Payment Authorization

[Procedure] Last Updated: September 2012
Prior Manual Number: 4-12

There are five different documents that can be used by a department to authorize payment to a vendor. Circumstances determine which document will be used.

Purchase Order

A Purchase Order may be used to approve payment when an order was written for the purchase of specific goods or services. For orders of $5,000 or less a copy of the Purchase Order will be sent to the department by Accounting after the vendor invoice has been received. The intended payment date will be noted on the order. If the order is complete and acceptable, no response from the department is needed. Accounting will process the payment on the specified date.

For orders over $5,000 a copy of the Purchase Order will be sent to the department to be signed and returned to Accounting before the specified payment date.

If the delivery of goods or services is incomplete or otherwise unacceptable, both Purchasing and Accounting should be promptly notified. Written notice must be mailed to the vendor immediately when payment of an invoice is disapproved. A vendor may be entitled to an interest penalty if he has not been informed of the payment disapproval.

Payment Request

The Payment Request is used to approve payments against open orders except General Revenue payments in excess of $1,000. The vendor invoice should be attached to the completed Payment Request and forwarded to the Accounting Office for payment

The Payment Request may also be used for payments against specific purchase orders when the department has received the original invoice (except General Revenue partial payments exceeding $1,000).

The Payment Request is used to approve refunds, student loans, and other student financial aid.

There are two types of payment request forms, one for issuing a single check and another for issuing multiple checks. An example of each form is shown on the pages 3 and 4. Both forms are available from Central Stores.

Instructions for filling out the forms are printed on the back of the Departmental copy. Important points to remember are:

  • The forms should by typed (no punctuation should be used).
  • The checks prepared from these forms will reflect the name and address of the payee exactly as it is on the form and is limited to four lines and 24 characters per line.
  • Use remittance address if available.
  • The last name of payee should precede first name unless part of a business name.
  • There should be a blank line between each check requested on the multiple check version of the form.

The Purchase Request

The Purchase Request is used to approve payment of items that are not covered by a purchase order. Magazine subscriptions, conference registrations, small purchases picked up and paid for by user, consultants, speakers, and certain other contractual services may be approved for payment on this form.

Reimbursement to employees for sales tax will not be made on purchases of over $100. University employees should contact the Accounting Office for sales tax exemption procedures.

The Purchase Request should be used in these instances rather than a payment request, because one copy can be used as an obligation document while the form is routed to Purchasing and subsequently back to Accounting for payment

To use this form to approve payment, complete the form and check the 4th box from the top on the upper left Instructions are printed on the back of the last copy. Procedure No. 9-2 contains additional information relative to the use of this form.

Department-Receiving #5 Copy of "Purchase Request"

The Department-Receiving #5 is used to approve payment of items procured through the use of the Blanket Order Release Request This is a procedure which enables a department to make purchases against an existing Purchasing Department blanket order. Funds are not encumbered until this order is used. This is essentially a "walk through" procedure to be used to expedite purchases from local vendors. To purchase under this, procedure, a completed Purchase Request is taken to Accounting, Altgeld 104, where available funds are verified and a number assigned. The form is then hand carried to Purchasing where upon approval by the buyer, the #4 and #5 copies are given to the departmental representative. He takes the forms to the vendor, leaves the number #4 copy, and upon receipt of the merchandise approves the #5 copy by signing "Received by" in Section 8 after which the form is returned to Accounting for payment This signature must be by a person authorized to approve departmental expenditures.

State of Illinois Invoice Voucher

This form, see page 5 for an example, is used for appropriated (General Revenue) fund payments in excess of $1,000.00 against open orders.

Contact Us

University Business Procedures Directory

Add or Update a Procedure

Back to top