1.35.3  Receipt and Acceptance Guidelines

Manual Transmittal

June 07, 2013

Purpose

(1) This transmits revised Internal Revenue Manual (IRM) 1.35.3, Administrative Accounting, Receipt and Acceptance Guidelines.

Material Changes

(1) IRM 1.35.3.4, Related Resources, added additional related resource.

(2) IRM 1.35.3.5, Definitions, added additional definition and revised definitions for clarity.

(3) IRM 1.35.3.6, Acronyms, added additional acronyms.

(4) Deleted IRM 1.35.3.13, Review of Unliquidated Obligations.

(5) IRM 1.35.3.13.2.23, title changed from Purchase Cards (Using Purchase Card Module) to Purchase Cards/Convenience Checks (Using Purchase Card Module).

(6) Deleted IRM 1.35.3.14.2.31, Tuition Assistance Program (TAP).

(7) Deleted IRM 1.35.3.14.3.1, Post Office Box Rentals.

(8) This revision includes changes throughout this document to update information related to receipt and acceptance, obligations, and other minor editorial changes. Also, any references to Governmentwide Accounting System (GWA) have been changed to Central Accounting Reporting System (CARS) and any references to automated procurement system have been changed to Integrated Procurement System (IPS).

Effect on Other Documents

This supersedes IRM 1.35.3, dated July 5, 2012.

Audience

All Divisions and Functions.

Effective Date

(06-07-2013)

Pamela J. LaRue
Chief Financial Officer

1.35.3.1  (07-05-2012)
Overview

  1. This Internal Revenue Manual (IRM) contains receipt and/or acceptance guidelines to assist business units and operating divisions with recording receipt and acceptance of goods and/or services.

  2. The Chief Financial Officer (CFO), Financial Management (FM), Office of Financial Management Policy, develops and maintains this IRM.

1.35.3.2  (08-05-2011)
Background

  1. In order for Federal agencies to record a valid obligation of appropriations, Federal agencies must adhere to 31 USC 1501, Documentary Evidence Requirements for Government Obligations, which establishes the requirement for agencies to record obligations when supported by documentary evidence. The Government Accountability Office’s Principles of Federal Appropriations Law, Chapter 7, Obligation of Appropriations, further details an agency’s responsibilities to ensure that funds are properly obligated and deobligated; it further points out that underrecording of obligations can result in violations of the Antideficiency Act, in that it could cause an agency to spend more than it is authorized.

  2. In order for Federal agencies to establish and maintain agency controls, Federal agencies must adhere to 31 USC 3512, Executive Agency Accounting and Other Financial Management Reports and Plans, which requires agencies to establish and maintain systems of accounting and internal control to provide reliable accounting of the agency’s activities. The systems, either manual or automated, must provide reasonable assurance that transactions are properly recorded and accounted for and are in compliance with laws and regulations. The controls, usually referred to as management controls, must ensure that reliable and timely information is obtained, maintained, reported, and used for decision making and must protect programs from waste, fraud, and mismanagement.

  3. Recording the receipt of goods and/or services and their subsequent acceptance is a key component to ensure the proper and accurate recording of obligation balances and to meet system and control requirements in accordance with statutory and regulatory requirements. The accurate and timely recording of both receipt and acceptance is critical in assuring that IRS’ financial statements are materially correct and that the IRS meets the requirements for the timely payment of vendor invoices as is required under the Prompt Payment Act. This IRM establishes receipt and acceptance requirements, including documentation and recording processes.

1.35.3.3  (08-05-2011)
Authority

  1. Chief Financial Officers Act of 1990, Public Law 101-576.

  2. 31 USC 1501, Documentary Evidence Requirements for Government Obligations.

  3. 31 USC 3512, Executive Agency Accounting and Other Financial Management Reports and Plans.

  4. 31 USC 3723, Small Claims for Privately Owned Property Damage or Loss.

  5. 5 Code of Federal Regulations (CFR) 1315: Prompt Payment; formerly Office of Management and Budget (OMB) Circular A-125, dated September 29, 1999.

  6. 41 CFR, Public Contracts and Property Management; Chapter 102, Part 102-117 and Part 102-118.

  7. 41 CFR, Public Contracts and Property Management; Chapter 302, Part 302-7 through Part 302-12.

  8. 48 CFR 53.212, Federal Acquisition Regulation System (FAR), Acquisition of Commercial Items.

  9. FAR Part 32.9, Prompt Payment.

  10. Government Accountability Office (GAO) Red Book, Chapter 7, Obligation of Appropriations.

  11. FAR Part 46.5, Acceptance.

1.35.3.4  (06-07-2013)
Related Resources

  1. IRM 1.35.15, Annual Close Guidelines.

  2. Procurement Policy and Procedures Memorandum No. 13.3, Purchase, Delivery and Task Order Preparation Guidelines.

  3. Procurement Policy and Procedures Memorandum No. 17.5, Interagency Agreements.

  4. Procurement Policy and Procedures Memorandum No. 32.0, Advance, Interim, Accelerated, and Other Payment Issues.

  5. Procurement Policy and Procedures Memorandum No. 32.7, The Invoice Processing Platform (IPP).

  6. Procurement Policy and Procedures Memorandum No. 46.5, Receipt and Acceptance.

  7. IRM 1.22.6, Transportation Management.

  8. IRS Interim Relocation Handbook.

  9. IRM 1.32.6, Purchase Card Program Handbook.

  10. Purchase Card Guide.

  11. IRM 1.35.5, Advances, Prepaid Expenses, and Other Assets.

1.35.3.5  (06-07-2013)
Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Acceptance - Acknowledgment by an authorized Government official that goods received and/or services rendered conform to contract requirements. The terms of the contract may define what constitutes acceptance. Acceptance may also be acknowledged for partial deliveries.

    2. Acceptance Date - Date goods and/or services are accepted.

    3. Accomplished Date - Date an Intra-governmental Payment and Collection System (IPAC) transaction was successfully processed by the IPAC system.

    4. Authorized Field Employee - Revenue officers, revenue agents, and special agents who incur expenses to obtain taxpayer information and/or to seize, store, and dispose of property from United States taxpayers.

    5. Certifying Official - The person authorized to certify and approve the accuracy and validity of an expense and/or claim for payment. Beckley Finance Center (BFC) serves as the certifying official for all administrative payments on behalf of the IRS.

    6. Commitment - An administrative reservation of funds prior to obligation of funds. Typically, purchase requisitions create commitments.

    7. Contract - A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. In other words, a promise or set of promises or agreements, which are legally enforceable.

    8. Delivery Order - An order for supplies placed against an established contract or with Government sources.

    9. Designated Agency Office - The office designated in the purchase order, contract, delivery order, or other procurement-related transaction to receive vendor invoices. BFC should always be the designated agency office.

    10. Designated Approving Official - The person granted approving authority, normally in the business unit or program office.

    11. Designated Funding Official - The person granted funding authority, normally in the business unit or program office.

    12. Financial Management Service (FMS) - A bureau of the United States Department of the Treasury that provides financial services for the Federal Government. These services include duties such as the United States Government’s financial manager, central disburser, and collections agent, as well as accountant and reporter of financial information.

    13. Government On-Line Accounting Link Information Access System (GOALS) II - A collection of applications that allow FMS to electronically collect data from and disseminate reports to Federal Program Agencies.

    14. Integrated Financial System (IFS) - The IRS official administrative financial management system.

    15. Invoice Processing Platform (IPP) - An electronic invoicing and payment information system that shifts the responsibility of invoice entry from the purchaser to the vendor, through a web-based portal.

    16. Integrated Procurement System (IPS) - The IRS automated procurement system.

    17. Interagency Agreement - A written agreement entered into between two Federal agencies, which specifies the goods to be furnished or tasks to be accomplished by one agency in support of the other. It is used as a procurement instrument written to clearly specify technical requirements, provisions, clauses, and funding arrangements.

    18. Intra-governmental Payment and Collection System (IPAC) - Provides a standardized interagency fund transfer mechanism for Federal Program Agencies (FPAs). IPAC facilitates the intra-governmental transfer of funds, with descriptive data from one FPA to another.

    19. Log Date - The date that BFC or the designated agency office actually receives and date stamps the invoice. If an invoice does not have a date stamped on the invoice, the invoice date will serve as the log date.

    20. Obligation - A binding agreement that may result in outlays, immediately or in the future. Budgetary resources must be available before an obligation can be legally incurred.

    21. Outlay - A payment to liquidate an obligation.

    22. Proper Invoice - An invoice containing the following: name and complete mailing address of business entity; invoice date; purchase/contract/delivery order number or other authorization for goods and/or services; vendor invoice number, account number, or any identifying number agreed to by contract; description (including, for example, contract line/subline number), price, and quantity of goods and/or services rendered; shipping and payment terms (unless mutually agreed that this information is only required in the contract); taxpayer identification number (TIN); banking information (unless previously provided); and any other substantiating documentation or information required by the contract.

    23. Purchase Order - A contractual document used primarily to acquire supplies and non-personal services when the aggregate amount involved in any one transaction is relatively small.

    24. Receiving Office - The entity that physically receives the goods and/or services and may be separate from the accepting entity.

    25. Receipt - An acknowledgment that the Government received the goods and/or services.

    26. Receipt and Acceptance Report - Written (or manual) or electronic evidence of the receipt and/or acceptance of goods and/or services by an authorized Government official. A written (or manual) certification of Receipt and Acceptance Report must include: name of vendor; dollar amount; one of three funding sources: appropriate requisition number, obligation number, or accounting string information; signature of the accepting official; and signature of official authorizing use of funding. The electronic Receipt and/or Acceptance Report transmitted from the Integrated Procurement System (IPS) must contain the following information: contract or authorization number; quantity dollar amount and description (including contract line number) of goods and/or services received and/or accepted; date(s) of goods delivered and/or services rendered; date(s) of goods and/or services accepted; and signature of the receiving and/or accepting officials.

    27. Separation of Duties - A key internal control concept under which no single individual has complete control over a financial transaction from beginning to end. Examples include separating the responsibility for receiving checks from posting them in a financial system; making purchases with the purchase card; approving purchases and paying the vendor; and entering an obligation and recording the receipt and acceptance of goods and/or services received under that obligation.

    28. Vendor - One who provides goods and/or services.

1.35.3.6  (06-07-2013)
Acronyms

  1. The following chart contains acronyms that are used throughout this IRM.

    ACRONYM DESCRIPTION
    BFC Beckley Finance Center
    BPA Blanket Purchase Agreement
    CAPPS Consolidated American Payroll Processing System
    CARS Central Accounting Reporting System
    CBL Commercial Bill of Lading
    CFR Code of Federal Regulations
    CIMIS Criminal Investigation Management Information System
    CO Contracting Officer
    COR Contracting Officer's Representative
    CPA Certified Public Accountant
    DHS Department of Homeland Security
    FAR Federal Acquisition Regulation
    FIRM Foundation Information for Real Property Management
    FMS Financial Management Service
    FPA Federal Program Agency
    FPM Financial Plan Manager
    FSA Foreign Service Accounts
    FSC Financial Service Center
    FTS Federal Telecommunication Services
    GPO Government Printing Office
    GOALS Government On-Line Accounting Link Information Access System
    GSA General Services Administration
    HHG Household Goods
    IFS Integrated Financial System
    IPA Inter-governmental Personnel Act
    IPAC Intra-governmental Payment and Collection System
    IPP Invoice Processing Platform
    IPS Integrated Procurement System
    IRBL Internal Revenue Bill of Lading
    LITC Low Income Taxpayer Clinic
    MOU Memorandum of Understanding
    OF Optional Form
    OMB Office of Management and Budget
    PBP & E Professional Books, Papers, and Equipment
    PCAO Purchase Card Approving Official
    POC Point of Contact
    POP Period of Performance
    POV Privately Owned Vehicle
    PSD Publishing System Database
    REFM Real Estate and Facilities Management
    RWA Reimbursable Work Authorization
    SF Standard Form
    SWA Security Work Authorization
    TCE Tax Counseling for the Elderly
    TDA Treasury Data Acquisition
    TD F Treasury Department Form
    TIGTA Treasury Inspector General for Tax Administration
    TIN Taxpayer Identification Number
    TOPS Telecommunications Ordering and Pricing System
    TSP Transportation Service Provider
    UCFE Unemployment Compensation for Federal Employees
    USPS United States Postal Service
    USC United States Code
    VADR Voucher Auditor's Detail Report
    WCF Working Capital Fund

1.35.3.7  (08-05-2011)
Forms

  1. The following chart contains forms that are referenced throughout this document.

    NUMBER TITLE
    DS-1573 Packers Authorization
    FMS Form 197 Judgement Fund Voucher for Payment
    Form 1334 Requisition for Equipment, Supplies or Services
    Form 2785 Requisition/Obligation Estimate Adjustment Notice
    Form 6863 Invoice and Authorization for Payment of Administrative Summons Expenses
    Form 6888 U.S. Government Purchase - Invoices - Voucher
    Form 8546 Claim for Reimbursement of Bank Charges Incurred Due to Erroneous Service Levy or Misplaced Payment Check
    Form 10580-A Postage Purchase/Expenditure Report
    Form 12741 Internal Revenue Service Bill of Lading
    Form 13135 Internal Revenue Service Bill of Lading - Privately Owned Personal Property
    MED-254 Voucher for Medical Services
    OF 69 Assignment Agreement
    SF 182 Authorization, Agreement and Certification of Training
    SF 1034 Public Voucher for Purchases and Services Other Than Personal
    SF 1081 Voucher and Schedule of Withdrawals and Credits
    SF 1113 Public Voucher for Transportation Charges
    SF 1145 Voucher for Payment Under Federal Tort Claims Act
    SF 1157 Claims for Witness Attendance Fees, Travel, and Miscellaneous Expenses
    SF 1221 Statement of Transactions
    SF 1449 Solicitation/Contract/Order for Commercial Items
    TD F 32-13.1 Employee Claim for Loss or Damage to Personal Property
    TD F 32-13.2 Schedule of Property

1.35.3.8  (07-05-2012)
Responsibilities

  1. This section provides responsibilities for:

    1. Chief Financial Officer.

    2. Associate Chief Financial Officer for Financial Management.

    3. Beckley Finance Center.

    4. Office of Financial Management Policy.

    5. Office of Financial Reports.

    6. Office of Financial Management Systems.

    7. Director, Office of Procurement, Agency-Wide Shared Services.

    8. Division Finance Officers.

    9. Business Units.

1.35.3.8.1  (08-05-2011)
Chief Financial Officer

  1. The Chief Financial Officer (CFO) is responsible for establishing policies, procedures, standards, and controls for receipt and/or acceptance, and ensuring compliance.

1.35.3.8.2  (07-05-2012)
Associate Chief Financial Officer for Financial Management

  1. The Associate Chief Financial Officer (ACFO) for Financial Management (FM) is responsible for:

    1. Maintaining and ensuring compliance with receipt and/or acceptance policy and procedures.

    2. Establishing receipt and/or acceptance processes and procedures for business units and offices.

    3. Providing receipt and/or acceptance guidance and policy to business units and offices.

1.35.3.8.3  (06-07-2013)
Beckley Finance Center

  1. Beckley Finance Center (BFC) is responsible for:

    1. Processing and recording transactions timely, once received, including, but not limited to, those related to receipt and acceptance, accounts payable, accounts receivable, disbursements, travel and relocation vouchers, obligations, deobligation requests, and cash receipts.

    2. Reviewing transaction activity and related error diagnostic messages, including, but not limited to, those pertaining to receipt and acceptance, obligation reversals, receivables, payment reversals, advances, invoices, and interagency payment activity.

    3. Conducting, or supporting business units in conducting, reviews of receipt and acceptance transactions to monitor compliance with the requirement to obtain and document end user confirmation of receipt prior to entering receipt and/or acceptance in the procurement system.

    4. Receiving and disseminating IPACs for business unit review and certification.

    5. Posting expenses in IFS to draw down advances and obligations.

    6. Securing invoices not sent timely by the vendor, when goods and/or services have been received and accepted.

    7. Determining, documenting, and posting accrued expenses with the Office of Financial Reports' concurrence.

    8. Providing customer support assistance to business unit finance staff relating to receipt and/or acceptance.

1.35.3.8.4  (08-05-2011)
Office of Financial Management Policy

  1. The Office of Financial Management Policy (FMP) is responsible for:

    1. Developing accounting policy on receipt and/or acceptance.

    2. Providing clarifying guidance and assistance on accounting policy matters.

    3. Assisting managers and other employees in interpreting and applying policies.

1.35.3.8.5  (08-05-2011)
Office of Financial Reports

  1. The Office of Financial Reports (OFR) is responsible for:

    1. Preparing and recording entries for contingent liabilities, accruals, account adjustments, or reclassifications.

    2. Establishing accrual methodology.

    3. Preparing, reviewing, and approving workpapers in support of the financial statements.

    4. Providing financial information and support to other organizations and offices.

    5. Determining, documenting, and posting accrued expenses.

1.35.3.8.6  (08-05-2011)
Office of Financial Management Systems

  1. The Office of Financial Management Systems (OFMS) is responsible for supporting IFS operations and maintenance activities.

1.35.3.8.7  (07-05-2012)
Director, Office of Procurement, Agency-Wide Shared Services

  1. The Director, Office of Procurement, Agency-Wide Shared Services (AWSS), is responsible for:

    1. Planning, directing, coordinating, and controlling the IRS procurement program.

    2. Ensuring all contractual commitments for equipment, goods and/or services are made within the framework of Federal statutes and regulations, internal policy and sound business judgement.

    3. Procuring in a timely, ethical manner goods and/or services that meet the needs of the IRS, providing the best value to the Government.

    4. Providing staff, support, and system availability for interfaced transactions.

    5. Administering reviews, providing guidance, monitoring, and tracking of open awards with liquidation of balances deemed to no longer be valid.

    6. Providing guidance, policies, and procedures relating to Procurement's role in the receipt and/or acceptance process.

    7. Educating employees of their responsibilities as they relate to the Procurement process, including the receipt and/or acceptance process and documentation requirements.

    8. Establishing and monitoring the functions of Contracting Officers (COs) and Contracting Officer's Representatives (CORs), as they relate to receipt and/or acceptance.

1.35.3.8.8  (08-05-2011)
Division Finance Officers

  1. The Division Finance Officers (DFOs) are responsible for:

    1. Managing their business units' funds in accordance with sound, prudent, and lawful financial management practices.

    2. Maintaining supporting documentation for financial transactions, including documentation for entering receipt and/or acceptance.

    3. Ensuring all business units understand the need for appropriately applying receipt and/or acceptance.

    4. Establishing procedures and enforcing compliance to ensure the validity and appropriateness of commitments and obligations. These procedures shall ensure that: commitments and obligations are accurate and properly documented; any invalid commitments and obligations are promptly liquidated; and, the unliquidated commitment and obligation reviews are completed and submitted in accordance with requirements.

1.35.3.8.9  (06-07-2013)
Business Units

  1. Business units are responsible for:

    1. Recording receipt electronically in IPS.

    2. Recording acceptance electronically in IPS, upon the determination that the goods and/or services conform to contract requirements.

    3. Conducting, or supporting BFC in conducting, reviews of receipt and acceptance transactions to monitor compliance with the requirement to obtain and document end user confirmation of receipt prior to entering receipt and/or acceptance in the procurement system.

    4. Submitting manual obligations to BFC, in accordance with Federal appropriation law.

    5. Selecting Designated Approving Officials who will be responsible for granting approval authority.

    6. Selecting Designated Funding Officials who will be responsible for granting funding authority.

    7. Submitting all required documents to BFC including invoices, telephone bills, labor adjustments/estimates, and investigative advances reports. See IRM 1.35.3.7, Forms, for examples of other documentation that may be required.

    8. Forwarding manual receipts and acceptances to BFC, if necessary.

    9. Understanding the need to appropriately apply receipts and acceptances.

    10. Ensuring that documentation supports all IFS system entries for receipt and acceptance purposes.

    11. Providing verifiable dates of performance, when not furnished by the vendor.

    12. Reviewing contracts on a monthly basis to ensure receipts and acceptances are current and to ensure obligations are valid and accurate.

1.35.3.9  (08-05-2011)
Procurement Process Overview

  1. For procurement transactions, the requester creates a requisition in IPS. Once the Office of Procurement awards the order or contract, IPS passes this information to IFS through the interface; this IFS posting establishes the obligation.

  2. For non-procurement transactions, business units create a requisition in IPS, which interfaces to IFS. The business unit sends the required obligating document to Beckley Finance Center (BFC). BFC manually creates an obligation from the interfaced requisition.

1.35.3.10  (08-05-2011)
Receipt and Acceptance Processes

  1. The following chart illustrates the commitment to payment process flow for procurement and non-procurement transactions (excluding advances), including the key accounts impacted or created and the result of the action taken. It further shows how receipt and/or acceptance fits into the entire process and why these transactions are so important in ensuring the accurate recording of unliquidated obligations and accruals on IRS financial statements. See IRM 1.35.3.13.4, Advances, for information concerning advance transactions.

  2. This chart is used for transactions that require a three-way match. See IRM 1.35.3.12, Invoice Processing, for information concerning three-way match requirements.

    Action Account(s) Affected Action Result
    Create approved requisition in IPS Commitment. Reserves funds.
    AND
    Post transaction to IFS through systems interface.
    Award contract Obligation - Unpaid, Undelivered Order (UDO). Binds funds for future outlay
    AND
    Post transaction to IFS through systems interface
    OR AND
    Manually post order in IFS (BFC). Recognizes a legal requirement to purchase goods and/or services and pay for them, when received and accepted.
    Enter/record receipt.   Recognizes that the Government has taken delivery of the goods and/or services and allows the recording of a month-end accrual.
    Enter/record acceptance. Obligation - Unpaid, Delivered Order. The Government acknowledges that the goods and/or services meet its requirements and it is obliged to pay the vendor
    Accounts Payable. AND
    Liquidates obligation.
    Receive, validate, and pay invoice Delivered Order - Paid. Creates outlay
    OR AND
    Post/record disbursement in IFS (IPAC payments). Cash. Draws down fund balance with Treasury (non-IPAC payments).

1.35.3.10.1  (06-07-2013)
Receipt and Acceptance Requirements

  1. Recording receipt acknowledges that the Government has taken delivery of the goods and/or services. Recording acceptance acknowledges that the goods and/or services meet contractual requirements and that the Government is now obligated to pay the vendor. The receipt and acceptance dates can be different days. Acceptance cannot occur without receipt, but receipt can occur without acceptance. See IRM 1.35.3.13, Receipt and/or Acceptance By Program, for timelines for recording both receipt and acceptance.

  2. The business unit must record receipt for goods and/or services received and initiate the acceptance process, regardless of whether it is a partial or complete order. If, however, the business unit receives and accepts a complete order, it must document that the order is complete through the electronic or manual receipt and acceptance processes, as appropriate.

  3. If the business unit closes a contract line item by receipt and acceptance of the total dollar value of the contract line item, the business unit can reopen the closed contract line item by creating an amendment to the requisition to add additional funding. If the business unit closes a contract line item in error by setting the final flag, then the business unit needs to contact BFC to undo the receipt and acceptance. Once the receipt and acceptance has been undone, the business unit needs to correctly re-enter receipt and acceptance. If the business unit closes a contract line item, either by receipt and acceptance of the full dollar value of the line or by setting the final flag on each line item, Procurement closes the order. Procurement can reopen an order with a modification to add additional funds.

1.35.3.10.2  (08-05-2011)
Documentation

  1. The office(s) that physically receives or accepts the goods and/or services must have and maintain documentation that supports recording the appropriate accounting entry. Examples of appropriate documentation include packing slips, work orders, delivery notifications, bills of lading, contract deliverables, registration forms, and emails. In the absence of vendor documentation specifying the value of goods and/or services delivered or accepted, the business unit must estimate their value based on agreed to prices, delivered quantities, hours, period of performance, etc. The business unit personnel recording receipt or acceptance must verify in writing with the recipient (such as an email) that they have received and/or accepted the goods and/or services.

  2. An invoice by itself is NOT sufficient documentation to support receipt or acceptance by the business unit. A business unit may use the invoice to assist it in determining the value of goods and/or services received or accepted, in conjunction with other original documentation. While BFC uses invoices approved by a business unit as evidence that the business unit has received and accepted goods and/or services, this does not relieve the business unit of the responsibility to have appropriate documentation supporting both receipt and acceptance.

1.35.3.10.3  (08-05-2011)
Reminder Notification

  1. BFC may call or email the business unit contact if it receives an invoice and the business unit has not recorded receipt or acceptance for the goods and/or services covered by the invoice. This serves as a reminder to the business unit that it needs to record receipt and/or acceptance, if it has received and accepted the goods and/or services and has documentation (other than the invoice) to prove it. If the business unit has not received or accepted the goods and/or services, then the business unit should not record receipt and acceptance based upon the receipt of an invoice. The business unit should follow up with the vendor to determine why the vendor has billed for goods and/or services not received or with personnel responsible for receiving or accepting the goods and/or services to determine status.

  2. The following is an example of a BFC-generated email sent to the business contact when an invoice is received but receipt and acceptance has not been recorded.

    Our office has received invoice number XXXXXX on purchase order number TIRXX-XX-X-XXXXX for vendor name XXXXXXXXXX. Timely payment of the vendor's invoice is dependent on your prompt response to this email.
    1. If goods and/or services have been received, please refer to IRM 1.35.3, Receipt and Acceptance Guidelines, for guidance in performing receipt and/or acceptance.

      1. If you are a coordinator inputting receipt and/or acceptance for various end users, please obtain confirmation such as an email from the actual end user(s) acknowledging receipt and/or acceptance prior to input in IPS.

    2. If goods and/or services have not been received, notify BFC immediately.

    3. If receipt and/or acceptance has occurred, but there is a problem entering the information in IPS, notify BFC immediately.

1.35.3.10.4  (08-05-2011)
Electronic Receipt and Acceptance

  1. Business units must enter receipt of goods and/or services electronically in IPS for procurement acquisitions at the time of delivery of goods or completion of services. Business units must enter acceptance as promptly as possible, but no later than the seventh calendar day after receipt has occurred, unless the contract specifies a longer period of time or there are unresolved issues with the goods and/or services. For service agreements where the charges for the services vary from month to month, business units must enter estimated receipt and/or acceptance. When business units enter receipt and/or acceptance electronically, they are not required to send hard copy documentation to BFC; however, they are required to maintain hard copy documentation in their files. The automated interface between IPS and IFS posts both the receipt and acceptance to the obligation.

  2. See IRM 1.35.3.13.1, Procurement Orders, for procurement receipt and acceptance requirements.

1.35.3.10.5  (08-05-2011)
Manual Receipt and Acceptance

  1. Business units must perform manual receipt and acceptance of goods and/or services for non-procurement acquisitions. The business unit must manually prepare the hard copy documentation for the programs listed below. The dated signature of the approving official on these documents validates receipt and acceptance.

    1. Administrative Summons, Attorney Fees, Blanket Purchase Agreements (BPAs - except Procurement contracts), Child Care Subsidy, Commercial Bills of Lading (CBLs), Consolidated American Payroll Processing System (CAPPS), Corporate Travel Accounts, Disclosure of Information-Administrative Claims, Employee Reimbursables, Fedstrips/Customer Supply, Foreign Service Accounts, FTS, Fuel/Maintenance, Inter-governmental Personnel Act (IPA) Agreements, Internal Revenue Bills of Lading (IRBLs) - Commercial, Internal Revenue Bills of Lading (IRBLs) - Relocation, Judgment Fund (Small Claims), Kersting Project Sanction Awards, Lien Fees (Manual Invoice Only), Miscellaneous Claims, Miscellaneous Medical Expenses, Miscellaneous Reimbursement Claims, Motor Pool, Packers Authorization (Relocation Transportation Invoices), Personal Property Claims, Post Office Box Rentals, Printing, Purchase Cards, Reimbursable Work Authorizations (RWAs), Rent, Representation Fund, Sales and Seizures, Security Work Authorizations (SWAs), Settlement Agreements, Telephone (Commercial Vendor 2785 card), Telephone (Government), TIGTA Settlement – Torts, Torts, Training, Unemployment Compensation for Federal Employees (UCFE), Uniform Allowance, Utilities, and Witness Fees (Expert and Subpoena).

  2. BFC will accept manual receipt and acceptance documents with either a handwritten signature or a digital signature using the Adobe Acrobat software program. All other signature types will be returned. Blanket purchase agreement caller logs are an exception to this rule, since the authorized caller initials the log.

  3. Business units can contact BFC for additional information concerning the hard copy documentation for manual receipt and acceptance. See IRM 1.35.3.13.2, Non-Procurement Orders, for manual receipt and acceptance requirements.

1.35.3.11  (07-05-2012)
Prompt Payment Standards

  1. The Prompt Payment Act, codified in 5 CFR 1315, Prompt Payment, requires Federal agencies to pay their bills on a timely basis, to pay interest penalties when payments are late, and to take discounts only when payments are made by the discount date. The Prompt Payment Act does not apply to IPAC transactions.

  2. Unless the contract provides a due date, the invoice payment due date is 30 days from the latter of:

    1. The date that BFC, as the designated office, receives a proper invoice, as indicated in the contract and/or purchase/delivery order.

    2. The date of acceptance for goods and/or services.

  3. Copies of the Prompt Payment Act and other information are available on the Prompt Payment website.

1.35.3.12  (08-05-2011)
Invoice Processing

  1. Upon receipt of the invoice, a BFC accounting technician enters key information in IFS (for example, invoice number, vendor code, date, and amount). The accounting technician reviews the invoice, matches it with the obligation and determines the status of receipt and acceptance.

    • Procurement orders are subject to a three-way match before payment can be made. If IFS shows receipt and acceptance, then the invoice is saved as "complete" in IFS. If not, then the invoice is placed in a "parked" status.

    • Non-procurement orders are subject to a two-way match before payment can be made. Non-procurement orders use manual receipt and acceptance.

  2. The chart below summarizes the three-way and two-way match requirements.

    1. TYPE OF MATCH REQUIREMENTS
        USAGE OBLIGATING DOCUMENT PROPER INVOICE RECEIPT AND ACCEPTANCE PROCESS
      Three-way Match Procurement Orders. Required. Required. Business unit enters both receipt and acceptance in IPS. (electronic receipt and acceptance). Match occurs between obligating document, invoice, and receipt and acceptance. Payment based on receipt and acceptance.
      Two-way Match Non-procurement (manual) orders. Required. Required. Business unit provides paper receipt and acceptance acknowledgements to BFC. Match occurs between obligating document and invoice. BFC verifies that it has appropriate receipt and acceptance documents and direct pays from the obligation.

1.35.3.13  (06-07-2013)
Receipt and/or Acceptance By Program

  1. This section details the responsibilities of each business unit on what is required to facilitate timely receipt and acceptance. The programs are divided according to procurement method.

1.35.3.13.1  (08-05-2011)
Procurement Orders

  1. The following programs utilize IPS.

1.35.3.13.1.1  (06-07-2013)
Blanket Purchase Agreements

  1. The Blanket Purchase Agreement (BPA) is a simplified purchase order method of filling anticipated repetitive needs for supplies and services by establishing "charge accounts" with qualified sources. Authorized callers place "calls" for delivery of products or services against the BPAs. Such agreements are appropriate when an office requires a wide variety of items in a broad class of goods and/or services, but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably. BPAs are normally limited to local business establishments from which numerous individual purchases will likely be made during a specified time period.

  2. Both the receipt and acceptance dates are the last day of the month the goods and/or services were received.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    BPA User Group Prepare a monthly BPA caller log and submit to the Designated Funding Official for certification of funds. The log should only list calls placed during a calendar month. For example, the December monthly log should only have calls that were placed during the period of December 1 through December 31.
     
    The BPA authorized caller's initials on the received and accepted items on the BPA call log serve as proper documentation of manual receipt and acceptance for BFC.  

    Note:

    Only authorized callers can place orders against an established BPA.

     
    Designated Funding Official Verify accurate funding information is noted on documents.  
    Forward all documents to BFC for processing.  
    Certify fund availability and forward the monthly log to BFC by the 8th of the following month. If there is no activity during a month, the business unit must either:
    1. Submit a log to BFC for that month with "NO ACTIVITY" listed where the calls would normally be listed or

    2. Submit an email to BFC from the Designated Funding Official stating there was no activity for the BPA for the specific month.

     

    Note:

    BFC uses the "No Activity" log as a form of internal control.

     

    Note:

    If all items procured during the month are not received within the same month, the business unit must generate supplemental BPA logs on a monthly basis, until the business unit receives all items.

     
    Beckley Finance Center Process invoice for payment.  
     

1.35.3.13.1.2  (07-05-2012)
Delegated Leases

  1. GSA has delegated to Treasury the authority to directly enter into lease contracts. Real Estate and Facilities Management (REFM) handles the procurement and day-to-day management of the leased property.

  2. The COR enters both receipt and acceptance on or before the 25th day of the month for the current month.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Contracting Officer's Representative Enter both receipt and acceptance on or before the 25th day of the month for the current month. After both receipt and acceptance have interfaced with IFS, the invoice will be systemically generated based on the acceptance.
    Assigned Analyst Review acceptance in IPS and IFS to ensure payments were systematically generated.
    Review vendor banking information for validity.
    Beckley Finance Center Process disbursements and collections.

1.35.3.13.1.3  (08-05-2011)
Interagency Agreements

  1. The IRS enters into interagency agreements to obtain miscellaneous goods and/or services from other Federal agencies. Examples of such services include cooperative agreement service units, health service contracts, training, drug testing, etc. The servicing agency bills the IRS through the IPAC system.

  2. Both the receipt and acceptance dates are the date the goods and/or services were received or, for monthly services, the last date of the billing period, as determined by the backup documentation.

  3. Business units must record receipt, upon receipt of goods and/or services, regardless of whether an IPAC charge has been received from the servicing agency.

  4. In the event an IPAC charge is not received, receiving personnel are still responsible for ensuring prompt entering of receipt and/or acceptance in IPS with the proper amount, date and the accounting string information. In the absence of an IPAC charge, receiving personnel may rely on alternative measures to estimate charges in advance of receiving a precise accounting from the servicing agency. Receiving personnel are responsible for reviewing contracts on a monthly basis to ensure both receipt and acceptance are current, whether documented by actual IPAC charges and backup documentation or estimated charges. Receipt and acceptance approvals are based upon the nature of what is procured, as well as the contract terms. Business units must record both receipt and acceptance in IPS for each month billed for payment purposes, unless advance payment is required.

  5. When advance payment is required, both the receipt and acceptance dates are the first date of the billing period, as determined by the backup documentation, or the effective date of the interagency agreement.

  6. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Beckley Finance Center Send a copy of IPAC charge/bill to the approving official designated in the agreement.
    Designated Approving Official Review the bill to verify that all charges incurred are proper, that the correct amount has been charged, and the accounting string in IPS is accurate. If discrepancies exist, reconcile with the agency providing the services and request any necessary adjustments.
    Enter receipt and acceptance in the IPS for each month billed.
    Beckley Finance Center Post the disbursements and collections after the receiving documents have interfaced with IFS.

1.35.3.13.1.4  (08-05-2011)
Locator Services

  1. The IRS uses Locator Services to locate taxpayers. Locator services bear the expense for locating these taxpayers and request payment from the IRS.

  2. Both the receipt and acceptance dates are the last date the services were performed.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Vendor Submit an invoice to Beckley Finance Center.
    End User Review invoice for accuracy and verify goods and/or services were received, and were accepted.
    Enter receipt and acceptance in IPS.
     
    Beckley Finance Center Process invoice for payment.  

1.35.3.13.1.5  (06-07-2013)
Low Income Taxpayer Clinics

  1. The Low Income Taxpayer Clinics (LITC) program provides matching grants for organizations that provide legal assistance to low-income taxpayers in controversies with the IRS and/or informs individuals for whom English is a second language of their tax rights and responsibilities.

  2. Both the receipt and acceptance dates are the last day of the month, referenced on the Central Accounting Reporting System (CARS) Account Statement. However, if the reporting cycle date is in a different calendar year than the funding fiscal year that is referenced, then both the receipt and acceptance dates are the last day of the calendar year for the funding fiscal year. For example, if the charges appear on the CARS Account Statement FY 2011 but reference a FY 2010 appropriation, then both the receipt and acceptance dates would be December 31, 2010.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Beckley Finance Center Retrieve the CARS Account Statement.
    Forward the CARS Account Statement to the program analyst.
    Program Analyst Review the Charges by Appropriation Report for approval. The Charges by Appropriation Report is a Payment Management System report provided by the United States Department of Health and Human Services.
    Approve the charges by recording both receipt and acceptance in IPS.
    Sign and date the Charges by Appropriation Report.
    Forward documents to BFC for processing.
     
    Beckley Finance Center Post disbursements and collections.  

1.35.3.13.1.6  (06-07-2013)
Purchase Orders, Contracts, and Delivery Orders

  1. Purchase orders, contracts, and delivery orders establish legally binding agreements, which obligate a seller to furnish goods and/or services and a buyer to pay for them.

    1. Purchase Order - When issued by the Government, an offer by the Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures.

    2. Formal Contract - A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by 31 USC 6301, et.seq.

    3. Delivery Order - An order for supplies placed against an established contract or with Government sources.

  2. Once the contractual agreement method has been established, it is further categorized as is detailed in the chart below. This chart also provides receipt and acceptance dates and the amount to be recorded.

    TYPE DESCRIPTION RECEIPT AND ACCEPTANCE DATES AMOUNT TO BE RECORDED
    Fluctuating Recur Orders/Contracts Contractual agreements where the charges vary for the services from month to month, such as telecommunication services, rental of copy equipment, etc. Both the receipt and acceptance dates are the last day of the service period, unless the contractual agreement stipulates a longer acceptance period. Business units must enter an estimated amount for the fluctuating recurring cost even if an invoice has not been received.
    Non-Fluctuating Recur Orders/Contracts Contractual agreements where the charge for the goods and/or services remains the same from month to month, such as machine rentals, maintenance services, etc. Both the receipt and acceptance dates are the last day of the service period, unless the contractual agreement stipulates a longer acceptance period. Business units must enter the fixed amount for a fixed recurring cost even if an invoice has not been received.
    One-time Orders/Contracts/Delivery Orders Contractual agreements for the purchase of goods and/or services that are in effect for a single transaction. The receipt date is the date the goods and/or services were actually received. The acceptance date must be within seven calendar days of the receipt date, unless a longer acceptance period is stipulated in the contractual agreement. Business units must enter the appropriate amount on the order even if an invoice has not been received.
    At time of entering receipt, please note any exceptions to the seven calendar day acceptance period in the line item comments of the receiver entry.
    Advance Payments Contractual agreements where the goods and/or services are paid for in advance of the receipt of the goods and/or services, such as subscriptions, post office box rentals, etc. Both the receipt and acceptance dates are either the first day of the period of performance or the date of award for the item/service on the purchase order. Business units must enter the authorized advance payment amount.
    If an advance payment is required, the receiver will enter both receipt and acceptance in IPS, using the first day of the period of performance for the item/service; approve the invoice/voucher or SF 1449, Solicitation/Contract/Order for Commercial Items; and complete, sign, and date the invoice/voucher or SF 1449, as prescribed by GSA and 48 CFR 53.212, Federal Acquisition Regulations System, Acquisition of Commercial Items.
    Utilities Contractual agreements for energy costs, such as heat, light, power, water, sewage, gas, and electricity. Both the receipt and acceptance dates are the statement closing date. Business units must enter either the invoice amount if received or the forecasted/ estimated amount if an invoice has not been received prior to month-end.
    Out-Service Training Out-service training covers training courses, seminars, and conferences conducted by other Government and non-Government organizations. Out-Service Training with no prepay - both the receipt and acceptance dates are the date listed for the last day of training. Business units must enter either the invoice amount if received or the forecasted/ estimated amount if an invoice has not been received prior to month-end.
    Out-Service Training with prepay - Both the receipt and acceptance dates are the date the Designated Approving Official signs the prepayment authorization.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Vendor Submit invoice to BFC on a monthly basis, if applicable.
    End User/Contracting Officer's Representative (COR) Enter both receipt and acceptance in IPS, in accordance with the requirements for the appropriate contracting method.
    Review invoice (if received) for accuracy and verify that appropriate receipt and acceptance has been recorded.
    Beckley Finance Center Review invoice to ensure it is proper.
    Match invoice to purchase order, receipt and acceptance, and process for disbursement.

1.35.3.13.1.7  (08-05-2011)
Relocation Services Contract

  1. Private companies provide relocation services, under a contract with the Federal Government, to assist a transferred employee in relocating to the new official station. The IRS currently contracts for home sale programs and property management services. Employees' use of these services require the approval of a Deputy Commissioner.

  2. The BFC date stamp on the invoice serves as the date for both receipt and acceptance.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Vendor Provide an itemized invoice to the BFC Relocation Services Coordinator.
    BFC Relocation Services Coordinator Review and forward the invoice to BFC Relocation Section for processing. Resolve discrepancies with the vendor prior to submission to BFC Relocation Section for processing.
    The BFC Relocation Services Coordinator's dated signature on the invoice serves as proper documentation of manual receipt and acceptance for BFC.
    Beckley Finance Center Associate the invoice with the employee’s relocation file and verify adequate funding to cover the expense prior to payment processing.

1.35.3.13.1.8  (06-07-2013)
Subscriptions

  1. Business units typically use subscriptions for procuring or obtaining copies of newspapers, magazines, periodicals, and other publications for official use (including any publication printed, microfilmed, photocopied, magnetically, or otherwise recorded for auditory or visual usage) through one of four methods:

    1. Form 1334, Requisition for Equipment, Supplies or Services , with advance payment processed through the Convenience Check Program.

    2. Form 1334, Requisition for Equipment, Supplies or Services , or Form 2785, Requisition/Obligation Estimate Adjustment Notice, with advance payment processed on a purchase card.

    3. Purchase order with advance payment required.

    4. Purchase order with no advance payment required.

  2. For advance payments, both the receipt and acceptance dates are the date of the award or the start date of the period of performance. Otherwise, both the receipt and acceptance dates are the end of the billing period.

  3. See IRM 1.35.3.13.1.6, Purchase Orders, Contracts, and Delivery Orders for purchase order action process flow.

  4. See IRM 1.35.3.13.2.23, Purchase Cards/Convenience Checks (Using Purchase Card Module) and IRM 1.35.3.13.2.24, Purchase Cards/Convenience Checks (Not Using Purchase Card Module) for purchase card action process flow.

  5. See IRM 1.35.3.13.2.24, Purchase Cards/Convenience Checks (Not Using Purchase Card Module) for convenience check program action process flow.

1.35.3.13.1.9  (06-07-2013)
Tax Counseling for the Elderly

  1. The Tax Counseling for the Elderly (TCE) program focuses on taxpayers 60 years of age or older, with emphasis placed on reaching older persons who are disabled or who have other special needs. Although the focus of the TCE program is on older individuals, the program provides assistance to all taxpayers.

  2. Both the receipt and acceptance dates are the last day of the month referenced on the CARS Account Statement. However, if the reporting cycle date is in a different calendar year than the funding fiscal year that is referenced, both the receipt and acceptance dates are the last day of the calendar year for the funding fiscal year. For example, if the charges appear on the CARS Account Statement in FY 2011 but reference a FY 2010 appropriation, the receipt and acceptance date would be December 31, 2010.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Beckley Finance Center Retrieve the CARS Account Statement.
    Forward the CARS Account Statement to the program analyst.
    Program Analyst Review the Charges by Appropriation Report for approval. The Charges by Appropriation Report is a Payment Management System report provided by the United States Department of Health and Human Services.
    Enter both receipt and acceptance in IPS to approve charges.
    Sign and date the Charges by Appropriation Report.
    Forward documents to BFC for processing.
    Beckley Finance Center Post disbursement and collections.

1.35.3.13.2  (08-05-2011)
Non-Procurement Orders

  1. The following programs are made outside IPS.

1.35.3.13.2.1  (06-07-2013)
Administrative Summons

  1. Authorized IRS field employees issue administrative summons to third parties (banks, insurance companies, etc.) to obtain United States taxpayer information. The IRS within the limitations specified on Form 6863, Invoice and Authorization for Payment of Administrative Summons Expenses, reimburses the expenses incurred by the third party.

  2. The receipt date is the "date complied with" from Section B of Form 6863. The acceptance date is the dated signature of the Officer/Agent.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Authorized Field Employee (Revenue Agent, Revenue Officer, Special Agent) Provide the third party with a blank Form 6863 and mailing address. It is acceptable for the third party to submit an itemized invoice on the third party’s own invoice form.
    Third Party (Bank, Insurance Company) Submit Form 6863/ invoice to the authorized IRS field employee, once the work has been completed.
    Authorized Field Employee (Revenue Agent, Revenue Officer, Special Agent) Date stamp Form 6863/ invoice and review for acceptance purposes.
    If using Form 6863 (revised 02/2011), notate the receipt date on line 14, "date invoice received" field.
    Complete Section B of Form 6863/ invoice, verify, and approve charges and forward to the Designated Approving Official.
    The authorized field employee's dated signature in the "date complied with" block on the Form 6863 serves as proper documentation of manual receipt and acceptance for BFC.
     
    Designated Approving Official Verify the administrative summons obligation number.  
    Approve the charges for payment by signing and dating the appropriate section of the Form 6863.  
    Forward Form 6863/invoice to BFC for processing.  
    Beckley Finance Center Process Form 6863/invoice for payment.  
     

1.35.3.13.2.2  (06-07-2013)
Attorney Fees

  1. An award of attorney fees is based on a court judgment, an administrative adjudicator’s decision or a settlement agreement between the IRS and the claimant.

  2. Both the receipt and acceptance dates are the dated signature on the Chief Counsel Attorney/Designated Approving Official memorandum approving attorney fees, unless otherwise annotated in the settlement agreement.

  3. Action Process Flow:

    RESPONSIBLE PARTY ACTION REQUIRED
    Claimant (party claiming attorney fees) Submit an invoice or appropriate support documents to the Chief Counsel Attorney of record/Designated Approving Official.
    Chief Counsel Attorney/Designated Approving Official Verify the reasonableness of the invoices or appropriate supporting documents, compare them to the settlement agreement and issue a memorandum approving the amount to be paid.
    Chief Counsel Attorney's/Designated Approving Official's dated signature on the memorandum of approval serves as proper documentation of manual receipt and acceptance for BFC.
     

    Note:

    The memorandum of approval must contain the payee's name, address, taxpayer identification number (TIN), and Counsel attorney's handwritten signature.

     
     
    Forward the settlement agreement, the memorandum of approval and the invoice (if available) to the Designated Funding Official.  
    Designated Funding Official Verify accurate funding information is noted on documents.  
    Forward all documents to BFC for processing.  
    Beckley Finance Center Process the memorandum of approval for payment.  
     


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