Purchase to Payment Process

Business-to-business purchasing and
payment does not follow the same process
as personal purchasing and payment.
Purchases at Vanderbilt are planned and
approved before the supplier is notified of
the purchase.
The supplier should bill (i.e., invoice)
Vanderbilt’s Disbursement Services
department for the purchase at the same
time it ships the goods to you.
Disbursement Services usually has 45 days
from the date of the invoice to pay it.
Three steps:
Identify supplier(s).
Choose supplier
and product.
Purchase item(s)
eProcurement, Requisition
Pay the supplier.
Step 1: You create a requisition containing
the item(s) you want to purchase.
◦ Paper requisition- A-req, C-req
◦ eProcurement requisition
Requisition with proper signatures goes to
Procurement Services.
Step 2: A Purchasing Agent uses your
approved requisition to create a Purchase
Order (PO).
The purchase order is sent to the supplier.
Step 3: The supplier sends the goods to you
and the bill (invoice) to Vanderbilt’s
Disbursement Services department.
Goods go to you.
Invoice goes to
Step 4: You check the shipment against the
packing slip.
Step 5: Disbursements creates a voucher for
the invoice and pays it if it matches the PO.
Department creates requisition and sends to
Procurement uses req to create PO and sends
PO to supplier.
Supplier ships goods to you and sends
invoice (bill) to Disbursements.
Disbursements enters invoice into AP/PO
system and creates voucher; Disbursements
pays invoice if it matches PO.
The transaction steps are similar to the PO
process, but condensed:
‒ Purchases are approved in advance by the
‒ The receipt of goods and payment happens
simultaneously, instead of in two separate steps.
‒ The vendor provides the purchaser with the invoice
(or bill) instead of sending it to Disbursement

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