Frequently Asked Questions

How do I …?

How do I apply for a Purchasing Card? How long does it take after I apply?
How do I change information about a Cardholder?
How do I close a Cardholder’s Purchasing Card? And do I need to mail the Purchasing Card back to Purchasing Services?
How do I reverse Use Tax?
How do I ensure a Purchasing Card transactions will post to PeopleSoft at fiscal year end?
How do I report a lost or stolen Purchasing Card?
How do I dispute a transaction with a merchant?

Can I …?

Can I use my Purchasing Card to purchase bottled water?
Can I use my Purchasing Card to purchase clothing?
Can a student or part-time employee get a Purchasing Card?
Can I share or delegate my Purchasing Card to another person?
Can I use the Purchasing Card if a contract or agreement, requiring signature, is tied to the transaction?
Can I use Sponsored Projects accounts with a Purchasing Card?

What Is …?

What is a Purchasing Card?
What is my Purchasing Card, per transaction limit and how many transactions per day do I get?
What documentation is required for Purchasing Card transactions? What is the retention for these documents?
What if my Purchasing Card is declined?
What is a Merchant Category Code (MCC)? How do these codes affect my Purchasing Card?
What is Use Tax? How does it apply to the Purchasing Card?

Do I …?

Do I pay tax on magazine subscriptions?
Do I have to move/transfer (IX) Purchasing Card expenses from the default Object/Sub-object codes to more specific Advantage Object/Sub-Object code(s?

How do I …?

How do I apply for a Purchasing Card? How long does it take after I apply?

Complete the Cardholder Account Application form, refer to Forms On-line. Once the appropriate forms are completed, print, sign, date and mail to Purchasing Services, Box 4124, Attention: Maureen Lintel. Once a Cardholder Account Application form is received, you will be enrolled in the on-line training course. Notification and information about the training will be delivered via e-mail. After you complete the training Purchasing will process your application. It usually takes less than two weeks to receive the Purchasing Card.

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How do I change information about a Cardholder?

To change a Cardholder’s information, complete the Change Request Form, refer to Forms On-line. Once the appropriate forms are completed, print, sign, date and mail to Purchasing Services, Box 4124, Attention: Maureen Lintel.

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How do I close a Cardholder’s Purchasing Card? And do I need to mail the Purchasing Card back to Purchasing Services?

To close a Cardholder’s Purchasing Card, complete the Change Request Form, refer to Forms On-line. Once the appropriate forms are completed, print, sign, date and mail to Purchasing Services, Box 4124, Attention: Maureen Lintel. Closed or deleted Purchasing Cards shall be retrieved from the Cardholder and destroyed. Do not mail the Purchasing Card to Purchasing Services.

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How do I reverse Use Tax?

Please contact the Comptroller’s Office to reverse Use Tax.

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How do I ensure a Purchasing Card transactions will post to PeopleSoft at fiscal year end?

Goods and services shall be expended in the year they are received. There is no guarantee a Purchasing Card transaction will post to the University’s PeopleSoft financial system prior to year-end. However, there are some steps that can help achieve that goal.

When the Purchasing Card is used, the merchant may hold the Purchasing Card transaction posting for several days. This event could create an accounting problem at the end of a fiscal year (June 30th.). To ensure that Purchasing Card expenditures are properly recorded in the year goods and services are received, the Cardholder shall inform the merchant that the transaction shall be posted the same day as the transaction and prior to June 30th. To ensure proper recording of expenditures, it is recommended that the Purchasing Card not be used during the last week of the fiscal year (June 30th).

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How do I report a lost or stolen Purchasing Card?

Immediately contact the JP Morgan Chase Customer Service Center at 1-800-270-7760.

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How do I dispute a transaction with a merchant?

The Cardholder should contact the merchant to resolve the issue. Most merchants will credit the Purchasing Card or replace damaged goods immediately. If the issue can not be resolved by the Cardholder, the Cardholder should call the dispute department at JP Morgan Chase at 1-800-270-7760 to initiate the dispute process.
Note: Disputes should be initiated as soon as possible due to possible time limitations. Some merchants limit disputes to 30-60 days after the transaction date.

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Can I …?

Can I use my Purchasing Card to purchase bottled water?

No. Currently, the Purchasing Card shall not be used for the purchase of bottled water. For detailed instructions, refer to Purchasing Card Program Information or the Purchasing Card Training manual: "A Guide for Users”.

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Can I use my Purchasing Card to purchase clothing?

Yes. However, certain restrictions shall apply. First and foremost, all Purchasing Card transactions shall serve the public purpose and further the goals of the University. Purchasing Card transactions shall adhere to the University’s Purchasing Policy and Procedures. Additionally, refer to Fiscal Practices Memorandum (February 12, 1996). Secondly, the transaction shall not violate any other exceptions listed in the Purchasing Card policy and procedure. For details, refer to Purchasing Card Program Information’ or the Purchasing Card Training manual: "A Guide for Users”.

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Can a student or part-time employee get a Purchasing Card?

Currently, a student is not eligible for a University Purchasing Card. A part-time NAU employee is eligible for a University Purchasing Card as long as the part-time employee is on the University’s payroll system.

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Can I share or delegate my Purchasing Card to another person?

No. A Purchasing Card shall not be shared with others. Only the Cardholder has authority to make purchases using his or her Purchasing Card.

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Can I use the Purchasing Card if a contract or agreement, requiring signature, is tied to the transaction?

Yes. However, signature authority for the University rests with Purchasing Services. Therefore, transact your purchase with the Purchasing Card and forward the contract/agreement to Purchasing Services for execution.

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Can I use Sponsored Projects accounts with a Purchasing Card?

Yes. All policies and procedures governing a sponsored account apply in the Purchasing Card program.

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What Is …?

What is a Purchasing Card?

The Purchasing Card is a corporate liability card. It is a fast convenient way for departments to spend moneys directly from designated budgets. The Purchasing Card is issued to an individual, but the University is responsible for paying the bill.

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What is my Purchasing Card, per transaction limit and how many transactions per day do I get?

The default limit is $5000.00 per transaction. This limit shall include tax and freight. Transactions shall not be artificially split to circumvent the $5000.00 limit. Currently, the default limit is five (5) transactions per day.

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What documentation is required for Purchasing Card transactions? What is the retention for these documents?

For each Purchasing Card transaction, the Purchasing Card Cycle Transaction Log, original invoices and/or receipts, and the JP Morgan Chase “Statement of Account” are required on a cycle basis (First of each month to end of each month). Departments shall retain all Purchasing Card documentation for post-audit compliance, for a period of five (5) years, minimum.

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What if my Purchasing Card is declined?

First, verify the merchant has entered the Purchasing Card information correctly. The number one reason a Purchasing Card is declined is that the merchant did not correctly enter the expiration date. Second, if you are swiping your card, make sure you are processing the transaction as a credit card, not as a debit card. Third, review your credit limit.
If it is not immediately obvious why the Purchasing Card was declined, contact JP Morgan Chase Customer Service center 24 hours a day at 1-800-270-7760.

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What is a Merchant Category Code (MCC)? How do these codes affect my Purchasing Card?

The MCC Code is the method by which merchant banks identify the category of a business. These four digit numerical codes are set (internally) to each Purchasing Card, approving or declining transactions.

Example: Financial Institutions are blocked from our Purchasing Card program. If a Cardholder attempted a transaction at a bank, the Purchasing Card would recognize the MCC Code (Financial Institutions) and decline the transaction at the point of sale. These MCC codes help Purchasing Services identify the types of commodity purchases being made through the Purchasing Card program.

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What is Use Tax? How does it apply to the Purchasing Card?

As a matter of policy, all agencies of the State of Arizona, including Northern Arizona University, are subject to applicable state and local taxes. The University is not tax exempt unless the purchase of equipment and/or machinery is tied directly to research and/or development (ARS 42-5159 Exemptions). The University shall be responsible for the payment of Sales Tax or Use Tax, never both.
Use Tax. Use Tax is a privilege tax. The University shall be responsible for collection and payment of Use Tax to the State of Arizona. Use Tax is applicable when the University purchases goods (not services) from an out-of-state supplier and the supplier does not collect Sales Tax. Internet orders shall be subject to Use Tax. Use Tax is calculated at a rate of 5.6% of the cost of goods. Use Tax shall be calculated on the cost of goods only and shall not include shipping, handling, and/or freight costs.

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Do I …?

Do I pay tax on magazine subscriptions?

Subscriptions to journals, newspapers, etc., are considered purchases of tangible personal property. When subscriptions are paid to out-of-state merchants, the Cardholder shall assess Use Tax unless the merchant explicitly includes it or a specific exemption applies (such as when purchasing materials for a publicly funded library.) When subscriptions are paid to in-state merchants, Sales Tax should be included at the point of sale and reflected on the invoice and/or receipt. When subscriptions are part of a larger set of benefits of membership in an organization (such as a professional society), it gets a little convoluted. Some organizations break out the cost of a journal subscription, while others do not. If a publication is not available to the general public, but only to members of an organization, then, it is not taxable. However, if subscriptions are available to the general public, the subscription would be subject to tax. In this case, the cost of the subscription should be broken out from other membership fees or dues, if possible.

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Do I have to move/transfer (IX) Purchasing Card expenses from the default Object/Sub-object codes to more specific Advantage Object/Sub-Object code(s)?

https://nau.edu/its/learn/psfinancials_JournalCreation/

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Last revised: August 13, 2003