Purchasing and Contracts Updates and Hot Topics Posted March 6, 2025

A Statement of Work (SOW) is a document included with all contracts that details the business terms (price, timing, scope, etc.) of the work to be performed by the supplier or independent contractor. Building and agreeing to a clear and complete SOW can significantly improve the likelihood of a successful project when contracting with non-Stanford entities. 

To support efforts to continuously improve the contracts process by ensuring SOW documentation is complete and comprehensive, the Contracts team has: 

• Created a new Resource: Statement of Work (SOW) on Fingate that provides an overview of the SOW document, why it is important, and a section outlining Statement of Work components that can help departments confirm whether the SOW they have written, or received from their supplier, includes all necessary components prior to submitting as an attachment to their contract request.
• Updated and clarified the Statement of Work (SOW) template that departments can use to facilitate creation of a SOW document with a non-Stanford entity. 

Departments can refer to the Topic Overview: Contracts page to learn more about the contracts process. 

FMS Procurement Services reviews and approves non-catalog requisitions that are above a specified threshold to validate compliance with the federal micro-purchase threshold and university competitive supplier selection requirements. The prior threshold was $50,000 or greater (after taxes and fees) regardless of the funding source.

What changed and why

Effective March 24, 2025, as part of a charge to simplify work at Stanford, FMS has increased the central review threshold to $250,000 or greater after taxes and fees for non-catalog purchases. Per federal requirements, the micro-purchase threshold will remain at $50,000 for federally-funded non-catalog purchases.

This means that non-catalog purchases below $250,000 will no longer require central review unless there is a federally-funded portion of $50,000 or greater. This change will streamline the review and approval process for hundreds of purchases each year. Refer to the table below for a summary of this change:

Non-catalog purchase threshold that requires validation of competitive supplier selection

What has not changed

• The following transactions do not require central review:
  • Catalog purchases (Amazon Business and SmartMart Catalog Suppliers) because pricing with catalog suppliers have been previously established through a competitive process.
  • Subawards are not considered procurement transactions and are managed by the Office of Research Administration.
• Documentation used by departments to demonstrate compliance with federal and university competition requirements. Refer to Resource: Validation of Competitive Supplier Selection.
• Financial review and approval of transactions. The roles and responsibilities that are involved will not change.
• Purchases that require a Stanford signature and therefore a contract go through the contract process, regardless of dollar amount.  

Effective Feb. 10, suppression functionality has been removed from the Requisition and Purchase Orders Query tool. 

What is not changing

• All previously suppressed commitments will continue to be hidden on Oracle Financial reports. Departments can Finally Close or cancel POs with suppressed PO lines. Please note: Suppression functionality prevents open purchase order (PO) line item balances (i.e., open commitments) from showing on Oracle Financials reports, but the PO remains open for invoice activity and any change orders.
• Subaward PO lines can continue to be suppressed because of specific contractual requirements for subawards.

Best practices for managing a PO

Instead of suppressing PO lines, departments should use the following self-service tools, which are best practices to reduce risk and support accurate financial reporting. There is no need to first suppress any lines on a PO before taking the following actions:  

• Finally Close can be used on eligible POs with previous and/or current invoice activity and relieves all outstanding commitments and permanently prevents any future invoice payments and change orders.  
• Cancel PO can be used when the PO has no invoice activity and/or is no longer needed. Prior to canceling a PO, departments should notify the supplier.

Departments can refer to Reporting: OBI Dashboard: Procure to Pay Dashboard and Reports (P2P) to learn about several Oracle Business Intelligence (OBI) reports that can help preparers identify POs with open commitments.

For questions regarding this change, please submit a support request.

Resources

• How To: Finally Close a Purchase Order
• How To: Cancel an Approved Purchase Order

After a successful pilot phase, the Stanford Mobile Approvals app is now available for iProcurement purchase requisition approvals. Enabling mobile approval as an additional option to using the Oracle Workflow Notifications web application interface can accelerate purchase request processing for departments. 

Key features include:

• Easy Access: Quickly view and manage pending Oracle Financials purchase requisitions.
• Secure Authentication: Ensure secure access with multi-factor authentication.
• Real-time Notifications: Stay informed with instant push notifications about new workflow requests.
• Detailed Request Information: Access detailed information about each requisition to make informed decisions.
• User-friendly Interface: Navigate with ease using the app’s intuitive design in both landscape and portrait orientations.

Resources 

• Visit the University IT (UIT) Stanford Mobile Approvals website to learn more about:
  • Installing the Stanford Mobile Approval app on IOS/iPhone and Android devices
  • Frequently asked questions (FAQs)
  • UIT resources and support
• Learn About Stanford Mobile Approvals system page

Stanford requires all suppliers/payees to have an active record in the university’s database before a purchase or payment can be made. To ensure payments are processed correctly and in a timely manner, new domestic suppliers must complete a one-time registration through Stanford’s Supplier and Payee Registry. Foreign suppliers, visitors, and independent contractors must complete a one-time registration through the Stanford Supplier and Payee Request Portal.

On Feb. 14, 2025, Oracle is upgrading the Stanford Supplier and Payee Registry with a redesigned user interface that will only be visible to new domestic suppliers who are completing the registration process. The user interface updates are being implemented to improve the collection of profile details, meet accessibility requirements, and provide geographically responsive data entry.

Suppliers that did not start or partially completed the one-time registration process were emailed instructions to ensure their registration information is received. 

Coming soon: The Supplier and Payee Registry Quick Reference Guide will be updated to align with the launch of the redesigned user interface.

What is not changing: 

• The change request system that new and existing domestic suppliers use to add or edit their profile details.
• Foreign suppliers, visitors, and independent contractors will continue to use the Stanford Supplier and Payee Request Portal to complete the registration process. 
• The process for staff to request a new supplier setup.

For questions about this upcoming change, please submit a support request.  

As part of ongoing enhancements to increase procurement efficiency, the Independent Contractor Checklist (IC Checklist) was updated on Nov. 12, 2024 with the following improvements:

• Consolidated the checklist questions to four simplified questions that align with university as well as state and federal requirements for an IC classification.
• Improved descriptions of, and guidance for, each of the four questions that help departments determine whether Stanford can legally pay a person as an independent contractor (IC).

By streamlining and providing clarifying information for each question, departments are better equipped to complete the checklist with greater accuracy and efficiency.

A new Resource: Independent Contractors page was also added to Fingate to streamline all IC definitions, guidance, and considerations into one resource that also addresses the purpose of the IC Checklist.

Best practices for accessing the IC Checklist on Fingate

Before submitting an IC Checklist, users should check the IC Checklist link on Fingate to ensure they are working from the latest version (11/12/2024 - the version date is at the bottom of each page). The latest version of the form will always include any continuous improvements based on feedback, related policy and legal updates, and applicable system updates.

Effective July 15, the invoice amount that requires department approval increased from $5,000 to $10,000. This means that department approval is only required for invoices $10,000 or greater. While department approval is no longer required for invoices between $5,000 and $9,999, they will be placed on a temporary hold for five (5) business days to allow for department review. Visit the news page about this change to learn more. 

FMS updated the Supplier/Payee Request Form on July 15, 2024 for overall usability improvements and now includes:

• A new Independent Contractor (IC) affiliation type to better support IC transactions, reporting, and compliance.
• A new Non-PO Contracts transaction type to streamline supplier/IC setups where a contract with the supplier/IC will not require a PO for payment (because the contract will have a value of zero dollars ($0) or it will have a total value of $4,999 or less and can be paid with a PCard).

These updates support smooth and efficient setups by helping users submit accurate, detailed, and complete non-SU payee requests. 

Effective July 15, when Amazon Business purchases are canceled, for example because they can't be fulfilled, the PO line (or entire PO) will automatically be canceled and commitments will be released. Purchasers no longer need to cancel the PO or request the PO lines be canceled because it will be done automatically.

On July 15, FMS made several enhancements to the Requisition and Purchase Orders Query tool, which includes adding frequently requested invoice hold and payment status details to the main PO Details page for easy access and reference.

Most notably, five new fields have been added to the Invoice Payment Details panel (see screenshot below), which include:

• Payment Terms
• Scheduled Payment Due Date
• Payment Date
• Payment Cleared Date  
• Payment Method Name

Previously, this invoice and payment information was only accessible by viewing the invoice PDF, causing users to frequently call the Financial Support Center to ask where to find these details when confirming invoice processing and payment status. By displaying this information directly in the Invoice Payment Details panel, users will be able to quickly access it without FSC support.

Additionally, the Status of Uploaded Invoices with this PO panel has been updated to display invoices that were placed on a hold due to an invalid PTA (closed or unavailable PTA). This additional information allows users to view all reasons for the invoice hold so that they can take appropriate action. 

Several other panels have been updated on the main PO Details page for enhanced clarity and accuracy:

• Requisition Details: The panel now displays 10 requisitions at a time instead of five (5). 
• Requisition Line Details: The field name, ‘Suggested Vendor,’ has been replaced with ‘Supplier’ and show the full name of supplier.
• Contracts Status: This panel has been removed removed since contract status is available in the SmartMart Contracts system.

Why it is changing

Enhancements to this reporting tool supports and ensures timely and accurate invoice processing and PO management.

Related Fingate Resources and Guidance

• How To: View Requisitions, Purchase Orders or Invoices was updated to include instructions for viewing requisition, PO, and invoice details.
• Topic Overview: Purchase Orders provides an overview of the purchase order process at Stanford.
• Topic Overview: Purchase Order Invoice Processing reviews invoicing processing at Stanford in order to support schools and units in efficiently and effectively paying suppliers. 
• For further questions, please submit a support request.

Effective immediately, restrictions have been removed from purchasing computing hardware with a Purchasing Card (PCard), as well as through personal reimbursement (Expense Request). UIT’s preferred purchasing recommendations for hardware (desktop computers, laptops, mobile devices, and standard accessories) remain the same. However, now there are no more restrictions on using less preferred purchasing methods, such as a PCard, to purchase hardware.

These restrictions have been removed as the risks are now mitigated through alternative strategies. For example, senior leadership can access high risk business monitoring reports that provide visibility into hardware purchases within their schools and units. Additionally, Stanford University is managing the risk associated with hardware purchases through several measures. Minimum Security Standards for endpoints are designed to mitigate many of the risks associated with hardware purchases. Device enrollment, verifiable encryption, and high-risk data handling requirements are designed to ensure that Stanford University maintains a high standard of data security and compliance for all hardware used within its network.

As with the recent software purchasing guidance update, this change better balances risk reduction and administrative efficiency. Learn more about these changes on the University IT website.

For guidance on purchasing common types of goods for university use, visit Fingate’s Purchase Goods page, which describes best practices for purchasing hardware, home office equipment, lab supplies, and more. Visit the Purchase Services page for guidance on purchasing common types of services, including cloud computing, internet services and software.

On May 20, the Accounts Payable (AP) team updated the Stanford PO that is sent to suppliers to:

1. In addition to the physical mailing address, include the AP virtual mailroom email address, which is @email, in the Instructions section of the PO that specifies invoice submission methods. 
   • This update supports invoice submission by email, which can reduce manual handling of documents and any potential processing delays.
   • Note that certain invoices (such as for Capital Equipment) must be uploaded directly  by the department. Some departments, such as LBRE and R&DE have their own invoice submission address.
   • Also note that, at their discretion, departments can require the supplier to submit invoices directly to the department for review and uploading. 
2. Reflect the latest tax guidance and information in the Taxability section of the PO.
   • This update ensures alignment with federal tax laws. 

For an overview of invoice processing at Stanford, including details and instructions on all invoice submission methods, visit Topic Overview: Purchase Order Invoice Processing. 

On Monday, Feb. 26, 2024, FMS completed improvements to the description in the Hold Reason field that displays in the Requisition and Purchase Order query tool as well enhancements to the invoice hold notification emails to ensure they contain more actionable information and improved timing for recipients. 

Hold Reason Enhancements

For the most common invoice holds, the Hold Reason description was clarified and updated so that preparers, financial approvers, and PTA owners can quickly and efficiently understand the reason for the hold and access resources to help them take actions to release it. 

Please note: The prior Hold Reason description will display for invoices put on hold and released before Feb. 26, 2024. 

There are also numerous invoice holds that do not prompt a hold notification email because they are typically resolved within two to fifteen business days by Accounts Payable, or in conjunction with another department. For these types of invoice holds that generally do not require action, the Hold Reason was simplified and streamlined to specify required actions only if the hold is not resolved after a certain number of days after the invoice hold date (see screenshot below of where to locate the invoice hold date in the Requisition and Purchase Orders Query tool).  

Refer to Resource: Managing Invoice Holds for an at-a-glance table of all the Hold Reasons that display in the Requisition and Purchase Order Query tool, what each hold means, and actions required to release the hold. 

Invoice Hold Notification Email Improvements

Based on focus group input, FMS completed improvements to invoice hold notification emails on Monday, Feb. 26, 2024 to ensure the following:

• More actionable information: Invoice hold notifications have the most relevant information for recipients to act on.
• Improved timing and recipients: The invoice hold notifications are initially sent to recipients (e.g., requisition preparer, department uploader, financial approver, PTA owners etc.) who can take the most immediate action rather than recipients who may not be able to take action. 

The table below outlines the improvements that were made to the invoice hold notification emails:

Future discovery effort to evaluate invoice hold tolerances to reduce administrative burden

FMS is reviewing the current thresholds for required department approval (e.g., invoices over $5,000) to identify any opportunities to adjust these controls in a way that would still preserve effective risk mitigation and reduce administrative burden.

Resources

Stay tuned to this project page for news, updates, and for links to resources and materials to support these improvements. In addition, you can learn more in the following ways:

• Refer to the Topic Overview: Purchase Order Invoice Processing, which provides best practices for ensuring timely and accurate invoice processing. 
• View Resource: Managing Invoice Holds, which provides an at-a-glance table of the most common invoice hold notifications and actions required. This Resource page also includes descriptions of invoice holds that do not prompt a hold notification email and typically do not require action, but may display in the Hold Reason field of the Requisition and Purchase Orders query tool. 
• Subscribe to Purchasing and Contracts Updates and Hot Topics page to receive email news and announcements.
• Follow our Slack channel, #Stanford-FMS-news, for ongoing updates and more. Type "#Stanford-FMS-news" into the Slack search bar to access the channel.
• Check the Procurement Services Events page for upcoming AP-related information sessions and office hours 
• Contact the project lead, Gil Hoh, AP Manager, Procurement Services 

Updated the most common invoice holds
The initial improvements to the invoice hold resolution process included updating notifications about the seven most common AP invoice holds to clarify the hold’s purpose and the actions required to release the hold. 

These improved notifications, along with several process improvements to how holds are generated and tracked, made it easier for departments to review and take appropriate action so that AP can release common invoice holds without requiring support from the Financial Support Center, resulting in easier hold resolution and invoice processing and payment.

Additionally, an at-a-glance table of the most common invoice hold notifications and actions required was added to the Topic Overview: Purchase Order Invoice Processing. Language in the How To: Release Invoice Holds was also updated.

There are occasions when a department would like to request a rush, wire, or will call payment to wire or expedite the purchase order (PO) invoice payments made to a supplier. Rush, wire, or will call payments require a payment handling fee of $35, which must be charged to a non-sponsored PTA. 

When a rush, wire, or will call payment is requested, the department can upload the invoice on behalf of the supplier using the Upload an Invoice for Payment Processing button in the Requisition and Purchase Orders Query tool. If the department would like to request a rush, wire, or will call payment for an invoice that already appears on the PO as a pending invoice, they must contact the FSC. Uploading an invoice manually is the less preferred option for regular payment processing, instead suppliers should email invoices directly to Accounts Payable (suppliers should refer to Topic Overview: Do Business With Stanford for more information).

What is changing

On Feb. 26, 2024, to streamline and clarify the invoice upload functionality for rush, wire, or will call payments, two enhancements have been made:

1. In the Enter PTA for Payment Handling Fees section, drop down menus for the Project, Task, and Award have been added. The drop down menus replace a previous open text field, which could result in an incorrectly entered PTA or a sponsored PTA. The Award drop down menu now only displays non-sponsored awards, which do not begin with P, Q, R, S, T, U, V, W). See screenshot below.
2. The invoice upload form is now a dynamic form and will only display the Enter PTA for Payment Handling Fees when Rush, Wire, or Will Call payment method radio buttons are selected. If the Standard payment method is selected, the Enter PTA for Payment Handling Fees will not display 

Please note: To request both a rush and wire payment, please submit a support request and there may be a $70 payment handling fee. 

For more information and to get help

• For step-by-step instructions on uploading an invoice, refer to How To: Upload an Invoice. For specific instructions on requesting rush or will call payments, refer to How to: Request Rush and Will Call Payments.   
• For additional questions, please submit a support request. 
   

A supplier in Stanford’s database may have multiple locations (also called sites) and multiple contacts for doing business. When a Non-Catalog purchase requisition is created, a user is prompted to select the appropriate site to ensure email delivery of the purchase order (PO) to the supplier. As a result of user feedback, and in an ongoing effort to streamline the iProcurement purchasing experience, FMS recently made an improvement to how supplier sites are displayed and selected.

What is changing
Previously, when searching for the supplier name to indicate PO delivery from the Non-Catalog purchase requisition screen, multiple supplier sites and/or contacts may have displayed or for each supplier record. 

Because supplier contact names and representatives may frequently change, which could cause confusion when trying to identify the correct PO delivery method, those individual contact names have been removed and only the  PO Delivery Email will now display. These are typically email addresses that are less likely to change or vary (see before and after screenshot below).

In progress or past purchase orders will not be impacted by this change and it is not necessary to resubmit these purchase orders for approval. 

Please note: 

• If the PO Delivery Email that is now displayed for the supplier is incorrect or missing, purchase requisition preparers can:
  • Submit a support request to update the PO Delivery Email. If the preparer knows the PO Delivery Email, it should be provided to the FSC. Also, a new supplier should not be requested if a supplier record already exists; or 
  • Refer suppliers to Topic Overview: Do Business With Stanford for guidance on how to update their own records.
• With this change, there may be instances when duplicate supplier sites still display for the same supplier. If this occurs, preparers should select the supplier site based on the PO Delivery Email that the supplier provided. If the preparer does not know which PO Delivery Email the supplier prefers, please submit a support request. 

Screenshot of requisition supplier selection before the change:

Screenshot of requisition supplier selection before the change:

Since individual supplier contacts or representatives will no longer display, preparers can use the Supplier Query and Request tool in Oracle Financials to:

• Search the database for active suppliers, including viewing specific supplier contacts and representatives
• View and request activation of inactive suppliers
• Update supplier information
• Submit a request to add a new supplier/payee
• Check the status of a new supplier/payee request that they have already requested

For further questions about this change, please submit a support request.