Revised 11/18/2005

POLICY:  Under university policy, foreign vendors may  be paid in the following three ways: 

• UND Purchasing Card (certain types of payments are not allowable on the Purchasing Card, refer to the Purchasing Card Manual)
• University check in U.S. dollars.
• Wire transfer (coordinated through the Cash and Investments Manager).
• Bank draft purchase.

PROCEDURES:  When a department has an invoice to be paid to a foreign vendor who will not accept payment by check in U.S. dollars, it is necessary to conduct a wire transfer of funds or purchase a bank draft in the required currency, which both result in an additional cost to the department. 

Wire Transfer - To make payment by a wire transfer: 

• If the purchase requires a Purchase Order , the department should:
  • Prepare the Purchase Requisition and Voucher payable to the vendor.
  • Forward the Purchase Requisition and Voucher to the Purchasing Office to obtain a PO number.
• If the payment does not require a Purchase Order, prepare a Voucher payable to the vendor.  Include the following:
  • Name and address of the foreign vendor
  • Payment amount (in type of requested currency)
  • Wire Transfer Form obtained from Accounting Services website (complete ALL information)
• Accounting Services will increase the charge to the funds by the amount of the wire transfer fee.  Domestic wires are $6.00, International wires are $41.00.
  The Voucher, Purchase Requisition (if needed) and Wire Transfer Form should be forwarded to the Accounting Services Office to the attention of the Cash and Investments Manager.

• Call a local bank for the current exchange rate and U.S. dollar equivalent necessary to cover the invoice.
• If the purchase requires a Purchase Order , the department should:
  • Prepare a Purchase Requisition and Voucher payable to the bank (include the name and address of the foreign vendor.)
  • Walk the Purchase Requisition and Voucher to Purchasing to obtain a PO number (must be walked through because exchange rates change daily. This must all be done the same day).
• If the payment does not require a Purchase Order , prepare a Voucher payable to the bank .  Include the following:
  • Name and address of the foreign vendor
  • Payment amount
  • Exchange rate
  • Currency type
  • Bank draft charge
  • Date the rate was obtained
• Walk the Voucher and the invoice or price documentation with Purchase Order number, if necessary to the Accounting Services Office.