Buying Tools

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Purchase Orders and eStores
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Purchase Order Summary

• Web site http//purchasing.osu.edu/
• Intended use Most often used purchasing tool.
• This tool produces an agreement between the
  vendor and the University prior to purchase and
  it produces an encumbrance of funds in the
  general ledger.
• Special buying considerations State law requires
  certain conditions and competitive bidding for
  certain purchases. Please see the purchasing Web
  site for more information.
• Form(s) Requisition form (1303) for all
  orders
• AP Payment Compliance form for new vendors
• Attachment(s) Quotes, contracts, agreements
• Distribution To the Business Office for
  processing or online entry for delegated buyers
  and requisitioners
• Timing 2-4 weeks depends largely on the
  complexity, size and type of order

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What is a Purchase Order?

• A purchase order is an agreement for a good or
  service between a vendor and the University.
• The agreement contains terms and conditions that
  may be used to protect the Universitys
  interests.
• A purchase order is used to obtain the best
  product for the best value.
• Most purchasing transactions require a Purchase
  Order prior to purchase.
• A Purchase Order provides details of the order, a
  promise to make payment and the Universitys
  terms and conditions to the vendor.
• The University reserves the right to refuse any
  transaction which does not follow procedure. The
  person making the purchase may then be personally
  liable for payment.
• The payment portion of the transaction occurs
  through a separate Accounts Payable procedure

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Purchasing Home Page http//purchasing.osu.edu/
Note Links, Policies and Procedures, IBuy,
Contacts and MBP
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Special Buying Considerations

• The use of public funds for purchases is subject
  to a number of limitations bid requirements,
  minority vendor purchase requirements, conflict
  of interest prohibitions, and restrictions placed
  by funding agencies or donors. The OSU Purchasing
  Department is responsible for ensuring that all
  purchases made by the University comply with
  these laws and restrictions.
• BIDDING REQUIREMENTS - Goods over 25,000 and
  services over 50,000 must be submitted for a
  competitive bid open to all vendors.
• BUY AMERICAN - Ohio law requires the Purchasing
  Department to give first consideration to goods
  which are mined or produced in the United States.
• BUY OHIO - Ohio law requires the Purchasing Dept
  to participate in the Buy Ohio Program.

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Special Buying Considerations

• STATE USE LAW Ohio Industry for the Handicapped
  (OIH) - Ohio law directs that any instrumentality
  of the state utilize a qualified non-profit
  state agency for the purchase of products and/or
  services which are available from a work center
  employing persons with disabilities.
• Ohio Penal Industries (OPI) - Ohio law directs
  that any instrumentality of the state utilize
  the Department of Rehabilitation and Corrections
  for the purchase of products and/or services
  available from state correctional and penal
  institutions.
• MINORITY VENDOR - In 1981, State of Ohio
  Appropriations Bill 694 set the stage for the
  University to structure its approach to bring
  more minority suppliers into the OSU marketplace.
  It is the University's goal to procure
  approximately 15 of its goods and services from
  state-certified minority vendors (CMV).
• CAPITAL IMPROVEMENTS - A capital improvement is
  defined as a project with a total dollar value of
  200,000 or more and/or one that is substantially
  architectural.
• Want more information on this topic? Visit the
  Purchasing Web site http//purchasing.osu.edu/

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Special Buying Consideration Implementation

• Know the policies
• Allow extra time for transactions that involve
• Other countries
• Other states
• Copiers
• Printing
• Mattresses
• Cleaning
• Goods over 25k, Services over 50k
• Allow extra time when paying an individual
• Allow extra time for Blanket Purchase Order
  invoices and Invoices over 1000.
• These require in the system approval by the
  department before payment is made to the vendor.
• Look for Certified Minority Vendors in your area

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Minority Business Program Job Aid

• As a department of The Ohio State University we
  are required to consider Certified Minority
  Vendors when making purchases on behalf of the
  University. The OSU Purchasing Web site offers
  tools to help meet this requirement.
• General Information
• From the OSU Purchasing Web site
  http//www.osupurchasing.com/minoritybiz/index.asp
  

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Minority Business Program Job Aid

• For Vendors who are not certified
• From the OSU Purchasing Web Site
  http//www.osupurchasing.com/minoritybiz/index.asp
  
• Other Questions? Contact OSU Purchasing
  http//www.osupurchasing.com/tabfiles/contactus.as
  p

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Special Approvals and ReviewThese items require
additional approval and must be processed using a
Purchase Order

• Advertising (except classified advertising up to
  5,000) Director, University Marketing
  Communications
• Aircraft Assistant Vice President, Business
  Operations
• Alcohol Appropriate Dean, Chair or VP
• Auditing and Accounting Services Director,
  Internal Audit
• Master Equipment Lease Treasurer, Office of
  University Treasurer
• Gas Cylinders (Hospital Lab Gases) Director,
  Purchasing Department
• Insurance, Liability (non-medical) Treasurer,
  Office of University Treasurer
• Letterhead Director, University Marketing
  Communications
• Off-Campus Leased Space Director, Real Estate
  and Property Management
• Office Equipment (copiers) Senior Buyer,
  Purchasing Department
• Painting Services and Renovations involving
  Painting Services Director, Purchasing
  Department
• Portable and Mobile Radio Equipment Assistant
  Vice President for Public Safety
• Radioactive Material Assistant Vice President,
  Environmental Health and Safety
• Renovation and Construction over 200,000
  Assistant Vice President of Facilities Planning
  Development

Pull this page out and use for reference. These
items CANNOT be purchased on a Purchasing Card or
using the Checking Account.
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Special Approvals and ReviewThese items require
additional approval and must be processed using a
Purchase Order
Pull this page out and use for reference. These
items CANNOT be purchased on a Purchasing Card or
using the Checking Account.

• Repair, Renovation and Construction under
  200,000 Manager of Construction and Renovation,
  Physical Facilities
• Satellite Dishes/Antennas Assistant Vice
  President of Facilities Planning Development
• Security Alarm Systems Assistant Vice President
  for Public Safety
• Signage (Interior and Exterior Building) Campus
  Graphic Coordinator, Facilities Planning
  Development
• Telephone, Pager Equipment and Supplies
  Director, UNITS
• Vehicles Director, Transportation and Parking
  Services
• Vending Services Vending Coordinator, Purchasing
  Department
• Video Production over 5,000 Director,
  University Marketing Communications
• Weapons, Ammunition and Explosives Assistant
  Vice President for Public Safety
• Want more information on this topic? Visit the
  Purchasing Web site http//purchasing.osu.edu/

Updated 07/21/2008
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Types of Purchase Orders

• General Purchases (predictable)
• Who Milos Catering
• What Catering, approximately 10 boxed lunches at
  each session including delivery
• Where 114 Kottman Hall
• When 1/23/07, 1/31/07 and 2/8/07
• Why Buying 101 and eReports training, no time to
  leave for lunch.
• How Box lunches via purchase order
• Special Instructions will confirm one week
  before the event with the final count and menu.

Dont forget! Contact your Business Operations
Representative for Requisition assistance.
HOW MUCH 25 per hour, X estimated yearly use 10
hours 250 estimated amount
HOW MUCH 10 box lunches X 10 ea X 3 meetings
300 estimated amount
Dont forget! A clear Business Purpose is
required on ALL forms.
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Types of Purchase Orders
Dont forget! Contact your Business Operations
Representative for Requisition assistance.

• Blanket Purchases (unpredictable)
• Who Building Maintenance Co.
• What Emergency building maintenance needs
• Where 132 Stanton Avenue, Columbus, Ohio
• When Unknown (as needed)
• Why Need occasional, emergency maintenance for
  owned office building.
• How Replaces Purchase Order 570117A002
• Special Instructions All releases on this order
  must be pre-approved.
• Maintenance Agreements and Equipment
• Special instructions Include Model Number,
  Serial Number and location of the equipment.

Dont forget! A clear Business Purpose is
required on ALL forms.
HOW MUCH 10 box lunches X 10 ea X 3 meetings
300 estimated amount
HOW MUCH 25 per hour, X estimated yearly use 10
hours 250 estimated amount
Updated 07/21/2008
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General vs. Blanket PO

• How are they different?
• Blanket timing is unpredictable.
• General is predictable.
• How are they the same?
• Both require a specific commodity and items to be
  purchased.
• Ex. Blanket PO from Walmart for desktop office
  supplies cannot be used for food demonstration or
  craft supplies.
• Both require written approval on the invoice once
  it is received.
• Why is it important to distinguish?
• Blanket Purchase Order purchases must be logged
  and pre-approved on a Blanket Order Release Form
  which can be found on the Business Office Web
  site http//osuebusiness.ag.ohio-state.edu
• Blanket Purchase Order invoices require
  electronic approval in addition to the manual
  approval.

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HOW
WHERE
WHO
WHEN
A Requisition Form creates a Purchase Order.
Tell the story What AND Why AND How much
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Use with new vendors only. Use PeopleSoft
Inquiry to see if a vendor is new!
Be sure to cross out this fax number and put your
fax number if you want the form to come back to
your office!
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Creating a Purchase Order
Average process time from start to finish is 6
weeks. Allow time for all of these steps!
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Approving a Voucher (Invoice)
All Invoices require PRE and POST
approval!!!
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Blanket Purchase Order Invoices and Invoices
1000

• Release Log process
• Identify need, get estimated cost.
• Receive approval from the director, either on log
  or written in an email or other paper document.
• Complete log, attach approval if appropriate.
• Place order.
• Invoice process
• Office receives an email.
• Print the invoice from the e-mail.
• Review it for accuracy.
• Sign the invoice.
• Approve the invoice in PeopleSoft. See the
  Business Office Web site for instructions on
  approving Vouchers in the system.
  http//clickvideo.ag.ohio-state.edu/peoplesoft/peo
  plesoft.html
• File in reconciliation file.
• Once reconciled put in permanent file.

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Payment Process for Purchase Orders

• Invoice is entered into PeopleSoft
• Chartfield of Department is charged
• Invoice is matched to the purchase order
• Invoice is approved in the system (if needed)
• Check is cut and mailed to the vendor
• Checks are mailed Tuesdays and Thursdays

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Research Foundation purchases

• These purchases fall under many of the same
  guidelines as you have seen here.
• In addition their may be project sponsor
  guidelines you need to follow.
• OSURF purchases should be forwarded directly to
  the Research Foundation.
• For more on Research Foundation purchasing, visit
  their Web site.
• http//www1.rf.ohio-state.edu/

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Questions?

• Contact your Business Office Representative.
• Their information is on the Business Office Web
  site at http//osuebusiness.ag.ohio-state.edu
• All of the forms and web sites referenced in this
  module can also be found on the Business Office
  Web site.

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What is eStores?
Last Updated 04/08/08
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eStores

• a new online ordering system filled with
  catalogs from contracted suppliers
• integrates fully with the PeopleSoft Financials
  System
• supports strategic goals strengthening our
  buying power and streamlining processes while to
  help reduce costs for commonly used products
• similar to other internet shopping so it is easy
  to use

NOTE The OSU Stores Printed Catalog is no longer
valid. The item numbers are out of date!
Please use the online catalog for ALL future
STORES orders.
Last Updated 04/08/08
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How to Place an Order

• 1. Sign in to eStores http//ibuy.osu.edu/estores
  /
• A. You may also access this through OSU Extension
  Business Operations Link page http//osuebusiness
  .ag.ohio-state.edu
• 2. Create a shopping cart
• A. On the ibuy web site there are many online
  learning opportunities if you are struggling with
  the shopping cart. These are meant as self guided
  tutorials.
• 3. e-mail to your Director
• A. Shopping cart
• B. Chartfield from which to pay for the goods or
  service (ORG, FUND and ACCT Required)
• C. Business Purpose for the purchase 
• Note If the Director is creating the cart
  they should e-mail to their supervisor.
• Dont forget to print or save a copy of the
  shopping cart for your records!
• 4. The Director or Supervisor should review the
  Chartfield, business purpose and shopping cart.

Last Updated 04/08/08
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How to Place an Order
Last Updated 04/08/08

• 5. The Director or Supervisor should forward
  approval and shopping cart to the appropriate
  Business Office Representative.
• A. For State and Academic office send to your
  delegated buyer.

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Frequently Asked Questions

• Is it required that we use these vendors for our
  purchase?
• No, for most of these commodities you may still
  choose to use other vendors. These vendors have
  contracts with the University and should be used
  to compare prices to make sure you are getting
  the best product for the best value.
• Are there competing vendors on eStores?
• There is some vendors with the same commodities
  built into the eStores system.
• Will I be required to approve the vouchers that
  are keyed against these purchase orders in
  PeopleSoft?
• Only if the invoice is over 1000. The invoices
  will be automatically paid for the amount of the
  shopping cart, these are guaranteed prices.
  Sometimes we will need to short pay an invoice to
  match the pricing on your shopping cart.

Last Updated 04/08/08
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Frequently Asked Questions

• Will there be shipping costs for these purchases.
  
• No.
• Will I receive invoices for my purchases?
• Yes, invoices will be mailed monthly for your
  purchases.
• Office Max invoices are paid electronically with
  no influence from the Business Office, the
  invoice you receive is only for your
  reconciliation and records.
• Will I need to have Blanket Purchase Order in
  place to order?
• No, each order creates a separate one time
  purchase order.
• Do I have to use eStores?
• Not at this time. Currently you have the option
  of continuing with Blanket Purchase Orders or
  eStores, but eStores will reduce the processing
  steps for your office.

Last Updated 04/08/08
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Frequently Asked Questions

• How long will it take for me to receive my order?
• It depends on what you order. The Business Office
  will process these requests on a daily basis.
  They require in our office an initiator (your
  business office representative) and an approver
  (Brian McClain or Cindy Buxton) so it will take a
  day for us to process. Usually office supplies
  are shipped the next day, other items such as
  computers will take longer.

Last Updated 04/08/08
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Frequently Asked Questions

• Who do I contact if I have questions about my
  order, my invoice or how to use the eStores
  system?
• eStores has established a one stop shop for
  questions, they can act as an intermediary with
  your vendor.
• Your Business Office Representative may also be
  able to help.

Last Updated 04/08/08
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Frequently Asked Questions

• Who are the suppliers currently in eStores?
• Adriatico's Pizza, Apple Computer, AVI
  FOODSYSTEMS, Clara Brown Interiors, Continental
  Office Environments, Dell, Direct Resource,
  Fisher Scientific, GovConnection, Grainger
  Industrial Supply, Hewlett-Packard, HP Products,
  King Business Interiors, Lenovo, Metro Cuisine,
  NAPA - Genuine Parts Company, O'Neil Tents and
  Supplies, Office Max, OM Workspace, Premier
  Office Solutions, Proteam Resources (DKS Group,
  Inc.), Sherwin Williams, Solutions Staffing,
  Stores, Superior Industrial Supply, T-rriffic
  Table Linens, T.W. Ruff, UniPrint, University
  Catering
• More vendors are being added monthly

Last Updated 04/08/08