University of Vermont

How To: Financials - Make Payments to a Vendor

A vendor is defined as an individual that is not on the UVM payroll or as an organization that has provided goods or services. There are some considerations and UVM policy that must be adhered to:

1. If you are contracting with an organization to provide services, a memorandum of understanding (MOU) should be developed. Please contact Rose Feenan for a template. Procurement must review and sign all MOU's and contracts.
2. If you are contracting with an individual for consulting or services, you should prepare a letter of understanding outlining expectations and payment information. This will be used to document the actual payment to that individual.
3. There are instances where various levels of "approvals" are needed by central administration. If your situation applies, RSENR Business Service Center and/or Procurement will obtain signatures. More information (pdf)
4. The RSENR Business Service Center will review invoices for payment and follow the Procurement policy or Lease of Goods and Services. Our first review is often based on the dollar amount of the invoice. General summary is:
• $5,000 of less — use purcard if applicable
• $5,000 or greater — requisition required
• $25,000 - $50,000 — Quotation Evaluation Form required or Single/Sole Source Justification Form required
• $50,000 or greater — RFP required

Keeping the above information in mind, you can now determine method of payment.

• Payment by Purcard
• payment is $5,000 or less
• organization accepts Purcard
• payment does not require a contract or MOU
• The first form of payment to a vendor should always be with the UVM purcard. If the vendor will accept a payment by MasterCard and it is an allowed purcard expense please use this method of payment. RSENR purcard process.
• Requisition or Check Request
• payment is greater than $5,000
• payment requires a contract (any dollar level)
• vendor does not accept purcards
• If the vendor you need to pay does not accept MasterCard please give the invoice or supporting documents to financial transaction specialist. (Both domestic and international) She will either process the request in PeopleSoft as a requisition or use a check request form. Your request to pay the vendor should be clearly communicated — initial or sign the invoice document, and include the chart string, and clearly show you are requesting the payment to be processed. If the payment is to an independent contractor please include the Employee vs Independent Contract Determination Form. RFP, Quotes, or Sole Source documents must also be included as documentation.

The determination of how vendors are to be paid can be complicated, so please bear with us as extra time may be needed to determine the correct process (and required forms). This may require us to contact you with additional questions.

Last modified February 12 2013 12:12 PM