Accounts Payable

Invoices must be submitted to Finance Service Delivery (AP) for processing. To ensure timely payment, send invoices directly to invoices@iastate.edu. You will receive an email once the invoice has been entered into our Workday Financial system. Each invoice must align with the original purchase order or contract and include the following details:

• Supplier name and remit-to address
• Unique supplier invoice number (duplicate numbers significantly delay payment)
• Invoice date
• A valid ISU purchase order or 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 Iowa Code 423.3(31))
• 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 Guidance

ISU does not accept supplier statements in place of invoices, except for utility services (electricity, water, gas, trash, recycling, and phone).

Non-Compliant Invoices

Invoices that do not meet ISU's requirements will be considered non-compliant. The Procurement and Expense Specialist will notify the supplier of the issue and provide details on necessary corrections. The supplier must submit a revised, compliant invoice to avoid payment delays.

Credit Memos

A supplier may issue a credit memo for reasons such as returned items, incorrect invoice amounts, overpayments, duplicate payments, pricing discrepancies, or rebates. Credit memos indicate that funds are owed to ISU and can be applied to future payments to the supplier.

Workday will hold all payments until the credit balance is fully applied. If ISU does not anticipate future transactions 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 email 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.

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 National Laboratory Invoices

Invoices for work done for Ames National Laboratory should 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. Certain procurements and expenditures 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 emails the invoice to invoices@iastate.edu.

Alternative Option: The supplier mails a hardcopy of the invoice to Iowa State University (not recommended).

Potential Delays and Problems:

• Mailed hardcopy invoices must be scanned and submitted to invoices@iastate.edu. Please note that, in addition to potential mail delays, invoices are only scanned once a week, which can further delay processing times.
• If the supplier submits the invoice to the department receiving the goods or services, Finance 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.

Important Reminder: 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.

Cost Center Managers must review and approve every supplier invoice for supplier contracts or Purchase Order payments before the supplier can be paid. The buyer is responsible for determining whether the goods have been received or provided.

Potential Delays and Problems:

• Supplier payments will be made after all approvals.
• 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.

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

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.
• Payments by wire transfer and foreign draft require special processing, including verbal confirmations, by the Treasurer's Office and our bank.

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

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 assists the supplier with resolving the discrepancies.
• If a check is lost or delayed in the mail and has been outstanding more than twenty business days, the Accounting Office will replace a check. Please email invoices@iastate.edu if a check needs to be canceled and payment reissued.
• 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.

Iowa State University is committed to processing invoices promptly. If you have a question about an unpaid invoice, please contact invoices@iastate.edu. Include the purchase order number, invoice number, and invoice amount in your inquiry.

Common Reasons for Payment Delays

Please review the list below to troubleshoot potential issues with your invoice:

1) Invoice Sent to the Incorrect Address

Solution: Send all future invoices to invoices@iastate.edu.

2) Missing or Incorrect Purchase Order Number

Solution: Always request a purchase order number from the Iowa State University employee who placed the order. Payment may be delayed while we investigate if the purchase order number is missing from your invoice. If your invoice is past due and you don't have a valid purchase order number, contact the employee who placed the order to obtain it, then send the updated invoice to invoices@iastate.edu.

3) Payment Not Approved by the Purchasing Department

Solution: Payments require approval from either the Cost Center Manager or through the Receiving function in the department.

4) Disputed Charges

Solution: If there is a dispute regarding delivery issues (e.g., incomplete delivery, damaged goods, or malfunctioning equipment), payment will be delayed until the issue is resolved. Contact the Iowa State University employee who placed the order, and once the dispute is resolved, the Cost Center Manager can approve the invoice for payment.

5) Missing W-9 Form

Solution: The IRS requires us to report payments as taxable income, so we must have your Taxpayer Identification Number on file. If you have not submitted a W-9 Form, payment will be delayed until we receive it. While corporations may be exempt from some reporting, a completed W-9 is still required to confirm corporation status.

6) Check Mailed but Not Received

Solution: If you haven't received your check within twenty business days of issuance, we can issue a stop payment on the original check and send a replacement at no charge. Please contact the Office of Financial Accounting and Compliance at checkreissue@iastate.edu.