PO does not Automatically Institute Payment

Recently, there has been some confusion about when a payment to a vendor is issued.  It is important to note that a purchase order (PO) is only a request for goods or services.  Accounts payable will not send payment to the vendor until an invoice is received.  Here is the proper timeline:

• IU department issues a Requisition.

• IU Purchasing issues a PO to the vendor.

• Vendor receives the PO, delivers good or service.

• Upon delivery of good or service, vendor sends an invoice to Accounts Payable/Accounting Services.  Invoices can be delivered via e-mail to invoice@indiana.edu (Bloomington), invoices@iupui.edu (Indianapolis) or contact your local campus for emailing directions.

• Accounts Payable processes invoice and sends payment to the vendor. 

While it is University Policy that payment is not made until the goods or services are satisfactorily received, a prepayment is occasionally required by the vendor and there are exceptions for allowing prepayments.  These arrangements must be made by Purchasing after discussing the requirements with the vendor.