Sparty in Front of Demonstration Hall

MSU Controller's Office

Travel

Michigan State University

Instructions for
Direct Billing of Airfare
through
Cluster Travel Agencies (CTA)

Michigan State University Business Travelers and their Travel Arrangers may call any of our Cluster Travel Agencies (CTAs) to Direct Bill airfare when traveling on University business. The Cluster Travel Agencies are Passageways Travel (formerly Spartan Travel), Anderson Travel and STA Travel. Business Travelers and their Travel Arrangers will each need a signed, Departmental authorized and University Travel Office approved Direct Bill Authorization/Profile Application on file at the CTAs.

  1. Advantages of Direct Billing
  2. Eligibility
  3. Authorization
  4. Direct Bill Authorization/Profile Application Form
  5. Airline Reservation Process
  6. Travel Voucher
  7. Direct Bill Trip Not Taken
  8. Direct Bill When The Only Claim Is Airfare
  9. Direct Bill With Travel Advances (if eligible)
  10. Direct Billing With Partial (Limited) Reimbursement of Airfare
  11. Direct Billing For A Non-MSU Traveler With A Honorarium
  12. Direct Billing Of Airfare With A Fare Reduction
  13. Direct Billing Of Airfare With A Fare Increase Due To A Ticket Change
  14. Preparing One Travel Voucher For Travelers Who Only Have Direct Billed Airfare
  15. General Ledgers
  16. Miscellaneous
  1. Advantages of Direct Billing
    • The Business Traveler or Travel Arranger may book airfare up to 120 days prior to the trips departure date.
    • The Business Traveler or Travel Arranger may book a super saver ticket during a fare war to save money for MSU and not worry about receiving a personal credit card statement before the trips departure date.
    • Business Traveler or Travel Arranger will have the amount of the airfare directly billed to the MSU account number(s) which is provided to the CTA at the time of booking.
    • The Business Traveler or Travel Arranger may book airfare with a travel agent at one of the CTAs or on-line via Trip Manager (Anderson Travel) or ResX (Passageways Travel).
    • Direct Billing eliminates the need to request a Travel Advance or Direct Pay Voucher to cover airfare (for those who were eligible in the past).
    • The Business Traveler still has travel accident insurance coverage.
    • The Business Traveler will still accumulate personal frequent flier miles on all Direct Billed airfare.
    • The Business Traveler or Travel Arranger may provide up to ten (10) MSU account numbers to cover the cost of the airfare. (The Business Traveler or Travel Arranger needs to obtain Departmental approval, specific account number(s), and dollar distribution(s) information prior to making a reservation).
    • The Department will keep all authorization(s) with original signature(s) on file at the Departmental level. It will be up to each unit to determine the method used to obtain the written authorization (from someone senior to the traveler).
    • The Business Traveler or their designee will use the on-line Travel Voucher (excel format) to report the Direct Billed airfare within 30 days of the trip's return date or when the trip is canceled. The original Passenger Receipt and original Invoice must be attached to the Travel Voucher. Only the original Passenger Receipt is required if the trip was to a domestic destination.

  2. Eligibility
    • Regular faculty and staff on the MSU payroll are eligible.
    • Regular faculty and staff with direct bill authorization may make reservations and Direct Bill airfare for persons traveling on Michigan State University business.
    • Temporary employees, On-call employees, Emeritus, Graduate students, Undergraduate students and non-employees are not eligible to make their own reservations and Direct Bill.

  3. Authorization
    • The Direct Billing Authorization/Profile Application must be approved by an Authorized Account Signer who is also senior to the applicant.
    • Prior to each business trip, the Business Traveler must have written and signed authorization to travel. Approval must be made by someone senior to the traveler. The Travel Authorization and Emergency Contact form is recommended for this purpose.
    • The Department will keep all Travel Authorization(s) with original signature(s) on file at the Departmental level. It will be up to each unit to determine the method used to obtain the written authorization (from someone senior to the traveler).

  4. Direct Bill Authorization/Profile Application Form
    • The Business Traveler and Travel Arranger, if applicable, must complete a MSU Direct Bill Authorization/Profile Application in order to facilitate the Direct Billing process.
    • Direct Bill Authorization (Attachment A) allows the MSU Business Traveler or Travel Arranger to make airline reservations and authorize the Direct Billing of that airfare to a MSU account number(s). Regular employees whose departments are permitting them to reserve and authorize Direct Billing to an MSU account number need to check the Direct Bill Application box at the top of the Direct Bill Authorization/Profile Application. Travel Arrangers will want to, with Departmental approval, seek Direct Bill Authorization. This will enable the Travel Arranger to reserve and Direct Bill airfare/rail travel for others traveling on MSU business, including University employees, students, incoming lecturers, researchers, collaborators, interview candidates and potential recruits.
    • A Direct Bill Profile (Attachment B) allows the MSU Business Traveler to make airline reservations. If this option is chosen, the MSU Business Traveler will not be authorized to Direct Bill airfare to a MSU account number(s). Someone with Direct Bill Authorization for the account which is being charged must authorize the Direct Billing of the airfare booked by the MSU Business Traveler. A MSU regular employee who will only be permitted by their Department to make airline reservations through one of the Cluster Travel Agencies needs to check the Profile Only box at the top of the Direct Bill Authorization/Profile Application.
    • The travel preference sections are optional, but completion is strongly suggested for MSU Business Travelers. Michigan State University Travel Arrangers should not complete these sections unless they will be traveling on University business.
    • Michigan State University Business Travelers should authorize specific individuals to arrange their travel. The contact information for the MSU Travel Arranger is necessary for the Cluster Travel Agencies.
    • If the MSU Business Traveler wishes to have the CTAs make hotel reservations, a personal credit card, such as the GE Corporate Travel MasterCard, is required. Because only airfare may be Direct Billed, the personal credit card must be used to make reservations and pay for travel expenses that are not airfare.
    • The Payroll Deduction Authorization section is required in order to prevent losses from unauthorized travel. Whether applying for Direct Bill Authorization or Direct Bill Profile, the applicants signature is required.
    • The Direct Bill Authorization/Profile Application must be approved by an Authorized Account Signer who is senior to the applicant. Each Department will have one person identified, with a back-up person, who is authorized to give written approval on the MSU Direct Bill Authorization/Profile Application.
    • The MSU Direct Bill Authorization/Profile Application, when completed and approved, should be faxed to the University Travel Office (517) 432-4656 for employment verification and final approval. The University Travel Manager will distribute MSU Direct Bill Authorization/Profile Applications to the Cluster Travel Agencies. Travelers are requested to keep a copy of the MSU Direct Bill Authorization/Profile Application for their records; Departments should keep the original.
    • Typically, the MSU Direct Bill Authorization/Profile Application is completed one time. A new application is required if the Business Traveler or Travel Arranger transfers to another Department within the University.
    • It is expected that the individual MSU Business Traveler and Travel Arrangers will update their MSU Direct Bill Authorization/Profile Application if any information changes from the initial application. Changes need to be forwarded to the University Travel Office. The University Travel Office will forward those changes onto the CTAs.
    • When a Business Traveler or Travel Arranger transfers out of a Department, changes employment status, or ends their employment with Michigan State University, the Department is expected to notify the University Travel Office.
    • It is recommended when a MSU Business Traveler will have several students traveling with them that the airline reservations be made all together (at the same time). The MSU Business Traveler or Travel Arranger should have MSU Direct Bill Authorization on file. They will authorize the CTA to Direct Bill the cost of airfare for the students. The MSU Business Traveler or Travel Arranger will provide the name of each student, unit code, and account number(s) for the entire traveling group. The CTA will send the Passenger Receipts and Invoices to the MSU Business Traveler or Travel Arranger for verification. Travel dates may vary among the group. This process allows the MSU Business Traveler the privilege of Direct Billing the students airline tickets without having to finance the cost of the airline tickets out of pocket.

  5. Airline Reservation Process: (Attachments C ,D, E)
    • MSU Business Traveler or Travel Arranger calls one of the Cluster Travel Agencies (CTAs) to make the reservation(s).
    • The Business Traveler or Travel Arranger provides the digit unit code of the MSU Department that is paying for the travel only one unit code per reservation (funding may be split between several units, use the largest funding source unit code).
    • The Business Traveler or Travel Arranger, who has Direct Bill Authorization, provides (up to 10) MSU account numbers (must be 6 digits each) with the dollar distribution to each account number, and the travel object code (must be 3 digits).
    • The MSU account number(s) will be used to directly charge the funding source with the proper airfare and associated service fees.
    • The Direct Billed airfare charge(s) will appear on the monthly fund ledgers. If travel is within the same fiscal year, the charge will appear on the fund ledger for the month after the purchase was made. If travel is in the next fiscal year, (i.e. purchase of airline ticket is made in May, but travel is not until July), the charges will not appear on the fund ledger until the new fiscal year.
    • At the time the CTA issues the ticket, an Invoice Number (Passageways Travel 9 or 6, Anderson Travel 6, STA Travel 10 digits), (Attachments C ,D, E) is created and printed on the Passenger Receipt. These Invoice numbers are used as record numbers for reporting purposes. They also are a means of tracking specific trip information for our MSU Business Travelers.

  6. Travel Voucher: (Attachments F)
    • Complete Sections A and D of the Travel Voucher.
    • The box in Section A asking if airfare was Direct Billed should be marked.
    • The Invoice number is found at the top right hand side of the Passageways Travel and Anderson Travel Invoices. This number is recorded in Section D.
    • The Starting box indicates from where the MSU Business Traveler departed. The Destination box indicates where the MSU Business Traveler went.
    • The Object Code and Account Number are on the Invoice. The account number on the Invoice, airfare, and service fee amount should be verified with the MSU account ledger for accuracy.
    • The amount of the ticket is reflected on the bottom left corner of the Passenger Receipt.
    • The service fee, which is noted on the original Invoice, should be recorded in Section D.
    • If completing the Travel Voucher on-line, Section D will total itself.
    • The original Passenger Receipt and the original Invoice (if international) must be attached to the Travel Voucher.
    • Original signatures of MSU Business Traveler (unless a non-MSU employee) and Unit Administrator or designee are required. Signatures must be not be in black ink.
    • If someone other than the MSU Business Traveler completed the Travel Voucher, the Voucher Prepared by section at the bottom of the Travel Voucher should be completed.
    • The finalized Travel Voucher, one copy, the original Passenger Receipt and original Invoice should be submitted to the Voucher Processing Office, 360 Administration.
    • For exceptions, please see the applicable section below for specific instructions.

  7. Direct Bill Trip Not Taken: (Attachments G)
    • Part A
      • Call the Cluster Travel Agency (CTA) and cancel your trip prior to the departure date/time.
      • If the ticket is refundable, ask the CTA to request a refund of the ticket. When completing the Travel Voucher indicate the initial charge and the amount of the refund in Section D.
      • If the ticket is nonrefundable, please document in Section F that the trip was not taken so that ticket will be placed in the Ticket Clearing Process.
      • Follow the instructions for completing a Travel Voucher (Section VI).
      • Copies of the original Passenger Receipt and original Invoice should be retained by the MSU Department so that they may be attached to a new Travel Voucher when this ticket is applied toward the purchase of a new ticket.
      • The Total Claim and Total Reimbursement amounts should be left blank.
      • It is necessary to complete a Travel Voucher when a trip is not taken since MSU has paid for this ticket and needs to show accountability.
      • The MSU Business Traveler or Travel Arranger needs to tell the CTA travel agent the next time travel arrangements are made that there is a ticket in the Ticket Clearing Process that they want to apply against the upcoming travel.
    • Part B
      • Once the University Travel Manager receives the Travel Voucher, the unused ticket is put into a database, the Ticket Clearing Process.
      • The Department is sent notification that the unused ticket has been placed in the Ticket Clearing Process. They are also notified of the validity of the ticket; i.e. purchasing deadline, expiration date (ATTACHMENT H).
      • The Ticket Clearing Process is sent to the Cluster Travel Agencies once per week.
      • When a MSU Business Traveler or Travel Arranger calls one of the CTAs to make a reservation, the travel agent will check the Ticket Clearing Process to see if there is a ticket that can be applied toward the purchase of the new trip.
      • If an unused ticket can be used toward the purchase of a new ticket, the CTA will notify the MSU Business Traveler or Travel Arranger and the University Travel Manager.
      • The University Travel Manager will note the new travel dates, destination, and cost. The unused airline ticket, which has been exchanged for a new airline ticket, will be removed from the Ticket Clearing Process.

  8. Direct Bill when the Only Claim is Airfare: (Attachments G)
    • On occasion, a MSU Business Traveler is only funded for the reimbursement of airfare.
    • It is necessary to complete a Travel Voucher since MSU has paid for this ticket and needs to show accountability.
    • Follow the instructions for completion and submission of a Travel Voucher in Section VI.

  9. Direct Bill With Travel Advances (if eligible) (Attachment I)
    • In order to obtain a Travel Advance, the MSU Business Traveler will need to present in person a completed and approved Travel Authorization and Emergency Contact form to Voucher Processing, 360 Administration, MSU. See Section 70 of the Manual of Business Procedures for complete instructions.
    • Department will complete Section C and approve the amount to be advanced.
    • Travel Advance information will be placed on the Travel Voucher and red-circled by the Voucher Processing Office at the time the Travel Advance is processed.
    • The Business Traveler is expected to return the original Travel Authorization and Emergency Contact to their Departmental office to be held while travel occurs.
    • Within 30 days of completion of the business trip, a Travel Voucher should be completed and submitted to Voucher Processing.
    • The original page with the authorizing signatures & the travel office advance information should be attached to the fully completed Travel Voucher when sent to the Voucher Processing Office for auditing and verification of expenditures for which the Travel Advance was obtained. The Travel Advance number should be noted in the Travel Advance section (below Section B) of the Travel Voucher. If this process is not followed, the traveler will receive a full check and the travel advance will not receive repayment.

  10. Direct Billing with Partial (Limited) Reimbursement of Airfare
    • A traveler often receives a limited amount of funding for a reimbursed business trip.
    • When making an airline reservation and only a portion of the airfare will be reimbursed by MSU, the MSU Traveler/Travel Arranger will not be able to Direct Bill the airfare.
    • The MSU Business Traveler will need to present a personal credit card, cash, or check to purchase the airline ticket and receive reimbursement from MSU after the trip has been completed.
    • If this will create a financial hardship for the MSU Business Traveler, in some cases it is permissible to Direct Bill the airfare to a MSU account number.
    • In either case, a Travel Voucher must be completed and submitted (see Section VI). Whether airfare is Direct Billed or paid out of pocket, the original Passenger Receipt and original Invoice (if international) are required.

  11. Direct Billing for a Non-MSU Traveler with an Honorarium (Attachment K)
    • Departments paying for non-MSU Business Travelers expenses may Direct Bill their airfare.
    • If the non-MSU Business Traveler is receiving an honorarium in addition to travel reimbursement, a Direct Payment Voucher may be processed. The honorarium should be identified by using object code 071. For honorariums over $600, please see Section 76 of the Manual of Business Procedures
    • When itemizing the airfare, include the object code, unit code, account number which was provided to the travel agent at the time of booking as well as the Invoice number from the original Invoice or original Passenger Receipt. This amount should be listed as information only and not reimbursed to the traveler.
    • The original Passenger Receipt and the original Invoice (if international) must be attached to the Direct Payment Voucher.

  12. Direct Billing of Airfare with a Fare Reduction (Attachment L)
    • If the fare is reduced on the original airline ticket by greater than $25.00, the Cluster Travel Agencies reissue the airline ticket.
    • The fare must be reduced by $100.00 or more (airlines assess the $100.00 "change fee") in order for the change to be cost effective.
    • The Cluster Travel Agency reissuing the ticket will notify the MSU Business Traveler. The MSU Business Traveler or Travel Arranger has the choice between having the difference placed on a (MCO), which may be used toward the purchase of another business trip on that particular airline, or paying a $100 fee and having the difference in fares credited back to the American Express ghost card. The second option will cause a credit to be posted to the general ledger account number utilized.
    • The Cluster Travel Agency will issue the new airline ticket for the lower amount and also issue an MCO (Miscellaneous Credit Order) for the dollar difference.
    • A new airline ticket and a copy of the MCO will be sent to the MSU Business Traveler or Travel Arranger. The MCO will be delivered to the University Travel Manager who will place it in the Ticket Clearing Process. The MSU Business Traveler or Travel Arranger will receive notification from the University Travel Manager that the MCO has been placed in the Ticket Clearing Process. The Cluster Travel Agencies will receive an updated list weekly.
    • Complete Sections A and D of the Travel Voucher.
    • The Invoice number is found at the top right hand corner of Passageways Travel (formerly Spartan Travel) and Anderson Travel Invoices. This number is recorded in Section D.
    • When completing Section D of the Travel Voucher, both the old and new ticket should be reported as well as the MCO.
    • The Starting box indicates from where you departed. The Destination box indicates where you went.
    • The Object Code and Account Number are on the original Invoice. The account number on the Invoice, airfare, and service fee amount should be verified with the MSU ledger for accuracy (whenever possible).
    • The amount of the ticket is reflected on the bottom left corner of the Passenger Receipt.
    • The service fee, which is noted on the original Invoice, should be recorded in Section D.
    • If completing the Travel Voucher on-line, Section D will total itself.
    • The box in Section A asking if airfare was Direct Billed should be marked.
    • The original Passenger Receipts for both tickets, a copy of the MCO, and the original Invoices (if international) must be attached to the Travel Voucher. The responsibility for this lies with the MSU Business Traveler.

  13. Direct Billing of Airfare with a Fare Increase Due to a Ticket Change (Attachment M)
    • If an airline ticket has been Direct Billed and the traveler needs to make a change (date change, time change) to the original booked ticket, there is often an increase in the airfare of the reissued ticket.
    • The Cluster Travel Agency or validating Airline will issue a new airline ticket to reflect the increase in ticket cost. The additional increase in the cost of airline ticket may be Direct Billed to the funding sources provided at the time of the original booking if the change was made for MSU business reasons. Otherwise, the Business Traveler must pay the difference in cost and not be reimbursed by Michigan State University.
    • A new Passenger Receipt and Invoice (if issued by one of the Cluster Travel Agencies) for the higher amount will be given to the traveler. It will be the responsibility of the traveler to attach the original Passenger Receipts and original Invoices for both tickets to the Travel Voucher.
    • Any new charges that are Direct Billed will be posted to the MSU account number used for the original transaction unless specified at the time of the re-booking of the airline ticket.

  14. Preparing One Travel Voucher for Travelers Who only Have Direct Billed Airfare (Attachment N)
    • If airfare is Direct Billed for several MSU Business Travelers attending the same conference/meeting and there are no reimbursable expenses, Direct Billed airfare may all be reported on the same Travel Voucher.
    • To qualify, MSU Business Travelers must be traveling to the same destination on the same dates from the same origin city in order for one Travel Voucher to be prepared and accepted by Voucher Processing.
    • The Department Name should be noted in Section A. Each of the Direct Billed airline tickets must be itemized in Section D. An original Passenger Receipt and original Invoice (if international) for each MSU Business Traveler must be attached to the Travel Voucher.

  15. General Ledger (Attachment O)
    • MSU General Ledger entry will always begin with DB under the Name or Description field, followed by the Airfare Direct Bill Invoice number and as many letters (as will fit in the cell) of the travelers name.
    • The Reference number will always read JVE38.
    • The airfare/rail charges are posted to the general ledger accounts the month following the purchase of the ticket. For example, an airline or rail ticket purchased in December will appear on your January ledger. The only time this is not true is when an airline or rail ticket is purchased for travel in the next fiscal year. If this occurs, the charge is posted at the beginning of the new fiscal year (July).
    • MSU account numbers, which are provided to travel agents at the time of booking, will be checked by the University Travel Office at the end of each month to be certain that they are "valid" account numbers. It is the responsibility of each Department to verify the charges posted to their University accounts.
    • The University Travel Office, Voucher Processing, and Accounting cannot provide copies of Invoices and Passenger Receipts. If the airline or rail ticket was Direct Billed, the Department will have to get copies from the Cluster Travel Agency who issued the ticket.
    • If a charge appears on the Department's University account which was not authorized, the Department should call the University Travel Office. The University Travel Manager will work with Departments to resolve Direct Billing issues. If appropriate, the payroll deduction process will take place.

  16. Miscellaneous
    • The Travel Voucher should be submitted with original signatures, the original Passenger Receipt, original Invoice (if International), and one copy of the Travel Voucher. MSU Departments should keep a copy on file for their records.
    • If you have questions about the process/forms, call the University Travel Manager at (517) 355-0343.
    • The MSU Purchasing Card cannot be utilized for travel expenses. The Purchasing Card must be used to pay for Conference Registration Fees.