CP04 Payment of Vendor's Invoices (formerly BS13)
NOTE: In connection with the rollout of the finance shared services model, the University is reviewing all procurement policies and guidelines. Working with key stakeholders, we are updating and combining policies to better support the University community.
Some policies may not yet show recent changes due to the number under review. All updates will include effective dates for clarity.
Thank you for your patience during this process. For questions, please submit a Procurement Assistance Request.
Table of Contents
Purpose
To describe the payment of invoices received for materials or contracted services purchased from vendors outside the University on a Purchase Order.
Processing Invoices
For orders originating at University Park
Vendors are requested to send invoices directly to Central Procurement. If a vendor sends an invoice with the material directly to the department concerned, that department must forward the invoice immediately to Central Procurement.
In order to expedite vendor invoice payments in time to capitalize on all discounts available, the University will process those invoices under $5,000 (except for payments to consultants - see Policy CP07 Use and Procurement of External Consultants - and invoices resulting in payment to a foreign country), as follows:
If the invoice amount is less than $5,000 (excluding discounts and freight) and, after notification to the ordering department, Central Procurement has not received notification otherwise, the invoice will be processed for payment through Central Procurement - Accounts Payable in time to take advantage of any discounts available. The invoice will be charged to the ordering department's budget according to data on the Purchase Order.
For orders originating at locations other than University Park
Vendors are directed to submit their invoices to Central Procurement for entry in PSUbuy. Upon receiving the material ordered, that location will confirm the invoice for payment through the PSUbuy Invoice Confirmation System.
Processing Invoices from Foreign Countries
Invoices received which require payment in a foreign currency are to be handled differently. All foreign currency invoices must be confirmed in the PSUbuy Invoice Confirmation System regardless of the dollar amount. Also, a Procurement Purchase Order Change Form must be processed in order the close the Purchase Order in the University accounting system.
Further Information
For questions, additional detail, or to request changes to this policy, please contact the Office of Central Procurement by submitting a Procurement Assistance Request.
Effective Date: March 18, 2011
Date Approved: March 16, 2011
Date Published: March 18, 2011 (Editorial changes- October 25, 2013)
Most Recent Changes:
- February 24, 2026 – Editorial changes:
- Temporary statement regarding the new finance shared services business model impacting policy revisions added
- Department of Purchasing Services changed to Office of Central Procurement
- IBIS terminology update to SIMBA
Revision History (and effective dates):
- October 25, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.March 18, 2011- Revisions made throughout the policy to reflect the use of the eBuy+ system as the prime method of confirming invoices for payment.
- July 5, 2007 - Editorial change in “Processing Invoices From Foreign Countries ” section. Changed references to "Auxiliary Accounting System and in Central Accounting" to "the University accounting system," per request of Financial Information Systems and Accounting Operations.
- February 8, 2005 - Editorial change to eliminate "General Forms Usage Guide" and to correct links.
- March 6, 1998 - Renumbered and relocated Policy BS13 from PC08.
- January 18, 1995
- Added the exclusion of consultants invoices for "Pay by Exception."
- Changed "Department of Purchasing Services" to "Purchasing Services."
- October 19, 1994 - Added expedited payment process for the invoices under $5,000.
- January 8, 1993 - Revised instructions for processing invoices from foreign countries.
- April 8, 1988 - Changed "Commonwealth Campuses" to "locations other than University Park."
- March 26, 1985 - Added the section "PROCESSING INVOICES FROM FOREIGN COUNTRIES."
- March 2, 1982 - Added differential processing instructions for Commonwealth Campuses versus University Park.
- January 1978 - Created Policy PC11 for processing Limited Order invoices, and added cross reference to that policy.
- May 15, 1975 - New Policy.