Pay invoices

Understand the steps involved to pay suppliers.

Why pay invoices?

Paying invoices in a timely manner:

The services provider has costs, including paying its staff and suppliers.  Provided the service provider has met its contractual obligations, it is entitled to payment.

If not handled promptly, the operation of the contract may be jeopardised.  Late payment:

  • threatens service delivery
  • impacts the contractual relationship
  • may generate penalty costs against the Agency

Payment methods include:

  • payment on invoice – the post common form of payment
  • automatic payment – used for some contracts, such a magazine subscriptions
  • corporate card – subject to local Agency policy
  • payment in overseas currency - special processes apply

How to pay invoices 

Step 1: Confirm conditions for payment have been met  

Confirm that the conditions for payment have been met.

The basis for payment may be based on:

  • acceptance of deliverables
  • achievement of milestones

Step 2: Determine if the invoice reflects the services provided  

Determine if the invoice reflects the deliverables accepted.

Can the invoice, as presented, by paid in full?

  • If yes, go to Step 5.
  • If no, go to Step 3.

Step 3: Determine if part payment can be made  

Confirm that the invoice reflects the deliverables accepted.

Can part payment of the invoice be made?

  • If yes, go to Step 4.
  • If no, return the invoice to the service provider and explain why the invoice will not be paid.

Step 4: Adjust invoice for part payment  

Advise the service provider that part payment will be made and explain why.

Adjust the value of the invoice for part payment.  If necessary, have the service provider submit a revised invoice.

Step 5: Receipt invoice against purchase order  

Record receipt of the invoice against the purchase order in the Agency’s financial management system.

Follow local Agency processes to:

  • obtain approval to pay the invoice
  • signify approval of the invoice
  • transfer the invoice to the Agency’s accounts payable team

Approval processes may be:

  • workflow within the Agency’s financial management system
  • paper based

Step 6: Record details of the payment  

Track details of the payment to allow contract and budget management activities to be followed.


Manage probity and conflicts of interest  

Manage probity – consider issues raised at Probity issues by stage and task.

Conflicts of interest can arise during this task.  Identify, declare and manage these.

Address Agency rules 

Consult Agency procurement team for advice on meeting:

Follow Agency specific rules on when to seek an approval and who can give the approval.

Follow Agency specific rules for recording decisions and storing records.