University Purchasing

1
University Purchasing
Part I
2
Contents

• Online Purchase Requisition
• Blanket Purchase Orders
• The Procurement Process
• Prepayments
• Confirming Orders
• Unauthorized Orders
• Rush Orders
• Emergency Orders
• After-Hours Emergencies
• Receiving Inspecting Goods
• Returning Goods

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Online Purchase Requisition

• When to use a requisition
• Online requisitions must be used whenever goods
  and services are ordered from a supplier that is
  external to the University.
• To order goods or services for your department
  you must issue an online purchase requisition
  through the Colleague Distributed Financials
  system.
• Training on the Distributed Financials system is
  required and is offered through OCIS.

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Online Purchase Requisitions

• Contd
• Contact OCIS at Ext. 76000 for a schedule of
  upcoming classes.
• It is important when completing the description
  field (field 22) in Colleague Financials that
  you include a full description of the item being
  ordered and not just a part or model .
• Ordering goods and services in a timely manner
  will prevent a last minute rush for all
  departments involved.

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Blanket Purchase Orders

• Blanket orders are issued for recurring orders
  with the same supplier, to eliminate issuing
  multiple orders throughout the fiscal year.
• Once the blanket purchase order is set up with
  the supplier, the department can order items
  against the blanket purchase order.
• Each time a purchase is made by the department,
  the blanket order amount is reduced by the amount
  of the invoice received in General Accounting.
• If the balance in the blanket order is
  insufficient for purchases to be made through the
  end of the fiscal year, the blanket order can be
  increased.

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Blanket Purchase Orders

• Contd
• The department can increase a blanket purchase
  order by sending an email to University
  Purchasing requesting the increase.
• The blanket order number and the amount by which
  the blanket purchase order should be increased
  must be included in the departments email.
• Equipment purchases are not permitted on blanket
  purchase orders.

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The Procurement Process Flow Chart
Requestor Initiates (completes on-line)
Department Approval (authorized signature) On-line
Budget Office Approval of All Requisitions of
500 or more, Approval over 1,000 VP Fin
Admin and Department VP, Accounts 5034, 5077
Approvals
University Purchasing Reviews, obtains pricing
and codes the requisition
Receipt of Good Services By Materiel
Services/Department
Invoice Processing receives invoice and sends to
dept for approval(1,000)
General Accounting Processes Invoice for Payment
to Supplier
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Prepayment

• Some suppliers require a prepayment with the
  purchase order (examples subscriptions, hotel
  reservations, memberships) therefore, the exact
  price should be determined before prepayment is
  requested.
• Follow the steps below to process a prepayment
  order
• 1. Send all copies of order forms and invoices
  that will
• accompany the prepayment to University
• Purchasing. Original invoice is to be sent
  to General
• Accounting.
• 2. Write the requisition number on all
  documentation being
• sent. The requisition number is the
  number automatically
• assigned to a requisition through the
  online Distributed
• Financials purchasing system.

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Confirming Orders

• Confirming Orders are orders that are placed with
  a vendor without appropriate internal approvals
  and without an approved University Purchase
  Order.
• This practice is in violation of University
  procedure and is severely discouraged.

10
UNAUTHORIZED ORDERS

• Purchases of Goods or Services Placed Without an
  Approved University Purchase Order Number
  Include
• All telephone orders.
• Items added to an existing order verbally.
• Items purchased prior to the creation of a
  purchase
• order.
• Orders placed using a prior years blanket or
  purchase order number.

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Rush Order Procedure

• Input a requisition in the online Distributed
  Financials System.
• Be sure to obtain all necessary department
  approvals.
• Call the director of General Accounting for
  budget approval Lynda Wehrmaker at Ext. 73155.
• Once budget approval is obtained, General
  Accounting will notify Purchasing of the
  requisition number.
• Order.

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Rush Order Procedure

• Contd
• Purchasing will then call the supplier to place
  the Purchase Order and they will mail the
  Purchase Order copy to the supplier.
• Purchasing will create the Purchase Order if
  there are no issues.
• The Purchase Order will be marked Confirming

13
Emergency Orders

• What Constitutes an Emergency?
• Life safety hazards
• Keeping vital equipment operational
• Preventing the deterioration of an
  experiment/research project
• The bid process may be waived in emergency
  situations.

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Handling Emergency Purchase Orders

• If you are ordering against a blanket purchase
  order the normal approvals are already in place
  therefore you may order against an existing
  blanket order directly with the vendor.
• If your purchase is not against a blanket
  purchase order, you must issue a regular purchase
  requisition through the Colleague Financials
  system.
• Obtain a price quote from the supplier.
• Enter an online requisition.
• Call General Accounting for Approval
• General Accounting will notify University
  Purchasing about the
• emergency requisition.
• University Purchasing will call the order in to
  the supplier.
• University Purchasing will code the requisition
  and print the purchase order.

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What Do I Do In An Emergency Situation After
Regular Hours

• After hour emergency purchases
• If the situation meets the definition of an
  emergency as outlined above do the following
• Immediately make the necessary purchase directly
  with the supplier.
• Contact University Purchasing the next work day
  to inform them of the emergency purchase.
• Prepare and process the online requisition
  through Colleague Distributed Financials.

16
Receiving Inspecting Goods

• F.O.B. (free on board) is the location where the
  title of ownership of the goods are passed from
  the seller to the buyer.
• F.O.B. Destination The supplier is responsible
  for the loss or damage of the order until it is
  delivered to the owners site. The supplier is
  responsible for filing a damage/loss claim with
  the shipper. The freight costs are included in
  the price.
• F.O.B. Shipping PointThe title of the goods is
  passed to the owner once it leaves the suppliers
  location. The owner is responsible for the loss
  or damage of the order while it is in transit
  and will have to file any damage/loss claim with
  the shipper. Freight costs will be itemized
  separately on the invoice.

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Receiving Inspecting Goods

• When receiving a package check the following
• The number of items received, item description,
  and quantities on the purchase order vs. the
  packing slip.
• Examine the carton (s) closely for any damage.
• If the cartons are damaged, open and examine the
  contents before signing the delivery receipt.
• Describe any damage on the delivery receipt.
• Save the cartons if you find damage.
• When the inspection of goods cannot be made while
  the shipper waits, the delivery receipt should be
  marked goods accepted subject to inspection.

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Receiving Inspecting Goods

• Contd
• Concealed Damage
• Concealed damage is damage to the product that
  cannot be detected during the initial inspection
  (at the time of receipt) of the item.
• What to do if there is a problem with an order
• 1. Contact the University Purchasing.
• University Purchasing will address the issue
  directly with the supplier.

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Returning An Order To The Supplier

• There are occasions when an item will have to be
  returned to the supplier. When this occurs,
  departments should call Materiel Services and
  they will obtain a return authorization number.
• Definitions
• Return authorization number A number given by
  the supplier approving the return of an item.
• Credit memo A statement issued by the supplier
  indicating that a credit has been issued to the
  customers account after an item has been
  returned.