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About our Topics
The following topics are provided as a convenience. It does not reflect the entire list of policies and procedures in place at UNLV. However, we have attempted to list all topics as they relate to the Accounts Payable Office.

If Policy or Procedure has been changed, and is not reflected on these pages, the most current approved document will be in effect. We will make every attempt to update these pages in a timely manner. If you find a topic that needs to be updated, or included, feel free to contact us.

Accounts Payable Topic: Foreign Bank Draft

Description 

Why do we need foreign bank drafts?

There may be times when an item can only be purchased from a foreign vendor. And, that vendor may only accept payment in their native currency. For this reason, UNLV has made arrangements to purchase foreign bank drafts through Wells Fargo bank. There are instances, however, when a foreign vendor may accept US currency.


How do I know if I need a foreign bank draft?

Every order form or invoice should specify the type of currency accepted. In most cases, US currency is an option. However, if a vendor asks for a foreign draft, ask if they can make an exception. Before you proceed, see if there is a Domestic company that offers a similar product. You may find that the shipping charges and bank fees exceed any product you may try to purchase in the US. 

If you still need a Foreign Bank Draft...


Procedure

To Request a Foreign bank draft:

  • Convert the foreign currency into US Dollars using the Foreign Currency Calculator.

    • Print the completed conversion screen from your computer.

  • Prepare a Payment Voucher (PV):

    • Make the PV payable to the foreign vendor, including their complete address.

    • The vendor code will be "FOREIGN".

    • In the "Document Text" section of the PV, enter:

      • the amount of foreign currency requested

      • conversion rate

      • date the conversion was obtained

      • Please note that there may be a slight variance in the actual exchange rate used by the bank.

    • On Accounting Line 01 of the PV, enter

      • the Account

      • Object Code and Sub-Object Code to be charged.

    • Enter the US Dollar amount in the appropriate spaces on the PV form.

    • On Accounting Line 02 of the PV, enter: 

      • the Account that will be charged the delivery fee for the draft (usually this will be the same as Accounting Line 01).  

      • The fee is $10 for one draft.  

      • If there is more than one draft requested the delivery fee is $5.00 for each draft.

  • Staple the original invoice, conversion print screen, and any other backup documentation for the transaction to the PV

  • Forward everything to Accounts Payable (M/S 1053)

  • Include your phone number so that we may contact you to pick up your foreign bank draft 

A foreign bank draft request received in the Accounts Payable office before 11:00 a.m. will generally be available the next business day. While a request received after 11:00 a.m. will be available in two (2) business days.


Some things to remember:

  • every effort should be made to have any charges to the university paid in US currency


  • a foreign draft can cost much more than purchasing the same item in the US


  • many foreign vendors have US offices


  • delivery fees may or may not be charged at Wells Fargo's discretion 


  • have your request submitted immediately after your currency conversion, as actual conversions may vary from day to day


  • Accounts Payable will prepare a JV for your transaction - you will not see the PV on your financial report


  • all foreign bank drafts must be picked up by the requestor, we can not send them in the mail


  • you must make arrangements to mail your check to the foreign vendor



  • Questions concerning a General Fund check stop payment action should be referred to Accounts Payable (x3822)
 
 
 
Related Topics

Notes:

You can reach the Vendor Team by Phone:
(702) 895-1157

Or Fax:
(702) 895-1519

Contact us if you have any questions
 


   This page was last updated: Monday, 21-Mar-2011 12:10:51 PDT2/07/08
 
2005 University of Nevada, Las Vegas