Purchasing Card Training 22 nd May 2013

1. Purchasing Card Training22nd May 2013

2. Aims • To: • understand the purpose of a purchasing card, how it can to be used & the benefits of its usage • understand the role and responsibilities of the approver, card holder(s) and the parked journal receiver i.e. the purchasing card business processes • access and view a purchasing card parked journal in the Business Workplace inbox • print copies of a purchasing card parked journal • process lines of a purchasing card parked journal to add text, amend financial coding and account for VAT expenditure • save, balance lines on a purchasing card parked journal & post on completion • view all purchasing parked journals for an organisational unit using the zcpj_search transaction.

3. What is a Purchasing Card? • Corporate VISA charge card. • Can be used to buy goods/services by telephone, over the counter & via the internet through VISA-enabled suppliers up to agreed transaction limits.

4. Benefits • For HCC… • reduced processing costs & time. Suppliers are paid automatically • reduced petty cash expenditure & Describe Requirements • easier to buy in an emergency • free to implement • financial transparency & accountability • timely & accurate management information. • For suppliers… • prompt payment & improved cash flow • reduced costs & paperwork.

5. What can be purchased? • Everyday, low value, petty cash purchases. • One off purchases with non-contracted suppliers. • High value, low volume,specialist purchases. • Low value purchases from selected, contracted suppliers only.(refer to Procurement purchasing card web site for list of suppliers).

6. What cannot be purchased? • Goods/services where there is an existing corporate contract unless there is an agreed exception. • Fuel (except for hire cars). • To withdraw cash. • To pay staff expenses. • Private or personal use.

7. Card & Pin Security Card(s) must: • be signed by the card holder(s) & pin updated • kept in a secure place & used regularly • not be shared with anyone else • not used in excess of the card & transaction limit. Further guidance in sections 4 & 11 of User Manual.

8. Card Holder Business Process Card holder(s) gets prior approval to purchase goods Buy goods from VISA enabled supplier Obtain & keep VAT receipts Complete transaction log (optional)

9. Card HolderBusiness Process MONTHLY –receive P J print out from P J receiver MONTHLY –reconcile P J print out with VAT receipts. Resolve any issues with supplier / RBS as required. Signprint out. MONTHLY – Pass P J print out & receipts to approverto counter sign. MONTHLY –ensure the P J print out & receipts are passed to P J receiver

10. Approver Business Process FOR EACH PURCHASE - verify need & agree expenditure from the budget MONTHLY – check the P J print out from each card holder. Resolve any issues with card holder. Sign P J print out(s). MONTHLY – return all signed P J print out(s) & receipts to P J receiver

11. Central Business Process FIRST OF THE MONTH – Procurement Systems Team downloads information from Royal Bank of Scotland (RBS) File is uploaded into SAP. Parked Journals (P J) are created & sent to each P J receiver County Treasurer’s pays RBS

12. P J Receiver Business Process MONTHLY - print P J for each card holder & distribute MONTHLY - receive signed P J print out(s) with attached VAT receiptsfrom the approver MONTHLY - within the P J, add text, amend financial coding & process VAT USUALLY BY 28TH - post the P J before the deadline (check PST web page for monthly auto complete dates) File P J print out(s) & receipts for 3 years plus current

13. VAT Requirements VAT cannot be reclaimed without a VAT receipt Not claiming VAT will increase costs to departmental budgets and will affect value for money

14. VAT Requirements Ask card holders to obtain a VAT receipt. Some online suppliers will not supply VAT receipts unless you collect from the store. Where the total expenditure including VAT does not exceed £250, only the following information is required: • the name, address and VAT registration number of the supplier • the date of supply • a description sufficient to identify the goods or services supplied • for each VAT rate, the rate and total amount payable including VAT. (Some times there will be an indication of VAT rate - a letter or *). For in excess of £250 including VAT, more information is required. Refer to section 2.7.3 of the Tax Manual.

15. VAT Requirements • The P J receiver will usually need to separate the VAT for each item on the parked journal. Use the online VAT calculator within the Tax Manual to calculate the net amount. • If an item is vatable but a VAT receipt is not supplied, enter the gross value and select VAT code V7.

16. SAP Transaction zcpj_search transaction will allow you to view any purchasing card parked journal for your organisational unit. This transaction will not be on the menu structure. Set up as a favourite.

17. Help and Support Card Management

18. Help and Support

19. Help and Support

20. Help and Support

21. Any questions?

22. Course objectives By the end of the course, delegates will be able to: • access and view a purchasing card parked journal in the Business Workplace inbox • print copies of a purchasing card parked journal • process lines of a parked journal to add text, amend financial coding and account for VAT expenditure • save, balance lines on a purchasing parked journal and post on completion • view parked journals using the zcpj_search transaction.