Understanding purchase order (PO) requirements and the preferred methods for submitting invoices to Accounts Payable can help you avoid invoice processing delays.

The following criteria must be met in order for Accounts Payable to process an invoice and schedule payment per the terms specified on the purchase order (e.g. Net 30 days from date of invoice):

  • The supplier record must be complete and up to date (including all government forms and confidential data provided by the supplier via Stanford’s Supplier and Payee Request Portal or Supplier and Payee Registry (according to supplier/payee type).
  • The document must be an invoice, not a quote, order acknowledgement, sales receipt or packing list.
  • Invoices must be addressed to Stanford University and include a remit to address.
  • There must be a Stanford PO Number referenced on the invoice.
  • The invoice amount must not exceed the available balance on the PO. Refer to How To: Release the Most Common Invoice Holds for more information.
  • The PTA associated with the PO will be validated to ensure it is chargeable. Refer to How To: Release the Most Common Invoice Holds for more information.
  • Invoices for amounts greater than $5,000 require departments to certify receipt of the goods or services.

Ideally, suppliers submit invoices directly to Accounts Payable (AP). When suppliers send invoices to departments rather than to AP, the department must forward the invoice to AP using option 2 or 3 below.

In Order of Preference Instructions and Department Approval

Option 1 
Supplier sends invoice directly to AP:

Stanford University
Accounts Payable
P.O. Box 20410
Stanford, CA 94309-0410

or

@email
(one pdf per invoice or credit memo)

Ensure invoice meets Prompt Payment Requirements 

  • For invoices greater than $5,000, the requisition originator will receive an email notification requesting department approval.
Option 2  
Department uploads invoice (via the Requisition Purchase Order Query Tool)

Refer to How To: Upload an Invoice for more information. 

  • When requisition originators or authorized approvers upload invoices, they will see a checkbox noting Invoice approved for payment which serves as department approval.
  • If someone other than the requisition originator or authorized approver uploads an invoice, the checkbox is not visible. Invoices greater than $5,000 will be placed on hold by AP and the originator will receive an email notification with instructions to release the hold by providing their approval to pay.

Option 3 
Department sends original invoice to AP: 
 
Stanford University
Accounts Payable
P.O. Box 20410
Stanford, CA 94309-0410

or

@email
(one pdf per invoice or credit memo)

Refer to How To: Mail an Invoice to Accounts Payable for more information.
  • For invoices greater than $5,000, departments must indicate approval or the invoice will be placed on hold by AP. The requisition originator will receive an email notification requesting department approval.

Notes:

Certain purchases require departments complete a receiving transaction in iProcurement in order for invoices to be paid by AP. These purchases include:

  • Capital equipment (via SmartMart or non-catalog orders)
  • Goods or services over $5,000

For details on how to record receiving information, refer to How To: Receive Goods.

If an error in receiving needs clarification, refer to How To: Correct Receiving.

 

The payment status of an invoice can either be Paid, Pending or On Hold. From the time an invoice is submitted to the time it’s paid, transaction preparers and approvers may want to check the status of an invoice payment.

OBI report users can check the payment status of an invoice payment by drilling down on the AP Invoice Summary field in the Procure to Pay Inquiry report found on the OBI P2P Dashboard.

Invoice images and payment status can be viewed using the Requisition and Purchase Orders Query tool to search by requisition number or purchase order number and then scrolling to the Invoice Payment Details section on the PO Details page. For instructions, refer to How To: View Requisitions, Purchase Orders or Invoices.

An invoice may be placed on hold by Accounts Payable and require action to release the hold. Invoice hold notifications, which include instructions on how to release the hold, appear within the Oracle Financials system. They may also be sent via email if a user enables their email notifications within Oracle Financials (go to Settings/Preferences to enable or disable email notifications).

The table below describes the most common types of invoice hold notifications that require action, what they mean, and how to release the hold. For other types of holds, and any action required, please contact the Financial Support Center.

Common Invoice Holds That Require Action
Hold Notification Hold Code in Oracle Reason for the Hold Action Required to Release the Hold
Your invoice requires action (receiving)

QTY REC HOLD

Receiving information must be entered in iProcurement for this type of invoice.

Enter the receiving information in iProcurement.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice over $5000 requires action (department approval) DEPT APPROVAL REQUIRED HOLD Because the invoice amount is over $5,000, it requires department acknowledgement that the goods or services have been received.

Approvers with the appropriate authority (the preparer of the requisition or a financial approver listed on the requisition) must access and review the invoice details that are hyperlinked from the hold notification.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice requires action (PI approval) MISSING PI CERTIFICATION HOLD The invoice requires approval from the Principal Investigator (PI).

The certified and designated PI for the subaward must certify that the goods on the invoice have been received and/or the services on the invoice have been provided in accordance with the policy and processes outlined by the Department of Research. See: Managing a Subaward for more information.

Once the certification information is completed, submit a support request with the attached certification to the Financial Support Center to request attaching the certification to the invoice to release the hold.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice requires action (insufficient amount on PO) MAX SHIP AMOUNT HOLD There is an insufficient amount on the Purchase Order to pay the invoice.

If this PO will no longer be used after this invoice, add enough funds to the PO to equal the total of the invoice through a change order. After this invoice is paid, the department can finally close the existing Purchase Order.

If this PO will be used for additional invoices, add enough funds to the PO to equal the expected total of future invoices through a change order.

The change order will generate a new requisition number. Enter the requisition number in the form hyperlinked from the notification to indicate that you have taken action and do not need to receive reminder notifications.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice requires action (PO is permanently closed) PO FINALLY CLOSED HOLD Purchase Order for an invoice has been permanently closed.

Create a new Purchase Order to pay this invoice. Then click on the form hyperlinked from the notification to provide the Requisition Number used to create the new PO.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice requires action (invalid PTA - insufficient funds) INVALID PTA HOLD  The PTA for a PO has expired and there are not enough funds on the PO to process the invoice.

If this PO will no longer be used after this invoice, add funds equal to the total of the invoice (using a new, valid PTA) to the PO through a change order. After this invoice is paid, the department can finally close the existing Purchase Order.

If this PO will be used for additional invoices, it’s best practice to do a PTA change through a change order for the invalid PO line. In addition, you will need to add more funds equal to the total of future invoices to the PO on that change order.

Once the change order process is complete, which includes requisition approval and updating and approving the purchase order, the invoice hold will be released.

If no action is taken in 7 days, a reminder notification is sent.

Your invoice requires action (closed or unavailable PTA) INVALID PTA HOLD The PTA referenced on the Purchase Order is closed or not available for this invoice and a PTA change is required.

This alert is sent to the Preparer, Approvers, and Task Manager. Please choose one person to take action.

Submit a PTA change request per the steps below within seven (7) days. If the change request is not processed and finalized within the timeframe, the PO will require reapproval and the invoice will be charged to the default AP PTA for your task-owning organization.

Follow these steps to change the PTA. Do not create a new Purchase Order.

  1. If the remaining amount is $2,500 or less, submit a support request to change only the PTA (not the Expenditure Type).
  2. If the remaining amount is over $2,500, complete a change order requisition.

Once the change order process is complete, which includes requisition approval and updating and approving the purchase order, the invoice hold will be released.

Last Updated: Sep 27, 2022

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