2.3 The Purchase Order Process
The University Purchase Order is a legally binding contract issued by Purchasing Department. The Purchase Order specifies the goods or services to be purchased, and states the cost and the terms and conditions of the transaction.
The online Banner Requisition normally has a one-to-one relationship with the Purchase Order. Requisitioners must monitor the progress of both the Requisition and the Purchase Order in the Banner System, using Banner Form FOIDOCH. Paper copies of purchase orders are not distributed to University Departments. All Purchase Orders and Requisition documents can be viewed in Banner using WebXtender.
When goods are received, an online Banner Receiver (if required) is processed and the invoice is eligible for payment. Upon payment in full, the Purchase Order is closed. If Banner does not systemically close the PO, the Department is responsible for processing an Amendment to close (See APPM Section 2.6)
Please note: If Purchase Order activity is complete but the PO stated amount was not paid in full, the Department must complete an online Banner Amendment to close the PO. See APPM 2.6.1 for complete Amendment instructions.
The Banner system has an internal purchase order class system to distinguish the characteristics of different types of purchasing transactions. The buyer assigns the correct purchase order class from various classes which are defined as follows:
Blanket Purchase Order (ZPO) - Class Z
A Blanket Purchase Order states an intent to purchase supplies (not equipment) from a vendor. It has a specific time frame and total dollar amount. It is general in nature and does not state what specific items will be purchased, when they will be ordered, or in what quantity. The ZPO encumbers the full amount of the Purchase Order when it is created. The ZPO is time specific with a start / end date.
Prepaid Purchase Order (CPO) - Class C
The prepaid purchase order (CPO) is issued:
to assist minority and women-owned companies as defined in University Policy 2004-2
to vendors requiring prepayment with order
to expedite small dollar purchase orders
to save the cost of shipping and handling.
Emergency Purchase Order (EPO) - Class E
The Emergency Purchase Order (EPO) is issued for repairs and for the immediate delivery of goods and services in an emergency situation. The EPO is limited to $1,000; however, in extenuating circumstances, this limitation can be waived by the Director of Purchasing. It is not intended for the purchase of equipment or software. An EPO Request is called into Purchasing and no Banner Requisition is required. The funds are encumbered when the EPO is authorized. Except for cancellation of an order, Purchase Order Amendments are generally not permitted.
Maintenance Purchase Order (DPO) Without Receiving - Class D
The D class maintenance purchase order does not require a receiving action. It is used in situations in which there is a specific annual fee with a single payment or specified installment payments. The DPO is time specific with a start / end date with stated terms and conditions.
Lease PO with Receiving (FPO) - Class F
The lease purchase order (FPO) is issued when leased equipment requires a receiving action. The FPO is time specific with a start / end date, and requires a written agreement with stated terms and conditions.
Maintenance PO with Receiving (MPO) - Class M
The M class maintenance purchase order (MPO) requires a receiving action by the Department. The MPO may not have a specific annual fee (i.e., maintenance on mechanical equipment where the charge is based on time and material) and the invoices will vary in amount. The MPO is also time specific with a start / end date with stated terms and conditions.
Regular Purchase Order (PO) - Class P
The regular purchase order is issued for one time purchase of specific goods or services.
Contract/Personal Services Purchase Orders (YPO) - Class Y
The contract/personal services purchase order (YPO) is issued as a payment vehicle for approved contracts as referenced in APPM section 2.3.4, Contracts for Specialized Services and 2.5, Personal Services Contracts. The Contract document requires full authorization with a completed requisition before the YPO is released. Y Class orders must have a "not to exceed" amount and a specified time period.