Paying for Services

Table of Contents

These guidelines also cover speakers and lecturers.

Total amount is $1,000 and Under

  • A DV may still be used.
  • Travel may be over and above this $1,000 threshold.
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Total amount is Over $1,000

Requisition must be executed in KFS for the speaking fees or honorarium, additionally:

  • If you have a W9, please forward it to Purchasing.
  • If you don not have a W9, enter the name, address, and phone number of the speaker in KFS. Purchasing will obtain the W9.
  • If the cost exceeds $5,000 or there are risk factors involved, an agreement is required in addition to the PO (see below).
  • Travel may be paid one of two ways:
    1. If paying travel on the PO, it must be charged to the same object code you are using for the Honorarium. Object code 4089 is no longer to be used on PO's.
    2. On a DV as a separate transaction through University Travel.

For speakers who are non-US citizens, Purchasing will obtain the W8-BEN paperwork, which is the substitute for a W9. The department is responsible for all other paperwork for non-US citizens.

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Procedures for an Agreement

  1. If Purchasing determines an agreement is required, you will be asked to complete the following:
    1. Create and route the requisition as described above.
    2. Navigate to the eDoc Contracts link on the Purchasing website and click the Consultant Form link.
    3. Complete the consultant form. In the “Services” section of the document, provide a detailed description (3-5 paragraphs) of the service to be provided. This description is key to a successful agreement, as it will be used to negotiate a settlement if the vendor fails to satisfy the expectations listed.
    4. Save and submit the eDoc.
  2. Purchasing will prepare the agreement and send it to the speaker or service provider for signing. Purchasing will copy you when sending the agreement, contact Purchasing right away if you have any questions regarding the agreement.
  3. When a signed agreement is received, Purchasing will send you a copy of the agreement by email and release the associated Purchase Order.
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Procedures for Making Payment

After the event, if there is an invoice, you will approve the PREQ when it comes to the department. If there is no invoice, and the performer/speaker is an individual (not a company), send Purchasing an e-mail with the following information:

  1. Subject Line: “Performer/Speaker Payment Payee Name”
  2. Please include in the e-mail:
    1. P.O. #
    2. Payee/vendor name
    3. Total payment amount
    4. Pay date – this would be the date the check is to be printed. It needs to allow consideration for pick-up, campus mail, or mailing to vendor.
    5. Delivery instructions – mail to vendor, who to call to pick up the check, or campus address for campus mail.
  3. Purchasing will forward your e-mail to accounts payable, and they will issue the check.

In cases where a deposit is required, you should indicate this clearly on the Requisition. The Purchase Order will then be processed as a check enclosed order to deliver the deposit.

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Procedures for International Services

The enumerated steps below detail the flow of the procurement process for INTERNATIONAL Engagements re: Professional Services for $1,000 or more.


An international engagement exists if services are being performed either:

  1. Outside the US, regardless of whether the service provider is US / Foreign; or
  2. By a foreign individual / entity.
Contact Purchasing
  1. Department contacts Purchasing Contract Manager to determine whether we can contract with payee as an Independent Contractor (“IC”).
    1. Contract Managers:
      1. Matt Estell
      2. Linda Blair (only for speakers / lecturers / musical performers working in the U.S.)
    2. Department must provide a detailed description of services / proposal / statement of work.
    3. Department may be requested to complete a Foreign Independent Contractor Questionnaire.
    4. Department may be requested to get legal counsel’s (Jeff Goetz’) approval.
      1. Department must send legal’s e-mail approval to Contract Manager.
Vendor Setup
  1. Vendor must be in KFS and approved by Vendor Workgroup.
    1. Department or Purchasing sends Foreign Vendor Info Packet (“VIP”) to Vendor (PDF)
    2. Vendor completes and returns the Foreign VIP to Purchasing.
    3. Purchasing creates vendor profile in KFS as PO vendor.
      1. Vendor Name must match Name on the W8BEN in the Foreign VIP exactly.
        1. The name should also be consistent with name on bank account.
        2. If vendor anticipates being paid by international wire transfer - international bank account information should be submitted by the vendor with each invoice, not at the time of vendor setup.
      2. Vendor Type must be “Purchase Order”
    4. Purchasing FAXES Foreign VIP to PO Vendor Workgroup: 812.855.7839.
      1. Coversheet should reference the doc# of vendor profile assigned by KFS
        1. PO Vendor Workgroup contact:
    5. PO Vendor Workgroup validates W-8BEN using an Example W-8BEN (PDF) from Financial Management Services.
    6. PO Vendor Workgroup may contact the department to request additional information such as:
      1. confirmation that the foreign individual is not related to any employee in the IU unit making the payment; also
      2. if it is not already apparent from the requisition, a short statement describing what the foreign IC will be doing, duration, approximate payment, and country in which work will be done.
    7. PO Vendor Workgroup approves Vendor in KFS.
  2. Department submits REQUISITION as far in advance of performance of services as possible:
    1. Department should specify “ME14” in the top description field; EXCEPTION: For speakers / lecturers / musical performers working in the U.S., specify “LB10”.
    2. Department must flag Requisition as “Restricted”.
    3. Travel expenses should be built into the price of the services if possible.
    4. Department uploads any relevant proposals or statements of work.
    5. Department notifies so he knows this exists and knows to look for it.
  3. Department submits eDoc
    1. (aka: Professional Services Form; Consultant Agreement Form; Purchasing Contract Request; or completed CURRENT foreign agreement template.)
Purchasing Review
  1. Purchasing will perform initial cursory review of requisition.
  2. Purchasing may request that Department obtain applicable approvals.
    1. Purchasing will help Department determine which approvals are applicable.
    2. Department must contact applicable approvers.
    3. Dept. must forward e-mail approvals to Purchasing.
      1. Examples of commonly required approvals:
        1. Public Safety & Institutional Assurance: Approvals will be required for events with staging as well as programs involving children.
        2. INLOCC: Certificate of Insurance naming "The Trustees of Indiana University" as an "additional insured" is often required.
        3. IU Communications: Any sponsorship, membership in external organizations, or marketing and communication activities requires prior approval before Purchasing can approve the activity.
        4. Licensing and Trademarks: Approvals needed for use of any Indiana University (including Regional Campuses) logos, trademarks, or the creation of new domain names associated with the University.
        5. Revenue Producing Activity Committee ("RPAC"): In compliance with Policy: FIN-TRE-VI-121 Establishing and Modifying Revenue Producing Activities - any revenue producing activity must have prior authorization by the RPAQ Committee before Purchasing can review and approve a contract.
        6. University Information Security Office ("UISO"): Approval required when critical data will be shared with a third party through any means.
        7. Tax: International payments.
  3. Purchasing reviews / edits / polishes terms of agreement generated by the eDoc.
    1. This may include, but is not limited to, edits which
      1. Make the payee appear more independent so as to qualify for IC status.
      2. Clarify amount, term, pay schedule, currency, payment method, services
      3. Apply additional standard terms and conditions.
      4. Satisfy requirements imposed by various IU offices.
      5. Reduce risk
  4. Purchasing seeks final approval of drafted agreement from Department.
    1. Department may request changes.
    2. Purchasing revises drafted agreement.
  5. Department approves of drafted agreement.
  6. Purchasing offers agreement to Vendor.
    1. Vendor may request changes.
      1. Purchasing negotiates proposed changes.
      2. If changes relate to price or services, Purchasing requests Dept. approval.
      3. Purchasing revises drafted agreement.
      4. Purchasing returns agreement to vendor.
  7. Vendor signs agreement and returns it to Purchasing.
  8. Purchasing signs agreement.
  9. Purchase Order is coded, processed, and approved by Purchasing.
    1. A note is added to the PO indicating in which country(s) the work is performed.
      1. This is to facilitate Tax approval of the PO.
  10. Purchase Order breezes through additional approvals in KFS if Dept. acquired them.
  11. Purchase Order is issued by Purchasing
    1. PO is communicated to Department and Vendor
    2. Agreement becomes effective.
Performance May Begin | Invoicing / Payment (“AP”)
  1. Vendor may begin performance / Invoice for payment.
    1. Invoice Requirements:
      1. Vendor submits invoice preferably by PDF file attached to an email to (Vendor may mail invoice to Indiana University, IU Accounts Payable, 400 E 7th Street, Room 021, Bloomington, IN, 47405-3003)
      2. PO number must be on the Invoice
      3. Ideal invoice has these attributes:
        1. Vendor name in header of invoice (a match for the PO name).
        2. Vendor "remit to" address.
        3. PO#, Vendor invoice# and invoice date
        4. Payment terms matching the PO payment terms
        5. Sufficient itemization to know what goods / services were provided
        6. Billing name: Indiana University, name of Campus e.g. Indiana University Kokomo
        7. Billing amount
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