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1. Approver: An individual responsible for confirming transactions are appropriate, compliant with policies, and approved in a timely manner.

2. Appropriate expense: An expense that is suitable or fitting for a particular valid business purpose.

3. Allowable expense: A necessary, reasonable, and appropriate expense incurred for the primary benefit of University business and, therefore, permitted to be reimbursed or directly charged based on the permission of the University.
4. Automated Clearing House (ACH): A Federal Reserve Bank or private financial institution acting as a clearinghouse for direct deposit or fund transfer transactions. Entries are received and transmitted by the ACH under the rules of the association.
5. Department Chair or Head: An individual who is a department chair, department head, or office head.
6. Generally Accepted Accounting Principles (GAAP): Fundamental principles of accounting that are used as guidance in the preparation of the University financial statements.
7. Independent Contractor: For purposes of this policy, an independent contractor is an individual who provides services to Rowan University and is not an employee. Therefore, the worker should be paid under a 1099 (and not a W-2).
8. Invoice: A document that itemizes a transaction between the buyer and a seller. The document represents an asset of the issuer and a liability of the customer. For the purpose of this policy, Accounts Payable Department requires this document for payment.
9. Non-PO Payment Request: Non-PO Payment Requests are used to generate disbursements and reimbursements for minor out-of-pocket expenses. Examples of reimbursements made to employees / students: emergency minor purchases, memberships, registrations, subscriptions and professional license renewals. Finance Division administrative payments / fees are also authorized on this form. For a full list of categories authorized for payment on this form, please see the Non-PO Category list.
10. Necessary: Minimum purchase or service required to achieve a particular business objective.
11. Original Receipt: The original receipt or invoice issued by the supplier or service provider to document and substantiate the business transaction. If the paper receipt is missing and/or destroyed, a digital image of the original receipt may be allowable provided that it is legible. For meals, an original itemized receipt is required for reimbursement. 
12. Purchase Order: The University’s preferred method of purchasing goods and services. A Purchase Order is a document issued by the University and serves as a commitment to purchase the goods or services. Purchase Orders are issued by buyers to sellers listing prices, quantities, and types of products or services looking to be purchased.
13. Reasonable Expense: An expense that is not extreme or excessive, but ordinary; it reflects a practical decision to incur the expense on behalf of University business.
14. Requisition: The electronic request for the purchase of goods and service; or an individual requesting payment of a transaction as permitted within this policy. These electronic requests are converted to purchase orders by the Office of Contracting and Procurement.
15. Substantiation: Incurred Requisitions, Miscellaneous Disbursement Vouchers Non-PO Payment Request and Travel Expenses must be substantiated with documentation to support the payment. All payments must include the original receipts, documentation of business purpose, names of attendees, and the appropriate expense report for report for the incurred cost.

     

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 V.  REFERENCES

1. University Policies: Accounts Payable Policies
2. Internet Native Banner Training - Receiving
3. Contracting and Procurement webpage - Procurement at a Glance
4. Accounting Services website
5. IRS: U.S. Tax Withholding on Payments to Foreign Persons
6. IRS: Withholding Certificate Forms Under IRC Sections 1441-1464

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