Purchase Orders

Overview

Purchase of goods and services

A supplier will need a Purchase Order (PO) BEFORE work can begin for all goods and services, regardless of the amount. There are limited exceptions to that requirement noted below.

Payments not requiring a PO (non-PO)

For purchase of goods less than $10,000 many departments have a Visa purchasing card (PCard) that can be used. This method is NOT acceptable for the purchase of services. If you accept payment via credit card and meet the requirement above, please discuss this option with your Lilly contact to determine if the purchase can be made via the PCard. Otherwise, a PO is required to receive payment of your invoice.

Other exceptions not requiring a PO

Acceptable exceptions include: Payments to government organizations, financial institutions and civic organizations. Payment for utilities, corporate association & membership dues, leased real property, farm animals, alliance fees & milestones, insurance, royalties and 3rd party business travel. Please work directly with your Lilly contact to obtain direction on invoicing for your services.

Click here for acceptable methods to submit invoices to Lilly.

PO Terms and Conditions

  • Standard terms are 60 days.
  • Terms will begin when Lilly RECEIVES the supplier’s invoice.
  • Lilly makes weekly payments, typically on Tuesdays. Lilly does not pull forward payments. If the invoice is not due at the time of the weekly payment run, the invoice will be paid during the next weekly payment.
  • Suppliers wishing to be paid earlier can enroll in Lilly's Early Payment Program.
  • All payments to a supplier must be made to the supplier either:
    1. in the country where the third party's principal business is incorporated; or
    2. in the country where the goods are supplied or services are rendered, but only if the third party has an office in and normally conducts business in that country.

PO Terms by Country