Purchase Order Process - DOC by pje14554

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									                                                                                    PURCHASING OVERVIEW – PURCHASE ORDER PROCESS

              Estimated Value                                                        Approach:                                                                                Approvals:
Less than $5,000                             1.    Consider using LCC Card for small dollar purchases. Ensure vendor accepts            1.   Purchases made on an LCC Card must be reconciled by payday Friday in CONCUR.
(this means $4,999 or less)                       VISA card before placing order.                                                       2.   Requestor’s Supervisor must approve requisition. Banner will not forward without
                                             2.    If not on an LCC Card, Customer inputs Banner Requisition. If vendor is not in            Supervisor’s approval.
                                                  Banner, they will need to complete a Vendor Application and W-9.                      3.   Purchase Order approval is required (Purchasing Coordinator: Caroline Duda).
                                             3.    Purchasing will award to the suggested source. We will call vendor to identify the
                                                  work, discuss the price and award the purchase order.
                                             4.    If purchase is a service on a Banner Requisition the customer must process a
                                                  Banner Receiver after services have been received and accepted. If items
                                                  delivered to Campus Receiving they will process the receiver.
                                             5.   Vendor mails invoice to Accounts Payable and they will process payment if there
                                                  is a purchase order, receiver, and invoice. This is called the “three way match.”
Between $5,000 and less than $25,000 (this   1.   Customer inputs Banner Requisition. If vendor is not in Banner, they will need to     1.   Requestor’s Supervisor must approve requisition. Banner will not forward without
means $24,999 or less)                            complete a Vendor Application and W-9.                                                     Supervisor’s approval.
                                                  1. a. Exception: No Bid Justification Letter if $5,000 or more and vendor is not a         1. a. Requesting official of at least the level of a Dean.
                                                        sole source for the supply or service.                                               1. b. Requesting official of at least the level of Dean.
                                                  1. b. Exception: Sole Source Justification if there is no other source that can       2.   Purchase Order approval is required (Purchasing Coordinator: Caroline Duda).
                                                        provide supply or service.                                                           Note: Purchasing is responsible for determining contract type (e.g. Purchase Order
                                             2.    Purchasing will call at least 3 qualified vendors to identify the work, discuss           versus Blanket Order). Customer will be informed of the contract type and their
                                                  various approaches and request written quotations. The buyer will evaluate the             responsibilities.
                                                  quotes, document decision, and award a Purchase Order to the vendor who
                                                  provides the most favorable quote to the College.
                                             3.    If purchase is a service on a Banner Requisition the customer must process a
                                                  Banner Receiver after services have been received and accepted. If items
                                                  delivered to Campus Receiving they will process the receiver.
                                             4.    Vendor mails invoice to Accounts Payable and they will process payment if there
                                                  is a purchase order, receiver, and invoice. This is called the “three way match.”
$25,000 or More                              1.   Customer provides a Statement of Work (for services) or Banner Requisition            1.   Preliminary project approval must be given by Supervisor. This means they have
                                                  (supplies) with an estimated cost of $25,000 or more. If vendor is not in Banner,          available budget for the purchase. Purchases of $100K or more require approval of
                                                  they will need to complete a Vendor Application and W-9.                                   the CFO prior to submission to Purchasing.
                                                  1. a. Exception: No Bid Justification Letter if $5,000 or more and vendor is not a         1. a. Requesting official of at least the level of a Dean.
                                                         sole source for the supply or service.                                              1. b. Requesting official of at least the level of Dean.
                                                  1. b. Exception: Sole Source Justification if there is no other source that can       2.    Purchase Order Approval (Director: Beckie Beard).
                                                         provide supply or service.                                                           Note: Purchasing is responsible for determining contract type (e.g. Purchase Order
                                             2.    Purchasing reviews Statement of Work or Banner Requisition. Buyer prepares                versus Blanket Order). Customer will be informed of the contract type and their
                                                  and issues an Invitation for Bids (supply) or Request for Proposals (supply and            responsibilities.
                                                  services, or services only). Holds public bid opening. Assembles evaluation           3.   Board of Trustees must approve purchases of $100K or more. Once approval is
                                                  committee, holds interviews as needed, and makes award recommendation. If                  given, Purchasing will process the purchase order. (Director: Beckie Beard and
                                                  less than $100K can proceed with award.                                                    Chief Financial Officer: Catherine Fisher will process approvals in Banner).
                                             3.    If award is $100K or more, Purchasing prepares a Pre Award Transmittal for the
                                                  Board packet. The Board of Trustee will review and provide approval or rejection
                                                  of the purchase.
                                             4.    If purchase is a service on a Banner Requisition the customer must process a
                                                  Banner Receiver after services have been received and accepted. If items
                                                  delivered to Campus Receiving they will process the receiver.
                                             5.    Vendor mails invoice to Accounts Payable and they will process payment if there
                                                  is a purchase order, receiver, and invoice. This is called the “three way match.”


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