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3401 PR.04 Submitting Invoices for Payment
July 1, 2017
* This procedure has been updated to accommodate Workday Financials business processes and terminology. Please note the effective revision date.
This document describes the procedures for invoice submission, invoice verification, and submission for payment. Yale requests suppliers to submit their invoices directly to Yale rather than to the department that ordered the goods or services.
Supplier Invoice Submissions
In accordance with University best practices, Suppliers should be instructed to submit invoices directly to Accounts Payable via email.
- Suppliers should send their invoice in PDF or TIF format via email to email@example.com. Sub-contract invoices should be sent to firstname.lastname@example.org.
- Each invoice must be a separate attachment, but more than one invoice may be submitted in the same email.
- Suppliers will receive a confirmation email for each email received.
- This process expedites the processing of the invoice, enables the tracking of the invoice from the receipt of the email until invoice paid and is the least costly for Yale.
A Supplier unable to send their invoice electronically may send their invoice by mail to:
Accounts Payable Dept.
PO Box 208228
New Haven, CT 06520
Invoices sent by mail take longer to be received for processing and cannot be tracked until scanned into invoice processing system.
Departments receive invoices from suppliers who are unaware of Yale’s invoice submission best practices. When that happens, there are several steps the department must take prior to submitting the invoice for payment. Additionally, the department should instruct the supplier to submit future invoices directly to Accounts Payable, as outlined in Section 1 above.
Determine the Invoice Status
Departments must review invoices received and approve for payment. It is the responsibility of the departments to review, approve and submit valid invoices in a timely manner.
If invoices are held for extended periods in a department, the University’s relationship with the supplier may be compromised and other departments may not be able to receive goods or services until the invoices are cleared. Suppliers often communicate directly with Accounts Payable regarding their payments, and Accounts Payable cannot assist the supplier if it is not aware of the invoices in question.
Determine Whether the Invoice Should be Sent to Accounts Payable
When the department receives an invoice from a Supplier, ensure that an actual invoice and not a statement has been received.
If a copy or faxed invoice is presented for payment, determine whether the invoice has already been submitted for payment using the following methods:
- Use the Find Supplier Invoices report to determine whether the invoice has already been processed into Workday AP. If yes, the duplicate invoice should not be submitted and no further action is needed.
- If the Workday report results do not indicate that the invoice has been processed after 5 days from date of receipt, submit it for payment by email to email@example.com.
- Sub-contract invoices must be rejected back to the Supplier with instructions to submit them directly to firstname.lastname@example.org. This is critical for Yale compliance to A-81, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
When an invoice is submitted to Accounts Payable, ensure that the Supplier and remittance address are set up in Workday.
Querying the Supplier Database
Before the University can pay any Supplier, the Supplier must have an active record in the supplier database. Use the Find Suppliers-Yale-Departmental report to search for the Supplier in the database. If possible, determine whether the Supplier and the remittance address shown on the invoice is in the supplier database prior to ordering from the Supplier. This will ensure prompt payment upon submission of the invoice.
Completing a Supplier Setup Request
- If the supplier or address/site is not in the database, submit a Supplier Change Request attaching all necessary documentation, and email to email@example.com.
- The SCU will notify the initiator via their Workday inbox when the Supplier record has been set up in the database. The initiator can then expect the Supplier Connection to be set up within 24 hours of that notification. A second notification will be received upon completion of the Supplier Connection.
Note: A Supplier Connection, equivalent to the remit address, must be established to process invoices.
- A W-9, W-8BEN, or W-8BEN-E form is required for almost all Suppliers.
- For additional information about Supplier setup, see the Supplier Compliance Unit (SCU) web page.
Thoroughly review and verify the information contained in the invoice prior to submitting it for payment. The following actions are necessary for Accounts Payable to properly match the invoice to the purchase order and/or approve a non-purchase order (Non-PO) invoice for payment to the Supplier:
- If a PO invoice, ensure that the PO is indicated on invoice.
- Ensure that the supplier name and remittance address are present.
- Ensure that the quantities and prices listed are correct.
- Ensure that the calculations and totals are correct.
- Ensure that the goods/services were received/performed.
Charging and Approvals Required
For PO invoices, ensure that the PO number is indicated on the front of the invoice.
Note: Yale requires that the department acknowledge receipt of PO-matched invoices over $5,000. PO-matched invoices are routed to the department for receiving approval via the Match Exception process. This approval allows Accounts Payable to release the invoice for payment.
For Non-PO invoices, the department must add the following charging and approval information prior to submission of invoice to Accounts Payable:
- Dollar amount being authorized
- Complete charging instructions, including spend category
- Correct charging instructions format
- When split charging, the specific dollar amount to be charged to each charging instruction
Verifying Charging Instructions on Invoices
- The authorized department approver is responsible for verifying that charging instructions specified on invoices are accurate and valid.
- Accounts Payable will not attempt to correct invalid charging instructions. Instead, Accounts Payable will follow the process described in Procedure 3401 PR.05.
Correcting Invoice Errors and Discrepancies
If a mistake is found, do not change the invoice in any manner. Depending upon the type of error, contact either the Supplier or a Purchasing department buyer to have the invoice corrected.
Note Exception: If sales tax was billed inappropriately, cross out the sales tax amount, subtract from the invoice amount, and note the correct net amount on the invoice. Consult the table below for a list of typical errors that can occur in billing, and whom to contact.
The appropriate Purchasing Department buyer
Relationship of the Invoice to the Purchasing Method
Depending on the method used to purchase goods or services, the Supplier’s invoice may or may not match a standard or standing purchase order (PO). Use the table below to determine how to submit the invoice for payment.
See Policy 3201 for purchasing guidelines, methods and definitions.
How to Submit for Payment
Such invoices must never be submitted to Accounts Payable, because the payment has already been made via the PCard.
Submitting Valid Invoices Received by Departments
Best Practice: Departments must send the reviewed and verified invoice in PDF or TIF via email to firstname.lastname@example.org. Sub-contract invoices must be sent to email@example.com. The supplier and remittance address must be verified by running the Workday Find Suppliers – Yale – Departmental report and verify the Supplier exists as well as the Supplier Connection that matches the remit to address on the invoice
- Each invoice must be a separate attachment, but more than one invoice may be submitted in the same email
- The sender will receive a confirmation email for each email received.
- This process expedites the processing of the invoice and enables the tracking of the invoice from the receipt of the email until invoice paid.
A Yale supplier will be paid via SUA (single use account), automated clearing house/electronic funds transfer (ACH/EFT, also known as direct deposit), or check (listed in order of preference). Wire transfers are typically for foreign payments only.
When requesting a Supplier to be set up who will be submitting multiple invoices over time, departments should:
- Advise suppliers that SUA payment arrangements will be the fastest payment option (see Payment Processing below for details). To set up an SUA, suppliers should contact the eCommerce EMS/PCard manager, at 203-432-9977.
- Advise suppliers that ACH/EFT are options; however, payment terms will be less favorable than SUA (see Payment Processing below for details). The department must collect ACH/EFT information from the supplier. To do this, the department must send the supplier the ACH/EFT Supplier Enrollment Form to complete, sign and return to SCU at firstname.lastname@example.org. The supplier will need a U.S. bank account to be set up for ACH payments.
- Ensure that the Supplier provides accurate payment mailing address for check delivery. This option is the default if options A and B are not selected.
- Initiate a wire transfer request for payments to foreign entities that do not have a US bank account by following the instructions in Procedure 3401 PR.06
Valid and approved invoices are imported into the AP system daily. During import and approval, the invoices pass through various system validations.
- If the invoice is successfully imported and no additional holds are applied, payment is issued based on the invoice payment terms (generally derived from the PO or supplier payment terms).
- If the Supplier terms include a prompt payment discount, the department should take prompt action to earn the discount.
- If the Supplier’s payment terms are net cash (immediate payment), payment will be issued the next business day.
- If the Supplier terms are not net cash, the payment will be issued within the time specified by the supplier terms. For example, a Supplier with terms of net 30 will be paid within 30 days of the invoice date. Net cash is more commonly used for payments to non-employees; business Suppliers will generally have terms of net 30 unless negotiated differently when the PO is set up.
- To determine if payment has been made, click on the Supplier Invoice number to find the check number for the transaction.
- If other departments have submitted invoices from the same Supplier payable on the same date, the payment that is issued to the Supplier will be for the total of these payments. Specific invoice information will be shown on the check stub or remittance advice.
Similarly, if there are any credits applicable to this Supplier related to other University transactions, such credits will be subtracted from the check that is issued to the Supplier. Suppliers paid by ACH or SUA will receive electronic notice of the payment, as well as a list of invoices that correspond to the payment.
- Normally, Accounts Payable makes payments directly to the supplier via SUA, ACH/EFT or check depending on how the supplier and site payment methods were set up. Wire transfer requests for foreign payments follow the process listed in Procedure 3401 PR.06.
- In special circumstances, the check needs to be held for department pickup. Clearly note and highlight “Hold for Pickup” on the face of the invoice, and provide the contact name and email address. YSS will email the department when the check is ready for pickup. Pickup is at the Treasurer’s Office at 2 Whitney unless requested otherwise.
- If an invoice needs to be paid separately from other invoices to the same Supplier, clearly indicate “Pay Separately” on the invoice.
Once the invoice is imported into the AP system, it becomes available as a commitment. The transaction will remain a commitment in Workday until the next daily settlement run occurs and the payment has been processed.
Yale University is required to obtain the name and corresponding taxpayer identification number (TIN) for U.S. Suppliers (including individuals) that provide services or receive reportable payments from the University. If the name or TIN stored in Yale’s Supplier database does not match IRS records and the Supplier does not send the University the correct information within 30 days, the University will begin withholding 28% from future payments to the supplier.
Foreign individuals and foreign suppliers with reportable payments from Yale University (including service payments, fellowships, prizes, awards and other income) may be subject to nonresident alien withholding taxes.
- Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) should be completed by foreign individuals (non-resident aliens).
- Form W-8BEN-E Certificate of Status or Beneficial Owner for United States Tax Withholding and Reporting (Entities) should be completed by foreign business entities.
- Form T-100 Statement for Independent Personal Services Performed for Yale University Outside of the United States should be completed for services performed outside the U.S. There is no withholding for services performed outside the United States.
Payments to athletes and entertainers who are not Connecticut residents for performances that took place in the State of Connecticut may be subject to Connecticut Athlete and Entertainer tax. See Policy 3410 CT Income Tax Withholding for Nonresident Athletes and Entertainers and Procedure 3410 PR.01
Obtaining Exemption or Reduced Rate of Withholding for CT A&E Tax for more information.
While Accounts Payable retains electronic copies of invoices that have been submitted for payment, departments are responsible for retaining copies of invoices and forms, as follows:
- According to the University record retention policy, records should be readily available in case of questions or audit. See Policy 1105 Retention of University Financial Records. Electronic versions of the invoice are sufficient to meet this requirement.
- Certain grants require longer retention periods, and invoices related to such transactions must be retained for the period stipulated by the grant.