Payments to Foreign Vendors, Individuals, Entities

Payments to foreign-- i.e. non-U.S.-- individuals, vendors, and other entities are controlled by a number of compliance considerations and regulatory agencies, including:  Tax (IRS); Immigration (Homeland Security); Foreign Asset Control (Office of Foreign Asset Control).  To ensure compliance, all payments to foreign vendors, individuals and entities require central review by Accounts Payable.  In some cases, tax withholding on a payment is required.

Foreign Payments Processed by AP
  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.
  2. Department receives an invoice or other payment request.  Department completes a check request form if needed.
  3. 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 (eg) and Voucher Style (e.g), and completes voucher creation steps, including selection of Vendor
  4. ARC Voucher Initiator scans and uploads required voucher supporting documentation through EDM system
  5. ARC Voucher Initiator submits voucher, which then receives required system checks (e.g. Matching for PO vouchers).  Any exceptions must be resolved by the ARC Voucher Initiator.
  6. Vouchers that have successfully passed system checks route to ARC Voucher Approver, based on workflow rules.  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 will be on whether any tax withholding is required.  If tax withholding is required, AP staff will be in contact with ARC Voucher Initiator to alert the Initiator to the withholding, and adjustment that will be made to the voucher.  The second review will be the regular voucher review conducted by the Audit & Review staff.  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.  Once any Hold items have been resolved, the AP Audit & Review staff member will approve the voucher.
  8. Once the voucher has successfully completed the AP Audit & Review process, it is approved.  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. Approved vouchers that pass Budget Checking will the post to the General Ledger.  Payments for approved vouchers will be processed on a nightly basis.
Honoraria and Fellowship/Stipend Payments Processed by AP

Honoraria payments to Non Resident Aliens and Fellowship/Stipend payments to foreign students are audited and processed by Accounts Payable.