Commodity Code on Purchase Order Generating Incorrect Object Code
on VP1:
Some Beta testers realized the commodity code used on the purchase order
was not correct because the object code generated on VP1-Crosswalk was
incorrect. If this occurs, then a purchase change order should be processed
to correct the commodity code. After final approval of the purchase
change order, the existing VP1 document with the incorrect object code
should be deleted. Create another VP1 so the new commodity code used
will generate the correct object code. When initially creating a purchase
order, it is imperative to use the correct commodity code so the correct
object code will generate on the VP1 payment document. Use the following
link to look up commodity codes: http://www.tbpc.state.tx.us/com_book/commall_14.html
To choose the correct commodity code, first look for the correct commodity
class which is the first 3 digits of the commodity code and pay close
attention to the description of the commodity class. Then within the
commodity class, look for the correct item which is the last two digits
of the commodity code. You can use the "find" function on this web page.
In addition, the crosswalk object class code for a commodity code is
displayed in PointPlus
on the Requisition Item web page.
Freight Charges not a line item in Section 2:
If FOB Shipping Point, or Destination Prepay & Add, is used on the purchase
order for freight, then a line item will not be generated in section
3 of the VP1 for the freight amount. When this happens, an expenditure
line should be added for freight in section 3 of the VP1 with object
code 1314. To prevent this from happening, use commodity code 96286
- Transportation of Goods and Other Freight Services as a line item
on the purchase order. Then in the VP1, select the freight line item
in section 2 and an expenditure line will be generated with object code
1314 in section 3 of the VP1. However, if an item is a controlled
or capitalized item, the purchase amount should be modified in Section
3 of the VP1 to include the freight amount. The following are
a few examples of controlled and capitalized equipment:
Controlled items are cameras, camcorders, computers (desktop or
laptop), fax machines, laser-disc players, plotters, non-portable printers,
image scanners, stereo systems, television sets and VCRs with a value
of $500.00 to $4999.00 including freight charges. *Guns
are controlled at any value.
Capitalized is any non-consumable item valued at $5000.00 and over
(this is normally furniture, equipment, vehicles and livestock).
As of April 26, 2004, if the user changes the payment amount to include freight charges and the amount increases above the inventory threshold amount, the object class code will automatically update.
Early Discounts in Section 3 :
If taking an early discount, then a line item will not be generated in Section 3 of the VP1 for the discount credit amount. There are two ways to record the discount. You may add an additional credit line for the amount of the discount, using the same object code as the expenditure. However, if an item is a controlled or capitalized item, the purchase amount in Section 3 of the VP1 should be reduced by the amount of the discount. See #2 above for a few examples of controlled and capitalized equipment.
As of April 26, 2004, if the user changes the payment amount due to an early discount and the amount falls below the inventory threshold amount, the object class code will automatically update.
Most importantly, do not change the amount of the disencumbrance transaction line to equal the discounted payment amount because the original amount of the item(s) on the purchase order still has to be disencumbered.
1325 Object Class Code for Subcontract Sponsored Research Account (26 account group):
The University has implemented an audit for subcontract payment made on sponsored research awards (26 account group). The audit is intended to help retain integrity of both the payment transaction and the account profile. In the event you are making payment to a subcontractor and you receive the following “error” message, please follow the course of action outlined below:
Error Message:
Blank: “Cannot use obj 1325 if Subcontractor is blank on CA3. AQSRP030”
9999: “Cannot use obj 1325 if Subcontractor is 9999 on CA3. AQSRP030”
Course of Action:
Please contact the Contracts and Grants accountant assigned oversight responsibility for your account to resolve the error message. If you do not know who your accountant is, you may find them using the GB1 command the and full 10-digit account number. Please inform the accountant that you received an error message when processing a subcontractor payment and provide the accountant with the following information:
10-digit account number on which you are trying to process payment
the name of the subcontractor
As of April 26, 2004, if the user changes the account number to a Subcontract Sponsored Research account (26 account group), the object class code will automatically change to 1325.
"No Object Code Assigned" Error Message:
You may encounter the following error message when going to section 2 of the VP1 document: "The following items do NOT have an object code assigned to them. If you wish to pay for the item(s) on this voucher, you will need to create an individual expenditure line for each item, with the associated object code in Section 3: Transactions." When this error occurs, Accounts Payable is notified via an email and will research the commodity code and update the Crosswalk table. After the Crosswalk table has been updated, the existing VP1 document will need to be deleted and another created so an expenditure line item will generate for the commodity code. If you wish to expedite this, then please call Accounts Payable at 471-1816 and ask for Colleen or Cindy.
On the VP1 Coversheet Screen, No Dollar Amount Is Shown:
On the VP1-Crosswalk version, the dollar amount on the coversheet page does not appear until items are selected for payment in section 2. If you need to know if payment is partial or complete, then compare the invoice to the purchase order prior to creating the VP1 payment document. This will tell you if the purchase order is complete or not. You can do this by using the GT3 command in *Define and entering the purchase order number in the Misc field. Look at Screen 6 of the purchase order line item to view the line items on the purchase order. If you need more detail, travel to the purchase order and look at the line items.
Multiple Invoices for One Line Item on the Purchase Order:
If you have more than one invoice to pay for a single line item on a
purchase order, the VP1 will only generate one expenditure line item
in section 3. To correct this, select the item to be paid in section
2 of the VP1, and then edit the dollar amount in section 3 to match
one invoice and enter the corresponding invoice number in the invoice
number field. Then add additional expenditure lines for the other invoice
amounts with the corresponding invoice information in the invoice number
field. For assistance, please call Accounts Payable at 471-1816.
Multiple Accounts for Multiple Line Items on Purchase Order:
This occurs on less than 3% of all purchase orders processed. The majority
of all purchase orders use one account number. If you use multiple accounts
and have multiple line items on a purchase order, section 3 of the VP1
will generate the expenditure line items using only the first account
number listed on the purchase order. To correct this, select the items
to be paid in section 2 of the VP1, and then edit the account numbers
and/or dollar amounts in section 3 to the correct accounts and/or amounts.
The VP1 will also generate a disencumbrance transaction line for each
account listed on the purchase order, so the disencumbrance amounts
and/or accounts may also need to be changed or deleted. For assistance,
please call Accounts Payable at 471-1816.
Multiple Accounts for Single Line Item on Purchase Order:
This occurs on less than 3% of all purchase orders processed. The majority
of all purchase orders use one account number. If you use multiple accounts
for a single line item on a purchase order, section 3 of the VP1 will
generate the line item using only the first account number listed on
the purchase order. To correct this, select the item to be paid in section
2 of the VP1, and then edit the account number and/or dollar amount
in section 3. Then add expenditure transaction lines using the correct
accounts and dollar amounts. The VP1 will also generate a disencumbrance
transaction line for each account listed on the purchase order, so the
disencumbrance amounts and/or accounts may also need to be changed or
deleted. For assistance, please call Accounts Payable at 471-1816.
"Object Code Not in Audit Group" Error Message:
If you encounter this error message in section 3 of the VP1, the account
number used on the purchase order does not allow the object code associated
with the commodity code. It is possible the account number used on the
purchase order was incorrect. To correct this, process a purchase change
order to correct the account number used on the purchase order. After
final approval of the purchase change order, the existing VP1 document
with the incorrect account number should be deleted. Then create another
VP1 so the new account number will generate on the VP1. To prevent this,
when creating a purchase order, use PointPlus on the Requisition Item
web page to see what object code is associated with a commodity code
selected. Then go to GO7 in *DEFINE to see if the object code is allowable
on the account. For assistance with GO7, or for questions about allowable
object codes for an account, please email Financial
Reports.
No items listed in Section 2:
If you are processing a VP1 payment for a non-automated state contract
purchase order (VE4), no line items will appear in section 2 to mark
as items billed to be paid. You will need to proceed to section 3 instead.
In section 3 the disencumbrance line(s) will appear, if funds are still
encumbered, but no expenditure transaction lines will generate. You
will have to add expenditure transaction lines in section 3.
Add additional transactions in Section 3:
Press PF2 to get a new blank section 3 screen in order to add transaction
lines, i.e. for freight charges.
