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Invoice Certification

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    Title:

    Invoice Certification

    Publication date:

    7/20/2021

    Effective date:

    7/20/2021

    BRIEF

    Policy Summary

    This policy defines requirements and procedures for certifying vendor invoices at Lawrence Berkeley National Laboratory (Berkeley Lab). Approval of procurement costs (i.e., commitment of funds) should take place during the requisition process. Berkeley Lab's policy is to pay all invoices timely, accurately, and in accordance with the terms and conditions of the applicable subcontract and all other applicable regulations.

    Who Should Read This Policy

    Any employee involved in reviewing and/or certifying vendor invoices at Berkeley Lab, including procurement specialists, technical representatives, and requestors.

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page.

    Contact Information

    Accounts Payable Manager

    Title:

    Invoice Certification

    Publication date:

    7/20/2021

    Effective date:

    7/20/2021

    POLICY

    A. Purpose

    This policy defines requirements and procedures for certifying vendor invoices at Lawrence Berkeley National Laboratory (Berkeley Lab). Approval of procurement costs (i.e., commitment of funds) should take place during the requisition process.

    B. Persons Affected

    Any employee who reviews and/or certifies vendor invoices at Berkeley Lab, including procurement specialists, technical representatives, and requestors.

    C. Exceptions

    Not applicable.

    D. Policy Statement

    1. General
      1. Berkeley Lab's policy is to pay all invoices timely, accurately, and in accordance with the terms and conditions of the applicable purchase order/subcontract and all other applicable regulations.
      2. Invoice certification may be required for services in excess of $5,000 or based upon the item category (e.g., software, design and construction, consultant/personal services, research and development, and fabrications, or items with quality assurance requirements, complex equipment configuration, and/or project milestones).
      3. When a purchase requisition is entered into the Financial Management System (FMS), the requisition preparer works with the division requester to determine if invoice certification is required and identifies the appropriate invoice certifier. This information is also conveyed to the procurement specialist. After a requisition is reviewed by the procurement specialist and all the necessary criteria are met, the procurement specialist establishes a purchase order/subcontract with the vendor. If a change in the certifier is necessary, the requester works with the procurement specialist to implement the change.
    2. Invoice Certification Requirements
      1. It is highly recommended that all employees who review and/or certify vendor invoices complete the FMS 1465 Invoice Certification (a 15-minute training course).
      2. An invoice certifier is required to certify that goods were received or services were satisfactorily performed per purchase order/subcontract requirements and that the invoice adheres to the terms of the purchase order/subcontract. This may require the certifier to consult with the technical representative and/or requester.
      3. The certification must be performed in a timely manner to ensure that the vendor/supplier is paid within the payment terms of the purchase order/subcontract. Failure to provide timely certification may result in a late payment, which could affect Berkeley Lab's ability to comply with the purchase order/subcontract and/or U.S. Department of Energy requirements.
      4. Disbursements Accounting accrues uncertified invoices at month end and fiscal year end.
      5. When a vendor invoice or credit memo is received by Berkeley Lab's Accounts Payable department, it is entered into the Accounts Payable (AP) invoice processing system and a voucher is created (and paid/applied) in FMS. If certification is required, a system-generated e-mail is sent to the designated certifier for approval with a link to the invoice in the AP invoice processing system, and the voucher in FMS.
      6. If for any reason it is determined that any portion of the invoice should not be certified, the certifier is responsible for taking appropriate action in the AP invoice processing system, and for notifying Accounts Payable, the procurement specialist, and/or the vendor/supplier for resolution as needed.
      7. For purchase orders/subcontracts over $1 million, any invoice over $100,000 requiring certification must also receive:
        1. Approval from an employee authorized in the Laboratory's Signature Authorization System (SAS) database for the amount of the invoice.
        2. Concurrence from the procurement specialist for the amount of the invoice. The procurement specialist will receive a system notification that their concurrence is required. The purpose of the procurement specialist's concurrence is to ensure that the invoice conforms to the terms and conditions of the purchase order/subcontract.
      8. If the procurement specialist has indicated in FMS that the invoice requires review of travel costs, the system will route the invoice to Travel for review. Travel will notify the invoice certifier if there are issues to be resolved.

    E. Roles and Responsibilities

    Role

    Responsibility

    Requisition Preparer

    • Works with the requester to identify the scope of the procurement.
    • Identifies the invoice certifier, as necessary.

    Invoice Certifier

    • Uses the online AP invoice processing system to certify in a timely manner that services have been performed and/or goods have been received and include all required supporting detail. For example, a Time &Materials subcontract would require labor cost detail including names, positions, job classifications, hourly rates, and materials used.
    • Ensures that invoices conform to all purchase order/subcontract requirements and charges on the FMS voucher/invoice are allocated to the appropriate purchase order lines and project IDs.
    • Consults with the requestor, procurement specialist, and/or technical representative as necessary to ensure invoices should be paid before certifying.
    • Ensures that invoices for labor include names, positions/job classifications, hourly rates, and the number of hours worked.
    • Notifies the vendor/supplier, procurement specialist, and Accounts Payable of any discrepancies to resolve them in a timely manner.

    Accounts Payable

    • Processes invoices/credit memos received from vendors/suppliers in the AP invoice processing system and FMS in accordance with the procurement purchase order terms, policies, and system controls, and issues payments.

    Disbursements Accounting

    • Accrues all invoices not yet certified at month end and year end.

    Procurement Specialist (Buyer)

    • Works with the division to determine if certification is required on a purchase order/subcontract and assists the division in identifying a certifier other than the requester, if appropriate based on the Invoice Certification Policy requirements.
    • For invoices over $100,000 on subcontracts over $1 million, ensures that the invoice conforms to the terms and conditions of the purchase order subcontract.

    Signature Authorization System (SAS) Approver

    • For any invoices over $100,000 on purchase order/subcontracts over $1 million, provides approval of the invoice amount.
    • Ensures that any required funding approvals are made in accordance with the Signature Authority for Financial Transactions Policy.

    Technical Representative

    F. Definitions/Acronyms

    Term

    Definition

    Certifier

    A Berkeley Lab employee designated to review and certify invoices, and to validate the receipt of goods or services prior to payment. Certification does not authorize the commitment of funds.

    FMS

    Financial Management System (PeopleSoft)

    Requisition Preparer

    The person who enters the requisition into FMS and who works with the requester to identify the certifier.

    Technical Representative

    A trained employee designated by a Berkeley Lab division who provides technical direction on the subcontract and monitors subcontractor performance.

    Voucher

    An invoice that has been entered into FMS.

    G. Recordkeeping Requirements

    None

    H. Implementing Documents

    Document Number

    Title

    Type

    11.01.013.001

    Certification Instructions

    Procedure


    FMS 1465 Invoice Certification

    Training


    Questions to Consider

    Reference

    I. Contact Information

    Accounts Payable Manager

    J. Revision History

    Date

    Revision

    By Whom

    Revision Description

    Section(s) Affected

    Change Type

    1/2/2012

    1

    M.A. Bothe

    Reformat for wiki

    All

    Minor

    11/30/2017

    1.1

    M.A. Bothe

    Clarify when certification is required; clarify that procurement specialist has a concurrence role

    D

    Minor

    1/10/2018

    1.2

    T. Carlson

    Update link to "Certification Instructions" implementing document.

    H

    Editorial

    7/20/2021

    1.3

    V. Oberholser

    Periodic review; minor clarifications

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    Invoice Certification

    Document number

    11.01.013.000

    Revision number

    1.3

    Publication date:

    7/20/2021

    Effective date:

    7/20/2021

    Next review date:

    4/30/2024

    Policy Area:

    Accounting

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    11.31

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM, Chapter 11, Section 11.31

    Source Requirements Documents

    Implementing Documents

    Document Number

    Title

    Type

    11.01.013.001

    Certification Instructions

    Procedure

    Other References

    Document Number

    Title

    Type

    11.07.005.000

    Financial Approvals

    Policy

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