❖ A purchase order details the agreement between a department (school) and a vendor, confirming the final cost of goods or services
❖ When issued by a department, and accepted by the vendor, the purchase order becomes a legal document, confirming the goods or services to be provided
GENERATING A PURCHASE ORDER
❖ A purchase order is an approved requisition
❖ The approved purchase order indicates there are funds available to cover the cost of the requested goods or services
❖ Use the accounting software program to create a requisition. Follow any specific building instructions regarding descriptions on purchase orders.
- When creating purchase orders for Office Depot, you are required to list the accounting "quick key" in the requisition "Line Item Description"; this will assist in the approval process, as well as with updating of the Office Depot web site
❖ The Business Office does not issue purchase orders for building budgets
❖ Once a purchase order has received final approval, the designated person at your building will:
- Batch update the purchase orders in the accounting system
- Fax a copy to the vendor (if required)
- Provide you with a copy of the purchase order for your records
NOTE – Office Depot purchase orders will be forwarded to the Business Office for updating of the Office Depot website with the approved funds
CHANGES TO A PURCHASE ORDER
❖ Approved purchase orders cannot be changed or modified
❖ If a vendor purchase order must be changed for any reason, the old purchase order must be closed and a new requisition/purchase order generated (see procedures below)
RECEIPT OF GOODS & PROCESSING OF INVOICES
❖ After verifying that the product has been delivered, submit an approved invoice to the Accounts Payable Department for processing of payment
- If you receive a partial shipment, you may process an invoice for the items received; make sure to indicate “partial” when referencing the purchase order on the invoice
- If you choose to order remaining items through a different vendor, close out the old purchase order and generate a new purchase order for the new vendor
❖ Note the purchase order number on the invoice, and indicate if the payment is “final” or “partial”
- Final indication will close out a purchase order
- Partial will keep the purchase order open
- If a purchase order is not noted on the invoice, the bill will be paid directly
- If the purchase order is listed, but “partial” or “final” is not noted, the purchase order will automatically be closed
- Double check that the account number used on the purchase order is the one you wish to charge. If not, follow the instructions below.
❖ If you pay an invoice using a different account number from the one that was used to generate the purchase order:
- You must request that the purchase order be closed and pay the invoice direct
- Please do not reference the purchase order on the invoice at all!
❖ Service related purchase orders may not be paid using a department Pcard; such purchases must be paid via check only! If using a Pcard for payment, request that the service related purchase order be closed, and pay the invoice directly. Only tangible goods may be paid with a Pcard.
CLOSING OR CANCELING A PURCHASE ORDER
❖ Contact the designated person in your building to close or cancel an existing purchase order.
- If your building representative is not available, you may email a member of the Accounts Payable Department, indicating the vendor name and the number of the purchase order to be closed
❖ Funds remaining on a purchase order to be closed will be added back into the account originally charged when the purchase order was created
❖ If you don’t close an existing purchase order that is no longer required, unnecessary funds will remain encumbered in your budget and will not be available for other required expenses
❖ All current year purchase orders will be closed at a designated date in June for the current fiscal year and will not be reopened in the new fiscal year