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:
- When you hire an organization or a non-UVM individual to provide consultancy or professional services, we are required to complete a Service Agreement in advance of the work being done (use the Service Agreement Template). This agreement is then routed by the RBSC to Purchasing for review and signature (any Risk Management or Legal issues get routed to the appropriate UVM offices). Once UVM has signed the agreement, they obtain the signature of the organization or individual and then the payee can send an invoice to UVM for services rendered based on the Financial Plan in the agreement.
The only time we do not use this template is when the services are for an individual for short term (same day) services - for example, a guest speaker in a classroom. Those tend to be one time events and less formal in nature. In this case, an independent contractor form must be completed AND we have now been told that a copy of a flyer, or class agenda, or poster must be attached. Also, Shari Halik updates our weekly calendar on our website - you can inform her of a guest speaker and she will post it and you may use a copy of the posting as documentation.
- There are instances when 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)
- The RSENR Business Service Center will review invoices for payment and follow the Procurement policy or Lease of Goods and Services (PDF). Our first review is often based on the dollar amount of the invoice. General summary is:
- $2,500 or less — use purcard if applicable
- $2,501 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 $2,500 or less
- vendor 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 a Visa card and it is an allowed purcard expense please use this method of payment. RSENR purcard process.
- Requisition or Check Request
- payment is greater than $2,500
- payment requires a contract (any dollar level)
- vendor does not accept purcards
- If the vendor you need to pay does not accept Visa please give the invoice or supporting documents to our financial transaction specialist, (both domestic and international) who 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 (PDF). 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 01 2017 11:21 AM