Receipt/Acceptance and Invoice Processing in CBS

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1. Introduction

These procedures outline instructions for receiving/acceptance and payment of NOAA's supplies, equipment and service orders in the Commerce Business Systems (CBS).  The Finance Office and Administrative Support Centers (ASCs) are responsible for making authorized payment to suppliers. These procedures include directions for the following document types:

Purchase Order Types	Award Type
One-time Vendor Payment	40
Advance Payment	41/41P
Recurring Payment	42
Multiple Payment Purchase Orders	43

2. Processing Concepts

Primary documents needed to process receiving/acceptance and invoices for system operation are the purchase order obligation, the purchase order receipt notification, acceptance, and the supplier's invoice. As a basic processing concept, a match is required on the purchase order number of all primary documents before payment can be made. Variations to this basic concept, such as the routing of the supplier's invoice and the need for a receiving report and/or acceptance, are determined by the purchase order type and item type.

3. Payment Conditions

Certain payment conditions must exist before any payment can be made against a purchase order. These conditions are controlled by the purchase order type and item type. In CFS, these values are set up in the Payment Document Matching Maintenance Screen (PM021).There are three possible matching criteria that apply to invoices related to purchase order obligations:

Two-Way Match - The related invoice must be matched with a purchase order before payment

Three-Way Match - Defines specific types of invoices which must be matched with a purchase order and receiving ticket.

Four-Way Match - Defines specific types of invoices that must be matched with a purchase order, receiving ticket, and acceptance.

Procurement Document Type / Item Type Matching

A. Type 40 - Fixed quantity/price or estimated quantity/price of supplies, equipment or services. The following purchase order/invoice type and item type combination identifies the matching criteria:

PO / INVOICE Type	Item Type	Matching
PO	EQUIPMENT	3-WAY
PO	GOODS	3-WAY
PO	SERVICE	3-WAY
PO	NON MERCHANDISE COST	2-WAY
PO	FEDERAL EXCISE TAX	2-WAY
PO	FREIGHT	2-WAY
VINV	TRADE IN ALLOWANCE	NO MATCH

B. Type 41 - Advance payment authorized by procurement regulations.

This document requires an obligating document and a supplier's invoice, except for prepaid items where the supplier is requested not to send in an invoice. The following purchase order/ invoice type and item type combination identifies the matching criteria:

 

PO / INVOICE Type	Item Type	Matching
POAVPY	EQUIPMENT	2-WAY
POAVPY	GOODS	2-WAY
POAVPY	SERVICE	2-WAY
POAVPY	NON MERCHANDISE COST	2-WAY
POAVPY	FEDERAL EXCISE TAX	2-WAY
POAVPY	FREIGHT	2-WAY
VINV	TRADE IN ALLOWANCE	NO MATCH

C. Type 42 - Fixed price and fixed quantity for agreed upon automatic recurring payments. This document requires an obligating document and a recurring invoice. Recurring payments are issued in the amount prescribed on the initial purchase order without receipt of a receiving report or invoice. The following purchase order/invoice type and item type combination identifies the matching criteria:

PO / INVOICE Type	Item Type	Matching
PORCUR	EQUIPMENT	2-WAY
PORCUR	GOODS	2-WAY
PORCUR	SERVICE	2-WAY
PORCUR	NON MERCHANDISE COST	2-WAY
PORCUR	FEDERAL EXCISE TAX	2-WAY
PORCUR	FREIGHT	2-WAY
VINV	TRADE IN ALLOWANCE	NO MATCH

D. Type 43 - Fixed quantity/price or estimated quantity/price with anticipated multiple vendor payments. Estimated price/quantity for services even though there is an anticipated one-time vendor payment. This document requires an obligating document, the receipt document, and the supplier's invoice. The supplier will be instructed to send the invoice to the ship to address listed on the purchase order for certification. The CD-404-EF (receiving copy) and the invoice will be forwarded to the Finance Office/ASC(s) together. The following purchase order/invoice type and item type combination identifies the matching criteria:

PO / INVOICE Type	Item Type	Matching
POMULT	EQUIPMENT	3-WAY
POMULT	GOODS	3-WAY
POMULT	SERVICE	3-WAY
POMULT	NON MERCHANDISE COST	2-WAY
POMULT	FEDERAL EXCISE TAX	2-WAY
POMULT	FREIGHT	2-WAY
VINV	TRADE IN ALLOWANCE	NO MATCH

4. Tolerance Levels

Tolerance levels are defined in CFS on the Payment Management Parameter Maintenance Screen (PM010) for each document source and type combination by a percentage for quantity and amount and are further limited by an overall tolerance amount and a dollar amount for freight. These tolerance checks are applied at the multiple distribution line (MDL) level.

The following tolerance levels have been established:

Document	Document	Freight	Tolerance Percentage for		Tolerance
Source	Type	Amount	Quantity	Amount	Amount
COMMIT	POREQ	50.00	999%	10%	100.00
OBLIG	PO (TYPE 40)	50.00	10%	15%	50.00
OBLIG	POAVPY (TYPE 41)	50.00	10%	15%	50.00
OBLIG	PORCUR (TYPE 42)	0.00	0%	0%	0.00
OBLIG	POMULT (TYPE 43)	50.00	10%	25%	1000.00

5. Responsibilities

Finance Office/Administrative Support Centers (ASC)'s	Line Office
1. Review each invoice as soon as possible after receipt to determine whether the invoice is a proper invoice.	1. Obligate funds for procurement by submission of a CD-435, Purchase Request.
2. Return all "improper" invoices to vendors with a reason for their return, within seven days of their receipt	2. Review any invoices received as soon as possible after receipt to determine whether the invoice is a proper invoice.
3. Pay the supplier on the established due date when a "proper" invoice has been received for which funds have been properly obligated and for which goods or services have been received and accepted or otherwise authorized for payment.	3. Return all "improper" invoices to vendors with a reason for their return, within seven days of their receipt
4. Notify the requisitioning offices when an invoice fails tolerance edits due to the depletion of funds.	4. Submit receiving reports so that they may be received at the Finance/ASC(s) by the fifth working day after acceptance of the goods or services. (Acceptance should occur no later than seven days after the goods or services have been received, unless otherwise stated on the CD-404-EF, Supply, Equipment or Service Order.)
5. Advise the receiving offices to forward the receiving copy to the Finance Office/ASC(s) after an invoice has been received and entered.	5. Promptly submit an amendment to cover goods received and retained by the requisitioning office which were not reflected on the original order.
	6. Contact the supplier for inquiries such as receipt of damaged goods and delivery dates
	7. Respond promptly to all Finance Office/ASC(s) inquiries including obligation of funds, delinquent receiving reports, and amendments because of tolerance failure

6. Forms

A. Form CD-404-EF - Supply, Equipment or Service Order, is the primary document for the Commerce Small Purchase System (CSPS). The following copies will be distributed as follows:

1. Vendor - provides the order to the supplier with billing and shipping instructions.

2. Finance Office/ASC(s)

3. Requisitioner - Receives a copy to complete and forward the Receiving Copy to the Finance Office/ASC(s).

B. Form CD-404-EF (CONTINUATION SHEET) **RECEIVING COPY** - is used to record complete or partial receipt of goods or services. This form replaces the CD-404, "green copies", the CD-405, partial receipt notification, and the CD406, invoice-receipt certification.

7. Source Document Processing

A. The requisitioning office will forward a CD-435, Purchase Request, to the procurement office for processing.

B. The procurement office will take the necessary steps to award the CD-404-EF purchase order and distribute the appropriate copies.

C. The receiving office will complete the CD-404-EF (Continuation Sheet) Receiving Copy and forward it to the finance office.

8. Changes Requested by the Finance Office/ASC(s)

A. If the invoice fails tolerance the finance office/ASC(s) must contact the requisitioning office.

9. Changes Requested by the Line Offices

A. Amendments to the initial supply, equipment, or service order

B. Procurement of additional goods or services

C. Cancellation of goods or services

D. Changes to accounting classification and/or distribution prior to any disbursements

10. Receiving Copy of the Supply, Equipment or Service Order (Cd-404-ef (Continuation Sheet) **Receiving Copy**)

This copy of the Supply, Equipment or Service Order is used as the primary method of receipting for partial or complete shipments. There may be occasions when additional receiving copies are needed. In this case, photocopies of the CD-404-EF (Continuation Sheet) may be used. For Type 43 - PORCUR the invoice will be mailed directly to the line office for certification of the amount to be paid. They will forward the receiving copy with the invoice to the Finance Office/ASC(s).

The receiving office should forward the receiving copy in time so that it may be received by the Finance Office/ASC(s) by the fifth working day after acceptance.

The following instructions briefly describe the steps needed to complete the CD-404-EF (Continuation Sheet) Receiving Copy:

BLOCK	TITLE	INSTRUCTIONS
37.	QTY RECVD	Enter the quantity received for each line item. Always count the items received in the same unit of issue as ordered.
38.	FINAL	Enter a "Y" if this is the final shipment of goods or services. Enter "N" if there will be additional receiving against the item.
51.	TYPE SHIPMENT	Enter one of the following codes: P = Partial shipment for receipt of less than the entire order. C = Complete shipment for receipt of the total order or the last or remain remainder of the order when a partial receipt has been previously reported
52.	RECEIPT SIGNATURE/TITLE	Signature, Title of the person receiving the goods or services.
53.	RECEIPT DATE	Enter the date the goods or services were received in Month-Day-Year format.
54.	ACCEPTANCE SIGNATURE/TITLE	Signature, Title of the person accepting the goods or services.
55.	ACCEPTANCE DATE	Enter the date the goods or services were accepted in Month-Day-Year format.

11. Supplier's Invoice

A. The supplier's invoice will come directly to the Finance/ASC(s) with one exception, Type 43 - POMULT the invoice will first go to the ship to address for certification, then submitted to the Finance/ASC(s) with the appropriate CD-404-EF (Continuation Sheet) Receiving Copy.

B. It is permissible to use the vendor copy of the CD-404-EF as an invoice provided the following statement, with the vendor's signature, appears on the vendor copy:

Payment is requested in the amount of $____________. No other invoice will be submitted.

	_____________________________________
	(Signature)