MDOT Revolutionizes Vendor Payments with New Digital Invoice Submission System

The Maryland Department of Transportation (MDOT) is set to transform the way vendors submit invoices and receive payments. With the launch of a fully digital, automated invoice submission and processing solution, MDOT aims to streamline operations, reduce errors, and enhance the overall vendor experience. This innovative system is designed to ensure faster, more predictable payments, aligning with the expectation of payment within 30 business days as outlined in COMAR 21.06.09.02. In a world where timely payments can make or break small businesses, this shift to digital is significant.

As we approach the go-live dates, vendors and small businesses working with MDOT should prepare for this significant change in the invoicing process. Transitioning to a paperless system will not only simplify submissions but also improve overall efficiency across all MDOT agencies.

Key Features of the New System

Beginning September 17, 2025, the Secretary’s Office (TSO) and the Motor Vehicle Administration (MVA) will pioneer the implementation of this digital invoicing solution. Following closely on October 14, 2025, other MDOT branches, including the Maryland Aviation Administration (MAA), Maryland Port Administration (MPA), Maryland Transit Administration (MTA), and State Highway Administration (SHA), will adopt the new system.

By eliminating traditional paper handling and fragmented email chains, MDOT aims to create a more cohesive and efficient invoicing process. A 2022 study by the Institute of Finance found that organizations that transitioned to digital invoicing saw a 20% reduction in processing time. This shift is expected to lead to quicker payments, fewer exceptions, and a more straightforward process for all vendors involved.

Benefits for Vendors

Vendors can expect several advantages with the new MDOT digital invoicing system:

Quicker Payments: The automated process is designed to expedite payment timelines. In fact, reports show that companies using automated invoicing experience 30% faster payments than those relying on manual processes.
Fewer Exceptions: Reducing manual handling significantly minimizes errors. Studies indicate that automated systems can decrease invoicing errors by up to 50%, which means fewer disruptions and delays in payments.
Simpler Process: The shift to a paperless invoicing system will streamline submissions. Vendors will find it easier to manage their invoices, ultimately saving time and resources.

These improvements are particularly crucial for Maryland vendors and small businesses, as they have a direct impact on cash flow and operational efficiency.

Essential Requirements for Vendors

To ensure the success of this new system, MDOT requires vendors to submit clean and complete electronic invoices. This means that submissions must flow through automation without the need for manual rework. Here are some critical guidelines for vendors to follow:

One Invoice per Email: Each invoice should be sent as a single PDF attachment to the designated email address for the specific mode.
Main Invoice on Page One: Ensure that the main invoice is clearly visible on the first page of the PDF.
File Size Limit: Keep all files under 36 MB to facilitate smooth processing.
Clear Layout: Use a clear and legible layout with standard fonts and minimal clutter. This enhances readability for all parties involved.
Required Fields: Include all essential details such as Vendor Name, FEIN, Invoice Number, Invoice Date, Due Date, Total Amount, and—when applicable—PO/BPO/Contract Number. Incomplete information can lead to delays.

Transition Preparedness Checklist

To help vendors prepare for the transition, MDOT has put together a checklist to ensure compliance with the new invoicing requirements. Following these steps can facilitate a smoother transition:

Refresh Your Invoice Template: Ensure your invoice template includes all required fields.
Standardize Filenames: Adopt a consistent naming convention for your PDF files (e.g., VendorName_Invoice#_YYYYMMDD.pdf) for better organization and retrieval.
PDF Quality Check: Perform a quick quality check on your PDFs to ensure they are clear, correctly ordered, and that totals are accurate.
Maintain a Submission Log: Keep a log of submission dates, modes, confirmations, and payment statuses to track your submissions effectively.
Brief Your Teams: Make sure your accounts payable and project teams are aware of the one-invoice-per-email rule.
Retire Paper Workflows: Move away from any remaining paper-based processes to fully embrace the new digital system.

By following this checklist, vendors can ensure a smooth transition to the new MDOT digital invoicing system.

Support and Resources Available

To assist vendors during this transition, MDOT will provide a Vendor Quick Reference Guide, along with FAQs and reminders. This support will be invaluable in helping organizations test and adapt to the new system without disruptions. Vendors are encouraged to familiarize themselves with the latest requirements and prepare for the upcoming go-live dates.

By switching to PDF-based submissions and adhering to the content and formatting checklist, vendors can anticipate a faster and more reliable payment experience across all MDOT modes.

Looking Ahead

The Maryland Department of Transportation's new digital invoice submission and processing solution marks a significant step forward in vendor payment systems. By embracing a fully automated, paperless process, MDOT is not only enhancing its efficiency but also ensuring that vendors receive their payments in a timely manner.

As the go-live dates approach, Maryland vendors and small businesses need to prepare for this transition. By following the outlined guidelines and utilizing the resources provided by MDOT, vendors can navigate this change smoothly and enjoy the benefits of quicker payments and a simplified invoicing process.

In summary, the shift to digital invoicing represents an excellent opportunity for both MDOT and its vendors, paving the way for a more effective partnership in the future.