Overview: Invoice Processing

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What Does Accounts Payable Require in Order to Issue Payment Against an Invoice?

Payments are made against invoices by Accounts Payable. Depending upon what was purchased and how, there are different requirements that must be met in order for Accounts Payable to issue payment.

Online Catalog Purchases

Invoices for purchases through Stanford's CWA Online Catalog are sent directly to Accounts Payable from the vendors and require no action by the person buying the goods.

PCard Purchases

Once PCard transactions are approved in iProcurement by designated approvers, payments for purchases are made directly to the bank by Disbursements.

Purchases through iProcurment Rapid Purchase Orders and Standard Purchase Orders

Some purchases made via Rapid or Standard Purchase Orders require that the goods are "received" in iProcurement in order for invoices to be paid. These include:

  • Capital equipment purchases
  • Goods or services over $5,000
  • Rapid Purchase Order (RPO) Fabrications
  • And for Non-capital purchases over $2,500, departments must either transact the receipt in iProcurement, or if the vendor delivers the invoice along with the goods (not to Accounts Payable) the invoice must be forwarded to Accounts Payable per the instructions below.

See Quick Steps: Receive Goods or Services in iProcurement for details on how to record receiving information.

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Instructions for Forwarding an Invoice to Accounts Payable for Payment

When personnel in schools and departments receive invoices directly from vendors, they must forward the invoice to Accounts Payable, including all necessary information. The following criteria must be met in order for Accounts Payable to release payment:

  • The document must be an invoice, NOT a quote, order acknowledgement, sales receipt, or packing list.
  • The invoice must say "Bill to Stanford University."
  • There must be a Purchase Order Number referenced on the invoice.
  • The invoice must note the PTAEO account being charged.
  • If the invoice is for an amount greater than $2,500, the Department Manager that has signature authority on the PTA being charged, must sign the invoice with "OK to pay" and signature.
  • If the invoice is for capital equipment purchases or RPO Fabrication purchases, the receiving information must be recorded in iProcurement. See Quick Steps: Receive Goods or Services in iProcurement.

Once all these criteria are met, the invoice can be forwarded to Accounts Payable by ID Mail to Accounts Payable, Encina Hall, Rm 10, MC 6070, or faxed to 650-725-1399.

Important Note:  Either mail OR fax the invoice. Do not do both, as handling an invoice more than once causes processing to be delayed.

For detailed instructions on how to process an invoice through Accounts Payable, see Quick Steps: Process an Invoice.

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How to Avoid Delays in Invoice Processing?

  • When making a purchase, no order should be provided to a vendor by a department unless it is a fully approved RPO. See Overview: Rapid Purchase Order.
  • When forwarding an invoice to Accounts Payable, be sure all the criteria listed in the section above, Instructions for forwarding an invoice, are met.
  • If faxing the invoice to Accounts Payable:
    • Keep the original, DO NOT both fax and mail an invoice
    • Do not highlight areas on the invoices; this causes unreadable dark areas on the faxed document
    • Check to be sure the fax is successful
    • Write clearly; please do not write too near the edges of the document as the edges are sometimes not readable
  • Include any special processing instructions on the invoice, i.e. the need for multiple checks, rush payment, or will call.

An invoice will be placed on "Hold" if there is no purchase order or if the approval routing is incomplete. These invoices will be returned to the originator, a department contact or to the vendor. If an invoice is placed on hold, a workflow notification is sent via email to the purchase originator and the approver. The notification will include specific information on the required response.

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