Webinar: Subcontract Invoice Approval

Questions? Contact SCM Response Team

Overview

Recording of 2022 webinar on subcontract invoicing.

Supply Chain Management (SCM) presented a webinar on Subcontract Invoice Approval on January 26, 2022.

Other Resources

Additional resources can be found below:

Background & Current State

  • Non-standardized process is labor intensive
  • Averages 50 days to pay a subcontract invoice
  • Average of 800+ invoices in queue 
  • Limited staffing (one person)
  • Attempt to streamline not successful

Gap Analysis for Invoice Approval Process

A. Pre-Approved, 3-10 days (+10 days if paid by wire): Campus department sends approved subcontract invoices to SCM Accounts Payable

  1. Department specifies chartstrings, obtains approval, emails invoices to SCM
  2. ​​Signatures checked for authorization. Funding confirmed.
  3. Invoices processed
  4. Invoice payment issued to subcontractor

B. Without Pre-Approval (30-50 days): Subcontractor sends invoices directly to SCM Accounts Payable

  1. Subcontractor send invoices to SCM
  2. SCM checks funding, codes invoices, looks up approvers
  3. SCM sets invoice approval in DocuSign. Resend if envelope expires.
  4. Signatures checked. Manually save document for record keeping.
  5. Invoices processed
  6. Invoice payment issued to subcontractor

Short-Term Solution & Benefits

Implement pre-approval of invoices

  • Subcontractors send invoices to campus departments
  • Departments obtain invoice approval via DocuSign
  • Departments send approved invoice to SCM for processing

Benefits

  • Subcontract invoices will be processed faster (average 3-10 business days)
  • Departments have more control over the approval timeline

Long-Term Solution & Benefits

Revisit BearBuy for subcontract processing

 

Benefits

  • Better tracking and visibility of expenses and balances
  • Controls in spending
  • Automate approval process​​

Steps to Expedite Invoice Payment

  1. Department obtains signature approval from Principal Investigator (PI)* through DocuSign
  2. Department downloads a copy of approved invoice from DocuSign**
  3. Department emails copy of approved invoice to subcontract @ucsf.edu. Invoice imported into ImageNow system.
  4. SCM Accounts Payable  processes and pays invoice

*PI or delegated person with U242 Signature Card Authorization

**Please do not route invoices or include SCM emails in DocuSign. They will not be received or processed. DocuSign does not integrate directly into ImageNow. ImageNow is a document storage system for record retention.

 

Step One

Campus Department obtains signature approval through DocuSign

  • Ask your subcontractor to:
    • Submit invoices to your campus department directly
    • Discontinue emailing invoices to SCM ([email protected])
  • Upload the subcontract invoice into DocuSign
    • On the invoice, type in the full chartstring, including Account Code
      • Ensure that the funding is active and valid
      • Ensure that the subcontract has funding available
    • Route the invoice to the Principal Investigator (PI) or delegated person with U242 Signature Card Authorization to approve subcontracts*

*Please do not route invoices or include SCM emails in DocuSign. They will not be processed. DocuSign does not integrate directly into ImageNow. ImageNow is a document storage system for record retention.

 

Step Two

Department downloads approved invoice from DocuSign

  • The invoice is approved in DocuSign
  • Campus department downloads a copy of the approved invoice from DocuSign

Step Three

Department emails approved invoice to [email protected]. Invoice imported into ImageNow system

  • Using Outlook, create a new email and attach the copy of the approved invoice
  • In the email subject line, type Pre-Approved as the first word
    • Be sure there are no words before this in the subject line including any RE: or FW:
  • If you have an invoice for a foreign subcontractor type Pre-Approved International in your email subject line
    • The foreign invoice must have the full bank account information for the wire payment
  • Send the email with attached invoice to SCM at: [email protected]

*Be sure to follow the directions above including the keywords in the email subject line, otherwise we will not be able to identify your pre-approved invoice for priority processing.

 

Step Four

SCM Accounts Payable processes and pays invoice

  • SCM Accounts Payable (AP) receives invoice
  • Invoice are processed in the order received
  • Pre-approved invoices are prioritized over invoices that are not pre-approved
  • SCM AP pays invoice

 

Next Steps

Supply Chain Management will:

  • Communicate with departments on new invoice process
  • Support campus inquiries on process and provides guidance
  • Encourage departments start using the pre-approval process

Need Additional Help?

For assistance on the pre-approval process, please contact the SCM Response Team using the buttons on the Need Help? section of SCM’s website: supplychain.ucsf.edu