Policy Steward: 
Director of Vendor Payment Strategies
Format Updated: 
University Policy & Standards Converted: 
Revision Date: 
Friday, December 12, 2014

This information replaces FIS 408 Centralized Processing of Expenditures (Auto Pays)


  • On a pre-arranged basis Auto Pay Vendors submit to the Business Affairs’ office the following information:

    • a hard copy statement
    • copies of all invoices listed on the statement
    • an electronic billing file

    Payment information is obtained from individual invoices that are retained as backup documentation.  Invoices submitted for payment must legibly show the printed name of the person initiating the credit purchase, their signature, telephone number, unit name, six digit Index code and activity code if desired.  Vendors who submit invoices containing invalid or missing information may be requested to remove the charge from the OSU account.  Direct charges to the Agriculture Research Foundation (ARF) and OSU Foundation (OSUF) should never appear on Auto Pay accounts.  These foundations are separate entities from OSU.

    Business Affairs processes the payment to the vendor and then posts the charges to the unit’s index. 

    1. Type of business:
      Purchases made by OSU staff, faculty, and students from an auto pay vendor are not audited for appropriateness prior to purchase, therefore not all merchants are suitable to become a part of the Auto Pay system.  Merchants providing 1099 tax reportable services or equipment over the $5,000 purchasing threshold are not eligible to become Auto Pay vendors because of purchase order, audit, and tax reporting requirements.
    2. Volume of Business:
      Monthly payment history should substantiate a minimum of twenty invoices, paying more than four separate OSU departments
    3. Default account code:
      Central payments require the use of a generic account code, therefore credit purchases with individual merchants need to fall into one account code category
    4. Ability to provide and maintain required billing procedures:
      An electronic billing file with a minimum of modifications needed, individual invoices with correct information, correct posting of payments to invoices.
    5. Signed Agreement acknowledging requirements/provisions of Auto Pay Vendors:
      All contracts need to be negotiated through PaCS and approved by the Business Affairs  office prior to set up. 

    Auto Pays are expenditures charged directly by the Office of Business Affairs to accounts via ICxxxxxx documents.  OSU has many direct pay vendors and each direct pay vendor sets its own billing cycle.  To be sure purchases from direct pay vendors are included in the current fiscal year accounting records, complete those purchases by the date specified in the current year’s schedule for year-end close.  Purchases made between that date and June 30 may appear in either the current fiscal year or the new fiscal year accounting records based on the auto pay vendor’s billing cycle.