Issue Date: 06/17/08
Revised Date:____
GUIDELINES FOR INVOICES, SERVICES AND EQUIPMENT PURCHASE
ORDERS
GENERAL INFORMATION
These Guidelines are issued to establish effective Purchase Order notations and related rules for the
processing of Invoices and related invoicing processes for Services and Equipment Purchase Orders.
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers
GUIDELINES
Invoices
1.
Except for Construction, all Invoices shall be sent directly to Accounts Payable.
2.
Invoices for Construction Projects shall be sent directly to the appropriate FOAM personnel and
approved by the Project Manager.
POs Distributed by Quantity
1.
Inspection Flag: PeopleSoft allows for an “Inspection Flag” to be checked when entering a PO
(see Below)
The “Inspection Flag” can be thought of as a “check-in” with the end-user to make sure everything
in satisfactory with the order. The “Inspection Flag” is also useful if the total payment for the
item(s) is tied to acceptance (please note: in order to use the “Inspection Flag” the PO must be
set-up as “Distribution by Quantity” and “receipt required”).
If the “Inspection Flag” is not checked, Accounts Payable will process an invoice if the Invoice
matches the PO and a receipt has been entered (3-Way Match).
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Issue Date: 06/17/08
Revised Date:____
If the “Inspection Flag” is checked, Accounts Payable will process an invoice if the Invoice
matches the PO, a receipt has been entered, and the item(s) have been inspected (4-Way Match).
To inspect the Item(s) an e-mail, with a copy of the invoice, will be sent to the Buyer once a
receipt has been entered and an invoice has been received. The Buyer will check with the end-user
and document (via e-mail) that the item(s) meet the requirements of the PO. Once the Buyer is
satisfied that the requirements have been met, the Buyer will then take the appropriate
documentation to their Supervisor. The Supervisor will then review the documentation and release
the item(s) for payment.
2.
It is the Buyer’s discretion on whether or not the “Inspection Flag” needs to be checked. A few
examples of such issues are:

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Are we dealing with an established vendor?
Is this a new product or service?
Do we need to ensure end-user satisfaction?
Is there a large financial or other type of risk?
POs Distributed by Amount (Multiple Payments)
1.
Equipment POs distributed by amount are typically set-up for multiple payment; for example 20%
upon delivery, 60% upon installation, and 20% upon acceptance.
2.
These types of POs cannot have the “Inspection Flag” checked.
3.
For Equipment or where the Buyer needs to authorize payment – Include a header comment
stating:
“Multiple Payments Required – Contact (Buyer) for Invoice Authorization”
This comment shall be marked “show at voucher” only.
The payments terms must clearly be listed on the PO. Once an invoice is received for these types
of POs, Accounts Payable will e-mail the Buyer, with a copy of the invoice, for authorization to
pay. The Buyer must ensure and document that all the requirements for that payment have been
met, before authorizing the payment to be made.
4.
For Services - All POs for services shall include in the “Header Comments” the contact person to
approve invoices:
“Contact Person to Approve Invoices: Jane Doe/Department/Phone #”
This comment shall be marked “show at voucher” only.
Accounts Payable will then e-mail the contact person, with a copy of the invoice, for authorization
to pay. If a contact person is not listed, Accounts Payable will be contacting the Buyer for this
information.
EXCEPTIONS
There will be no exceptions unless by formal addendum to these guidelines or other formal written
exception by the Chief Purchasing Agent.
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