TYPES OF PURCHASE ORDERS (PO)

Printable Version

The following types of purchase orders are used for various kinds of purchases. Purchasing guidelines :

http://cpbc.ucsf.edu

http://cpbc.ucsf.edu/files/files/Purchasing_Guide.pdf

What is a Low Value Purchase Order (LVPO)?

(Department Purchasing Delegation "D")

(http://cpbc.ucsf.edu/files/files/Purchasing_Guide.pdf)

Low Value Purchase Order (LVPO) is a limited purchasing authority delegated to departments for purchases of supplies or services that are not available from an established vendor agreement or contract. (Note: Equipment over $5,000 is excluded from this delegated authority. See below for correct NCAs for equipment costing less than $5,000.) When a Speedchart number is accompanied with department delegation "D" followed by a unique four digit departmental reference number (e.g. xxxxxDnnnn or xxxxxDnnnn/NCA# if declaring a natural class account (NCA) number), it can be used as a Low Value Purchase Order (LVPO) number to purchase supplies and services for amounts less than $2,500 per vendor per day, including sales tax and excluding freight.

The Departmental Purchasing Authorization excludes the following:

Return to Table of Contents

What is an Agreement Vendor Purchase Order?

SYSTEM-WIDE OR CAMPUS-WIDE AGREEMENT

(Department Purchasing Delegation "A")

(http://www.matmgt.ucsf.edu/mmdPurGuide.html#anchor976238)

UCSF has joined with the other University of California campuses and UC Medical Centers to enhance the University’s purchasing power through the Strategic Sourcing Initiative. These agreements allow UC staff to make unlimited direct purchases of covered goods and services, excluding equipment, from the large number of suppliers without involving the Campus Purchasing Department.

Purchases from UC system-wide or campus-wide agreement vendors do not require an individual purchase order issued by the Campus Purchasing Department. There is no maximum dollar limit except for equipment (maximum $5,000). Departments placing orders directly with agreement vendors must identify the University contract/agreement number and provide the vendor with the departmental SpeedChart number accompanied with an "A" delegation followed by a unique four digit departmental reference number (e.g., xxxxxAnnnn or xxxxxAnnnn/NCA# if declaring a natural class account (NCA) number). Clarification of the agreement vendor purchasing delegation and listings of agreements can be obtained by calling ext. 415-476-5761.

Signature approval on the invoice from a department financial owner with appropriate level of signature authority is required for invoice amounts ³ $2,500.

Effective May 1,1999, an exception to the Special Method limit has been approved to increase the limit to $10,000 for high-volume/low-risk vendors (e.g., Dell Marketing LP, Fisher Scientific Company and VWR Scientific Products). This will allow automatic payment without positive approval (signature authorization) from UCSF departments. The agreements with these vendors provide processes by which Campus Purchasing Department can address and promptly settle disputes regarding dissatisfaction with product or service delivery and performance. (http://www.acctg.ucsf.edu/files/pdf/eqsp499.pdf )

A list of UC system-wide vendors can be found at: http://www.ucop.edu/matmgt/ppp/.
The campus-wide agreement vendor list is updated daily and available on the Internet. (http://www.cpbc.ucsf.edu/)

Return to Table of Contents

What is an Equipment Purchase Order?

EQUIPMENT ORDER

(Department Purchasing Delegation "E")

(http://www.matmgt.ucsf.edu/mmdPurGuide.html#anchor976238)

"Equipment" is defined as an item costing $5,000 or more, including tax, which is free-standing (not an integral part of a larger unit) and which is presumed to have a useful life expectancy of one year or more.

Equipment orders under $5,000 may be placed by the department directly using the "E" delegation.

A Department may user their five digit SpeedChart Number accompanied with an “E” delegation followed by a unique four digit departmental reference number as the Equipment purchase order number (e.g., xxxxxEnnnn or xxxxxEnnnn/NCA# if declaring the equipment NCA number). The NCA for equipment costing less than $5,000:

  COST NCA
  $200 - $1499 436225
  $1500 - $4999 436230

For purchases of equipment costing $5,000 or more, a department Purchase Order must be created, so the department must submit a requisition form to Purchasing. Below is a list of acceptable NCAs for the purchase of equipment with a cost of $5,000 or greater.

  DESCRIPTION NCA
  Inventorial Equipment 449010
  Vehicles 449110
  Computer Hardware 449910
  Software 449235
  Furniture 449975

Property Number tags will be issued to the departments when an invoice is created by Accounts Payable.

Return to Table of Contents

What is a Library Material Purchase Order?

LIBRARY MATERIALS BLANKET AUTHORIZATION

(Department Purchasing Delegation "K")

( http://www.matmgt.ucsf.edu/anchor976238 )

Library materials are defined as informational or reference materials which contain data in formats such as books, periodicals, maps, article reprints, journals, manuscripts, pamphlets, film, video cassettes, recordings, and computer diskettes.

Departments are authorized to purchase library materials utilizing their five digit SpeedChart number referencing departmental delegation "K", followed by a unique four digit departmental sequence number (e.g., xxxxxKnnnn or xxxxxKnnnn/NCA# if declaring an NCA number). There is no dollar limit on library material purchases.

Signature approval on the invoice from a department financial owner with appropriate level of signature authority is required for invoice amount ³ $2,500.

Return to Table of Contents

What is an Equipment Repair Order?

EQUIPMENT REPAIR ORDER

(Department Purchasing Delegation "R")

(http://www.matmgt.ucsf.edu/mmdPurGuide.html#anchor976238)

For Equipment Repair < $9,999, a department may use a SpeedChart number accompanied with an "R" delegation followed by a unique four digit departmental reference number (e.g., xxxxxRnnnn or xxxxxRnnnn/NCA# if declaring an NCA number).

This delegation can only be used to obtain repairs - not preventive maintenance, calibration, other non-repair service or enhancements.

Any repairs = $10,000 must be processed by Campus Purchasing on a Purchase Requisition form (Stock No. 71455&SHY;277).

Signature approval on the invoice from a department financial owner with appropriate level of signature authority is required for invoice amount ³ $2,500.

Return to Table of Contents


What is a Vendor Contract?

VENDOR CONTRACT (BLANKET ORDERS)

(Department Purchasing Delegation "B")

(http://www.matmgt.ucsf.edu/mmdPurGuide.html#anchor976238)

When supplies or services are used repeatedly from the same supplier/vendor, it may be advantageous to establish a blanket order/vendor contract for a specified period of time to ease the administrative burden of repeatedly placing purchase orders for the same item, provide price protection and assure adequate availability of supplies. A separate vendor contract should be established between the supplier/vendor and each UCSF department with designated General Ledger Chartfields and SpeedChart.

After Campus Purchasing Department establishes the blanket order/vendor contract, the originating department issues releases against it by referencing the vendor contract and providing the vendor with the Speedchart purchase order number accompanied with a "B" delegation and followed by a unique four digit departmental reference number (e.g., xxxxxBnnnn or xxxxxBnnnn/NCA# if declaring an NCA number). Vendor Contract number and SpeedChart are required on the invoice for Accounts Payable to process payments to the vendor (e.g. vendor contract# 900000xxxx and Speedchart# 12345Bnnnn).

Signature approval on the invoice from a department financial owner with appropriate level of signature authority is required for invoice amount ³ $2,500.

Return to Table of Contents

What is a Specific Purchase Order?

SPECIFIC PURCHASE ORDER (PO)

( NOT A Departmental Purchasing Delegation)

(http://www.matmgt.ucsf.edu/mmdPurGuide.html#anchor976238)

A specific Purchase Order is issued by UCSF Campus Purchasing Department through the Purchase Requisition process. If the departmental purchasing delegations "D", "R", "B", "E", "A", or "K" do not apply to the department's purchasing needs, a Purchase Requisition is necessary to complete procurement.

The Purchase Requisition form is the document by which a University department commits to expenditures for supplies, equipment and services from suppliers/vendors. It should be initiated only if there are sufficient funds available to cover the costs of the acquisition. A requisition is necessary for all purchases ³ $2,500 and for all controlled substances. The amount on the specific Purchase Order issued will encumber or lien the Fund and DPA designated on the PO.

A specific Purchase Order is required from Campus Purchasing Department for all restricted purchases of any dollar amount. Examples are:

After supplies or services are shipped or delivered, a vendor ordinarily bills UCSF in the form of an invoice. Upon receipt of the invoice, Accounts Payable enters it in the PeopleSoft Accounts Payable (AP) system and places the voucher on payment hold status. (Weblinks users can view these vouchers by selecting the "on hold" status and inputting department DPA when running a query on the Weblinks Financial Detail - Accounts Payable report.) Signature authorization on the invoice from a department financial owner with appropriate level of signature authority is required for invoice amounts ³ $2,500. The Voucher will be released from hold status and payment will be made to the vendor on the scheduled due date upon receipt of signature approval from the UCSF department making the purchase.

Return to Table of Contents

Purchase Order Requirements

UCSF Departments are required to provide a purchase order (PO) number to a supplier/vendor when placing an order to purchase supplies or services for University business use.

The following types of purchases require a purchase order:

Disbursements Requiring A Purchase Order

Supporting Documents

Specific purchase of supplies or equipment

PO Requisition

Purchase Order

Vendor Invoice

Departmental Delegated Authority Purchase/Agreement Vendor purchases

Authorized 5-digit SpeedChart PO accompanied by Departmental Delegation "D", "R", "B", "E", "A", or "K" followed by a unique four digit departmental reference number

Vendor Invoice

Repair Services

> $10,000

PO Requisition

Purchase Order

Vendor Invoice

Consultants (Independent Contractors)

UCSF Independent Consultant Agreement (ICA)

Invoice

Catering (full service on campus)

Facility Rental = $2,500

PO Requisition

Purchase Order

Vendor Invoice

Check Request for Entertainment/Meeting Expenses

Performers, Musicians, etc.

Performance Agreement

Purchase Requisition

Purchase Order

Vendor Invoice

Lease (Equipment)

Purchase Requisition

Purchase Order

Vendor Invoice

Controlled Substances

Contact Purchasing (502-3045)

The following types of purchases do not require a purchase order:

Disbursements NOT Requiring A Purchase Order

Supporting Documents (See Links to Related Policies for Requirements)

Entertainment

Receipts/Invoice

Entertainment Check Request

Freight, Delivery Charge

Vendor Invoice (with reference to PO number)

Honorarium

Check Request

Event Announcement or Letter of Invitation

Leases (Building/Land)

Approved Lease Agreement

Membership Fee

License Renewal

Examination Fee

Subscriptions

Research Subject Payments

Petty Cash

Moving

Check Request

Supporting Documentation

Subcontractor Payments

Subcontracts

Subcontract Invoice

Travel Expense Reimbursements

Travel Expense Voucher (TEV)

Supporting Documentation

Travel Advance

Request for Travel Advance Form

Do departments have the ability to see blanket POs and payments against them in Weblinks?

Currently, the blanket POs are not available to view online.  Departments should have a hard copy of the blanket PO on file from the Purchasing department.  To view the payments against the blanket PO, you must run a report in Weblinks.  Usually the PO number and/or blanket number appears on the line description.

 

Return to Table of Contents

This page last updated on: Wednesday June 04 2008