Page History

Director of Retail Services: Signs larger contracts and approves PO’s over buying team limits set in NetSuite system.

Manager of Finance and Business Performance: Audits PO approvals to ensure within established/approved buying limits and/or additional approvals provided when PO exceeds buyer limits.

Buying Team:  Initiates new vendor setup in NetSuite, responsible for maintaining vendor price lists, placing orders at reorder point and established vendor minimums, monitoring inventory levels and reviewing any pricing or delivery discrepancies.     Reviews open PO’s 2-3X/week and updates as needed.

Warehouse Team:  Receives product at the warehouse, verifies item counts and pricing on orders.  Identifies items for return to vendors (damaged, wrong item, etc.) and creates a VRMA records in NetSuite to identify return and expected credits. 

Vendor:  Fulfills orders with reasonable accuracy, adheres to terms in PO and delivers items to CRS warehouse.  Ensures invoicing processed promptly. 

Financial Transaction Center (FTC):  Compares invoice received from vendor to PO and receiving record in NetSuite, compares vendor credits to VRMA and item fulfillment record in NetSuite, communicates large discrepancies to unit.  Creates weekly payment file to pay vendors for open invoices/credits and processes the integration with KFS.  Addresses all requests regarding stale checks or unpaid balance inquiries. 

Division of Financial Services: Provides email approval for PO’s over $200K and Invoices exceeding $1M threshold.

• Buying Manual: Paying for Goods and Services that do not require a Purchase
Order 
• Order
• Buying Manual: Invoice
Payments 
• Payments
• University Policy 3.14, Business Expenses: University Policy 3.14, Business
Expenses 
• Expenses
• University Policy 3.25, Procurement of Goods and Services: Procurement of Goods and Services (cornell.edu)
 
• University Policy 4.2, Transaction Authority and Payment Approval: University Policy 4.2, Transaction Authority and Payment
Approval 
• Approval
• Standard Operating Procedures-Capital Assets
Overview 
• Overview
• CU Learn: Accounts Payable -Spring
2023 
• 2023
• Invoices, credits, returns and packing slips from
vendors 
• vendors
• Custom NetSuite user reports and searches
• NetSuite PO Threshold Report
• PO Reconciliation – PO Approval search
• Cornell Store best seller reports

• NetSuite 
• Kuali Financial System (KFS) 
• SCL Accounts to KFS integration portal 
• OAS Reporting Dashboard (KDW) 

• Credits and returns tracking 
• Mismatch between PO/Receiving and vendor invoice 
• After the fact purchases 

Ordering Product: 

1. The Buying Team runs bi-weekly inventory movement reports and places an order(s) with a vendor for inventory items to replenish what is sold based on inventory records in NetSuite, or orders special items.   
2. Buying team may need to source items not carried by established store vendors. 
3. If new vendor, buying team initiates vendor setup in NetSuite and notifies FTC to issue new vendor packet to the vendor.  FTC issues new vendor packet. 
4. Once vendor returns the vendor packet, the FTC confirms the vendor is in KFS. If vendor is in KFS, FTC confirms if any updates are needed.  If vendor is not in KFS, FTC sends vendor invite via PaymentWorks.
5. FTC receives vendor number confirmation from KFS for any updates and new vendor setup. FTC enters the KFS vendor number in the vendor record in NetSuite to link to KFS. 
6. If orders exceed establish buying limits, orders are directed to a secondary approver. 
7. PO is submitted electronically to vendor through NetSuite. 
8. Vendor fulfills the PO order and delivers product to the CRS Warehouse. 
9. When orders are delivered, the product is checked against packing slips by warehouse staff to ensure accuracy of item SKU, pricing, UPC code and counts match.   
10. Warehouse staff enter quantities received on the order in NetSuite.  NetSuite assigns a unique receiving number to the transaction and creates a GL entry to debit inventory and credit Accounts Payable based on quantity x unit cost on the PO. 
11. If PO does not match order as received, warehouse staff contact the Buying team to resolve with the vendor. 
12. Warehouse team identifies all product to be returned and Buying Team creates a VRMA in NetSuite that is available to match to the vendor credit. 
13. Vendor bills the store with hard copy or electronic invoicing.  All vendors not enrolled in electronic invoicing, are instructed to submit invoices with purchase order reference via email to: The Cornell Store 150 Ho Plaza, Ithaca, NY 14850 Email: cbsbo@cornell.edu. Include the PO number on the subject line and may include instructions in the body of the email. The purchase order is the contractual basis on which the supplier is paid for merchandise furnished. 
14. Manual invoices are entered through the Bill Purchase Order process. Electronic billing is sent via SPS Commerce (EDI) and processed through a verification system before going through the Bill Purchase Order process.  All Vendor credits are manually entered in Accounts Payable, via Refund VRMA process.   
15. In the event no purchase order is created for an invoice,
(for example when Apple Inc bills the store for the purchase of parts used by
16. the
Computing Center for repairs made to student computers), the
17. Enter Bills or Enter Credits process is used.
   
18.   
19. FTC team verifies 3-way match of vendor invoices to the receiving documents and PO in NetSuite.  If the item price or quantity billed differs from what was received, the item price or quantity may NOT be adjusted.  Adjustments are only handled through the appropriate Expense account:  quantity variance – Over/Short – Inventory; cost variance – COS – Vendor Price Variance.  The adjustments are to be within the established threshold. Large discrepancies warrant discussion with Store team (buyers or receivers) and/or researched with the vendor for appropriate credits prior to invoice entry and payment.  
20. Freight and Tickets (tag costs, color charges) are entered as a line item to record the appropriate COS account. Note: Federal Interstate Commerce Commission / Department of Transportation regulations require that all invoices for freight be paid within fifteen (15) days. Failure to comply can result in termination of carrier service or possible court action against Cornell University. It is extremely important that all freight bills be processed promptly! 
21. FTC creates a weekly payment file to process invoices for payment and sends to KFS via an integration. 
22. Vendors are not paid if they have an outstanding credit balance or if a return has been made and the credit has not been received from the vendor. 
23. Payment file is reviewed & approved by FTC Financial Manager for all invoices. Any invoices over $200K will be approved by the Associate Director Financial Transaction Center. Copy of the approval for invoices over $25K will be attached in NetSuite on bill record.  Approval for invoices under $25K will be saved in payment file record.  
24. Invoices over $1M need additional approval attached by the University Controller (Karen Mahalo) OR need to be processed in KFS though a DV so proper approval routing occurs per university and audit requirements. 
    1. Invoices are paid according to payment terms established by the university.

Cornell Finance Staff 

• After-the-fact PO counts 
• PO approval limit compliance
• Budget vs Actual expense  
• Reconcile Accounts Payable to the General Ledger monthly 
• Reconcile clearing accounts to verify file loads processed as expected 
• Monitor that vendors are paid as expected 
• Transactions initiated, transactions approved, transactions paid, outstanding credits, monthly statements.