December 18, 1996
MEMORANDUM No. NCAS-97-0039
TO: Chief Fiscal Officers
FROM:
Chuck Cooper
Assistant State Controller
SUBJECT: Invoice/Credit Memo Cancellation
The NCAS currently provides a number of safeguards against duplicate entry of vendor invoices and credit memos. Each time a vendors invoice is entered, the system checks to see that the invoice has not been entered previously by comparing the vendor number, invoice number and invoice date. In addition, when vendor documents are batched into control groups and balanced against a control group total, as taught in the NCAS Accounts Payable training, the system will catch a duplicate entry via the unbalanced batch, even if the document was entered under two different numbers. Also, if an invoice is matched against a purchase order line that has been paid already, the system tells the user that the line is not eligible for further matching.
During a review of the NCAS Model with the Office of the State Auditor, it was noted that a potential internal control weakness could occur causing duplicate processing while processing direct invoices. If a direct invoice is entered correctly as part of a batch, then becomes detached from the batch and is entered again in another batch with an erroneous invoice number, the NCAS could not tell that a duplication has occurred. Therefore, the Office of the State Controller (OSC) is directing all agencies to adopt a method of marking vendor documents as canceled after they have been entered in the NCAS. These methods include either initialing or perforating the invoice after entering in NCAS. Should the document break loose from the batch, Accounts Payable will be able to tell by the cancellation marking that the invoice has been recorded previously.
The OSC will continue to review the NCAS for additional opportunities to protect the integrity of the financial data and processes. As we become aware of these opportunities, we will pass them along to the NCAS user community.
We at OSC appreciate your continued support as we expand and implement the NCAS and its enhanced capabilities.
CHC/JGM