A requisitioner originates a shipment from the university to an external destination by completing a shipping order.  Central Stores prepares the shipment for pickup by a courier.  In turn the Accounts Payable section of Finance charges shipping costs to the account specified on the shipping order.  The following business practices relating to the outbound shipping costs are followed:

• All outbound shipping costs are charged to a university account.  For reference Finance includes the shipping order number in the transaction description.
• Costs for outbound shipments are charged to the expense account based on the invoicing practice of the courier.  For example, Fedex charges are processed within 48 business hours after pickup.  Purolator charges are processed within 14 calendar days.
• In the event that the specified account is incomplete or inaccurate Finance contacts the requisitioner to obtain a valid account number.
• When a requisitioner is not available Finance charges the operating freight account of the requisitioner.
• Costs for outbound shipping costs remain in the account originally charged as the shipping order is considered a source document.  Requests to correct the account allocations for shipping costs more than $100.00 are submitted to Accounts Payable.  Requests for corrections are not processed if $100.00 or less.

Finance
December 2007