This article offers the latest updates on purchasing and contracts processes and policies. For general assistance with purchasing and contracts, contact the Financial Support Center.
See other similar news pages:
- Business Expense Updates and Hot Topics for business expense updates.
- Stanford Travel Updates and Hot Topics for travel-related updates.
FMS continuously seeks to improve and simplify the financial ecosystem. Since releasing self-service Finally Close functionality in 2020, campus users have closed over 60,000 purchase orders (POs) annually but have requested a more efficient approach. Based on this feedback, FMS has prioritized enabling bulk PO closure, especially for users managing multiple POs and PTA managers handling related PTA closures.
What is changing and why
To address user requests for greater efficiency, FMS is launching multiple purchase order (PO) Finally Close self-service functionality on Jan. 26, 2026.
Currently, all POs must be closed individually using the Finally Close functionality in the Requisition and Purchase Order Query tool. The new multiple PO Finally Close process enables users to close up to 100 POs at one time while preserving the individual PO closure option.
Try the new functionality on January 26
After logging into Oracle Financials, select the new Multiple PO Finally Close Request within the SU Inquiry Tools and Forms folder in the Navigator section of the Oracle Financials home page.
Steps to using the new functionality
- Click the Multiple PO Finally Close Template hyperlink under the Upload File icon for the template spreadsheet file that can be populated with up to 100 POs to Finally Close.
- Find POs to Finally Close: Users can identify eligible POs through:
- Personal PO lists, or
- Purchase Orders report in the OBI Procure to Pay Dashboard, filtering by: PTA Number, Award Number, Organization, PO dates, or Closed Status (Open/Closed). Note: OBI report users must validate each PO's eligibility for Final Close.
- Select the Upload File icon for instructions to upload the completed template spreadsheet within the Multiple Finally Close Request tool.
- System Validation: Upon upload, the system validates the POs on the spreadsheet, and displays POs with confirmation (Finally Close action cannot be undone) as well as any ineligible POs with reasons. Note: Subaward POs remain ineligible for this process as they must follow sponsored research and procedures for Finally Close.
Resources to Get Started
- How To: Finally Close a Purchase Order (updated to include multiple PO Finally Close instructions by Jan. 26, 2026)
- For further questions, submit a support request.
After a successful pilot, FMS has expanded access to the Supplier Explorer Tool, helping departments to source potential suppliers, including those already onboarded with Stanford, who meet a variety of criteria such as local, small, and sustainable. The Supplier Explorer Tool is one of the many responsible purchasing tools available to incorporate positive environmental and community impacts into each part of the purchasing process.
When to use Supplier Explorer Tool
First, the department should determine the best purchasing method for the purchase by checking options such as Stanford’s reuse resources, centralized programs (e.g., UIT’s Stanford Hardware program), and catalog methods such as Amazon Business and Smartmart Catalog Suppliers. If these options will not work, the purchase will likely need to be made with a PCard or non-catalog purchase through iProcurement.
Departments can use the Supplier Explorer Tool when making a PCard or non-catalog purchase to support the supplier selection process with:
- New supplier discovery: Identify new suppliers that align with business needs and responsible purchasing priorities.
- Stanford supplier identification: Quickly find existing Stanford suppliers that support responsible purchasing, along with reviewing and verifying their certifications.
Getting Started
- Visit the Supplier Explorer Tool system page for key features and access instructions. The Supplier Explorer Tool is available through a third party website and is accessible to all staff, faculty, and students with an active SUNet ID.
- The system page includes a link to Understanding Supplier Explorer Filters & Classifications for detailed guidance on using this tool to support responsible purchasing.
- For general questions about responsible purchasing tools, submit a support request to the Responsible Purchasing team.
Departments needing to acquire common goods, such as office or breakroom supplies, are encouraged to first explore Stanford’s reuse resources, which saves time and money and reduces environmental impact. If new items are required, departments can utilize preferred purchasing methods like SmartMart Catalog Suppliers or Amazon Business as these provide greater ability to manage risk and compliance.
The Responsible Purchasing team has introduced a new sustainable shopping list on Amazon Business as an additional tool to simplify responsible purchasing for common supplies. The list includes sustainable products made from recycled materials, renewable sources, and options that are reusable, compostable, or recyclable. When shopping in Amazon Business, departments can also utilize other built-in responsible purchasing tools such as search filters for Climate Pledge Friendly products and specific supplier ownership certifications, and sustainable packaging and shipping options.
How to Access the Shopping List in Amazon Business
- Log in to Oracle Financials
- Access Amazon Business in iProcurement
- Click on the Lists section on the top right
- Navigate to the Shared with your groups section and select the Stanford University folder, which will then display the Stanford Sustainable Office and Breakroom Supplies list.
For more information
- Visit Purchase Goods for guidance on the recommended purchasing method for common goods.
- Consult the Responsible Purchasing team on specific questions or comments.
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: Procurement 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
| Funding source | Prior to March 24, 2025 | March 24, 2025 and after |
|---|---|---|
| Federal | Total purchase is $50,000 or higher | If any portion is $50,000 or higher |
| Non-Federal | Same as above | Total purchase of $250,000 or higher |
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
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.