Purchase Order Invoices: Approval and Rules


Presumed Receipt for Invoices Less Than $3,000

  • Accounts Payable will pay standard Purchase Order invoices less than $3,000 without routing them to the DLC for approval and signature. Accounts Payable “presumes receipt” by the DLC of the goods or services on the invoice.
  • This reduces the paper handling burden on DLC administrators, increases the efficiency of AP services, and assures prompt payment to vendors, reducing the possibility of vendors placing orders on hold pending payment for other MIT orders.
  • Presumed receipt applies only to standard PO's (PO numbers starting with “45”). It does not apply to subawards or blanket PO invoices.
  • DLC administrators who see a charge on one of their cost objects for an invoice that should not have been paid are asked to notify Accounts Payable by email at buytopay@mit.edu or telephone 617-253-2750 as soon as possible. This might occur if goods received were damaged or not received, for example.
  • Please provide:
    • Purchase order number
    • Invoice number (if known)
    • Invoice amount
    • A description of the problem

A buyer from VPF Sourcing and Procurement will work with the vendor and the DLC to resolve the issue.

DLC Approval of Invoices Greater Than $3,000:

Please include the following on approved invoices:

  • Purchase order number
  • A legible signature of someone in the Roles Database authorized to approve invoices on the cost object charged
  • Receipt date of the goods or services
  • Cost object and general ledger account numbers
  • Date invoice has been sent to Accounts Payable

Invoice Amount

The invoice amount must equal the purchase order amount within the following tolerance:

  • 50 percent over line item value, not to exceed $100 of total order;
  • No tolerances are allowed for subawards;
  • DLCs must use a change order to change the purchase order amount.