Procedure LI2004 - The University Press Operating Procedure
The University Libraries
Policy Steward facilitating procedure: Dean, University Libraries
Table of Contents:
- Approving Manuscripts
- Acquisition of Required Services and Materials
- Processing Book Orders
- Processing Payments and Accounts Receivables
- Prepayment Customers
- Returning Books
- Book Inventory
- Commissions on Sales
- PROFESSIONAL JOURNALS
- RETURNED CHECKS
- FINANCIAL RECONCILIATION AND ACCOUNTABILITY
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORD RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES
The University Press is a nonprofit publisher of scholarly works operating as a department of the University within the administration structure of the Libraries. The operation is directed toward the publishing and sale of books and journals of interest to the academic community and the general public. This procedure covers the business operation of the University Press, with emphasis on the sales and accountability of publications.
The Acquiring Editors manager the manuscript review process for manuscripts submitted to the University Press and determine which manuscripts are recommended for publication. If a manuscript is recommended for publication, the Acquiring Editor prepares a proposal to publish and submits to the University Press Editor-in-Chief for review.
The University Press Editor-in-Chief reviews the proposals for books to be published. Upon approval, the Editor-in-Chief submits the proposals to the Editorial Committee consisting of University faculty members appointed by the Dean of University Libraries and Scholarly Communications plus two members chosen by the Faculty Senate Committees on Research and the Libraries.
After a manuscript is approved or rejected by the Editorial Committee, the author is notified of the decision. For accepted manuscripts, the Acquiring Editor completes a Publication Information form ( Exhibit "A" ) and submits it to the Production Manager.
The Production Manager estimates the cost of publishing each manuscript on a Publication Information Form and submits it to the Acquiring Editor for preparation of the publication plan. Once the plan is approved by the Editor-in-Chief, Sales and Marketing Manage, and Director, a Book Contract ( Exhibit "B" ) is prepared for signature by the Director and Author outlining the terms of the book's publication (e.g., date the final manuscript is due, royalties, etc.). The University Press Director signs on behalf of the University (this is an approved exception to Policy FN11 ).
In accordance with the terms of the contract, the author submits the final manuscript to the appropriate University Press Acquiring Editor who reviews it and then transmits it to the Production Manager. The Production Manager supervises the manuscript copy-editing and design processes, and purchases the manufacturing following the guidelines and arrangement established by the Print Buyer in Purchasing Services. The Production Manager prepares a Request for Quotes ( Exhibit "C" ) to solicit quotes from printers for the printing and binding process, and conducts the bidding process.
Following completion of the printing and binding process, bound copies are forwarded to the University Press Distribution Center, and any unbound copies are stored at the printer for future binding per Purchase Order.
After all manufacturing invoices are paid, the Production Manager informs the Business Manager of the unit manufacturing cost.
The Pennsylvania State University Press has agreements with commissioned (non-University staff members) sales representatives to contact bookstores and other book outlets for distribution of University Press titles throughout the world. In addition to these sales representatives, the University Press advertises in scholarly journals, catalogs, individual mailers, etc.
Orders are received through the mail, fax, telephone, and Electronic Data Interchange (EDI). All mail is opened by the Editorial Assistant and sorted into two book order categories, orders received with payments and orders without payments.
For orders received with payments, the Editorial Assistant restrictively endorses all checks upon receipt per Policy FN01 , runs an adding machine tape and prepared a Pre-numbered Receipt for all payments received, and transfers the payments to the Business Manager on an Accountability Transfer Form or log ( Exhibit "D" ). The adding machine tape and the Pre-numbered Receipt are attached to the Accountability Transfer Form or log.
Upon receipt of the orders with payment, the Business Manager prepares a verification adding machine tape to insure that all payments are totaled correctly. If not in balance, the Business Manager resolves the discrepancy with the Editorial Assistant. If in balance, the Business Manager and warehouse staff enter the book orders into an on-line system entitled the Book Fulfillment System and notes the type of payment (check, currency, or credit card).
NOTE: If payment is by credit card, the warehouse staff members utilize the Penn State ePay Credit Card Authorization feature to charge the customer's account.
The Book Fulfillment System automatically generates an invoice (see invoice on GURU) indicating the "PAID" status for all payments received and assigns an Invoice number. All copies of the Invoice are forwarded to the Book/Journal Room. The original copy is sent to the customer with the order. The Invoice information is stored electronically on the Book Fulfillment System. The Accounting Assistant also runs the Payment/Credit Transaction Report ( Exhibit "E" ) in the Book Fulfillment System, which automatically updates the Accounts Receivables system and indicates the paid status on the account.
Once the orders are entered, the warehouse staff members confirm the invoices, then run the Shipping Transaction Report ( Exhibit "G" ) which updates the sales history, available inventory, and Accounts Receivables (see "Book Inventory" section for more details).
The Business Manager then prepares the Report of Cash Receipts ( ROCR ), Procedure CR2004 - Accountability for Transfer of Items of Value (Except Equipment) , and Procedure CR2005 - Depositing Cash Revenues. The Business Manager balances the ROCR to the total of the Pre-numbered Receipt. If not in balance, the Business Manager resolves the discrepancy with the Editorial Assistant. If in balance, the money is deposited and a copy of the ROCR, the Pre-numbered Receipt, the adding machine tapes, and the Accountability Transfer Forms are filed in the department.
If the payment is by credit card, the following procedure will apply. NOTE: All credit card payments are processed utilizing the Penn State ePay Credit Card System.
Telephone Orders - The number will be listed on the "Telephone Order Form" ( Exhibit "H" ). The order amount, including shipping any any applicable sales taxes, will be calculated manually and then processed using ePay. The warehouse staff members will enter the order into the Book Fulfillment System with a note "Credit Card Order." No credit cards numbers will be entered. The "Telephone Order Form" is shredded.
Web Orders - The order amount, including shipping and any applicable sales tax, will be calculated manually and then processed using ePay. The warehouse staff members enter the order into the Book Fulfillment System with a note "Credit Card Order." No credit cards account numbers will be entered. The order form is shredded.
Mail, Fax, and Exhibit - the order amount, including shipping and any applicable sales taxes, will be calculated manually and then processed using ePay. The warehouse staff members will enter the order into the Book Fulfillment System with a note "Credit Card Order." No credit card account numbers will be entered. If the order contains a signature, the document will be retained for a period of two (2) years. If the document does not contain a signature, then it is shredded.
For orders that are retained and do not have a backorder, the credit card number will be blacked out (first 12 digits) and then photocopied. The copy will be retained and the original shredded. For orders that contain back-orders, the credit card information will be stored in a locked file cabinet. When the book is published, the above procedures will apply.
The University Press will follow the guidelines as established in IPAS (Information Privacy and Security).
Credit Card Security
If a credit card security incident occurs, the following response plan must be followed:
Contact Security Operations and Services. They can be reached via telephone or email:
- During business hours call 814-863-9533
- After business hours call 814-777-9533
- The email address is email@example.com
When reporting an incident, the employee MUST be certain that contact was made. Once the incident is reported, Security Operations and Services will go through a checklist and guide the individual through the response process.
Payments are received through the mail and opened under dual participation by the Editorial Assistant. The Office Clerk restrictively endorses all checks upon receipt per Policy FN01 , runs ad adding machine tape and prepares a Pre-numbered Receipt for all payments received for the day, and transfers the payments to the Business Manager on an Accountability Transfer Form or log. The adding machine tape and the Pre-numbered Receipt are attached to the Accountability Transfer Form or log.
Upon receipt of the payments, the Business Manager prepares a verification adding machine tape of all payments received. If not in balance, the Business Manager resolved the discrepancy with the Editorial Assistant. If in balance, the Accounting Assistant enters the payment information into the Book Fulfillment System. The Account Assistant runs the Payment/Credit Transaction Report in the Book Fulfillment System, which automatically updates the Accounts Receivables System. Customer Statements reflecting this payment information are sent to the customer at the end of the month. Follow-up statements are generated every month until full payment is received.
After 90 days of no receipt of payment, the Accounting Assistant sends a follow-up letter and will continue to pursue collection until paid. If an account cannot be settled in-house, the account will be turned over to a collection agency.
The Business Manager prepares the Report of Cash Receipts as outlined above in the "Orders received with payments" section.
There are certain customers (new individuals or small stores, etc.) who are required to remit in advance of any shipments. In these cases, the Business Manager or warehouse staff prepares a Pro Forma Invoice ( Exhibit "I" ).
The original copy of the Pro Forma Invoice is mailed to the customer, requesting payment in advance. A copy of the Invoice is held in the Book/Journal Room at the University Press until remittance is received. Payments are processed as outlined above.
When a customer desires to return a book, permission is not required.
When the Book/Journal Room receives returned books, the Shipping Clerk(s) verifies the quantity of the merchandise received and insures that the merchandise is in good condition. The Shipping Clerk(s) prepares a pre-numbered Credit Memo ( Exhibit "J" ) via the Book Fulfillment System. Evidence of the returned merchandise (copy of Invoice, packing slip, etc.) along with the original credit memo is forwarded to the Business Manager. The Credit Memo automatically updates the Accounts Receivables System and the Customer Account and the available inventory. If the customer desires a refund in lieu of credit, the Business Manager prepares a Request for Refund accounting to the instructions for Request for Refund on GURU. The Book Fulfillment System updates the Accounts Receivable Adjustments/Charge-back Invoices Report ( Exhibit "K" ).
Resident in the Book Fulfillment System is a program entitled Inventory Transaction, "Inventory Receipt Processing" ( Exhibit "L" ). This program allows the recording of new merchandise received. The new merchandise is recorded in the system by book title, author, ISBN number, cost, quantity (received and total on-hand and available) and warehouse location. The Inventory Transaction Program also tracks the movement of books from one warehouse location to another. University Press has main warehouse for storage on campus and also utilizes warehouses in London, England, and Toronto, Canada for distribution. This issuance of inventory is handled by the program in two different methods:
- After book orders are entered into the Book Fulfillment System, the Business Manager or warehouse staff runs the Shipping Transaction Report ( Exhibit "G" ), which updates inventory records to reflect books shipped. The inventory is moved from the "allocated" column and subtracted from the "on-hand" column (as indicated on the Inventory Receipt Processing Screen ( Exhibit "L" );
- University staff may remove books from inventory for professional use. The Inventory Check-Out Form ( Exhibit "M" ) is utilized to control and track the inventory removed. These requests are batched by the Business Manager or warehouse staff, and once per month the Inventory Transaction Program is updated. A List of Inventory Transactions ( Exhibit "N" ) is available on the Book Fulfillment System to view all the transactions in and out of inventory.
On an annual basis, before the end of the fiscal year, a physical inventory is conducted by University Press warehouse staff. A team consisting of two staff members conducts the inventory. If the team members agree on the amount, then the count is entered directly into the Book Fulfillment system utilizing wireless laptops. Any discrepancies are resolve before the count is entered into the Book Fulfillment System. A green tag is placed on the magnetic title tag indicate the title has been counted. The Business Manger runs the Book Count Comparison Report ( Exhibit "O" ) to identify any discrepancies. The Business Manager also generates the Inventory Reconciliation Report ( Exhibit "P" ) and the Book Inventory Report ( Exhibit "Q" ) to assist in resolving any discrepancies. A copy of all the reports are forwarded to the University Press Director and a copy of the Book Inventory Report is sent to the University Auditing Department for inventory valuation purposes.
Annually, the Business Manager and/or Marketing Manager will prepare a report of obsolete inventory and submit it to the Director. The Director will prepare the final titles and quantities and submit that to the Financial Officer and/or Director of Administrative Services for final approval. Obsolete inventory will be pulped or remaindered based on past sales or subject area.
Based on industry standards, the University Press Director sets the commission rate and method of payment for all sales representatives. A contract is drawn up by the Sales and Marketing Manager and Director and the Business Manager determines payment amount based on the contract terms. Some commissions are paid on a percentage basis of total net dollar sales by area (sales are verified by the sales reports maintained at the University Press), and other sales representatives are paid on a flat fee basis.
The University Press also publishes professional journals that are distributed by prepaid subscription only. Each journal has an Editor and an attendant Editorial Board.
The Acquiring Editors conduct reviews of all proposals for publishing new journals (or existing journals that are looking for a new publisher). Once a journal is approved by the Editorial Committee, a contract is drawn up and signed by the journal editor and/or sponsor (if the journal is owned by a society) and the Press Director.
Upon approval of an article for publication in each journal, a Journal Contract ( Exhibit "R" ) is drawn up by the journals' editor for the author's signature, outlining the terms of the manuscript's publication. The manuscript, with the signed contract, is submitted to the Production Editor.
The contract is then signed by the University Press Director (this is an approved exception to Policy FN11 ). The Production Manager prepares the specifications for the manuscript printing.
NOTE: Vendors are selected on an annual basis to provide manufacturing services for journal manuscripts in accordance with Purchasing Services polices and procedures. Purchase Orders are prepared according to instructions for Purchase Order on GURU for the purchase of all manufacturing services.
The printed journals are delivered to the contracted shipping agent.
Subscriptions are received, processed, and distributed by The Johns Hopkins University Press, Baltimore, MD.
A minimal inventory of journals is stored at Sheridan Press in Hanover, PA for back-issue orders (approximately 200 copies are stored for the most recent issues, down to 5-10 copies for earlier issues). The journals are also maintained on microfilm if additional back issues are needed.
Periodically, an inventory of back-issue journal copies will be taken in order to discard old issues that are unsalable and have no value as remainder stock. The inventory of back-issue copies will be adjusted according to the retention schedule developed by the University Press Director. Excess copies will be destroyed and documented on the Journal Inventory Log ( Exhibit "S" ), as well as the adjusted volume on hand or forwarded to Periodicals Service Co. for reprinting. A copy of the Journal Inventory Log is forwarded to the University Press Business Manager and the University Press Director.
Returned checks are handled as outlined in Procedure CR2002 - Processing Returned Checks .
Monthly reconciliations are to be performed by the Business Manager to help insure the related sets of financial documents balance, and thus test the integrity of the controls and record-keeping system. Specifically, the Business Manager prepares a Combined Income and Expense Summary each month and presents it to the Director, Financial Officer, Director of Administrative Services, Dean, and Department Managers.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management , and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
- Exhibit A - Publication Information Form
- Exhibit B - Book Contract
- Exhibit C - Request for Quotes
- Exhibit D - UP Accountability Transfer Form/Log
- Exhibit E - Payment/Credit Transaction Report
- Exhibit F - Customer Account Statement
- Exhibit G - Shipping Transaction Report
- Exhibit H - Telephone Order Form
- Exhibit I - Proforma Invoice
- Exhibit J - Credit Memo
- Exhibit K - Accounts Receivable Adjustments/Charge Back Invoices Report
- Exhibit L - Inventory Receipt Processing
- Exhibit M - Inventory Checkout Form
- Exhibit N - Inventory Transaction Report
- Exhibit O - Book Count Comparison Report
- Exhibit P - Inventory Reconciliation Report
- Exhibit Q - Book Inventory Report
- Exhibit R - Journals Contract
- Exhibit S - Journals Inventory Log
For questions, additional detail, or to request changes to this procedure, please contact the Manager, University Press.
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Policy FN01 - Processing Cash Revenues
- Policy FN11 - Contracts & Leases
- Procedure CR2002 - Processing Returned Checks
- Procedure CR2004 - Accountability for Transfer of Items of Value (Except Equipment)
- Procedure CR2005 - Depositing Cash Revenues
- Blue/White Shredding Program
Date Approved: 9/18/2008
Most recent changes:
- Revision 2 - dated 7/30/08, formerly RG2001
Revision History (and effective dates:)
- Revision 1 - dated 10/03/91
- Original - dated 03/07/73