DISBURSEMENT VOUCHERS

Eligible for Direct Payment (updated December 2013) DirectPayment

If the service/activity is not identified per Eligible for Direct Payment from Procurement Service you may not pay by disbursement voucher.

PAYMENT REASON CODES:

Can payment reason code: P only be used for prepaid travel?  No, this payment reason code can also be used when direct payment of travel expenses are allowed, even though this is not defined in the description.  Description reads: Travel Payment for Prepaid Travel: P should be used for any prepaid travel to include conference registration, lodging, limousine, and airfares.

Caution:  Honorariums must be paid with the Honorarium Payment Reason using a DV (Disbursement Voucher) Vendor so that Cornell meets the tax reporting requirement.   Do not mix Honorariums and Reimbursements on the same e-doc.  Doing so causes tax consequences for the payee.   Moving Reimbursements should not be paid to R&R vendors.  Caution:  If any portion of a reimbursement is taxable (e.g., Cornell reimburses for spousal or family travel accompanying a recruit), then this vendor type may not be used.

Q) Small Service Provider Contract –  If a vendor lacks the required insurance requirements, but is willing to sign a Small Service Provider Contract, this will negate the need for insurance and will allow for us to do business with the vendor. The contract would need to be signed for each service, meaning one signed contract is not a blanket contract between us and the vendor.  Are there instances where this would not apply (assuming I have the information accurate as noted above)
A) This is correct.  The contract is not a blanket contract.  A contract would need to be signed for each service, since the assumption here is that the services are not a continually ongoing service but service that happens occasionally.   If you were contracting with a vendor to perform service on a regular basis (such as a maintenance agreement with set times, etc), a non-quantity recurring purchase order with insurance would be required.

Enclosure and Special Handling are TWO different things:

If you mark special handling, you need to fill out the special handling tab with the NEW address you want it mailed too.  It will go out to that address VIA United States Postal Service. This can add up to two weeks to you receiving the check.

If you select check enclosure, the check gets pulled at Cathedral and is FedExed to DFA; the check can be picked up at the Payroll Office, East Hill Plaza (located on the back side of the building along with Office of Sponsored Programs, facing EHOB).  Departments are responsible for getting their checks and mailing them out with whatever back up they want to go with it.

Other Considerations: Checking the ‘Special Handling’ box forces a separate check to be issued.

Foreign National Payments: Payments such as use of a photo are considered a royalty.  Royalty payments are subject to a 30% withholding unless the individual has a U.S. Federal ID number on file.

Check/ACH Processing:  Since Kuali, there has been a high volume of requests for stopped checks and return checks.  The requests used to be 10-15 a week, now it’s 10-15 a day.  To help avoid this, please verify the home address, especially for students and encourage ACH, even if it’s only a one-time payment.  ACH prevents a check from getting lost and gets paid faster.  http://www.dfa.cornell.edu/payments/processing/reimbursements/ach.cfm

Wire Transfer Check List:  Wire Transfer Check List