Bulletin: Invoice Approval Threshold Increases (Posted November 1, 2011)

Effective November 1, 2011, Stanford is raising the threshold for required departmental approvals for payment of invoices from $2,500 to $5,000.


After analysis of invoice holds, benchmarking of peer institutions and discussions with various campus constituents, it was determined that raising the department approval threshold from $2,500 to $5,000 will improve efficiencies without increasing financial risk. The threshold change will reduce the number of invoices going on hold and reduce the amount of required departmental follow-up, resulting in improved payment processing time. Stanford will be better able to schedule payments per purchase order terms and additionally, will be better positioned to take advantage of vendor discounts when offered.


Accounts Payable will process invoices under $5,000 without requesting payment approval when the invoice matches an approved purchase order. Invoices that do not match an approved purchase order will be placed on hold and alerts will continue to go out where action is required.

Invoices received by departments directly from vendors can continue to be approved and submitted per departmental policy and process. While departments may choose to approve invoices less than $5,000, once submitted to Accounts Payable by the department, A/P will only alert Approvers of unapproved invoices of $5,000 or greater.

See Frequently Asked Questions.

Should you have additional questions, please contact the Financial Support Center (3-2772).

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