Purchase to Payment Process at Vanderbilt

1. Purchase to Payment Process at Vanderbilt

2. Overview • Business-to-business purchasing and payment does not follow the same process as personal purchasing and payment. • Purchases at Vanderbilt are planned and approved before the supplier is notified of the purchase.

3. Overview • The supplier should bill (i.e., invoice) Vanderbilt’s Disbursement Services department for the purchase at the same time it ships the goods to you. • Disbursement Services usually has 45 days from the date of the invoice to pay it.

4. The Purchasing Process • Three steps: Disbursements Procurement Shop Buy Pay Purchase item(s) eProcurement, Requisition Pay the supplier. Identify supplier(s). Choose supplier and product.

5. Purchase to Payment Process • Step 1: You create a requisition containing the item(s) you want to purchase. • Paper requisition- A-req, C-req • eProcurement requisition • Requisition with proper signatures goes to Procurement Services.

6. Purchase to Payment Process • Step 2: A Purchasing Agent uses your approved requisition to create a Purchase Order (PO). • The purchase order is sent to the supplier.

7. Purchase to Payment Process • Step 3: The supplier sends the goods to you and the bill (invoice) to Vanderbilt’s Disbursement Services department. Goods go to you. Invoice goes to Disbursements.

8. Purchase to Payment Process • Step 4: You check the shipment against the packing slip. • Step 5: Disbursements creates a voucher for the invoice and pays it if it matches the PO.

9. Summary: Purchasing to Payment Process • Department creates requisition and sends to Procurement. • Procurement uses req to create PO and sends PO to supplier. • Supplier ships goods to you and sends invoice (bill) to Disbursements. • Disbursements enters invoice into AP/PO system and creates voucher; Disbursements pays invoice if it matches PO.

10. For P-Card Purchases… • The transaction steps are similar to the PO process, but condensed: • Purchases are approved in advance by the department. • The receipt of goods and payment happens simultaneously, instead of in two separate steps. • The vendor provides the purchaser with the invoice (or bill) instead of sending it to Disbursement Services.