'No PO, No Pay' policy
The University’s Financial Regulation Section 4.4.4.c. mandates a ‘No PO, No Pay’ Policy:
“Except where approved by the Director of Procurement or where placing orders using a Purchasing Card……., the procurement of all goods, works and services must be based on a purchase order issued to the supplier prior to the delivery of the goods or commencement of the service or works, using a purchase ordering system”.
Benefits of ‘No PO, No Pay’ policy
- Ensures that purchases are authorised before goods, services and works are supplied.
- Enables the University to process invoices efficiently thus ensuring a positive payment profile with suppliers/contractors.
- Allows accurate timely reporting, budgeting and forecasting across the University.
- Removes potential risk to the University by formally agreeing the terms of engagement before the supplier/contractor commits to deliver.
As a reminder, all University employees must:
- not commit University funds without prior issue of a purchase order.
- use a University approved supplier in compliance with the Procurement Regulations.
- raise an appropriate purchase order, gain its approval and communicate the purchase order number to the supplier/contractor
In accordance with the University’s ‘No PO No Pay’ policy, any invoices received from a supplier/contractor which does not clearly state a valid Purchase Order provided by the University will be rejected and returned to the supplier/contractor. The only exceptions to this relate to supplies in relation to the list below.
Exception to ‘No PO, No Pay’
The following expenditure/circumstances do not require POs. The Exceptions List currently covers:
- Telecommunication services (landline and mobile)
- Utilities (i.e. Electric, Gas, Water, Refuse)
- Postal services
- Grant (payments) to research partners and collaborators, where the University acts as lead partner.
- Rent (where covered by a signed Long-term Lease Agreement) – short term rental requires a PO.
- Rates (Council and Water)
- Payments to or on behalf of Public Bodies – non-procurement related payments only. A PO should be raised in respect of any procurement related spend.
- Payments to individuals (scholarships, bursaries, salaries, travel expenses, prizes, awards and refunds)
- Child care vouchers
- Purchasing and Credit card payments
This list is under constant review and any further changes will be communicated to our suppliers by email.
An initial default will temporarily apply to membership subscriptions (Corporate or otherwise), whereby invoices can be received without a PO, and will be reviewed on a case by case basis. Where such a subscription merits a PO exempt status, on review, both the supplier and requisitioner will be informed and our list updated.
Emergency Purchase Order
In exceptional circumstances an Emergency PO reference can be supplied followed with an official PO number generated from Smarter Purchasing system within 3 (three) working days.
Invoices received without a current valid purchase order number (or an incorrect purchase order reference) will be returned unpaid to the supplier/contractor.
The supplier/contractor will be instructed to contact the University employee who requested the goods, services or works to obtain the necessary purchase order information. Please ensure that any purchase order numbers quoted are current and valid. If a limit order is issued to the supplier, please ensure that the value has not already been completed or exceeded with the placement of the new commitment.
All invoices must be addressed to University of Leicester at the address below and sent as a PDF to email@example.com.
PO Box 7717
University of Leicester Invoices
Corby Delivery Office
Alternatively, printed invoices can be sent directly in the post to the address above.
Proforma invoices, which cannot be used for VAT purposes, will not be processed.