Policy Notes: Invoices Submitted Against Invalid PTA or After PTA End Date
Invoices may not charge to PTAs that are invalid or that are beyond their project, task or award end dates. When an invoice is submitted to Accounts Payable for processing, the associated PTA is checked to ensure it is chargeable and that the invoice will charge to the PTA within the time required for Stanford to close out the sponsored award. If these conditions are not met, the invoice will be put on hold. The requisition preparer, task manager, and requisition approvers will be notified of the hold and asked to provide an alternate valid PTA that may accept the charge or confirm that the existing PTA benefited from the charge. If an alternate valid PTA is not provided or the existing PTA is not confirmed within 7 days, a default department PTA will be charged. Charges to a default PTA must be reviewed and cleared as needed to an appropriate PTA that benefited from the expenditures.
On this page:
- Accounts Payable Process for Putting Invoices on Hold
- Notification of Invoice Holds
- Department Responsibilities
Accounts Payable Process for Putting Invoices on Hold
When Accounts Payable (AP) matches an invoice to a purchase order, the associated PTA and invoice are subject to validations based on PTA end dates, invoice date, expenditure type, and AP process date. The validations address the risk associated with allowing an invoice to charge a PTA after the PTA end date for goods or services that may not have benefited the PTA and the risk of allowing invoices to charge a PTA beyond the time needed to meet sponsor award financial closeout deadlines (within 90 days or less). If the invoice and associated PTA fail the validations, the invoice is put on hold.
The invoice is put on hold if any of the following conditions are not met:
- The PTA is valid
- Award status is Active or At Risk
- Project status is Active
- Task is chargeable
- The invoice date is on or after the most restrictive PTA start date
- Transaction Expenditure Item Date (EID) is within the most restrictive PTA start and stop date
- Expenditure type is not excluded via a transaction control on the project or task
- The invoice is not processed beyond the time necessary for OSR to close out the sponsored award (within 90 days or less)
Notification of Invoice Holds
If the invoice is put on hold, AP sends an email alert to the requisition preparer, task manager, and requisition approvers. The email states the reason for the hold with instructions to confirm the existing PTA or select an alternate valid PTA. In some cases, the payment of the invoice will also result in payment in excess of the Purchase Order amount. The email alert will also state that Purchasing will increase the PO amount to cover only the amount of the pending invoice.
The email alert instructs the department to email Purchasing with another PTA that benefited from the charge. In some cases, the department may be able to confirm that the original PTA benefited from the expenditure and should be charged. If the department requests the invoice to be charged to a new PTA, the new PTA must pass the same validations.
If the department does not respond to the email alert within seven days, Purchasing will change the PTA on the Purchase Order to the department's default PTA. AP will charge the invoice to the default PTA. Default PTAs, designated by Budget Officers, are existing unrestricted PTAs or clearing PTAs (AP Suspense PTAs) set up to receive these charges.
A second email notification is sent to the requisition preparer, requisition approvers, and the task manager of the PTA that has been charged, confirming the actions taken by Purchasing.
Departments must review charges to default PTAs and clear them as needed to an appropriate PTA that benefited from the expenditures.