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.


July 2009 Newsletter

Unsubscribe from this list.

Subscribe to this list.

Copyright©2009, The Trustees of Indiana University