Purchasing and Payment Methods

Stanford's Amazon Business, available in iProcurement, is a preferred purchasing method, offering a range of products and built-in functionality. With Stanford’s Amazon Business, instead of entering a Stanford Purchasing Card (PCard) or personal credit card, all purchases are invoiced electronically through a purchase requisition and charged to a PTA entered in iProcurement during checkout.

Amazon Business offers similar product availability as its public site (Amazon.com), but with stricter seller vetting. Additional business-specific products include office supplies, cleaning supplies, computer accessories, and books. Some public Amazon.com features are not available through Amazon Business, including electronic and physical gift cards, Amazon Fresh, Amazon Restaurant, subscriptions (“subscribe and save”), and digital content (e.g., Kindle eBooks, music, video games).

Amazon Business benefits:

• Familiar user experience
• Broad product selection
• Tools to support responsible purchasing, such as search filters for Climate Pledge Friendly products and specific supplier ownership certifications, a sustainable shopping list for office and breakroom supplies, and sustainable packaging and shipping options
• Free shipping on Prime-eligible items
• Integration with iProcurement for checkout, requisition approval, and payment processing
• Pre-purchase review by a financial approver to ensure policy alignment and validate funding, supporting accurate, reasonable, and appropriate use of Stanford's financial resources

Shipping information

As with Amazon.com, only Prime-eligible items (shipped and fulfilled by Amazon) are eligible for free two-day shipping. Amazon frequently updates the number of products eligible for free Prime shipping. Expedited shipping options may incur additional costs, depending on seller availability.

SmartMart Catalog Suppliers, available in iProcurement, is a preferred purchasing method, utilizing an online catalog ordering system for specially priced products from pre-approved suppliers. Suppliers include those offering lab supplies, chemicals, computer software and hardware, compressed gases, capital equipment, tax-free alcohol, industrial supplies, electrical components, radioactives, and more. For guidance organized by product type, refer to the Topic Overview: Purchase Goods.

Benefits of using SmartMart Catalog Suppliers:

• Ability to search for items across multiple catalogs
• Option to shop through supplier punch-out sites to customize an item
• Pre-vetted suppliers and pre-negotiated pricing
• Tools to support responsible purchasing, including search filters for “Green,” “Recycled,” and “Energy Star” products.
• Efficient repeat ordering
• Streamlined invoice and payment processes
• Integration with iProcurement for checkout, requisition approval, and payment processing
• Pre-purchase review by a financial approver to ensure policy alignment and validate funding, supporting 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 procurement 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.  All iProcurement purchase requisitions (SmartMart Catalog Suppliers, Amazon Business, Non-Catalog Requests and SmartMart Contracts) generate a purchase order.

Catalog invoices are submitted electronically to Oracle by the supplier for payment. Non-catalog invoices are typically submitted by the supplier to AP for payment or uploaded by the department on behalf of the supplier. 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 procurement 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 procurement 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.