
When approving the purchase of goods and/or services, the approval authority is
authorizing and certifying that the procurement is both reasonable and necessary for the
efficient operation of the City of Indianapolis-Marion County, and areas that are under the
operation control of the authority. Public Purchasing Law set forth in Article 22 of Title 5
of the Indiana Code (IC 5-22) and Article I, Chapter 12 of Title 36 of the Indiana Code (IC
36-1-12); Ordinances outlying the duties of the City Controller and Purchasing Division set
forth in Section 202-202 to 202-204 of the Indianapolis /Marion County Municipal Code
(IMCC 1-202-3-2-2 through 204).
There are four approval levels in PS Financials. If a requisition or voucher is under the
threshold per that approvers level, there is no higher level required once that approver
accepts the document.
Levels are:
1) Less than $ 2,500
2) Less than $25,000
3) Less than $75,000
4) Greater than $75,000
Note that “Approver” and “Department Buyer” are separate roles in PeopleSoft. One
person can have both roles.
Reference/Training
Material “Approve Online Requisitions” job aid

6. 6
4. Purchase Order Creation
Responsible Party Accounting Manager / Accounting Coordinator (PS Department Buyer Role)
Process Description Once final approval is made on a requisition, the Buyer may expedite the req to a PO.
If the dollar amount is over $2,500 and not on a contract, the Purchasing Division is
responsible for the Buyer role. For purchases under $2,500 or related to an existing
contract in the system, the DPW Department Buyer creates the Purchase Order. Note
that for a multi-line req, each line must be attached to a contract for Department
Buyer to take to PO.
This is an administrative type process; the approval to make the purchase and the
approval to spend the funds have already been granted when the requisition is ready
to be expedited to a PO. An Approver may or may not also be a Department Buyer.
Reference/Training
Material “Expedite Req to PO” job aid
5. Invoice Processing
Responsible Party Finance Staff / AND Designated Individual Who Validates Invoice
Process Description All invoices should be paid by due date. In the event that an invoice will be paid after
the due date, Finance Staff must clearly note the reason as well as communicate with
the vendors to ensure that all parties are aware of payment status.
DPW Finance Staff are ultimately responsible for getting DPW bills paid on time.
Any invoices that are paid late and incur late fees must include a written
explanation as to why the bill was not paid on time.
Invoices sent to DPW have several possible routing/procedures based on which DPW
Division the vendor is invoicing.
All Fleet Division invoices are sent directly to Fleet Services
All Engineering Division are handled by Finance Staff of Engineering
Some vendors send invoices directly to City/County Accounts Payable (AP).
AP scans and sends the invoice to DPW.
All Operations invoices will follow the procedures outlined below:

7. 7
All invoices for Operations Division activity should be sent to
<organization address>
PROCESS FOR INVOICES THAT COME TO DPW OPERATIONS:
1) Invoice received:
a. Upon opening, invoice must be date stamped “received on” date.
b. Scan/e-mail invoice to yourself.
c. Save/rename file as “Vendor Name_DATE”…the date in this title should
be the date of the date stamp.
d. Invoice info must be entered to Sharepoint Invoice Tracker. Attach
invoice file to Sharepoint entry.
e. Invoice must be assigned to one Finance Staff person. That person is
responsible for the invoice approval process, and to obtain the approval
of the proper manager for the invoice payment.
f. If Finance Staff is unable to obtain timely Manager approval, Finance Staff
should escalate issue to Finance Office.
g. Finance Staff person is responsible for communications with the vendor
relative to this invoice. All communications should be documented,
preferably noted on the invoice document.
h. Any invoice due date should be a reasonable amount of time from time of
receipt. If the due date on an invoice received is too close to pay on time,
processor must contact vendor to discuss due date and likelihood of late
payment. CONVERSATION MUST BE NOTED ON INVOICE, DATED AND
INITIALED.
i. If the invoice does not reference a valid PO, Finance Staff should attempt
to identify PO, write the number on the invoice, prior to scanning.
2) Utility Invoices: payment (on voucher or by receiver) must match the CORRECT
AMOUNT OWED on the invoice, not just the “current amount” on the invoice.
Several scenarios:
a. Invoice has no prior balance. You have a new balance, and a late balance
if paid after the due date. If your payment will be on time, you should pay
the CURRENT BALANCE. CIRCLE THE BALANCE YOU ARE PAYING, AND
INITIAL THE DOCUMENT.
b. Invoice has no prior balance, but you are late in payment. PAY THE ‘LATE’
AMOUNT. You must put the regular charges on one line, and the penalty
amount on a second accounting line. IN THIS SITUATION YOU MUST
WRITE AN EXPLANATION ON THE INVOICE AS TO WHY THIS PAYMENT IS
LATE.
c. Invoice has prior balance, and you are paying the full invoice amount. Be
sure to create a second accounting line for the penalty. IN THIS
SITUATION YOU MUST WRITE AN EXPLANATION ON THE INVOICE AS TO
WHY THIS PAYMENT IS LATE.
d. Invoice has prior balance, but you are only paying the current charge.
NOTE THAT THE ONLY ACCEPTABLE SCENARIO IS THAT THE PRIOR
BALANCE HAS ALREADY BEEN PAID. In this situation, if the prior balance

8. 8
has already been paid, please write this on the invoice and reference the
voucher number that the balance was paid on.
Reference/Training
Material
6. Invoice Sequence
VENDOR DPW AUDITOR
SENDS INVOICE BILL RECEIVED AT DPW FIN.
*Open and stamp received date
*Enter Info to Invoice Tracker
*Scan/Email to Manager for Approval
*Enter Req/PO/Vchr info to Tracker
*Mgr approves with email response
*If Mgr does not approve, Fin Staff
is responsible for resolving.
RECEIVES PAYMENT *Enter Receiver # to Tracker
SCAN/EMAIL TO FINANCE CCB
FIN CCB DELIVERS TO AUDITOR AUDITOR OFFICE
Generates Invoice/Voucher in PS
Check Generated/Mailed
DPW FINANCE INVOICE PROCESS

9. 9
7. Receiver Creation
Responsible Party Office Assistant/Admin Staff/or Designated Individual
Process Description When an item, good, or service has been received by DPW, a Receiver (Receipt)
document must be entered to PeopleSoft.
The correct entry is the date received the goods or service in question.
Do not enter the date that the invoice was received or any other date.
Amount received: you must enter the actual amount received to generate the
correct payment.
Reference/Training
Material
Receipt Creation for approvers
Receipt Creation for NON approvers
8. Voucher Creation
Responsible Party Office Assistant/Admin Staff/or Designated Individual
Process Description The majority of payment transactions in PeopleSoft will originate in the Purchasing
module as a requisition and follow the defined workflow in the system. For all
transactions that originate in the Purchasing module, the Accounts Payable office is
responsible for generating the voucher to pay the vendor.
Certain types of payments can be paid by Voucher in the PeopleSoft system (also
known as a “Direct Voucher”). See attachment of acceptable payment items that
may be paid with a voucher.
Staff designated by mangement can have the Voucher Creator role.
Vouchers_Creating Direct
Vouchers_finalizing to relieve PO balances

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9. Financial Reporting
Responsible Party DPW CFO/Finance Division
Process Description The PeopleSoft financial system has muiltiple sources of reporting of financial data,
including online queries (such as Budget Overview screen), ad hoc and systemwide
queries, other system reports, and Hyperion/Smartview reporting tools.
Reports and queries may be generated by any user with appropriate access. Any
report or query generated should be shared with the DPW CFO office to ensure
review and confirmation of details produced from the system.
Reference/Training
Material
<<work in progress>>
Contact CFO Office for reports/queries
10. Tracking Budget to Actual Progress/Controlling Budget
Responsible Party Division Manager/Administrator and Accounting Manager
Process Description Manager responsible for controlling/managing some portion of the budget.
Reference/Training
Material
Finance Manager Training Document
11. Granting, Tracking, Terminating Access to PeopleSoft
Responsible Party CFO/Finance Division
Process Description Receive access requests to view data or perform actions within PeopleSoft Financial
system.
Users should submit requests to CFO office. CFO will fill out form and submit to ISA for
access.
Reference/Training
Material
ISA PeopleSoft Finance Security Form

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12. Training New Users
Responsible Party CFO/Finance Division
Process Description Conduct training courses, one on one and ad hoc training for users.
Reference/Training
Material
Training guides within this document, as well as other documents on Sharepoint site.
13. Contract Management/Process Management
Responsible Party Designated Manager
Process Description Contract development, vendor contact, program, process management relative to
contract specifications. All processes are the domain of the designated contract or
process manager.
DPW Finance facilitates and provides support for this process as follows:
1. Provide accounting for requisition/PO writing at time of contract initiation.
2. Write requisitions/POs for contract services as needed throughout life of
contract.
3. Process invoices/payments, assist with this process to ensure that vendors are
paid on time
4. Assist with payment issues and problems, working with Purchasing Division
and Accounts Payable to ensure timely payment occurs.
Reference/Training
Material
None at this time.