This page covers the processes and related best practices for managing a non-SU payee (includes suppliers, independent contractors, and visitors) relationship and record after they are set up and active in the Supplier Query and Request System. It also provides schools and units with specific guidance and associated resources to properly terminate a contract or purchase order.
Non-SU payee lifecycle management can be generally divided into five stages, which are listed below along with their corresponding Fingate Topic Overviews:
- Plan the engagement and review existing purchasing methods that may meet business needs.
- Select the supplier or independent contractor.
- Onboard the supplier, independent contractor, or visitor.
- Manage the relationship and record covered on this page.
- Exit or terminate the relationship is also covered on this page.
Schools or units should periodically remind the payee to review their record to make any necessary updates while they are active in the university’s centralized database. Suppliers and independent contractors may refer to Do Business with Stanford for information on managing and maintaining their record.
A well-maintained and current record helps prevent payment processing delays and inability to contact the payee. Schools and units should maintain ongoing communication with the payee for any of the above updates to prevent issues before they arise.
Payees are responsible for notifying the university of important changes to their business information, including but not limited to:
- Points of contact, including name, phone number, email address, and physical address
- Payment arrangements, including both payment terms and methods
- Classification of goods sold or scope of services performed by supplier
The process for a payee to updating their record depends on how they are classified within the system:
- Individuals (Domestic or Foreign) and Foreign Companies
Changes to contact information or a default payment method (check or ACH) should be made directly by the foreign payee by contacting the Financial Support Center. After contacting the Financial Support Center, the foreign payee will be sent a link to access the Supplier Payee Request Portal to submit data securely. For more information, refer to How to: Complete a Request for Confidential Information in the Stanford Supplier and Payee Request Portal.
- Domestic Companies
Suppliers who are U.S. corporations or other U.S.-based business entities can update and maintain their information directly within Stanford’s Supplier and Payee Registry site. Suppliers should log into their company profile on the site and submit an update or change request. If suppliers need their login credentials, they can contact the Financial Support Center. Refer to the Add or Edit Profile Details section of the Learning: Supplier and Payee Registry Quick Reference Guide for instructions on initiating and submitting a change request.
A small number of suppliers that joined Stanford before November 2019 should contact the Financial Support Center to confirm whether their details were uploaded to the Stanford Supplier and Payee Registry.
Updating the Non-SU Payee’s Availability for Payment
All records will display eligibility status for payment in the Supplier Query and Request tool. If the record is not available for payment through a purchase order (PO) or the Expense Request system (ERS), departments can request an update to the payee record to make it available for PO payment. Refer to Topic Overview: Setting Up a New Supplier, Independent Contractor, or Visitor for more information.
Deactivating or Reactivating the Supplier Record
The school or unit should work within the contract or PO process to end their specific contract or PO based engagement with the payee (see section below on managing the payee relationship).
Deactivation of a non-SU payee within Stanford’s system typically happens automatically if there has been no activity (e.g., no further purchase requisitions, payments, invoices or changes to the record) university-wide for a period of 18 months. In rare cases of material issues, such as fraud or gross negligence, the Vendor Services team may manually deactivate a non-SU payee record.
Where appropriate, a school or unit may want to use a deactivated payee. In those instances, the record must be reactivated prior to working with that payee. Generally, reactivation of record is limited to those who were amicably terminated (i.e., not for a material issue such as fraud or gross negligence).
The process of managing the supplier relationship includes the following four steps:
During the planning and supplier or independent contractor selection process, schools and units should determine early on which key performance indicators to use for an engagement and how they will be measured, tracked, and reported.
Once the work begins, schools and units should regularly assess the supplier’s or independent contractor’s performance against established success criteria or metrics. If they do not deliver the agreed upon product or service, including insufficient quality or late delivery, the school or unit should document any discrepancies and communicate directly with the supplier or independent contractor about options to resolve such the issues. If an acceptable resolution cannot be reached, escalate to Procurement Services by submitting a support request.
- For additional contract related questions and concerns, contact the Contracts team by submitting a support request.
- Safety issues should be reported to the university Office of Environmental Health and Safety.
- Ethics and Compliance concerns should be reported to the university Ethics and Compliance Helpline.
The office receiving the reported issue will coordinate, as applicable, with stakeholders, suppliers or independent contractors, Procurement Services, the Office of the General Counsel (OGC), Office of the Chief Risk Officer (OCRO), and senior leadership on appropriate actions.
After goods or services are delivered to the school or unit, a payee should refer to the Topic Overview: Purchase Order Invoice Processing for information on the invoice payment process, prompt payment requirements for PO and where to send invoices or credit memos. If the supplier or independent contractor record was only set up for a non-PO contract, the goods and services cannot be paid through the invoice process or were at zero ($0) contracted costs.
It’s essential that payee records have accurate, complete payment information so that the university can process payments in a timely manner and to the correct recipients. Missing or inaccurate payment details can lead to delays or issues in setup or payment. Schools and units may refer suppliers and independent contractors to Do Business With Stanford for more information on maintaining payment information.
Procurement Services will communicate directly with non-SU payees to resolve payment issues, including discrepancies in documentation.
While a supplier or independent contractor is active in Stanford’s supplier database, schools and units who do business with that payee should review best practices for identifying and addressing:
- Potentially fraudulent payee-related activity
- Dispute resolution processes when there is failure to deliver agreed upon goods or services
- Payment issues, such as incorrect payment information, delays, or disputed amounts
Identifying Signs of Potential Fraud
Schools and units should understand how to detect potentially fraudulent activity by a payee or, more typically, by a third-party imposter claiming to be the payee. For example, phishing and spear phishing make up a significant portion of procurement fraud. Typical signs of potential fraud include:
- Misspelled or unusual email addresses (e.g., “amazom” instead of “amazon”)
- Persistent, urgent, and/or unprofessional communications, especially regarding payments or significant changes (e.g., change of bank account)
- Unexpected or odd-looking invoices, or demands for payments outside of the arrangement
- Out-of-character behavior (e.g., financial officers writing out bank details in email)
- Unusual and sudden reluctance to provide documents or information
- Unexpected and sudden involvement of new companies, especially for billing or payment matters
If a school or unit suspects potential fraud related to a non-SU payee, contact the Vendor Services team by submitting a support request.
Managing Disputes
Schools and units should communicate regularly with their suppliers or independent contractors and discuss any concerns about them not meeting expectations as early as possible. Disputes generally arise where expectations have been misaligned. Schools and units should be prepared to take any reasonable actions necessary to reach an acceptable resolution to disputes. In some situations, schools and units can request that the Accounts Payable (AP) team place a hold on an invoice, allowing additional time to communicate with the payee and reach a reasonable resolution.
If a school or unit has a dispute with a non-SU payee that they are unable to resolve, they should obtain assistance from Procurement Services by submitting a support request.
During the initial engagement planning process, schools and units should determine when and how they expect a supplier or independent contractor relationship to end. In most cases, there’s a natural end of the contractual engagement once they have finished providing the specific goods or services. In other cases, there may be reasons to end a contract early. Schools and units should reference the termination process outlined in their purchase order and/or contract. The early termination of a contract or purchase order will apply only to that specific purchase order and/or contract and does not terminate the supplier’s or independent contractor’s contracts with other Stanford schools and units or their relationship to the entire university community.
If a school or unit has reason to believe that Stanford’s relationship with a specific supplier or independent contractor should be terminated on behalf of the entire university community, they should submit a help ticket with details. Procurement will then coordinate with OGC, OCRO, stakeholders, and senior leadership to determine appropriate actions.
If a staff member is aware of conduct that violates or anticipates a situation that potentially violates university policies such as the Code of Conduct or Conflict of Commitment and Interest, they should notify the appropriate university officer or reach out to the Ethics & Compliance helpline.
