304.05

Northern Arizona University
Purchasing Policy and Procedure

Departmental Purchase Order (PDQ)


POLICY:

The PD document shall be a dual purpose document. The first purpose shall be to allow for required payments which do not require the approval of Purchasing Services. The second purpose shall be as a purchase order, limited to $2,500, to enable departments to purchase good(s) and service(s) directly from a vendor.

  1. THE USE OF THE PD DOCUMENTS TO PAY FOR EXPENDITURES WHICH SHALL NOT REQUIRE THE APPROVAL OF PURCHASING SERVICES:

    Purchasing Services imposes no limit to the dollar amount of PD documents for these specific items. Individuals using the PD document for these purposes shall be subject to University policies governing and limiting these types of expenditures.

    Construction and Real Property Contract Payments (Capital Assets Only)
    Entertainer Fees (Contracted only)
    Game Guarantees - Athletics only
    Game Officials - Athletics only
    Gate Receipts - Flagstaff Public Schools (Athletic Events)
    Grants - bestowed by NAU on outside agencies or individual students
    Guest Lecturer
    Guest Speaker
    Honorariums
    Insurance Claims
    Intergovernmental Agreements
    Interviewee Expenses
    Participant Fees
    Payments legally required from NAU by the Arizona Board of Regents, State and Federal
    Performer
    Government or other governing agency
    Program Review Fees
    2. Recruiting: incl. Candidate Expenses/Hotel Accommodations. This does not include advertising to obtain qualified applicants for a vacant position.
    Refunds
    Registration Fees
    Reimbursements: not to include employee reimbursements for the purchase of goods and/or services in excess of $2,500
    Royalties
    Stipends
    Student Program Fees
    Subcontract under Sponsored Project
    Subscriptions and Dues
    Taxes
    Temporary Employment Services
    Traffic School Tuition
    Vehicle Registration

    PROCEDURE:

    The department enters a PD document in Advantage and obtains necessary approvals. For non-purchasing related expenditures, do not print a PD document.

    When using the PD document for payment only for the items listed above the department may wish to indicate a Receiving Report is not required to authorize payment. This can be accomplished on the PD header by entering "Y" against the field "RECPT IND" "No Receiver Required" shall only be used when the recipient of the order is not required to supply anything prior to payment. When this is accomplished, Advantage automatically indicates the PD is fully received and Accounts Payable has all required departmental approval to pay.

    Departments shall notify the Accounts Payable department of any PD documents where there will not be an invoice so Accounts Payable is aware these documents ashall be paid. The following steps are necessary:

    1. Complete the description field on the PD to indicate the purpose of the payment.


    2. Complete Vendor Claim Form, available from Accounts Payable, and attach applicable documentation: memo, statements, etc. (If processing a PD for the payment of a stipend, complete only steps 1 and 2.)


    3. Send to Accounts Payable who will then assign a number to take the place of an invoice number. No approvals are required on the paper document since all approval levels shall have been satisfied on the Advantage system. (If processing a PD for payment of an independent contractor, include a copy of the Independent Contractor Request form.)
  2. THE USE OF THE PD DOCUMENT AS A PURCHASE ORDER FOR GOODS AND SERVICES UP TO $2,500:

    3. POLICY:

    Departments may use the PD document as a purchase order for goods and services. For all items not specifically listed under Item I in this section, there is a $2,500 limit on the use of the PD document. There shall be no exceptions to the $2,500 limit.

    The use of the PD document as a purchase order is optional. Departments may use a PD or requisition goods and services through Purchasing Services. PDs may be used where:

    1. The total order, including applicable taxes and freight charges, shall not exceed $2,500.


    2. The initial order shall not commit the University to additional future purchases.


    3. The vendor shall not require the signing of a contract.


    4. There shall be no artificial division of a purchase into components costing less than $2,500.


    5. Faculty and staff are being reimbursed for the purchase of goods and services as evidenced by an original vendor receipt.


    6. The University is not purchasing goods or services from a University employee.

UNACCEPTABLE PD TRANSACTIONS:

The following list of goods and/or services shall not be purchased with the PD document. Purchases of goods and/or services from the following list shall be considered a violation to policies and procedures.

    PROCEDURE:

    The department enters a PD document in Advantage and obtains necessary approvals. The name and telephone number of the responsible person should be entered on the order so the vendor has a contact person in the event of a question or problem.

    Printing of PD Purchase Orders

    Departments shall be responsible for printing their own PD documents and sending them to the vendor. Purchasing shall not print PD's for departments. To print PD's go to the following web page: http://www.nau.edu/its/advantage/ Once you are there click on "Authorized Financial Web Functions" this will take you to a page for "NAU Web Authentication". Follow the instructions. The document will be brought up in Microsoft Word and you will print as you would normally print a Word document. If you are having problems or you are not set up to print contact Carl Fulton via e-mail at Carl.Fulton@nau.edu with your user name to be set up to print.

    Click Here to view a Word document clearly outlining the printing process via the Advantage web site. (Please allow a few moments to load)

     

    Frequent Use Items/Vendors

    If your department intends to use PDs for items which are ordered frequently or multiple orders to the same supplier, you are encouraged to discuss this with the appropriate buyer. Contracts may exist which cover the items required, or it may be cost effective to negotiate a price agreement. There may be easier methods for ordering those items. This type of information will result in better buying.

    Payment Against a PD Purchase Order

    When the department receives and accepts the item(s) or service(s) ordered, a receiving report (RC) shall be entered against the appropriate PD, indicating the items received. This is the department's approval for the Accounts Payable Department to pay the vendor invoice. If the good(s) have been accepted, Accounts Payable shall pay the invoice if the amount on the vendor invoice shall not exceed the amount on the PD document by more than 10% on any accounting line. If there is a larger discrepancy, the department shall be required to either modify the PD document to match the invoice or to contact the vendor and instruct them to re-invoice at the correct price.

    NOTE: All original vendor invoices shall be sent to the Accounts Payable Department.

    Penalties, late fees and interest assessed by vendor(s) for delays in payment processing shall be charged to the department responsible for such delays.

    Problem Resolution

    Departments shall be responsible for resolving problems which arise relating to PD purchase orders such as incorrect shipments, damaged shipments, overcharges, delays, etc., and shall make every effort to resolve these issues. However, if a situation arises which cannot be resolved in a timely manner and which is taking excessive amounts of departmental time or is threatening to damage relations between the University and the vendor, this should be brought to the attention of Purchasing Services. The appropriate commodity buyer will work with the department to resolve the issue.

    NOTE: It is particularly important freight damage (obvious or hidden) is brought to the attention of the supplier immediately. Inspect deliveries as soon as they are received.