The following checklist will help ensure more accurate and timely invoice processing. If you have questions, please call Payable Accounting at (989) 774-3523.
- Allow 7 to 10 business days from the date the payment request is received in Payable Accounting for processing – if the paperwork is complete. Payments may be issued later based on the vendor's payment terms.
- Payments are generated once a week, generally, on Wednesdays. Checks are mailed out the next business day. To view payment run dates, click here.
- Follow University policies and procedures for making purchases by using a purchase order ( PO), non-purchase order (NPO) invoice voucher, CMU Business Card, or employee reimbursement where appropriate. Not Sure? The following web sites are great resources: Payables and Purchasing – access thru Contracting & Purchasing Services , and Credit Cards – access thru the Controller's web site.
- Remember to follow University policy and procedure regarding contracts and contracting authority. Obtain appropriate contract review and contracting authority signatures, as required.
- Vendors should send invoices and credit memos by email to firstname.lastname@example.org or mail directly to: Central Michigan University, Payable Accounting, Drawer 1000, Mt. Pleasant, MI 48859. If an invoice or credit memo is mailed directly to your department in error, please forward "originals" to 302 Warriner.
- Approve and return/submit all invoices quickly…especially if payment is on a grant. This helps to ensure that charges are processed while the grant account is still open.
- Have merchandise/product, that is ordered on a purchase order (PO), shipped directly to Central Receiving. If the items are delivered to your department, then you must complete the on-line Direct Delivery form, which is available on the Receiving web site located here. Central Receiving must be notified (via the Direct Delivery form) when goods are delivered directly to your department in order for your cost center to be properly charged for the purchase. Also, Payable Accounting cannot process payment to the vendor until the on-line receiving has been processed against the PO in SAP.
- Follow proper procedures when returning/exchanging merchandise. Contracting & Purchasing Services' should be contacted for assistance anytime it is necessary to return/exchange merchandise purchased on a PO. Notify Payable Accounting when it is necessary to return/exchange NPO (non-purchase order) purchases. When returning/exchanging merchandise for which payment has already been processed, either by PO or NPO, request a credit memo or refund check from the vendor. Credit memos and refund checks should be mailed directly to: Central Michigan University, Payable Accounting, Drawer 1000, Mt. Pleasant, MI 48859. For the complete Return Merchandise Procedure go here .
- Hiring an individual/business to provide services to your department? If so, please follow university policy and procedure for determining independent contractor (IC) status. Refer to the Independ ent Contractor Page for the Independent Contractor Questionnaire and Contracts. Direct all IC questions to Contracting & Purchasing Services at 3523 or Human Resources (Employment & Compensation) at 3753. If you are thinking about hiring another CMU employee to do outside work for your department, you MUST contact Human Resources or Faculty Personnel Services BEFORE having the work performed. The employee cannot be paid through Payable Accounting. Basic guidelines for compensating someone for performing a service are available on HR's web page at the following link : https://www.cmich.edu/fas/hr/Documents/paying-indiv-perform-service.pdf .
- If you are planning to make any type of payment or reimbursement to a non-resident alien (NRA), it is very important that you first contact Human Resources at 3753, or Payroll at 3481, to determine if the NRA is eligible to receive payment or reimbursement. Due to the paperwork involved in determining the NRA's eligibility, you should allow at least 2 to 3 weeks processing time. Visit Payroll's web page at www.controller.cmich.edu/payroll/nonresalien.htm, for basic information on payments to non-resident aliens. Even though a NRA may be eligible to receive payment from CMU, we may be required to withhold federal and state taxes from that payment.
- CMU is required to file a Form 1099-MISC to report various types of payments made to a U.S. person/entity or resident alien, in the course of doing business. If you are submitting paperwork (i.e., purchase requisition, NPO invoice voucher, or vendor invoice), to pay a vendor for a 1099-reportable payment, documentation (see below**) is needed to determine if reporting is required. Following are some basic guidelines on payments that would be reportable on Form 1099-MISC:
- Payments for compensation for services rendered by a non-employee in the course of CMU business. This would also include payment for parts and materials used in rendering services such as repairs, installation, etc. (The non-employee/independent contractor could be an individual, sole-proprietor, partnership - or a corporation when paying for legal and medical/health care services).
- Rent Payments (e.g., rental or lease of office space, hotel "banquet" rooms (including lodging), equipment, land, clothing/costumes, booth space, videos, etc.
- Non-employee Prizes and Awards (cash and non-cash).
- Payments made to attorneys or law firms (including corporations) for legal services.
- Payments for taxable fringe benefits paid to a non-employee.
- Payments made for punitive damages.
- Payments of director's fees.
- Payments made to a deceased employee's estate or beneficiary.
- Payments for royalties / copyright fees / "permission to use" fees.
- Gross proceeds paid to attorneys or law firms, which are NOT for legal services provided in the course of CMU business, such as claim settlements and garnishments.
**CMU must obtain documentation to verify a vendor's organizational structure (e.g., partnership, corporation, etc.) to determine if payments are reportable on Form 1099-MISC. An IRS Form W-9 (Federal Taxpayer Identification Number Request) should be used to collect the required information from a U.S. vendor/payee. The W9 form can be mailed or faxed to the vendor/payee for completion. To expedite processing, the department should get this information during their initial contact with any new vendor/payee who will receive a 1099-reportable payment (as noted above). The IRS Form W-9 is available on the Payables web page or at the following link: https://www.irs.gov/pub/irs-pdf/fw9.pdf
NOTE: 1099 reporting only applies to U.S. persons/entities and resident aliens. The Form W-9 is only valid for U.S. persons/entities and resident aliens. There are different reporting and documentation requirements for non-U.S. entities (foreign persons, businesses, organizations, etc.). This is why you must contact Human Resources (3753) or Payroll (3481) when you are thinking about making any type of payment to a Non-resident alien (foreign entity).