ARC Process

Overview

Accounts Payable reviews all foreign vouchers, including PO vouchers.  If the order is for goods, it will process payment with no reporting or withholding.  However, if the voucher is for services/honoraria/award, etc., it will determine if it is U.S. sourced, and act accordingly. 

  • If not U.S. sourced, process payment – no reporting or withholding
  • If U.S. sourced, determine reporting and/or withholding requirements

AP will also check the voucher to visa type, and verify withholding requirement and submits amounts to IRS, as needed.

Submitting Vouchers for Payment

  1. Prior to payment processing, a vendor/individual/entity will have completed a vendor profile creation process, and will have provided the necessary vendor form (e.g. W8-BEN, Form 8233); eligibility for exemption from potential tax withholding; and, depending on circumstances, information on visa type.  See above tab for information on processing NEW VENDORS.
  2. Department receives an invoice or other payment request. 
  3. Department completes a check request form if needed. ARC Voucher Initiator logs into ARC AP Module and determines whether a PO or Non-PO Voucher is the appropriate voucher, along with the appropriate Voucher Type, and Voucher Style, and completes voucher creation steps, including selection of the Vendor in ARC. The Voucher Initiator scans and uploads required voucher supporting documentation through EDM system into ARC.  Learn more ...
  4. Voucher Initiator submits voucher, which then receives required system checks (e.g. Matching for PO vouchers). 
  5. Any exceptions must be resolved by the ARC Voucher Initiator. Vouchers that have successfully passed system checks route to ARC Voucher Approver, based on workflow rules. 
  6. If voucher meets approval criteria, ARC Voucher Approver will approve.
  7. Upon receiving departmental approval, vouchers will route to central Accounts Payable. The first review conducted by AP center on whether any tax withholding is required. 
  8. If tax withholding is required, AP staff will contact ARC Voucher Initiator to alert the Initiator to the withholding, and any required adjustment will be made to the voucher. 
  9. The second review will focus on the regular voucher review conducted by the Audit & Review staff. 
  10. If there is any item that needs clarification or correction, the voucher will be placed On Hold and the ARC Voucher Initiator will receive an email notification from a member of the AP Audit & Review staff. 
  11. Once any Hold items have been resolved, the AP Audit & Review staff member will approve the voucher.
  12. Once the voucher has successfully completed the AP Audit & Review process, it is approved. 
  13. Voucher is Budget Checked. If Budget Checking process is not successful, ARC Voucher Initiator will receive a notification and will need to resolve Budget Check failure.
  14. Approved vouchers that pass Budget Checking will the post to the General Ledger. 
  15. Payments for approved vouchers will be processed on a nightly basis.

 

New Foreign Vendors

All new vendors are validated against OFAC databases and the D&B database.  Vendor Management will:

• Confirm the nature of payment corresponds to the Description of Transaction

• Determine if transaction is for services so profile is coded for 1042 reporting as needed.  If the service type is for maintenance, profile is categorized as a goods purchase.

• Review tax forms for completeness, correctness, compliance 

• Set up approved foreign vendor profile in ARC as an outside party or supplier, open for ordering, and 1042 reporting as applicable.

Note: Vendor modification is required after new vendor profile is approved for wire transfer “location”

New Vendor Process

Submit a Vendor/Payee Web form

  1. If the vendor’s payment type is for an honoraria or is receiving payment for service within the United States, upload a copy of the vendor’s VISA (if applicable) or Passport as well as a completed, signed and dated Form 8233.
  2. If the vendor’s payment type is for an honoraria or is receiving payment for service outside of the United States or for additional information on creating a vendor, please visit the Vendor Management website.

 

For Individuals, Vendor Mgmt will:

• Determine country of citizenship and possible foreign status

• If service related, confirm if Payee performed service in the US

• If performed in US, confirm proper visa type

• Checks nature of payment to visa type, and ISSO Visa Payment Chart.

• If tax treaty benefit claimed, will check for valid tax form & ID

• Confirm correct tax form is received, is correct, and is signed, dated, and legible

• Compare to existing tax form if present

 

For Entities, Vendor Mgmt will:

• Confirm country of incorporation is not US based

• Confirm receipt of tax form

• Confirm tax form is correct based upon entity formation, signed, dated, and legible

• If tax treaty benefit claimed, check for valid ITIN, EIN

• Compare to existing tax form if present