What You Should Know
The Office of Human Resources maintains an updated list of University-approved temporary staffing agencies. The hiring manager should first contact the agency to confirm the specifications and/or requirements of the position, including skills, work hours, and length of assignment. Once the details of the staffing assignment are confirmed, the department must create a requisition in Prime Financials.
This method provides an efficient way to define and fine-tune requirements, pricing, and duration while also enabling simplified invoice approval and payments. Requisition creators can choose one of three options for creating service requisitions. These include Fixed Cost, Variable Cost, and Time & Materials.
For temporary staffing, the Variable Cost Service requisition is recommended.
A simplified process is shown below which demonstrates the simplicity of using the variable cost service requisition in Prime Financials for temporary staffing purchases.
Sourcing Temporary Staff
The Office of Human Resources maintains an updated list of University-approved temporary staffing agencies and can assist in sourcing your temporary staffing needs. Ultimately, the hiring manager will select the individual from resumes and interviewing. Once the selection has been made, create a requisition in Prime Financials to generate a purchase order to the supplier.
Creating the Requisition
Create a Variable Cost Service requisition for each temporary worker. This will simplify invoice approval, matching, and payment. The Variable Cost Service requisition type requires the labor rate and the number of hours to be entered.
In the service description, enter the role name or job title , such as “data entry” or “office manager.” The units of work, or the anticipated number of hours the temporary worker will be employed, can be estimated. The Unit of Measure should be “HR” for hours, and the labor rate is the rate we pay the temporary staffing supplier for this individual.
Variable cost service requisitions default to quantity and should not be changed to amount. This allows the receipt and payments to be made based on a quantity which would be the number of hours worked.
Once saved and approved via the normal requisition approval channels, and dispatched as a PO to the supplier, the funds will be encumbered and the status of the requisition and payments will be visible in the life cycle status in Prime Financials under “Manage Requisitions.”
For example, if the rate is $25 per hour and the temporary worker will be providing data entry services through J&J Staffing for 8 weeks, or approximately 320 hours, the requisition should be filled out as shown below. Note: the category code for Temporary Staffing was selected from the category tree. Fields with an asterisk (*) are required.
Approving Time Sheets
The time sheet approval process is dependent on the temporary staffing supplier, but generally these are electronic approvals via a separate logon to the supplier’s website. Once the hours are reviewed and approved, the payment process is initiated.
The approval of the time sheet allows the supplier to prepare an invoice for payment and must include the purchase order number. These invoices must be sent to email@example.com to be scanned and attached to the requisition by Accounts Payable. These invoices are then visible electronically through Prime Financials.
Upon approval of the time sheet, a receipt must be entered against the purchase order in Prime Financials, reflecting the hours worked and approved. Payments are authorized via matching of the purchase order, invoice, and receipt. If the hours worked listed on the time sheet is 30 hours, and the time sheet is approved, enter a receipt in Prime Financials for 30 hours.
Time sheets may be attached to the invoices by the supplier. Invoices will be scanned and attached to the purchase order and will be visible electronically through Prime Financials. A successful match of the invoice and receipt quantity and price will approve the invoice and authorize the payment.
The number of hours received will determine what will be paid. Invoices in excess of the received number of hours will not be paid and will result in a match exception that will need to be resolved by the requisition creator.
The purchase order quantity will be reduced each time a receipt is entered. If the work is completed and there is an open balance on the purchase order, initiate a change request to reduce the open quantity and close the PO. If the work will continue in excess of the estimated hours, initiate a change request to increase the number of hours. The change will follow normal approval processes.
If overtime is anticipated, a second line should be used for overtime when the requisition is created. The rate should be the overtime rate, and the number of hours can be estimated. As with the base rate, the number of hours can be estimated initially, and adjusted if required. If overtime isn’t needed, this line can be cancelled.