Stanford Procurement Services offers a variety of purchasing and payment methods to optimize efficiency and compliance. While all purchases must be in alignment with established purchasing policies and guidelines, certain categories of purchases, such as capital purchases or other special goods or services, require additional actions or specific purchasing methods. Review the Topic Overview: Categories of Purchases to understand specific requirements related to purchasing methods depending on the type of purchase where applicable.
When selecting a purchasing method, if more than one method meets the business and compliance requirements, consider the overall impact on time-savings and the university’s ability to reduce costs and manage risk, compliance, and regulations. For example, Amazon Business and SmartMart Catalog Suppliers were designed to standardize the purchasing of goods through built-in controls such as pre-identified suppliers and integration with the university's purchasing system, embedding an automatic trail of documentation recorded with each purchase. This supports the university’s commitment to price competition and overall efficiency.
Amazon Business and SmartMart Catalog Suppliers, which are available in iProcurement, are the preferred purchasing methods at Stanford. Both options offer a range of products. SmartMart Catalog Ordering provides a wider selection of Lab and Medical products.
Amazon Business provides similar availability and access to items available on its public website, but holds higher standards of vetting and approving sellers. In addition, Amazon Business offers additional business-specific items such as office supplies (e.g., break room and cleaning supplies), computer accessories, and books available to all Amazon Business account members. Some features that are offered on Amazon.com are not available through Amazon Business, which include all electronic and physical gift cards, Amazon Services (Fresh and Restaurant), subscriptions including “subscribe and save” and digital content, including Kindle eBooks, music, and video games.
Benefits of Amazon Business include the well-known user experience, a broad product selection, direct interface to iProcurement for checkout, requisition approval and payment processing, and free shipping on Prime-eligible items. Another benefit is the pre-purchase review and approval by the designated financial approver. This gives the opportunity to check for appropriateness of the purchase, alignment with university and department policy, and validation of the funding source before the purchase occurs. This key checkpoint ensures that the transaction approval process happens prior to the payment being made and supports accurate, reasonable and appropriate use of Stanford’s financial resources.
Further information about shipping through Amazon Business
As with Amazon.com, only Prime-eligible items (shipped and fulfilled by Amazon) are eligible for free two-day shipping. Amazon is regularly making updates and improvements to the number of items eligible for free Prime shipping. Items that are eligible for expedited shipping will have the option to expedite for an additional cost during the Amazon Business Checkout process. Eligibility is dependent on availability from the seller, whether it is shipped by Amazon or by a Third-Party Seller.
SmartMart Catalog Suppliers, accessed through iProcurement, is Stanford's online catalog ordering system that offers specially-priced products from pre-negotiated suppliers. Amazon Business and SmartMart Catalog Suppliers are the recommended and preferred purchasing methods at Stanford. While both options offer a range of products, SmartMart Catalog Suppliers provides a wider selection of Lab and Medical products. For specific guidance organized by types of goods, see the Topic Overview: Purchase Goods.
SmartMart Catalog Suppliers searches for an item across many catalogs or allows the user to select a specific supplier's site to shop or customize an item. It currently includes many suppliers selling lab supplies, chemicals, computer software and hardware, compressed gases, capital equipment, tax-free alcohol, industrial supplies, electrical components, radioactives and more.
Additional benefits of purchasing through SmartMart Catalog Suppliers includes pre-vetted suppliers, pre-negotiated pricing and efficiencies such as repeat ordering and a streamlined invoice and payment process. Another benefit is the pre-purchase review and approval by the designated financial approver. This gives the opportunity to check for appropriateness of the purchase, alignment with university and department policy, and validation of the funding source before the purchase occurs. This key checkpoint ensures that the transaction approval process happens prior to the payment being made and supports accurate, reasonable and appropriate use of Stanford’s financial resources.
A non-catalog purchase requisition, also called a non-catalog request, is a purchasing method accessed through iProcurement that is used to purchase services or goods. Before initiating a new non-catalog purchase requisition, Stanford purchasers should review goods offered by Amazon Business and SmartMart Catalog Suppliers, which offer a streamlined and efficient ordering process.
In some cases, price or terms may need to be negotiated and documented in a formal contract (where a signature is required) to protect Stanford.
Suppliers of goods and services to Stanford are paid based on invoices matched against an active purchase order. Departments and suppliers follow the purchase order invoice process to pay against a purchase order.
Subawards
A subaward is when a portion of Stanford's sponsored project is passed through to another entity in order to complete a portion of the sponsored project's scope of work. It does not include payments to a contractor or payments to an individual that is a beneficiary of a program.
Subawards are administered by the Office of Research Administration (ORA) but payments are made using iProcurement Purchase Orders. For information, refer to Subawards at the Office of Research Administration.
Procurement Services offers university-liability credit cards (meaning the university is responsible for paying the charges) called Purchasing Cards (PCards), to make eligible purchases of $4,999 or less on behalf of the university. Catalog methods, including Amazon Business and SmartMart Catalog Suppliers, are the preferred method for purchasing goods due to their built-in controls that provide greater ability to manage risk, compliance and regulations. Using a PCard instead of iProcurement to purchase items should be limited to instances where there is substantial benefit.
The PCard has fewer controls because it was intentionally designed to offer an expedient way of procuring items that are needed right away or, like food or other small dollar occasional business purchases, are not available through Amazon Business or SmartMart. With this method, the financial verification and approvals happen after the purchase, which, while saving time on the front end, leave room for heightened risk.
Aside from goods such as supplies, permissible expenses on a PCard include certain professional services which may also require a contract. Certain purchases, such as capital equipment and goods or services from eCommerce websites such as PayPal are not permissible on a PCard. Refer to Topic Overview: Categories of Purchases for guidance on purchasing these goods and services.
Stanford Travel Cards (TCards) are the recommended payment method for travel and travel-related services required for the conduct of university business that will not be reimbursed through the per diem method. For more information about reimbursement methods, see the Topic Overview: Business and Travel Expenses page.
For more information about the application process, university policy, TCard roles and responsibilities including expense reporting process, see Topic Overview: Stanford Travel Card (TCard) Program.
Non-PO Payment Requests through the Expense Requests system can be used to make direct payments to a supplier or other type of payee for certain expenses that do not warrant a formal purchase order or for which negotiation by the Purchasing and Contracts department is not applicable or adds no value, e.g., business meals, dues, government fees, permits, etc.
Common non-PO payment types include:
- Conference Registration fees paid directly to the conference organizer
- Dues and Subscriptions
- Employee Training
- Food and Catering services (unless a formal contract with signature is needed)
- Government fees and permits
- Human Subject incentives
- Postage
- Prizes and Awards
- Refunds
Refer to Guidelines for Use of Non-PO Payment Categories for more detail. In addition, some of these types of transactions may be permissible on a PCard.
Some expenses that may be related to foreign activity must be recorded as such. Refer to Guidelines – Foreign Expenses, for help in determining if a Non-PO Payment qualifies as a foreign expense.
For more information about getting access to the Expense Requests System to create Non-PO Payment Requests including authority, training, how-to instructions and more, see Learn About: Expense Requests System.
Expense Reimbursements are used to reimburse Stanford employees, affiliates and visitors for personal funds used to pay for authorized university business and travel expenses. Examples of permissible and non-permissible expenses are available in the Business and Travel Expenses policy overview.
The university policy limits or prohibits certain purchases from being reimbursed through this method. Refer to Topic Overview: Categories of Purchases for guidance on purchasing these goods and services.
For more information about getting access to the Expense Requests System to create Expense Reimbursements including authority, training, how-to instructions and more, see Learn About: Expense Requests System.
Stanford Easy Pay in the Expense Requests System can be used to reimburse and pay visitors quickly and efficiently.
Per Administrative Guide Policy 5.4.1: Advance Expenses, the use of advances is expected to be rare, but may be appropriate to further university business under certain circumstances. For example, advance funds may be paid directly to Stanford staff, faculty, or students prior to travel or as a part of a Human Subject study. Use of the Travel Card is the preferred method to eliminate the need for a travel advance.
For more information about the purpose and use of advance funds, advance types, qualifications for requesting advances and the process of requesting an advance, refer to Topic Overview: Advances.
Some departments maintain petty cash funds that enable them to reimburse employees for out-of-pocket business expenditures up to $100. A department head designates an individual to administer the petty cash fund and initiates the request for a petty cash fund. The Office of the Treasurer (OOT) establishes funds, oversees custodians and tracks reconciliations. Learn more on the Topic Overview: Life Cycle of a Petty Cash Fund.
