Procure-to-Pay Supplier Overview
Learn how Penn’s procure-to-pay (P2P) process works, from purchasing and invoicing to payment and supplier requirements.
The procure-to-pay (P2P) process outlines how Penn purchases goods and services, processes payments, and works with suppliers. Explore the topics below to learn about each stage of the process and the University’s supplier requirements.
For Suppliers
Purchasing Process
University faculty and staff are required to conduct all purchase transactions using one of the University’s authorized purchasing methods in accordance with University Procurement and Disbursement Financial Policies. Suppliers should not accept a University purchase request without first receiving either:
- A University-issued Purchasing Card number.
- An official University of Pennsylvania Purchase Order (PO) number (a seven-digit purchase order number)
Shipping Products & Performing Services
Shipment of products to the University, or services performed by a supplier without prior receipt of an official University Purchase Order number or authorized Purchasing Card number, will be considered a gift to the University, with no additional obligation on the part of the University.
At no time is a supplier authorized to ship products or perform services at a location other than the location specified on the official University Purchase Order or requested at the point of sale by the authorized Purchasing Card holder.
Purchase Order Changes
The University authorizes changes to an original Purchase Order through a formal University Purchase Order change or cancellation notification. No changes to an original University Purchase Order may be initiated by the supplier without prior written approval from Procurement Services.
On rare occasions, and for good cause, the University may terminate a Purchase Order, in whole or in part, by written notice stating the extent and effective date if the supplier:
- Is otherwise determined to be acting contrary to the best interests of the University.
- Fails to comply with the provisions of the Purchase Order;
- Fails to make progress that endangers performance and does not cure the failure within a reasonable period of time; or
Demonstration and Loaner Equipment
Suppliers may provide demonstration or loaner equipment for the purpose of evaluation or examination by a University department. This is done entirely at the supplier’s discretion and does not create any commitment on the part of the University.
An official no-charge University Purchase Order must be issued by the evaluating department to document the evaluation process and authorize delivery or installation of the loaner equipment on campus.
Product Substitutions
Substitutions of items specified in a University purchase order by the supplier are not permitted without prior written approval from Procurement Services.
Supplier Agreements
Procurement Services is authorized to sign all supplier contracts and agreements for products and services provided to the University.
University faculty and staff are not authorized to sign supplier contracts or agreements. All formal supplier documents must be submitted to Procurement Services for review and approval by an authorized purchasing representative before an official University Purchase Order can be accepted.
BEN Buys and the Penn Marketplace
BEN Buys is the University’s campus-wide electronic purchasing system, and Penn Marketplace is its online marketplace. Together, they provide Penn purchasers with access to supplier catalogs and purchasing tools while streamlining the procure-to-pay (P2P) process.
Penn Marketplace enables suppliers to present products and services directly to Penn purchasers through an online marketplace. The system helps improve purchasing efficiency, reduce administrative costs, and support the University’s strategic sourcing initiatives.
Participating Preferred Contract Suppliers also have the opportunity to promote their products and services through the Supplier Showcase, which is accessible from the BEN Buys Requisition Homepage. The Supplier Showcase provides participating suppliers with increased visibility among Penn purchasers and an additional opportunity to market their products and services within the Penn community.
Suppliers interested in participating in the Supplier Showcase can learn more here.
Procure-to-Pay (P2P) Document Transmission Processes
The University uses several methods to electronically transmit Purchase Orders and receive supplier invoices.
Jaggaer serves as the University’s integration partner for the transmission of Purchase Orders and supplier invoices using cXML, email, and fax. Commerce eXtensible Markup Language (cXML) allows Purchase Orders to be transmitted electronically while enabling supplier invoice information to flow directly into the University’s procure-to-pay process. This helps reduce administrative costs associated with paper handling and invoice processing.
Purchase Orders are created and approved in BEN Buys before being transmitted through Jaggaer to suppliers upon approval.
Suppliers interested in transmitting Purchase Orders and invoices via cXML may contact PennMarketplace@upenn.edu. The Procurement Services Operations Center will work with suppliers that have high transaction volumes to review cXML requirements and facilitate a cXML enablement project.
Suppliers that do not use cXML, PO Flip, or CSV functionality must submit Purchase Order invoices directly to Accounts Payable. Click here for full instructions.
Important: Purchase Order invoices must not be submitted directly to individual faculty, staff, or ordering departments.
MasterCard Purchasing Card
The University Purchasing Card complements the BEN Buys Purchasing System, the University’s primary authorized purchasing method, by allowing authorized cardholders to make incidental, low-dollar purchases (generally less than $1,000) of non-restricted goods and services from approved external suppliers in accordance with University purchasing policies and School or Center procedures.
Payment Process
The University’s Accounts Payable department processes supplier invoices associated with Purchase Orders and issues payments in accordance with the supplier’s selected payment method and established payment terms.
Procurement Services is the only University department authorized to negotiate exceptions to the University’s standard business terms and conditions. Suppliers are expected to submit Purchase Order invoices promptly upon shipment of goods or completion of authorized services.
The University offers the following payment methods and standard payment terms.
ePayables The University has partnered with Bank of America to offer ePayables, a secure commercial card payment program. Payments are processed as credit card transactions, helping suppliers accelerate payment while reducing administrative processing costs. Please note that Bank of America merchant processing fees apply to all ePayables transactions.
Eligibility: Individuals and non-U.S. entities are not eligible to participate in ePayables.
Learn more about ePayables here.
Direct Deposit (ACH) Automated Clearing House (ACH) payments are deposited directly into the supplier’s designated bank account maintained in the Penn Supplier Portal.
Eligibility: U.S. suppliers with U.S. bank accounts. Payment Terms: Net 30
Wire Transfer
Wire transfer is an electronic funds transfer method available for international suppliers. Payments are remitted directly to the supplier’s designated bank account as maintained in the Penn Supplier Portal. Domestic wire transfers within the United States require prior approval from Procurement Services.
Payment Terms: Net 30
Check
Checks are the University’s least preferred payment method. Suppliers are encouraged to enroll in a more efficient electronic payment option whenever possible.
Payment Terms: Net 45
Individual Payee / Independent Contractor- Payment Terms: Immediate
Payments to individual payees and independent contractors are issued upon receipt of an approved invoice.
For supplier enablement questions, please contact Procure@upenn.edu.
For invoice processing inquiries, please submit a request through the Supplier/Payee Submission Form: https://www.finance.upenn.edu/supplier-payee-submission-form/
Payment Terms: Immediate
Purchase Order Shipping & Freight Terms
University purchase order shipping and freight terms are established by Procurement Services when adding a new supplier to the BEN Buys Approved Supplier Database. The Purchase Order Shipping & Freight Terms listed below establishes responsibility for ownership of products during transit and responsibility for related shipping charges and claims. Procurement Services will attempt to negotiate the more favorable terms to eliminate supplier shipping charges during negotiations with Approved Contract Suppliers.
| University Standard Shipping & Freight Term | Risk & Responsibility |
| FOB Destination, Freight Prepaid | Seller – Pays freight charges Seller – Bears freight charges Seller – Owns goods in transit Seller – Files claims (if any) |
Standard Shipping Term
The University standard shipping term is “FOB Destination”, which means that title to the material passes from the Seller to the University when the freight carrier delivers the material to the University ship-to location indicated on each purchase order.
Standard Freight Term
University purchase order related freight terms are “Freight Prepaid” which means that freight charges are prepaid by the Seller. Unless negotiated into the cost of products with contract suppliers, the freight charges are then added to the invoice as a separate charge.
Alternate Shipping & Freight Terms
Procurement Services will only consider alternate terms if deemed in the best interest of the University. Purchase Services is the only organization authorized to establish new or modify existing purchase order shipping and freight terms.