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: Glenn Birkett. 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: Glenn Birkett, under sealed “confidential”
cover.
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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:
Glenn Birkett, under sealed “confidential” cover.
Closed or deleted Purchasing Cards shall be retrieved form
the Cardholder and destroyed. Do not mail the Purchasing Card
to Purchasing Services.
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How do I verify Use Tax was paid from
my AGENCY/ORGN?
AGENCY/ORGN
Fiscal Liaisons shall report Use Tax liabilities to the Comptroller’s
Office, no later than the 18th. of each month. Object code
7317-01 has been established for reporting Use Tax Purchasing
Card liabilities. You may verify the expense by viewing your
Advantage “8” report or by viewing the Advantage
“OLGL” table under OBJT/SOBJ: 7317-01.
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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 Advantage 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 Advantage 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)?
For
goods and/or services, Purchasing Card transactions shall
default and post to OBJECT/SUB-OBJECT Code 7315-01. The AGENCY/ORGN
Fiscal Liaison may redistribute these
expenses by completing the Advantage Expense Transfer (IX)
document in the University Financial System. For detailed
instructions, refer to Purchasing Card Program Information’
or the Purchasing Card Training manual, ‘A Guide for
Users”.
Travel
Related Expenses, shall default and post to OBJECT/SUB-OBJECT
Code 7615-01. Policy and procedure mandates the AGENCY/ORGN
Fiscal Liaison shall redistribute
all travel related expenses to the appropriate OBJECT/SUB-OBJECT
code(s) by completing the Advantage Expense Transfer (IX)
document in the University Financial System. For detailed
instructions, refer to Purchasing Card Program Information’
or the Purchasing Card Training manual, ‘A Guide for
Users”.
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Last
revised: August 13, 2003
