Payment to Individuals (P2I)

What is Payment to Individuals?

Payment to Individuals (P2I) is a new form in Ariba providing users a convenient means of making quick payments to an individual for:

**Payment of personal services to individuals is subject to the Direct Buy Limit and current purchasing policies

Benefits of using P2I include:
  • Paper reduction with the elimination of many check request forms, helping the UW reach the state paper reduction goal of 30%
  • Encrypted tax ID number for security purposes
  • Information is more secure than the traditional check request process sent through mail or email
  • Better visibility to department approvals, work flow, and status
  • Supplier registration form not required
  • Ariba document retention of six years allows budget reconcilers to always have access to the source documentation
Looking for training? Check out our upcoming classroom trainings or eLearning opportunity!

 

Helpful
 to know:

1099 MISC Reporting Process

As of January 2013, the University of Washington will be reporting all payments made to 1099 reportable suppliers (including travel expenses) on Form 1099 MISC. More information about this change can be found on the Tax Office website.

What types of payments do not go through P2I?
Payment Type Instead Use
Individuals who have an active vendor number Non-Catalog Ordering or Non-PO Invoice Payment
Payment for goods (i.e. artwork or equipment) Non-Catalog Ordering or Non-PO Invoice Payment
Payment to a company or group Non-Catalog Ordering or Non-PO Invoice Payment
Foreign Nationals Check request. See Foreign National Payments or Honoraria
Honoraria related travel eTravel
Employees (Exception: Royalties) Payroll or eReimbursement
Student Employees Student Fiscal Services
Clubs or groups assisting at UW athletic games Non-PO Invoice Payment
Research Subjects Revolving Fund, Field Advance, or Gift Card. See Research Subjects

 

P2I Versus Other eProcurement Purchasing/Payment Methods

(Click the picture to view)

 

Know Before You Begin

Access

Best Practices

Initiating a P2I Payment

Approving a P2I Payment

How to Create a P2I tab in Ariba

 

Please include the Payee's permanent address and taxpayer ID number (SSN) for 1099 tax reporting purposes. Failure to provide the permanent address or correct taxpayer ID could cause a delay in payment or a rejection of submission.

 

Access to P2I

P2I is open-access, which means that anyone with access to eProcurement will be able to view and initiate a P2I payment. Funding Approvers for P2I are granted in Astra, by your department Astra Authorizer. Optionally, the roles of Compliance Approver and Watcher are available in Astra.

Best Practices

  • If payment includes travel or expenses as a line item, no need to create two forms. Lump the expenses into the total with the service fees.
    • Note that travel and expenses will be reported on the payee's Form 1099 if paid through P2I
    • Exception: Photographer services and royalties should go on separate P2I forms for tax reporting purposes
  • Set up a system within your department to ask up front if the individual is a foreign national.
  • If an individual already has an active vendor number, use Non-PO Invoice to make the payment.
  • If a service invoice is over the Direct Buy Limit (currently $10,000), do not split the invoice into two different P2I payments.
  • Do not submit a P2I more than 2 weeks in advance of the service date.
    • Note: Payments submitted more than 2 weeks in advance will be rejected by Central Office.
  • Do not upload 1631 or 1632 forms. The questions on these forms have been built into the P2I functionality.
  • Do not upload receipts. Return all receipts to the individual to file with their tax return.

Initiating a P2I Payment

  1. Log in to eProcurement: Click on the "eProcurement Login" image in the quick links box (right-hand side of the browser window)
  2. Click on the Home tab
  3. Click Create, then Payment to Individual
  4. Enter the Title (if possible, include the Payee's last name)
  5. Select the Citizenship Status of the individual
  6. Select the Type of Payment
  7. If applicable, answer questions about individual (differs by payment type)
  8. Enter Payee Information
  9. Click Next
  10. Add Business Purpose and Amount
  11. Choose Budget Number
  12. Click Add to add the item
    • Tip: For split accounting by dollar amount, users can copy the item and edit the budget number and dollar amount
  13. Once all items are added, click Next
  14. Review payment for accuracy
  15. Add any comments
  16. Click Add Attachments to upload scanned attachments (or invoice for service payment type). Do not include personal information like bank account details or address information in either the comments field or on the attachments
  17. Click Submit

Approving a P2I Payment

  1. Log in to eProcurement: Click on the "eProcurement Login" image in the quick links box (right-hand side of the browser window)
  2. Click on the Home tab
  3. In the "To Do" section, click on the P2I Title link or XP number
  4. Review the payment details and click Approve or Deny
  5. Optionally provide a comment and click OK
  6. Review the Perjury Statement and click Submit
Administrators/Approvers Should:
  • Have at least one backup Approver for your budget or org code in the event that someone is on leave
  • Delegate your Authority in Astra when you go on vacation

How to Create a tab in Ariba

Need help locating the P2I tab in Ariba? Payments to Individuals does not have its own tab such as Travel, Invoicing and Reimbursement, however users can create a tab that will provide the same content boxes as the other tabs.

How to Create a Tab in Ariba

 

Have questions? Contact pcshelp@uw.edu.

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