Policy ID:
Date Instituted: May 1, 1997
Last Revised: May 1, 1997
Policy Description
The purchase order process is initiated and carried out using either of the processes listed below. However, it is the EPOR process that is preferred.
I. Electronic Purchase Order Requisition Process (EPOR):
To complete an EPOR refer to your FRS reference guide (which is available from the Controller's Office) or contact Procurement.
II. Purchase Order Requisition Process:
A. The originating department determines its needs for goods or services and contacts Procurement if necessary. A table of dollar levels will determine whether to competitively bid at this point. This table is detailed in the section entitled "Competitive Bidding" (104.6).
B. The originating department issues a Purchase Order Requisition (POR) to the Procurement Department.
C. Procurement verifies the budget balance available and verifies signature authorizations.
D. If POR's are rejected Procurement will forward them to the originating department for further action.
E. Procurement assigns a purchase order number to the POR and encumbers the order in the Financial Reporting System (FRS).
F. If a POR is approved, Procurement will produce a corresponding Purchase Order which will be printed the next business day.
G. Director of Procurement signs the Purchase Order and distributes it.
III. Invoice Processing:
A. Vendors are instructed on their purchase order copy to mail invoices directly to the originating department.
B. After receipt of the vendor's invoice, evidence of satisfactory receipt of the goods or services ordered must be indicated on the invoice in the following fashion:
- The employee who is in a position to evidence receipt must sign the invoice and date his or her signature.
- The date the goods or services were received must be indicated for invoices processed in June and July, due to fiscal year-end considerations.
- The purchase order number must be indicated.
Poor or unsatisfactory condition of goods received should be directly communicated to Procurement. This procedure should be followed immediately upon receipt of the goods or services as indicated on the purchase order.
C. Once receipt is indicated, as per the above, the vendor invoice should be forwarded to Procurement who will match the invoice to the purchase order. Quantity and price differences exceeding the greater of $25.00 or 5% of the cost of the purchase will be forwarded to the user department for adjustment or approval.
D. Procurement will only process for payment an original vendor invoice. Vendor statements, unless a "statement" is the vendor's only billing approach, will not be processed for payment. In addition, copies of vendor invoices will only be used upon confirmation from the department that the original invoice is unavailable. Procurement, in processing a copy, must confirm in the A/P system that the original was not already paid and denote it on the copy.
E. Once Procurement completes its purchase order match and confirms receipt of goods or services by the ordering department, the invoice will be checked for clerical accuracy and will be entered into the A/P system for payment.
F. Where a department disputes a vendor invoice, the following procedure should be followed prior to sending the invoice to Procurement.
- The department should contact the vendor and get a revised bill, thereby discarding the original, or
- Have the vendor send a credit memo, approve the net amount for payment, and attach the credit memo to the bill, or
- If the department cannot get either 1. or 2. above, a description of the situation and the name of the vendor contact who has acknowledged the invoice adjustment should be either put on the invoice or in a memorandum attached to the invoice.
IV. Requisition for Manual Check:
Manual checks should be requested only in emergency situations. The request must be in writing with the appropriate Division Head's approval.
