Ontario Power Generation

Accounts Payable Definitions

Bill of Lading
A document issued to a shipper by a carrier describing the goods to be shipped, acknowledging their receipt, and stating the terms of the contract for their carriage.

Goods Receipts and Invoice Receipts (GR/IR)
Goods Receipts (GR) are input to the Materials Management system by the Receiver upon receipt of goods that match to a PO. Invoice Receipts (IR) are invoices that are input into the system by Accounts Payable. Payment will by generated only when the IR and GR are matched to an invoice. The matching of the PO, the Goods Receipt, and the Invoice Receipt are often called, in accounting terms, the "three-way match".

Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is the process through which OPG electronically pays its Canadian suppliers. Using EFT, invoice payments will be made directly to the supplier's bank account. This process eliminates mail and deposit time and is available to all Canadian based suppliers with a Canadian bank account. EFT also helps OPG by eliminating the process of issueing paper checks and the postage costs for mailing. OPG will provide payment details to you via your choice of fax or email.

Holdback Contracts
The 10 per cent Mechanics Lien Holdback is a Legal Requirement on all supply & install contracts. This money is held back from the prime contractor until the end of the contract, at which time a notice of completion is issued to the contractor for his approval and returned to the OPG Manager for approval. The held back funds are released upon successful completion of the Construction Lien Clearance procedures.

Invoice
This is a request for payment from the vendor. See Original Invoice definition for further details.

Invoice Amount
This is the total value of the associated invoice expressed in transaction currency. Includes taxes, where applicable and are for good/services delivered. Invoice details are at the P.O line item level.

Invoice Approver
The invoice approver is often referred to as the requisitioner and is an OPG employee who reviews and approves invoices and supporting documentation for compliance with an issued PO.

Invoice Date
This is the date that the vendor has placed on the invoice. The date is after the date that the material or services was received by OPG.

Invoice Number
This is the unique identifying number assigned by the vendor to an invoice. This number, in conjunction with the PO, is used to reference the payable document when communicating with OPG including the Accounts Payable Help Desk.

Original Invoice
An Original invoice is a document that contains the following information:

• OPG PO number and release number, where applicable;
• a unique invoice number;
• invoice date;
• supplier name as stated in the PO;
• remittance address;
• PO line item number and quantity, description (including Catalogue ID number or Material Code) and unit price of goods/services (as stated in the PO); for service POs, must include contractor's name, hourly labour rate, and detailed breakdown of hours worked and billing period;
• total invoice amount;
• currency;
• GST Registration and if charging; GST
• shipping terms and required documentation;
• other substantiating documentation as noted in the PO.

This document may be received via mail (paper form), facsimile, or electronic (.pdf via email).

Packing Slip (PS)
Accompanies goods shipped and lists quantity of goods shipped against a valid PO. A unique PS number is entered by receiving and Is called a GR for purposes of a "three-way match".

Progress Payments
Progress payment terms apply where title to the "product" has not yet transferred to Ontario Power Generation (OPG), yet OPG has agreed that the vendor is permitted to bill and be paid on a percentage of completion basis, subject to a milestone schedule and often subject to inspection approvals. OPG is not required to remit the provincial sales tax on the payments made until material is delivered. The Payment Authorization Document approver reviews/approves the payment based on the knowledge of the manufacturing progress of the contract.

This type of payment is generally used when the work being done covers an extended time frame such as construction of a major facility.

Purchase Order (PO)
This is a formal legal & binding contract between OPG and another party for provision of materials or services. An approved PO is required for all transactions that are not on an OPG VISA Purchasing Card, see Settlement Methods.

Recurring Payments
Recurring payments are for business transactions that occur on a regular basis (e.g. rental payments) where the start date and the completion date is provided for the transaction. Recurring entry documents themselves do not change any balances. They are used by the system as a reference to create actual accounting documents. Authorized documents are required to set up these transactions.

Requisitioner
An OPG employee that requests and authorizers the buying community to purchase materials or services in compliance with authority limits as specified in the Organizational Authority Register. The Requisitioner does not have authority to purchase good/services unless done so with an OPG VISA Purchasing Card for certain transaction types and values.

Wire Fund Payment
These are funds that are electronically transferred to the vendors' bank account. The receiving Financial Institution has to be within North America, mainly US. OPG does not normally use Wire Fund Payment for Canadian payments, instead, we utilize Electronic Funds Transfer (EFT).

Void Cheques
These are cheques no longer required or are cancelled. These cheques are voided in the Accounts Payable System and the associated payment document is cancelled.

The Accounts Payable Help Desk provides vendors with a single point of contact for all calls concerning payment of vendor invoices.

• Emailing - Help Desk
• Telephoning - 416-592-4005 in the Toronto area or toll free at 1-888-264-3460
• Faxing - 416-592-2388