AP Check Outsourcing FAQ
General Information about the Change
Q: What does check outsourcing mean?
Currently, the Treasurer’s Office prints accounts payable checks and prepares them for mailing on a daily basis. Under the new model, our bank provider, JP Morgan Chase (JPMC), will print and mail our checks beginning December 9, 2024.
Q: Why did U-M move check printing to JPMC?
This change reduces the potential for service outages related to inclement weather, staffing availability, or supply chain issues, and improves business continuity.
Q: Are there any impacts to staffing due to the move?
No. There is no reduction in staff as a result of this change.
Q: Who is the external provider, and what experience do they have?
Our checks will be printed by JP Morgan Chase Bank (JPMC). JPMC is an FDIC-insured financial institution that traces its roots to 1871. JPMC is the largest bank in the U.S. by assets and has decades of experience printing checks for a variety of clients, including many in higher education.
Q: When will the change take effect?
Monday, December 9, 2024
Q: Does this change impact Payroll checks?
No. Payroll checks are issued from a different bank account. There are no changes to payroll-issued checks at this time.
Q: How does the new check writing model impact the calendar year-end cutoffs?
There are no anticipated changes to the previously communicated calendar year-end cutoffs for 2024.
Process and logistics
Q: How will check requests be submitted to the JPMC?
The procedure for submitting check requests will remain unchanged. Accounts Payable (AP) will continue to create a voucher, which, if necessary, will undergo the required systematic approvals. Upon approval, the voucher will be batch-processed for payment extraction. If the selected payment method is a check, a check will be generated. The sole difference with the new process is that JPMC will be responsible for the printing and mailing of checks instead of the Treasurer’s Office.
Q: What is the expected turnaround time for check printing?
Currently, if a voucher is fully approved, matched, and posted by the end of the day, and the scheduled due date falls within the NET payment terms, it will be printed on the morning of the next business day. If the payment terms are listed as anything other than NET, the check will print using the invoice date + pay terms. This process will remain unchanged.
Q: What should be done if there is an issue with a printed check (e.g., errors, delays, or lost checks)?
The process for resolving issues with printed checks will remain largely unchanged. When issues are identified, Accounts Payable (AP) should be notified via email at [email protected]. When necessary, a void/reissue will be processed to cancel the original check and issue a corrected one. There is still a standard 30-day period before a new check will be issued for any lost checks. The sole difference is that a discrepant check will be mailed as we will not have access to pull the check as we do currently.
Q: What other payment alternatives to checks are available and who can assist with using them?
U-M offers several alternative payment methods, including various electronic payment options such as EFT/ACH and Single Use Account (SUA) payment programs. Suppliers are encouraged to update their payment preferences through the Supplier Portal. For further assistance, suppliers may contact Supplier Maintenance at the Shared Services Center (SSC) via email at [email protected].
Support and resources
Q: Who can be contacted for support or questions regarding the new process?
The process for submitting invoices and/or payment requests remains unchanged for departments. Please direct any Accounts Payable-related inquiries to the SSC Finance Contact Center at (734) 615-2000, or by email at [email protected]. The only difference in the payment process is that physical checks will be printed and mailed out from JPMC instead of the Treasurer’s Office.
Q: Will additional training or informational sessions be needed for U-M employees?
- No
Costs and efficiency
Q: Will there be any cost changes associated with the new check printing process?
This change is not expected to increase costs.
Q: How does this change affect the overall efficiency of check processing?
This change will reduce our need to keep and maintain specialized equipment and supplies for printing and mailing checks. The time savings will allow employees in the Treasurer’s Office to focus on other value-added tasks for the university.
Student account refunds
Q: What if I have a question about a refund for a student account?
Questions regarding student account refunds can be directed to Student Financial Services at (734) 764-7447 or [email protected].