Prepaying For Foreign Software

University PCard policy restricts payments to foreign entities or individuals for services and software. In addition, reimbursements to foreign entities for software are scrutinized to ensure federal reporting and withholding requirements are met.

The virtual credit card program is ideal for these types of transactions that are generally paid via a Disbursement Voucher.

Process

The following steps are recommended when prepaying/paying for foreign software:

  1. Initiate the vendor record in UAccess Financials. Refer to the Vendor Creation Tutorial if vendor record does not exist in UAccess Financials. You will now be able to create a Disbursement Voucher.
  2. Document Overview TAB:
    1. Description: Include the name of the Software/license
    2. Explanation: Business Purpose for software purchase and include if this is monthly or an annual payment
    3. Organizational Document Number: If applicable
  3. Payment Information TAB:
    1. Payment Reason Code: X-Other
    2. Payee ID: Select vendor initiated in the vendor file.
    3. Check Amount: Enter to be paid to vendor
    4. Due Date: Enter payment is expected.
    5. Payment Method: C AP Credit Card
    6. Check Stub Text: Brief description for vendor to apply payment
  4. Accounting Lines:
    1. Enter applicable UAccess Financials accounting details
      1. Account, Sub-Account, Object Code, Sub-Object, Project, Org Ref ID, Amount, Line Description, Invoice number
    2. If payment is required in foreign currency, please add an additional accounting line of $100.00 as an estimated currency conversion fee. Unused funds will be returned to the department account once the virtual card has been charged. Additional information may be obtained by utilizing the Oanda currency converter. Ensure that the check amount on the Payment Information tab is updated accordingly.
  5. Nonresident Alien Tax TAB:
    1. When the vendor is indicated as a foreign entity, this tab is required to be completed by Accounts Payable upon review and approval.
  6. 1099 Classification TAB:
    1. 1099 MISC tax forms are not issued to foreign vendors thus no action required by the initiator.
  7. Notes and Attachment TAB
    1. Add appropriate notes for audit purposes and attach supporting documentation such as an invoice, quote, website details, contract, etc.
    2. Add a note indicating who should receive notification (i.e.: Adhoc FYI Routing) when the virtual credit card is available and ready for use.
    3. Accounts Payable will add a note if there is a University tax obligation and provide the gross up amount to be expensed on the department's account along with the Distribution of Income and Expense eDoc number for reference.
    4. When card is issued, it will be attached in the Notes and Attachment tab for the department to pay online or contact vendor directly.
  8. Click Save, review details for accuracy, and then click Submit.