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XII.6.Q.1
Paying and Reconciling Procurement Card Charges


SECTION OVERVIEW AND POLICY

This section provides Business Units with guidance on paying and reconciling Procurement Card (PCard) charges within the Statewide Financial System (SFS).

In addition to the guidance contained in this section, Business Units and State employees with PCard privileges should refer to Chapter XIV, Section 10 – Travel and Purchase Rewards Programs of this Guide to ensure compliance with the New York State Joint Commission on Public Integrity’s Advisory Opinion regarding supply vendor reward programs.

 


Process and Transaction Preparation:

 

Online Business Units

 

Prior to payment, the Business Unit should review the PCard invoice to ensure charges appear reasonable. The Business Unit will then pay the entire PCard invoice using one prepaid voucher with the PCard Clearing account code 58971. This voucher will satisfy the payment to the PCard provider and establish a balance in a specific PCard Clearing Account.

In the invoice field of the prepaid voucher, Business Units should enter the full PCard billing account number followed by the two digit billing month and the two digit billing year. There should not be any letters, special characters (e.g., #,-) or spaces before, within or after the account number. Failing to use this format in the invoice field results in delayed payment crediting and may result in PCard deactivation. For example, when processing a prepaid voucher for account number 4275-0000-0000-0000 for billing month and year May 2014, a Business Unit should enter 42750000000000000514 in the invoice field. Please note this is a dummy account number. Each Business Unit must fill in the actual account number in the invoice field for Citibank to apply payments correctly.

Within 30 days of the payment of the prepaid voucher, the Business Unit must complete the reconciliation process which will transfer via a journal all payments from the PCard Clearing Account to the account codes that identify the specific goods or services purchased with the PCard. This PCard reconciliation process begins with loading the credit card company’s PCard transactions into the SFS Purchasing Module. Cardholders then reconcile their charges, including obtaining any necessary approval of charges. The system will then generate a reconciliation voucher that reclassifies expenses into the actual expense account codes and reconcile the PCard Clearing Account. This reconciliation voucher will not result in a payment.

 

On occasion, there may be special consideration for reconciling procurement card charges. These include:


When creating either the prepaid vouchers or the reconciliation vouchers, Business Units should select the PCard provider’s Vendor ID: 1000009372.

In order to help Citibank apply credit card payments properly, Vendor ID 1000009372 has been coded so that the SFS will not combine Business Units’ payments to Citibank. Accordingly, when Business Units create a voucher to pay under these vendor numbers, SFS automatically places the checkmark in the “Separate Payment” box in the Payment Options section of the voucher. Business Units should not remove the checkmark as this will cause your payments to be combined with other Business Units’. This results in delayed payment crediting and may result in PCard deactivation. Bulkload agencies that have the ability to affect the checkmark in the “Separate Payment” box should ensure it is checked.

 

 

If a Business Unit is due a credit from Citibank, the Business Unit should only request that Citibank apply the credit to the next billing cycle. Business Units should not receive checks from Citibank for credits or process any credit memos to Citibank for the PCard.

 

Bulkload Business Units

Prior to payment, the Business Unit should review the PCard invoice to ensure charges appear reasonable. The Business Unit will use one regular voucher to pay the entire invoice using the PCard provider’s Vendor ID: 1000009372. The Business Unit must then either:

 

Or

 

In the invoice field of the voucher, Business Units should enter the full PCard billing account number followed by the two digit billing month and the two digit billing year. There should not be any letters, special characters (e.g., #,-) or spaces before, within or after the account number. Failing to use this format in the invoice field results in delayed payment crediting and may result in PCard deactivation. For example, when processing a voucher for account number 4275-0000-0000-0000 for billing month and year May 2014, a Business Unit should enter 42750000000000000514 in the invoice field. Please note this is a dummy account number. Each Business Unit must fill in the actual account number in the invoice field for Citibank to apply payments correctly.

 

For questions regarding paying or reconciling procurement card charges, please contact the Bureau of State Expenditures’ Customer Service Help Desk at (518) 474-4868, or by email addressed to stexpend@osc.state.ny.us.

 

 
 
Guide to Financial Operations
REV. 11/01/2016