Reviewing Transactions in PaymentNet
Reviewing Transactions in PaymentNet It is critical to develop strong internal controls, specific to department needs for reconciling ProCard transactions.
Departments must ensure that every transaction is subject to a documented, independent review by someone other than the cardholder. In addition, it is strongly recommended that documentation of the review is completed within 30 days of the monthly cycle end date.
PaymentNet is a JPMC transaction review system used by cardholders and reviewers to ensure that the charges are valid, and that proper account codes and budgets are assigned to each transaction. Departments must designate individuals who are responsible for reviewing the transactions. Usually, the reviewer is the fiscal expert for the department and is assigned the responsibility for appropriate account code assignment.
IMPORTANT: An online PaymentNet review (i.e., checking the Cardholder & Reviewer boxes) alone does not fulfill separation of duty functions.
While printing and signing the PaymentNet monthly UW Transaction Detail with Notes & Accounting Codes report is the preferred method for performing and documenting this review, there may be other acceptable methods provided they include:
- Review by someone other than cardholder
- Documentation of the review
- Use of source documents in comparison to PaymentNet information
- Compliance with UW documentation records retention policy.
Departments must have at least one individual review the online transactions in PaymentNet. While it is not necessary to have both cardholder and reviewer to go online to review the transactions in PaymentNet, it is a recommended best practice whenever possible. Only one of the online Cardholder or Reviewer boxes needs to be checked.
When only one individual reviews the transactions online, the second individual should review transactions with a hardcopy of the monthly statement along with department records that detail the specifics of the purchases, such as UW Transaction Detail with Notes & Accounting Codes Report, proof of cost (i.e., receipts, invoices, etc.) and proof of receipt.
Online Review Process With original source documentation, the cardholder or reviewer must review the cardholder’s transactions at PaymentNet and:
- Validate that the purchase was received at the agreed upon price Revised
- Enter a detailed description of the purchase and business purpose in the Transaction Notes box
- Ensure correct budget and object code allocation
- Check the appropriate “Cardholder” or “Reviewer” box
The purchase cycle for each transaction is closed when it is determined that the correct amount was charged and the item was received in acceptable condition.
Do not check off the review boxes until the purchase cycle is closed:
- Do not check the cardholder or reviewer box if a dispute has been initiated with the vendor or online with PaymentNet's dispute process.
- Do not check off the cardholder or reviewer box if the transaction is being reviewed by JP Morgan's Fraud Department.
Documentation of the Review
Complete your documentation of the independent review of the card transactions within 30 days of the end of the monthly billing cycle and store it in a central location within your department files. For example:
- Either the cardholder or a reviewer runs the UW Transaction Detail with Notes & Account Codes Report, matching the account cycle for the monthly statement.
- Demonstrate separation of duty and approval of transactions by having the cardholder and reviewer sign the UW Transaction Detail with Notes & Account Codes Report.
UW Transaction Detail with Notes & Account Codes Report
The UW ProCurement Card Advisory Board developed a report designed for efficient MyFD/BAR reconciliation. This report is called the UW Transaction Detail with Notes & Account Codes Report. To run the report, login to PaymentNet and:
- Click on the Reports tab.
- Select Create.
- From the Report Type drop-down, select Transaction.
- Use the Page forward chevrons to go to the last page and scroll down until you see the UW Transaction Detail with Notes & Account Codes Report.
- Click on the report name link.
- Leave the output as PDF.
- Change the Criteria to Field: Post Date and Operation: Cycle Is and select Value: for the appropriate Billing cycle.
- Click the Process Report button.
- Once the report status is Successful, click on the UW Transaction Detail with Notes & Account Codes.pdf name to open, view and print the report for review and signature.
This report lists the purchases for each budget in order of object codes. It also shows the cardholder name, transaction date, merchant name, location, amount and any transaction notes included.
$75 Receipt Waiver
IMPORTANT: You should make every effort to obtain invoices and receipts for your expenditures. If it appears as if the vendor is not going to provide an invoice or receipt at the time of purchase, be sure to ask for one.
Purchase receipts and supporting documentation (i.e., proof of receipt of goods, business purpose, itemized list of what was purchased and pricing information) are required for all transactions over $75. Visit the Award Documentation Guidelines page.
The Office of Financial Management (OFM) has approved a receipt requirements waiver for purchases up to $75, which has been reviewed and approved by UW Internal Audit. The $75 receipt waiver pertains only to invoice retention when you don’t have an invoice or are missing an invoice:
- The purpose of the waiver is to save departments time from chasing after missing documentation of an allowable department purchase that is evident of its business purpose, i.e. registration, membership fee, office supplies, etc.
- This waiver does not apply to ProCard “high risk transactions” listed below. Purchase receipts and supporting documents are always required for: o Food/Meals o PayPal o Fuel/Gas Station o Travel (“High- Risk Transactions” are transactions that have the highest risk of misuse or fraud.)
- Individual departments have the discretion to require cardholders to provide and retain purchase documentation for other purchases in addition to the list above or as it is stated in department’s internal policies.
- It is not mandatory to use the $75 receipt waiver. However, individual departments have the discretion to implement this. If a department decides to use the waiver, then it must be written in the department's internal policies and contingency procedures, and communicated to those impacted by the change.
Express Mail Object Coding Using
03-24 object coding on express mail transactions will prevent Use Tax (WA State sales tax collected by purchaser) from being charged. Express mail shipments using freight carriers such as UPS and FedEx are exempt from Sales/Use Tax. It’s recommended that customers of express mail request an Xmail ProCard Ghost account because these accounts are set up with a defaulted object code of 03-24. This will notify the backend financial system that a Use Tax should not be charged. If you use your own ProC