Purchasing
Reconciliation of Punch Out Charges
Purchases made through BMP Punch Out Suppliers are paid for by a USF Ghost Card. A Ghost Card is essentially a high limit USF PCard used for all purchases from a certain Supplier. When USF pays the Ghost Card Bill, an automatic reconciliation process is run to pull the necessary funds to cover each transaction line from the USF Chartfield that was indicated when the purchase was made.
Below is a description on how the process works:
- When a supplier uses the Ghost Card number to pay for items, they supply the PO number to the Bank
- When the Bank charges us, we match the PO number the supplier provided to the PO number in our system to pull the correct amount off the Chartfield to pay for the item.
- You see this reflected as the expense charge in FAST or Finance Mart.
- The below situations occur when there is a less than perfect match between the PO amount and the Supplier charge.
SUPPLIER OVERAGE
We allow either a 10% or $100 dollars (whichever is the less) overage on any Punch Out PO's to reconcile to the chartfield provided, so long as there is enough budget in the chartfield to cover the expense.
Ex.
PO Line 1 = $50 Supplier Charge = $75 for items
PO Line 2 = $25 Supplier Charge = $5 for shipping
PO Total = $75 Supplier Charge total = $80
Since $80 is less than $75 + 10%, the charge will be allowed to reconcile to the chartfield without involvement from Pcard or the department who placed the order. The department will be responsible for expenditure transfer if there is a need to move the overage.
If the amount exceeds 10% or $100 dollars, the transaction will be flagged by PCard before it posts to your account and a member of our team will reach out regarding the discrepancy.
ORDERS PARTIALLY SHIPPED (MULTIPLE TRANSACTIONS)
We automatically split a received transaction across all lines of a PO. Which basically means that an item you haven't received yet will bear it's portion of the total charges if items from a PO are shipped separately.
Ex.
PO Line 1 = $75 (75% of total)
PO Line 2 = $25 (25% of total)
PO Total = $100
Supplier ships only line 1 and charges $75
in FAST, the charge is distributed based on the proportion of the PO total that the
line represents
PO Line 1 = $56.25
PO Line 2 = $18.75
The process considers splitting if multiple chartfields are involved. Once the rest of the items are received, the PO in FAST will be fully matched and the PO will close.
SUPPLIER UNDERAGE
Any PO with an open balance after 30 days will be followed up on by a member of our PCard team.
Open balances can occur when an items is out of stock, delayed, no longer anticipated to arrive, or a price discount was applied. We will take appropriate action to keep the PO open or to force close the PO depending on the situation.
LINE CANCELLATION AFTER RECEIPT OF OTHER LINES
BMP Punch Out does not allow change requests on the PO, but that doesn't mean that some items don't get received or some don't get substituted.
If an item isn't received it would likely leave an open balance on the PO.
So you would get a scenario like ..
Line 1 = $50
Line 2 = $25
Line 3 = $25
If you receive Line 1 and Line 2 ($75) the distribution would be
Line 1: $37.50
Line 2: $18.75
Line 3: $18.75
Let's say that Line 3 after 30 days has not arrived - this PO would be partially reconciled with a $25 open balance. PCard would generate a report for these exceptions and someone from PCard would follow up with you. If you were still expecting the item, they would wait another 30 days to see if the item had been received and then reconcile the charge. Or if the item was not expected to arrive, they would close the PO and release the encumbrance.