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Effective August 15, 2005, Finance is implementing a new accounts payable system. The accounts payable system processes the Postal Service'sTM non-payroll-related payments - about $13 billion annually. The new system replaces the Accounts Payable and Reporting System (APARS) that has operated since the early 1990s. As always, all offices are encouraged to use eBuy and the I.M.P.A.C. credit card for applicable purchases and local buys. The established payment preference hierarchy remains unchanged (see Administrative Support Manual 722.631): 1. eBuy. 2. I.M.P.A.C. credit card. 3. PS Form 8230, Authorization for Payment. BackgroundThe new system is a commercial off-the-shelf (COTS) product that the Postal Service is using to modernize its financial systems. Accounts Payable is one component of this financial suite, which includes the General Ledger and Property and Equipment Accounting modules that have already been implemented. The changes in accounts payable processing do not affect most Postal Service employees. Representatives from the various functional organizations that feed data into the accounts payable system, as well as other stakeholders, have been working on the system development team for more than a year to ensure a smooth transition to the new system. ChangesThe conversion period will be August 11 through August 14. Suppliers, purchase orders, contracts, and invoices will be converted from APARS to the new system. To minimize the impact of the conversion on the receipt of payments to suppliers and payees, postmasters and other field units must comply with existing policy to submit invoices as they are received. Payments scheduled through August 21 will be processed before conversion; therefore, some suppliers will receive their payments earlier than normal. In addition, during the conversion period (August 11-14), the Accounting Data Mart (ADM), which is the Accounting view of the Enterprise Data Warehouse (EDW), will not be updated with any financial data. After the accounts payable system conversion is completed, the ADM will be updated with all financial transactions (revenue, expenses, and commitments) that occurred during the conversion period. Those transactions will be reflected in the ADM Financial Performance Reports. Beginning August 15, 2005, details of the various payment transactions processed through the new accounts payable system will be available and retrievable in the ADM. Authorized users of the ADM will be able to view a variety of new reports that display invoice, payment, commitment, and supplier details. Additional information will be available on the ADM Web site at adm.usps.gov. Beginning with Calendar Year 2005 and forward, Form 1099, Miscellaneous Income, data reported to suppliers and the Internal Revenue Service (IRS) will be consolidated for the entire Postal Service, rather than by the Accounting Service Center (ASC), as in the past. Form 1099 reports for 2005 will reflect payments made both in APARS and the new accounts payable system. Postmasters and SupervisorsThe changes in accounts payable processing do not affect postmasters and supervisors. However, postmasters and supervisors may receive inquiries from their suppliers concerning the appearance of the check or remittance information. In the new system, only one supplier name will be associated with each taxpayer identification number (TIN). Therefore, the supplier's name that appears on the remittance and check received may appear different from those received through APARS. For example, with the old system, Bob's Auto (TIN 112222222) could be listed as Bob's Auto, Bobs Auto, Bobs Automobile Repair, Roberts Quality Auto Care, etc., all with the identical TIN of 1122222222. The Postal Service utilized a series of business rules to select the supplier name associated with each TIN in the new system, so that only one name, Bob's Auto, is associated with TIN 112222222. The other potential change for suppliers is that multiple payments going to the same supplier, at the same remittance address, on the same day, and processed by the same ASC, will be consolidated into one check. With APARS, suppliers may have received multiple checks. |
To assist suppliers in understanding these potential differences, a note will accompany checks and remittances generated by the new system. The note describes the changes and provides the Accounting Help Desk telephone number if the supplier has questions on the payment. See "Note to Suppliers" on this page for an example of the note. The San Mateo ASC will process all contract cleaner and local cleaning agreement payments. Previously both the St. Louis ASC and the San Mateo ASC had processed these transactions. Effective August 8, 2005, offices must now forward contract cleaner documentation (previously mailed to the St. Louis ASC) to the San Mateo ASC at the following address: CONTRACT CLEANER UNIT There is no change to the process of payments to contract cleaners via PS Form 8230. Offices should continue to send the PS Forms 8230 to the Scanning and Imaging Center. Requests for contract cleaner service contracts of $10,000 or more for an individual, and $2,500 or more per year for a service firm, will continue to be processed by the Environmental and MRO Category Management Center in Dallas. Properly completed eBuy requisitions must be submitted to the following address: JANITORIAL SERVICES Summary of Major Changes for All Postal Service Personnel• The St. Louis and San Mateo ASCs' APARS vendor master files will be merged into a single accounts payable supplier master file. • Each supplier name and TIN combination will be in the system only once. • The San Mateo ASC will process all updates to the supplier master file, as well as all contract cleaner payments. All references to the St. Louis ASC regarding contract cleaner payments must be changed to the San Mateo ASC. Additional InformationIf you have a question regarding the new accounts payable system, call the Accounting Help Desk at 866-974-2733. Note to SuppliersThe following note will accompany supplier checks and remittances mailed for the first several weeks after implementation of the new accounts payable system.
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NOTICE Fiscal Year Closing GuidanceMessage From the ControllerI ask that each of you continue your efforts to control expenses. It is important that we carry this effort through to the end of the fiscal year, September 30. We must also control discretionary activity. This does not mean curtailing business, but it does mean making prudent choices by deferring or eliminating noncritical activity, and purchasing goods or services throughout the year rather than at the end of the fiscal year simply because there are available budget funds. I ask that you encourage your contractors to bill us in a timely manner for goods received and services rendered so we can recognize the expense prior to the close of the fiscal year. Additionally, I ask that you process accruals for goods received and services rendered but not invoiced. Please note the minimum expense accrual is $20,000. The following instructions will assist you, when appropriate, in helping the Postal ServiceTM close its financial books in a timely and efficient manner. Lynn Malcolm Vice President, Controller
I. Instructions for Fiscal Year ClosingAll organizations are requested to limit their expenditures to essential spending. Accordingly, all vice presidents should review discretionary spending to ensure the Postal Service attains its financial target for this fiscal year (FY). The instructions and reporting dates in this Postal Bulletin supplement procedures followed during the normal monthly or quarterly reporting schedule. II. Fiscal YearThe Postal Service prepares its annual reports on a government FY basis which comprises 365 days (366 in leap years), always ending on September 30. III. Capital and Expense Commitment or Accrual ActivitiesA. Capital/ExpenseSupply Management will not accept capital and expense requisitions and requests for contract modifications after September 9, unless work is currently under way on advance requirements or the buying manager grants an exception. Supply Management will accept capital purchase card transactions through September 16. Also, organizations should limit capital commitments, particularly Postal Service support equipment, to essential needs. The schedule for Supply Management processing is as follows: • For requisitions received on or before September 9, Supply Management will attempt to issue the required contract/modification in time for the San Mateo Accounting Service Center (ASC) to process against FY2005 funds. • Requisitions received after September 9 and before September 30 that require issuance of a solicitation or negotiation with vendors and/or modification may not be issued in time for processing against FY2005 funds depending on workload, etc. • Requisitions received on or after October 1 will be processed against FY2006 funds. Organizations must forward commitment documents with award dates on or before September 30 to reach the San Mateo ASC no later than October 3. Appropriate receiving reports or certified invoices for goods and services received by September 30 must be forwarded to the San Mateo ASC for receipt no later than October 3. Please expedite processing of receiving reports and certified invoices as these documents are used to charge costs to the proper FY. Additionally, review contracts to ensure sufficient funds are available to process invoices and PS Form 8163, Request for Fiscal Year Expense Accrual. Supply Management will process all requisitions for the issuance of contracts against FY2005 funds according to the following priorities: Priority 1 - Capital commitment requisitions Priority 2 - Expense commitment requisitions B. Unpaid Expenses or Accruals for Goods and Services Received on or Before September 30 (expense accrual minimum for FY2005 is $20,000)If it is impossible to furnish a receiving report or certified invoice in time to reach the San Mateo ASC by September 30, and the expense per contract sequence number or miscellaneous (noncommitment) purchase or service is $20,000 or more, accrue the expense. Complete PS Form 8163, a copy of which is found on page 10 of this Postal Bulletin. Attach supporting documentation to the form (see PS Form 8163 for examples of proper vendor documentation). Documents received at the San Mateo ASC pertaining to activities occurring October 1 and later will be recorded in FY2006. IV. Liquidation of AccrualsWhen submitting an actual certified invoice to liquidate an accrual, include the statement "Accrued to FY2005" on the face of the document. Do not mail to the Scanning and Imaging Center, mail these invoices directly to: MANAGER Liquidate accruals as soon as possible. Offices must monitor their accruals and payments to ensure that the accruals are properly liquidated. All FY2005 accruals processed by the San Mateo ASC that are not liquidated by the close of November 2005 (FY2006) will be reversed to a service-wide finance number as a prior-year credit. Subsequent payments will be charged to the appropriate budget finance number as a FY2006 expense. V. Submission SchedulesPlease use the following schedules relating to FY2005 closing: • Schedule I - Accrual Processing Information (see item A below). • Schedule II - Submission Processing (see item B on page 11). A. Schedule I - Accrual Processing InformationThe following are examples of items that may be accrued using PS Form 8163 if goods or services have been received on or before September 30: • You have not received a receiving report. • The dollar amount of service rendered is $20,000 or more. • You will not get an invoice to certify for payment by September 30. Document calculation of accrual on PS Form 8163 or on a copy of a previous month's invoice. You may also use an adding machine tape as proof of the accrual calculation. Service Maintenance Contract - CopierReview the last invoice processed to determine the amount to accrue from the service ending date through September 30. To estimate the accrual amount, perform the following calculation: • Calculate number of days to accrue (count from the first day of the next billing cycle through September 30). Example: • Calculate the daily rate. Example: • Calculate the accrual amount. Example: Utility Billing Accrual - Natural Gas/Electricity• Use the accrual amount calculation for service maintenance as shown above. Note: No utility accruals should be made unless there are less than 12 monthly payments. If there are less than 12 payments, you should accrue for the missing invoices. Other Goods or Services Accrual - Consultant Contract• Calculate the accrual amount. Check with the vendor to validate the cost of goods or services received during the unbilled period ending September 30 and obtain the necessary supporting documentation. Note: Do not accrue if the amount is less than $20,000. The following items may not be accrued on PS Form 8163: Basic Pricing Agreements (BPAs) Bulk fuel deliveries, oil purchases, and vehicle parts Capital Carrier drive-outs Credit card purchases* Direct Vendor Delivery (DVD) and eBuy purchases FEDSTRIPs* Gasoline credit card (fleet card) purchases Government Printing Office (GPO) printings Government Travel Accounts (GTAs) Imprest funds Incentive awards Inventory Nonpostal training Nonmetered fuel Telecommunications (Raleigh)* Relocation Management Firm (RMF) services* Tort claims Travel Uniform allowances Vehicle repairs on PS Form 4541, Order-Invoice for Vehicle Repair (Commercial Work Order) *Items that will be accrued by Corporate Financial Reporting or the San Mateo ASC
B. Schedule II - Submission Processing
**Do not place orders for DVD or eBuy purchases from October 1 through October 5, 2005, except for critical needs. Address questions concerning these instructions to the appropriate servicing Finance office. — National Accounting, Finance, 8-4-05 NOTICE Disbursement of Injury Compensation Settlement Funds Involving Third-Party LiabilityEffective August 4, 2005, each district Injury Compensation office must follow the new procedures on the disbursement of injury compensation settlements from third-party payments. We will incorporate these revisions into the next online update of the Postmaster/Field Guide available on Finance's Web site on the Postal ServiceTM Intranet: • Go to http://blue.usps.gov. • Click on the Inside USPS tab. • Under "Finance" in the center column, click on Accounting Center Support. • Under "What's New with Accounting Services" in the center column, click on Postmaster/Field Guide. (The direct URL for the Postmaster/Field Guide is http://acs.usps.gov/pubs/currentPMGuide.pdf.) Postmaster/Field Guide * * * * * Policies and Procedures * * * * * Disbursement of Injury Compensation Settlement Funds Involving Third-Party Liability (P&P 46) * * * * * Procedure [Revise the procedure to read as follows:] Disbursement of injury compensation settlements from third-party payments are processed as follows: 1. If the third-party check is made payable to the Office of Workers' Compensation Programs (OWCP) and includes only the OWCP payment: • Injury Compensation sends the check and OWCP Form EN-1108, Long Form Statement of Recovery, or Form EN-1122, Short Form Statement of Recovery, as applicable, directly to the appropriate OWCP lockbox address. 2. If the check is made payable to the Postal Service disbursement is as follows: • Injury Compensation sends the third-party check to the Disbursing Branch in Eagan, MN, with a cover letter indicating the office Finance number. Annotate general ledger account (GLA) 51208 on the check and mail it to the following address: DISBURSING OFFICER • The Disbursing Branch in Eagan, MN, deposits the third-party check and credits GLA 51208, Workers Compensation. • Injury Compensation mails the original Form EN-1108, Long Form Statement of Recovery, or Form EN-1122, Short Form Statement of Recovery, directly to the OWCP central mailroom. • Injury Compensation completes a separate PS Form 8230, Authorization for Payment, for each disbursement (OWCP, employee, and attorney) and attaches a copy of the Form EN-1108 and EN-1122 to each PS Form 8230 as the invoice. Injury Compensation does the following to prepare the PS Form 8230: a. Identifies the address of each payee on separate PS Forms 8230 (OWCP payment to OWCP lockbox address). b. Annotates the third party, the claim number, and check recipient (OWCP, Emp, or Atty) in Item 6, Vendor Invoice, of the PS Form 8230. This information appears on the remittance advice. c. Sends PS Forms 8230 to the Scanning and Imaging Center at the following address: USPS SCANNING AND IMAGING CENTER d. If the third party is paying by installment, forwards checks as received to the Disbursing Branch in Eagan, MN, with a cover letter identifying the finance number to credit and GLA 51208. Once the recovery is final, complete the appropriate PS Forms 8230 for disbursement, as indicated above, and forward to the Scanning and Imaging Center. 3. The San Mateo Accounting Service Center (ASC) processes the payment to OWCP and other payees, as identified, on PS Forms 8230. The information in Item 6, Vendor Invoice, of the PS Form 8230 must appear on the remittance advice. The ASC debits GLA 51208 for this transaction. * * * * * — Revenue and Field Accounting, |
