Overview: Invoice Processing

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Requirements for Payment

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.

SmartMart Purchases

Invoices for purchases made through Stanford's SmartMart are sent directly to Accounts Payable from the vendors. Invoices over $2,500, or from Gold Shield for purchase of tax-free research alcohol,  require that you complete receiving in iProcurement in order for the invoices to be paid.

PCard Purchases

Once PCard transactions are verified in the PCard module of Oracle and approved by designated approvers, Accounts Payable makes payments directly to the bank.

Purchases through iProcurement 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
  • Non-capital purchases over $2,500. Departments must either transact the receipt in iProcurement, or if the supplier 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 Submitting Invoices to Accounts Payable for Payment


Preferred Method of Submitting Invoices

Once a purchase order is approved and goods or services are delivered, suppliers should send invoices directly to Accounts Payable. Invoices greater than $2,500 require department review to certify receipt of the goods or services and are therefore "held" until verification is received.

The purchase order originator will receive an email notification with subject "Electronic Release of Department Approval Hold" from Accounts Payable.

  • If originator can certify receipt of goods / services, he/she clicks the link in the email to view invoice details and releases the hold by clicking the "Approve Release of Hold" button
  • If originator does not have the authority to release the hold, he/she forwards the email to the appropriate approver to review and approve

If there are no additional holds on the invoice, AP will schedule payment per the terms of the purchase order.

Note – Accounts Payable scans all invoices received from suppliers. You can view the invoice image using the Requisition and Purchase Orders Query tool. To access the query tool, launch Oracle and open the SU Inquiry Tools folder. For instructions, see Quick Steps: Check Invoice Payment Status.

What to Do If Suppliers Sends Invoices to a School / Department

In some cases suppliers send invoices directly to school / department contacts. When this happens, the invoice must be forwarded to Accounts Payable. The following criteria must be met in order for Accounts Payable to process and 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.

For detailed processing instructions, see Quick Steps: Process an Invoice through Accounts Payable.

Need Help? Contact the Buying and Paying Support Center:

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How to Avoid Delays in Invoice Processing

  • When making a purchase, no order should be provided to a supplier by a department until there is a fully approved Standard or Rapid Purchase Order. See Overview: Rapid Purchase Order.
  • When forwarding an invoice to Accounts Payable, be sure all the criteria listed in the section above, Instructions for Submitting Invoices, are met.
    • Either fax OR mail the invoice. Do not do both, as handling an invoice more than once causes processing to be delayed.
    • When faxing the invoice to Accounts Payable:
      • Use the Invoice Fax Cover Sheet to receive email notifications as the invoice is processed (from receipt to payment)
      • Keep the original, DO NOT also mail the 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; do not write close to 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 supplier. 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.

To learn the status of an invoice, check invoice payment status.

Need help? Contact the Buying and Paying Support Center:

For additional training, take FIN-0410: Purchasing Using Oracle Internet Procurement.

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