The invoice dollar threshold is being raised in order to reduce the number of invoices put on hold, thereby reducing handling time and improving payment processing time, without increasing financial risk.
Based on analysis of holds and benchmarking policies and outcomes at peer institutions, the increased threshold amount was determined to be low risk, while allowing significant efficiency improvements.
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 to Accounts Payable per departmental policy and process. While departments may choose to approve invoices less than $5000, once submitted to Accounts Payable by the department, A/P will only alert Approvers of unapproved invoices of $5,000 or greater.