At STSFT, we have a ‘No PO, no payment’ policy. This means that you can’t request goods or services without a correct purchase order (PO) number.
This is so we can make sure there are no delays in payments.
If you don’t supply a PO number, your invoice will be put on hold.
A purchase order is a formal instruction to a supplier that we agree to buy goods or services from them. Suppliers should not provide goods without a valid order.
Purchase orders keep everyone safe because they are approved under our financial rules, called ‘Standing Financial Instructions’ (SFIs). The Trust’s Scheme of Delegation says that not following these rules can lead to disciplinary action, dismissal, or even legal action. In some cases, the Trust may also try to recover money.
If a purchase order is not raised, we risk the following:
- People may make agreements with suppliers without authority. This could mean the person is responsible for the cost if it is not approved or does not meet Trust requirements.
- Proper steps like tendering may not happen, which could put the person and the Trust at legal risk.
- Payment takes longer, and the supplier may not get paid on time. This can cause delays or even stop goods or services from being provided.
When a supplier puts a valid PO number on their invoice, payment is processed as soon as we receive the goods or services. This means no extra manual approval is needed. It makes paying invoices much faster, reduces questions from suppliers, and makes things easier for everyone.
Please remember this whenever you need to order goods or services. If you are unsure, contact the Procurement Department for advice. If purchase orders should be raised and are not, we will speak to the individuals and their managers. We will also work with suppliers who provide goods or services without a valid purchase order.
