Accounts Payable (AP) ensures invoices for goods/services are properly processed according to all applicable University rules and regulations. Effective May 2022, Finance Service Delivery is responsible for Iowa State University (ISU) accounts payable processing, which includes:

  • Processing payments of invoices authorized by purchase orders and supplier contracts.
  • Providing exceptional customer service to faculty, staff, and ISU suppliers.
  • Assisting suppliers with inquiries about invoice payment status.
  • Assisting suppliers with invoice compliance.
  • Requesting and processing credit memos or refunds.
  • Ensure prompt payment to maximize available discounts.
  • Investigating invoicing or payment errors.
  • Assisting departments in settling disputes with a supplier.
  • Assisting departments in understanding supplier invoice information.

ISU processes approximately 60,000 purchase orders or supplier contract invoices each fiscal year. Issuing payment to a supplier generally requires a purchase order or supplier contract. Please refer to Procurement and Payment Methods on the Procurement Services Website for information on the procurement process.

Invoices must be submitted to Finance Service Delivery (AP) for Processing. To ensure prompt payment, send invoices directly to invoices@iastate.edu. The invoice should align with the original purchase order or contract. All invoices must be clear, accurate, and must contain the following information:

  • Supplier name and remit to address
  • Unique supplier invoice number (duplicate invoice numbers will delay payment significantly)
  • Invoice date
  • Include a valid ISU purchase order number or ISU supplier contract number
  • “Bill to” must be Iowa State University
  • No sales tax for tax-exempt goods/services. ISU is exempt from federal, state, and local taxes, including state of Iowa sales and use taxes (Iowa Code 423.3(31)) and, federal excise taxes
  • Cost per item, quantity, and description of goods/services provided
  • Current total amount due (not a balance forward)

Upon submitting an invoice, you will receive an automated response confirming receipt.

Invoice

ISU will not accept supplier statements as substitutions for a supplier invoice except when the statement is for utilities (electricity, water, gas, trash, recycling, and phone).

Non-compliant Invoices

Invoices that do not meet the invoice requirements above will be considered non-compliant. The Procurement and Expense Specialist will notify the supplier of non-compliance and provide a summary of adjustments necessary to process payment. It is the supplier’s responsibility to re-submit a corrected invoice. Following ISU supplier invoice requirements will help improve the process and avoid payment delays.

Credit Memos

A supplier may issue a credit memo for multiple reasons, such as items being returned, incorrect invoice amounts, overpayments, duplicate payments, pricing discrepancies, rebates, etc. A credit memo indicates that funds are owed to the University. The credit memo can be used to offset future payments to the supplier. However, Workday will hold all payments until the credit balance is fulfilled.

Alternatively, if the University does not anticipate doing additional business with the supplier or the supplier works with multiple ISU departments, AP will request a refund check from the supplier.

Please send invoices directly to invoices@iastate.edu. The subject line should include:

  • ISU Purchase Order Number or ISU Supplier Contract Number
  • Supplier Name
  • Invoice number

Purchase Order Example: PO-1135079 - Globex Corporation - Invoice #1234

Supplier Contract Example: SCN-1007017 - Acme Corporation - Invoice #1234

Invoices should NOT be sent to an individual ISU department. Sending invoices to the Sold-To or Ship-To Address may delay processing time.

ISU is in the process of moving to a paperless environment. We encourage our suppliers to send invoices via email to invoices@iastate.edu to ensure prompt payment according to contract terms. While electronic invoices are preferred if necessary hard-copy invoices can be sent to Accounts Payable’s address below.

Iowa State University

Accounts Payable - Financial Services Building

1015 HABER RD,

Ames, Iowa 50011-1004

Checks are printed daily, Monday through Friday, and mailed the following business day. Electronic payments are processed daily, Monday through Friday. Exceptions may occur because of holidays or other special circumstances.

Ames Laboratory Invoices

Invoices for work done for Ames Laboratory be submitted to invoiceinbox@ameslab.gov.

Subcontract/Subaward/Subrecipient Contract Invoices

Subcontract/Subaward/Subrecipient Contract invoices are not related to standard procurement agreements. These agreements are full collaborative relationships between ISU and the Subrecipient, whereby the terms of the prime award to ISU are flowed down to the subrecipient. Sponsored Programs Accounting must review all Subrecipient invoices. Invoices for work done on Subcontract/Subaward/Subrecipient contracts must be submitted to spa@iastate.edu.

Questions?

All Inquiries regarding invoices, payments, and questions about checks received can be sent to invoices@iastate.edu.

Payments to suppliers usually require a purchase order or supplier contract, which are executed by Procurement Services. There are certain procurements and expenditures that do not require authorization from Procurement Services prior to any commitment being made. Please refer to Procurement and Payment Methods on the Procurement Services website for complete payment instructions.

1) The supplier releases goods or performs services after obtaining a purchase order.

Suppliers should release goods or perform services only after receiving a purchase order number from Iowa State University, e.g., PO-XXXXXXX or supplier contract number SCN-XXXXXXX.

Important Reminder: If a purchase order number or supplier contract number is not received when the order is taken, the supplier cannot be assured that the person obtaining the goods or services has been authorized to obligate the university. Payment of the invoice will be delayed until a valid purchase order or supplier contract number has been established or identified.

2) The supplier mails a hardcopy of the invoice to Iowa State University.

Recommended Practice: Invoices should be emailed to invoices@iastate.edu.

Potential Delays and Problems:

  • If the supplier submits the invoice to the department receiving the goods or services, Finance Service Delivery is unaware that an invoice has been received, so the payment process does not begin. If the buying department receives the invoice, they should forward it to invoices@iastate.edu. The buying department should also notify the supplier to email future invoices directly to invoices@iastate.edu.

3) Finance Service Delivery enters the invoice on the appropriate purchase order or supplier contract.

Recommended Practice: Supplier invoices should have a valid purchase order number or supplier contract number and a unique invoice number.

Potential Delays and Problems:

  • If the supplier does not provide a purchase order number or supplier contract number, time-consuming research must be performed that may delay processing time.
  • If the supplier does not provide an invoice number, one must be created to populate a required system field. This practice makes it more difficult to track which invoices are being paid.

4) The Cost Center Manager receives and approves the supplier invoice.

Recommended Practice: Cost Center Managers must review and approve every supplier invoice for supplier contract or PO payments before the supplier can be paid. It is their responsibility to determine that the goods have been received or provided.

Potential Delays and Problems:

  • Supplier payments will be made after all approvals. If the goods or services were not performed, the university could suffer a loss.
  • If there is a problem with the product or the performance of a service, add a note in the "Enter Your Comment" section and notify Procurement Services. Procurement Services agents can provide assistance in resolving the dispute with the supplier.
  • All Supplier Invoices must be approved by the CCM. Workday does not have a "negative approval" feature.
  • Supplier invoices are paid according to the terms of the purchase order or supplier contract. For example, if payment terms are Net 30, the check will not be cut until the 30 days have passed. However, the payment will show as an expenditure upon being approved.

5) Settlement occurs at 3:00pm for all approved supplier invoices whose payment terms have come due.

Recommended Practice: The payment process does not begin immediately after the last approver has approved the supplier invoice. If payment terms are Net 30, the payment will not take place until that period has passed. However, checks are printed (and bank transfers released) Monday, Tuesday, Wednesday, Thursday, and Friday evenings (except University holidays) for eligible payments. Checks are mailed from Printing Services the next business morning.

Potential Delays and Problems:

  • Weekends and holidays will delay the mailing of the check to the supplier.
  • Checks for outside suppliers should not be mailed to campus addresses or picked up by employees unless a valid business need exists. These practices make check fraud more likely, and are an inappropriate use of staff time. Proper planning and awareness of the check writing schedule should make these practices unnecessary.
  • Payments by wire transfer and foreign draft require special processing by the Treasurer's Office and our bank.

6) The supplier receives the check, cashes it, and applies it to the outstanding invoice.

Recommended Practice: Usually this goes very smoothly, as the invoice information is printed on the check stub.

Potential Delays and Problems:

  • Large companies sometimes use a lockbox service, and the correct information about the invoices is not transmitted to the company. Some suppliers apply the payment to the oldest invoice, rather than the one identified with the remittance. Application errors can also be the result of human error. In all of these cases, Finance Service Delivery assists the supplier with resolving the discrepancies.
  • If a check is lost or delayed in the mail and has been outstanding more than ten business days, the Accounting Office will replace a check free of charge. Please contact Compliance at acctweb@iastate.edu if a check needs to be cancelled and payment reissued. The payee name, check number, and amount will need to be provided to identify the payment. The payment may be found with the invoice number.
  • If the supplier cannot determine where to apply a check, a copy of the remittance will be provided upon request. Requests may be submitted to invoices@iastate.edu.
  • Iowa State University is tax exempt in most states. If sales tax is incorrectly added to an invoice, it will be deducted and the invoice will be short paid.
  • If the supplier has not properly recorded adjustments we have included as remittance information, our records will not match. Assistance will be provided to suppliers to resolve such discrepancies.
  • The postal and banking systems in some countries are not as efficient as we sometimes expect. Even payments by wire transfer, which happen the same day within the United States, can take several days to reach foreign suppliers. If payment was made by check, the Accounting Office can reissue the check at no charge if more than ten business days have elapsed. For foreign currency drafts or wire transfers, please contact Brad Dye at 515-294-1002.

Iowa State University seeks to pay invoices promptly. If you have an inquiry about an unpaid invoice, please contact invoices@iastate.edu. Please provide a purchase order number, invoice number, and an amount when contacting us.

Common reasons why an invoice has NOT been paid:

1) The invoice was mailed to the incorrect address.

Remedy: Please email future invoices to invoices@iastate.edu.

2) The invoice was mailed to the correct address but did not have a valid purchase order number.

Remedy: Before accepting an order, always get a purchase order number from the Iowa State University employee placing the order. If you have a valid purchase order number but do not put it on your invoice, your payment will be delayed while we attempt to determine the number. If you have a past-due invoice but do not have a valid purchase order number, contact the Iowa State University employee who placed the order and request that he or she provide you with a purchase order number. You will need to email a copy of the invoice, with the purchase order number included, to invoices@iastate.edu before payment can be made.

3) The department purchasing the materials has not approved the payment.

Remedy: All payments require positive approval, either by the Cost Center Manager, or through the Receiving function.

4) The department is disputing the charge due to incomplete delivery, damaged goods, malfunctioning equipment, etc.

Remedy: Supplier invoices cannot be approved for payment if the buying department disputes the charge. Please contact the Iowa State University employee who purchased the materials. After the dispute is resolved, the Cost Center Manager can approve the supplier invoice for payment.

5) A W-9 Form was mailed to the supplier but was not returned to Iowa State University.

Remedy: The IRS requires all payments for services to be reported as taxable income. This requires us to request a Taxpayer Identification Number before making payment. If we do not already have a W-9 Form on file for you, your payment will be delayed until we receive one. Although corporations sometimes are exempt from reporting, we require a Form W-9 to recognize the corporation status.

6) Iowa State University shows the check has been mailed, but the supplier has not received it.

Remedy: If the supplier has not received the check within ten business days after the check was issued, Iowa State University can issue a stop payment on the original check and issue a replacement without charge. Please contact the Office of Compliance.