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Payments Without Invoices Processed Through FIS

The purchase of goods and services at the University of Toronto can be made using a number of different methods, depending on the type of purchase and the value. Please refer to the Procurement Policy and the Broader Public Sector directive .

This section deals with those payments without invoices (information formerly included under “Cheque Requests”). For purchases of goods and non-consulting services under $5,000, you have the following options:

  • Use your departmental Purchasing Card
  • Issue a departmental purchase order. This type of purchase order will not be reflected in FIS through the normal purchase order process.
  • Place your order with the vendor and request an invoice for payment
  • Use your Petty Cash fund for purchases up to $100
  • Use your Imprest Bank Account for purchases up to $500

There are situations when payment for small purchases need to be made via cheque, but for which no invoice exists to support the payment. Examples of these situations may include:

  • Conference fees, memberships
  • Subscriptions, reprints, order forms, journal renewals
  • Deposits required for events
  • Refunds of amount originally paid and credited to departmental accounts
  • Contractual agreements for items like space rental or copier leases
  • Postage meter payments and/or mailings

Supporting Documents

When no invoice exists, a document which represents objective support for the payment, must be provided. The document should include relevant details such as purpose and dollar amount, as well as authorization to make the payment. This could be in the form of a conference registration form, a subscription renewal form, a copy of the payment schedule identified in a contractual agreement, an email including authorized individuals, etc.

If the payment is being made to an individual for services, the department receiving the service is obligated to determine the type of service provided (i.e. consulting, non-consulting, etc.) and whether an employment/ independent contractor relationship exists. A review of the GTFM sections Employee versus Contractor / Taxation of Payments and, Income Tax Guide – Employee or Independent Contractor should be completed to determine if the service is one of the few exceptions where an employment relationship does not exist. If no employment relationship exists, then the department must certify this and a small traders certificate should be completed if required.

Once there is appropriate supporting documentation and authorization, follow the process similar to that used to process a certified invoice in FIS by using the appropriate Accounts Payable Reference Guide. The system assigned document number should be written on the supporting documents for future reference.

What situations are dealt with specifically in other sections?

1. A uniquely identifiable invoice

See the sections Purchase Orders Invoices and Certified Invoices which cover situations where a supplier has issued a uniquely identifiable invoice which meets the generally accepted business norms for such documents. Uniquely identifiable means there is an invoice number which can be reproduced on the cheque to the supplier to identify the purpose of the payment.

2. Payroll payments

In almost all cases when the University makes a payment to an individual for services rendered, it is required under the Income Tax Act to report the payment, or report, make and remit deductions at source. For this reason, these payments must be made by the Payroll Department. This includes payments which may be considered to be in lieu of payments for services, e.g. honoraria.

There are very few exceptions. Refer to the GTFM section Employee versus Contractor / Taxation of Payments and, as required, the Income Tax Guide – Employee or Independent Contractor?

3. Out-of-pocket expense reimbursement

To reimburse individuals for out-of-pocket expenses, refer to the section Travel and Other Reimburseable Expenses for information on how to process this type of payment.

4. Payment for “internal” goods and services

In order to pay another University department for goods or services received, the selling department should process an internal revenue/recovery transactionto credit its account(s) and debit the account(s) of the buying department. Refer to Internal Revenues and Internal Expense Recoveries for additional guidelines.

5. Small Payments

Consider direct payment by the department:

  1. by using the departmental purchasing card.
  2. by disbursing out of petty cash where payment in cash is practical.
  3. by issuing a cheque on the departmental imprest expenditure bank account, if the department has one.
  1. Where there is no appropriate backup to support the payment

See the above sub-section Supporting Documents for an explanation of what constitutes appropriate back up for processing this form of payment.

Conflict of Interest

An individual may not authorize payment to oneself. Where the relationship between the individual requesting the payment and the payee is such that a conflict of interest may exist, the payment should be authorized by the person to whom that individual reports. Also refer to the Statement of Conflict of Interest and Conflict of Commitment.

 

Last revision March 2013