Pro-forma invoices are not valid tax invoices, they are merely a document for information and should not be taken as a request for payment. The University should not pay against pro-formas or draft invoices. These should not be processed on CUFS. Departments should request the supplier provides a VAT invoice.
The University of Cambridge is a credit worthy organisation and should not generally need to pay for goods or services in advance. However, where payment in advance is requested there is an established process for this within the Financial Regulations 18.4.2 and 18.4.3. In cases where payment in advance is justified, risk assessed and approved, a valid VAT invoice can be processed in CUFS and paid on immediate terms.
Detailed reference materials on how to process suppliers’ invoices in the Accounts Payable (AP) module of UFS is available on the Finance Training webpage. Some other common scenarios are given below.
Default VAT distribution
When entering an invoice onto the AP module of UFS, the first distribution line (Tax / VAT) automatically defaults in. This information should under no circumstance be altered. It is this specific accounting line (‘charge account’) that checks the system to find out if the item within your department is subject to a VAT reclaim; if the details are changed, then UFS will not know that this check is required.