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Policies and Procedures

APPM

2.3 The Purchase Order Process (Revised 03/05/2024)

Administrative Responsibility:   Associate Vice President for Business Services / Procurement

PURPOSE

Procurement & Strategic Sourcing (Procurement) is the central department responsible for the acquisition and purchase of equipment, supplies, and services for Wayne State University (WSU).  This authority is vested by the Board of Governors per University Policy 04-6, Contract Signatories.  Procurement is responsible for obtaining the best value for the University in the procurement of all goods and services.  This responsibility must be discharged in accordance with ethical practices of the purchasing profession. Procurement is committed to adhering to the codes of conduct, obligations, and ethics mandated by the National Association of Educational Procurement (NAEP) and the Institute for Supply Management (ISM). We conform to the laws of the Uniform Commercial Code and all laws stipulated by local, state and federal government. 

SCOPE

This Policy and related policies 2.3.1, 2.3.3, and 2.3.4 apply to all WSU employees and external contractors involved in the procurement of goods and services for the University, whether as an administrator within a Department or Unit, or the final end user of such goods and services.  This policy includes acquisition both by the requisitioning / purchase order (PO) process.

DEFINITIONS

The following are terms and definitions of some commonly used terms in the procurement cycle:

Encumbrance

Funds reserved for a financial obligation.  (WayneBuy establishes PO encumbrances through a system integration).

Purchase Order

A purchase order (PO) is a legally binding document created by a buyer and presented to a seller.

WayneBuy

The University eProcurement & Requisitioning System used for the placement of all regular purchase orders and payment of invoices submitted by Departments through the direct payment request (DRP) process.
WayneBuy Requisition (PR)

The online WayneBuy Requisition form generated by a department to request the purchase of goods or services from an individual or a company.

POLICY

The University Purchase Order is a legally binding contract issued by Procurement. 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 WayneBuy Requisition normally has a one-to-one relationship with the Purchase Order. Requisitioners can monitor the progress of both the Requisition and the Purchase Order in the WayneBuy System, using the Document Search functionality (see the Document Search tab). All Purchase Orders and Requisition documents can be viewed in WayneBuy under the "Revisions" and/or the "Attachments" tab.

When goods are received, an online WayneBuy Receiver is processed and the invoice is eligible for payment. Upon payment in full, the Purchase Order is closed. If the PO does not systemically close, the Department is responsible for processing an Amendment to close it (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 WayneBuy Amendment Requisition to close the PO. See APPM 2.6.1 for complete Amendment instructions.

PROCEDURE

Responsibility Action

Requisitioning Department

  1. Complete an online WayneBuy Purchase Requisition, following the instructions in the WayneBuy Job Aids. (Refer to APPM section 2.2.)

Procurement

  1. Review and approve or Reject or Return to Requestor the online WayneBuy Purchase Requisition.

  1. Assign the Requisition to a Buyer

  2. Determine if a competitive bid or RFP is appropriate. Complete bid or RFP process.

  3. Approve the Requisition for the systemic issuance Purchase Order. 

Requisitioning Department

  1. Report any discrepancies or changes to the Purchase Order to Procurement. Refer to APPM section 2.6 for Change Order Request (COR) if required. 

Central Receiving

  1. Receive items listed on purchase order and enter Receiving transaction into WayneBuy (as required).  Upload copy of the packing ticket to the WayneBuy receipt.

  2. Deliver goods to department and obtain signature on delivery ticket to acknowledge receipt of goods.

Requisitioning Department

  1. Verify that goods received are the quality and quantity desired.

  2. If goods are delivered directly to the department and are acceptable, immediately record receipt in the WayneBuy system. Job Aids are found on the Procurement website under WayneBuy.

  3. If goods are unacceptable, notify Procurement to determine corrective action.  If appropriate, contact Central Receiving to pick up goods for return to the vendor. 

Central Receiving

  1. Pick up goods from Department.

  2. Make arrangements to return the goods to vendor. (See APPM section 8.12, Receiving and Shipping.)

Also see Sections of the Procurement Policy as listed below for individual procedures
1)    2.3.3 Blanket Purchase Order
2)    2.3.4 Contracts for Specialized Services with Organizations
 

APPENDICES

N / A

RELATED UNIVERSITY/BOARD POLICIES

  1. 2.81.01 Contract Awards           

Effective Date: Prior to 2000

Revised Date: 6/27/2024

Reviewed Date: 3/05/2024

To be reviewed, at minimum, every three years and/or revised as needed by:  Associate Vice President for Business Services / Procurement

Next Review By Date: 3/05/2027

SUPERSEDES POLICY

  1. N / A

HISTORICAL DATES

01/01/2013, 04/01/2012, 09/01/2010, 08/01/2009