1. Policy
Issued: September 15, 2014
Last Reviewed: September 10, 2025
Last Revised: September 15, 2014
Applies to: Faculty (including part-time, adjunct and visiting faculty), postdoctoral scholars, staff and students (including graduate/undergraduate student workers and graduate assistants) employed by University of Southern California (“USC“ or the “University“) and including those working for the University’s health system (“USC Employees”). This policy continues to apply to individuals who are on sabbatical or other leaves, or who are visiting other institutions.
2. Policy Purpose
The purpose of this policy is to establish clear guidelines for the submission, verification, and processing of supplier invoices associated with purchase orders.
3. Scope and Application
When the purchase of goods and services is authorized by a purchase order, the supplier must provide an invoice for payment. This ensures that all invoices are accurately matched with purchase orders and received goods or services before payment is authorized
4. Definitions
| Term | Definition |
| Purchase Order | A formal document issued to a supplier, specifying the details of goods or services to be purchased. It serves as a legally binding agreement that outlines key information such as item descriptions, quantities, prices, delivery dates, and payment term |
| Purchase Order Invoice | A billing document issued by a supplier to request payment for goods or services delivered based on a previously issued purchase order (PO). It includes details such as the PO number, item descriptions, quantities, prices, applicable taxes, payment terms, and the total amount due. |
5. Policy Details
Invoice Mailing
To ensure prompt payment and to avoid late-payment penalties, all invoices should be mailed directly by the supplier to Business Services. Mailing and emailing information can be found on the supplier purchase order.
The university does not accept supplier statements in lieu of an invoice, except when the statement is for utilities, phone services, or leases.
Required Invoice Content
An invoice should at a minimum include all the following information:
- “Bill to” USC
- “Ship to” USC
- Purchase order number
- Itemized order details
- Amount due
- Supplier name
- Date of invoice
- Remit address of supplier
The above can be found on the front page of the purchase order
Tax Review
All invoices will be assessed according to current tax regulations and handled accordingly. (Refer to: https://sites.usc.edu/procurement/payments/tax-assessment/ )
Invoice Approvals and Discrepancies
Department financial approvals are required for invoices related to purchase orders when:
- An invoice contains a discrepancy from the purchase order. A discrepancy is determined at the line level and occurs when the invoice exceeds the purchase order by 20% or $500 (whichever is less)
- An invoice is for services for any dollar amount
Expired Accounts
An invoice that references an expired account cannot be paid, and an alternative account number (with sufficient funds) must be provided. An invoice that references an expired sponsored project account is routed to Sponsored Project Accounting to review the invoice and determine whether the account can be temporarily reopened to allow payment. Their deliberation is based on whether the goods/services were received within the account’s budget period. If the request is denied, another account must be provided by the department to process payment.
Overdrawn Purchase Orders/Insufficient Funds
For an invoice to be processed for payment, the corresponding purchase order must contain sufficient funding
6. Procedures
7. Forms
N/A
8. Responsibilities
| Position or Office | Responsibilities |
| Business Services | Ensure Invoice Payments comply with university policy and local, state and federal laws |
9. Related Information
N/A
10. Contacts
| Office | Phone |
| Business Services 3500 S. Figueroa Street Suite 210 Los Angeles CA 90089 | (213) 740-2716 |