FIN-046: Use of the Supplier Invoice Request
Academic Division and the College at Wise.
The Virginia Public Procurement Act and subsequent Management Agreements require that purchases be handled in a manner which adheres to the integrity of the procurement process. The main factors determining how a procurement is handled are the anticipated dollar amount of the purchase, the type of good or service being sought, and the timeframe in which a particular item or service must be obtained. To assist the University in procuring goods and services in an open, fair, and impartial manner, requirements have been established for the use of Supplier Invoice Requests (previously referred to as Payment Vouchers).
Restricted and unrestricted resources composed of gifts, endowments, and endowment income. Some exceptions to State and Sponsored Program limits can be processed using these funds.
Separating transactions to circumvent established procurement and expenditure guidelines.
Any externally funded research, public service, or scholarly activity (including hosting or attending conferences) at the University that has a defined scope of work often including a set of specific programmatic objectives and/or deliverables, and line-item-based budget, providing the basis for sponsor expectations and awardee accountability (i.e., a reciprocal transfer of something of value). Sponsored programs are funded through agreements that usually include terms and conditions for the disposition of tangible properties and outcomes (e.g., equipment, records, specified technical reports, theses, or dissertations) or intangible properties and outcomes (e.g., rights in data, copyrights, and inventions). Note: The terms sponsored program, sponsored project, and/or sponsored activity are often used interchangeably.
Restricted and unrestricted financial resources generated from tuition and fee revenues, Facilities and Administrative (F&A) cost recoveries, state tax dollars, sales and services activities, grants and contracts, and auxiliary activities.
Supplier Invoice Request:
A task in the finance system used to submit payment requests for suppliers and non-employee individuals for transactions not required on a Purchase Order or Travel and Expense Card (previously referred to as Payment Voucher.)
University Travel and Expense Card (T&E Card):
A University credit card issued to an authorized individual to make official purchases of goods and services (that do not require competitive bidding), travel, meals, and entertainment quickly and directly.
A Supplier Invoice Request may be used to pay for goods and services that do not require a purchase order, requisition, or payment by University Travel and Expense Card (T&E Card). However, the Supplier Invoice Request has very specific applications and must not be used to circumvent normal procurement procedures. The Supplier Invoice Request should be used for:
- Payments to vendors for some types of commodities where competition is not practical (e.g., memberships to professional organizations). The types of commodities permitted, along with the allowable dollar value, are specified in the Goods & Services Procurement Guide.
- Reimbursements to individuals for small-dollar transactions.
Note: The Supplier Invoice Request must not be used to process payments which require that the University execute a procurement contract. Vendor-supplied contracts must be processed through the finance system on a Requisition form and submitted to Procurement and Supplier Diversity Services.
All high-risk payments are pre-audited by Accounts Payable.
Knowingly splitting purchases or otherwise circumventing procurement procedures is violating University policy.
Most of the state limits apply to payments and reimbursements made from Sponsored Program sources. Exceptions are noted in the text of this policy or may be included in the terms of the Sponsored Program.
If payments are not consistent with the expenditure guidelines and limitations applicable to State, Sponsored Program, and local funds, and if there is no University policy authorizing local funds exceptions, the Supplier Invoice Request must include a complete description of the nature of the expenditure and the justification for the exception.
For local funds exceptions, the dean's or vice president's approval of the transaction must be obtained prior to the submission of the Supplier Invoice Request to Accounts Payable.
The dean's or vice president's (or their designee) approval is also required for:
- The purchase of alcohol.
- Exceptions to local funds expenditure policies.
- Gifts and flowers that exceed limits as shown on the Goods & Services Procurement Guide.
- Holiday parties and related purchases if the combined meal cost for all participants exceeds $400.
- Any transactions of an unusual nature.
Documentation Required for Supplier_Invoice_Requests:
Departments must compile and attach supplemental documentation (e.g., receipts and forms requiring signatures) in the finance system in accordance with the requirements outlined in policy IRM-017: Records Management.
Departments are responsible for obtaining the appropriate signatures and uploading the documentation onto the Supplier Invoice Request in the finance system. These files must be accessible for internal review and external audits. (See the Procurement and Supplier Diversity Services website for Supplier Invoice Request procedures in general, and for specific procedures relating to various types of goods and services paid on Supplier Invoice Requests.)
Compliance with Policy:
Failure to comply with the requirements of this policy may result in disciplinary action up to and including termination or expulsion in accordance with relevant University policies.
An individual's failure to adhere to this policy may result in personal liability for any unauthorized expenditures.
Questions about this policy should be directed to Procurement and Supplier Diversity Services.