PURCHASE REQUISITION

An on-line purchase requisition is used to request procurement of materials, supplies, equipment and services exceeding $10 provided by outside vendors and not covered by policies and procedures relating to Direct Payment Vouchers, Travel Expenses and Business and Entertainment Expenses. See the Disbursement Guide for further information regarding the appropriate use of each disbursement form.

On-line purchase requisitions are submitted via screens in Internet Native Banner. After a requisition has been created the document will be routed electronically to all required individuals for approval based on pre-determined rules which have been incorporated into the system.

A purchase requisition must be completed in advance and in accordance with the policies and procedures included herein to initiate a commitment for goods and services for which Saint Louis University will be financially responsible. Employees who purchase or order goods/services without an authorized purchase order will risk non-reimbursement. In all instances, sales tax will not be reimbursed. Individuals will also run the risk of delay in payment. The Purchasing Department will review approved requisitions, confirm pricing, and issue a purchase order. Only the Purchasing Department is authorized to commit the University for goods or services through a purchase order. Individuals making unauthorized commitments risk personal liability for any incurred expenses.

Processing a Purchase Requisition:

Approving, Canceling, or Creating a Requisition
Frequently Asked Questions
Requisition Inquiry Screens
On-Line Purchase Requisition Quick Summary & Tips

Purchasing Policies and Procedures:

Canceling a Purchase Order
Change Orders
Check Enclosed Orders
Competitive Bidding Requirements
Consignment Purchases
Emergency Purchase Orders
Invoice Payments
Multi-Year Contracts (Including Leases)
Office Supplies
Personal Purchases
Photocopy Equipment Acquisition
Purchase Orders
Receiving Reports
Sponsored Programs
Standing Orders
Vendor Selection

Canceling a Purchase Order

A purchase order should be closed or cancelled to release encumbered budget funds if all invoices against the order have been received and no additional expenditures are anticipated.

An e-mail should be forwarded to the Purchasing Department to request the closing or cancellation of a purchase order. A change order requisition should be submitted to increase or decrease a purchase order.

Change Orders

A change order is a requisition to modify an existing purchase order. Change order requisitions may be used to increase or decrease the purchase order, but should not be used to close or cancel a purchase order.

A purchase requisition should be processed to initiate a change order. To indicate that the requisition is a change order, the purchase order number to be modified and change order number must be noted in the comments field and in item text. The item text should state the amount of the change and the resulting revised purchase order total. After the change order requisition has received all required approvals, the Purchasing Department will revise the original purchase order.

Check Enclosed Orders

Departments may request that a check be enclosed with certain types of purchase orders such as the purchase of books and software for small dollar amounts and orders with vendor required deposits to confirm custom products and services.

To request a check enclosed order, a comment must be noted in the comments field of the purchase requisition requesting that a check be enclosed with the order and that back-up documentation is en-route. After completing the requisition, a copy of the back-up documentation (e.g. completed order form, price quotation, or invoice) identifying the price or deposit requirements, with the requisition number noted thereon, should be forwarded to the Purchasing Department.

Competitive Bidding Requirements

To ensure competitive pricing and cost-effective procurement of goods and services, competitive bids must be obtained on purchases with an anticipated cost of $5,000 or greater.

Price quotations from at least three vendors must be obtained by the requisitioning department or the Purchasing Department for the purchase of items with an anticipated cost of $5,000 or greater. If the bids are obtained by the requesting department, a purchase requisition should be submitted to initiate the issuance of a purchase order. Copies of the bids, with the requisition number noted thereon, should be forwarded to the Purchasing Department when the requisition is created.

Departments may also request the Purchasing Department's help in obtaining required competitive bids. To initiate the bid process by the Purchasing Department, the requisitioning department should forward complete specifications for the needed goods or services to the Purchasing Agent. The Purchasing Agent, in conjunction with the requisitioning department, will issue a Request for Proposal (RFP), analyze the responses, and award the bid based on compliance with the specifications, expected product quality, delivery price and institutional purchasing objectives. After a vendor has been selected, a purchase requisition must be submitted by the requisitioning department to initiate a purchase order.

Bidding requirements include, but are not limited to:

• Individual capital equipment items including all features and related components which comprise a single functional unit but excluding optional attachments or external peripheral devices.

• Annual service or maintenance contracts covering a single unit or a number of similar units.

• Annual quantity purchases of a specific commodity or supply item (e.g., copier or computer paper, office products, chemicals, and maintenance supplies).

If a product or service is available only from a single source making it impossible to obtain three competitive bids, a written justification in lieu of bids must be approved by department's Vice President and the Purchasing Department. A copy of this memorandum should be forwarded to the Purchasing Department with the requisition number noted thereon, when the requisition to initiate the order is created.

The requisitioning department is responsible for defining product specifications including model, characteristics, service level, and other details describing the product/service to be purchased.

Consignment Purchases

A consignment purchase occurs when equipment the requisitioning department intends to purchase is furnished by a vendor on a trial basis.

A purchase requisition must be processed to initiate a consignment purchase. "Consignment Purchase" should be included in the comments field on FPAREQN located by the delivery date field

Emergency Purchase Orders

Emergency purchase orders allow departments to bypass normal procurement procedures to directly order minor amounts of goods, services, or repairs, which are needed on an emergency basis to continue essential department operations. Departments may request an emergency purchase order number and immediate authorization to purchase emergency goods and services by calling the Purchasing Department

The requisitioning department is responsible for obtaining accurate pricing information prior to requesting an emergency purchase order number.

A confirmation purchase requisition referencing the emergency purchase order number obtained from the Purchasing Department must be submitted within 24 hours. The emergency PO# must be cross referenced in the document text of the requisition.

When placing the order to resolve the emergency situation, the requesting department should inform the vendor of the emergency purchase order number and that it must be referenced on all invoices and correspondence.

Emergency purchase order use is routinely reviewed to ensure departmental purchases are planned and follow procurement policies. The Purchasing Department will assist University departments to develop procedures to best meet specialized purchasing needs.

Emergency purchase orders should only be used for minor purchases of materials and services or repairs which are needed on an emergency basis to continue essential department operations.

Emergency purchase orders should not be used for:

• On-going commitments, such as maintenance contracts.

• Orders exceeding $500, excluding emergency repairs.

• Capital equipment purchases.

Invoice Payments

Invoices submitted by vendors for the payment of goods and services authorized by purchase orders are processed by the Accounts Payable Department.

Prior to payment, departments must approve all invoices that are:

• $1,000 or greater and charged to a standing purchase order.

• 20% or more than the unit price on the purchase order.

All invoices under $1000 which match the items identified on the purchase order and do not require departmental approval will be paid without departmental approval.

All invoices with the purchase order noted thereon, must be forwarded directly to Accounts Payable by the vendor. Non-compliance with this policy may result in a delay in the payment of invoices which may adversely affect vendor relations.

Invoices are timestamped then entered into the Banner system for payment. Payment is made according to the terms of the vendor. Invoices processed against a P.O. that does not have enough encumbered funds in the account will be palced IN PROCESS until the department has put through a POCA to cover the outstanding invoice. A reduction of the encumbrance can be viewed in Self Service Banner.

Multi-Year Contracts (Including Equipment Leases)

Multi-year contracts including equipment leases and maintenance contracts are permitted when they result in cost savings over contracts issued on an annual basis and when the purchased goods and services will serve anticipated departmental needs for the term of the contract.

A purchase requisition should be submitted at the beginning of the contract and each fiscal year thereafter to cover the payments which will fall in that fiscal year. The requisition must specify all lease information including the amount and frequency of the payments, as well as, the payments to be paid in the current fiscal year (i.e. Payments 13 - 24 of a 36 month lease). The contractual agreement with the requisition number noted thereon, should be submitted with the initial purchase requisition.

Multi-year contracts should not exceed a term of three years. Exceptions to this policy which will serve the best interests of the University must be justified in writing by the requesting department and forwarded to the appropriate Purchasing Agent for review. No commitment should be made to a supplier by the requesting department; the Purchasing Agent needs to be notified of a department's need prior to any discussions with the supplier.

All requisitions for equipment leases will be reviewed by the Treasurer's Office to examine lease/purchase options. If in the University's best interests, equipment may be purchased by the University and charged back to the requisitioning department in monthly installments.

Office Supplies

The Purchasing Department has negotiated an exclusive contract with Corporate Express for office supplies. More competitive pricing from other local office suppliers must be matched by Corporate Express. Office Products Now, our minority vendor, may also be used for purchasing office supplies.

All requests for the purchase of office supplies should be submitted on a purchase requisition.

Departments are encouraged to establish a standing order with Corporate Express and order online from the Corporate Express website. The University Procurement Card may also be used to order online from Corporate Express. Please contact Purchasing for further information.

Personal Purchases

Use of the University's purchasing system for personal purchases is prohibited.

Photocopy Equipment Acquisition

Due to the large number of copier manufacturers and dealers, ever-changing technological developments, volume discount potential, service requirements, and purchase/lease alternatives, the Purchasing Department is responsible for coordinating the acquisition and evaluation of photocopier equipment. The Purchasing Department will assist departments acquiring photocopy equipment by simplifying the selection and ordering process while promoting departmental satisfaction and cost-effective copier selections.

To initiate an acquisition of photocopier equipment, the department should notify Annaliese Neff or Lee Kneibert in the Purchasing Department of its equipment needs including monthly copy volume, required features such as reduction, sorting, enlargement, paper sizes, etc., lease versus purchase preference, and budget/funding availability.

Purchase Orders

A purchase order is the official document which authorizes the procurement of goods and services from a vendor for which the University will be financially liable.

To initiate a purchase order, the requisitioning department must complete a purchase requisition which will be electronically routed to pre-determined individuals for approval. After reviewing approved purchase requisitions, the Purchasing Department will issue a purchase order to the vendor. A copy of the Purchase Order will be forwarded to the requisitioning department via email.

Purchase order numbers are a seven digit number preceded by a descriptive alpha character, as identified below.

Orders which require an enclosed check will be forwarded to Accounts Payable with supporting documentation for processing by the Purchasing Department.

The Purchasing Department will fax all orders to the vendor as long as a vendor fax number is available. Orders with attachments, such as order forms or checks, cannot be faxed.

Purchase orders will not be issued for amounts under $10. Items costing less than $10 should be purchased with petty cash funds, if available, or by using a Direct Payment Voucher.

Standing Purchase Orders

To reduce time, paperwork, and administrative expense, departments may request a standing purchase order which allows multiple orders to be placed against a single purchase order for repetitive or small dollar orders and bulk supplies and materials. Standing orders allow departments to order items and services on an as-needed basis from the specified vendor by referencing the previously assigned standing purchase order number.

To establish a standing order, a purchase requisition should be submitted at the beginning of the fiscal year. The amount of the requisition should be the total amount expected to be purchased from the vendor during the fiscal year.

Purchases against standing orders should be closely monitored by the requesting department to ensure that sufficient funds remain in the purchase order to cover all outstanding invoices and future orders. A change order should be processed immediately whenever it is determined that the standing order will require additional funds.

Standing orders will be issued only to established vendors with whom the University has contractual agreements or has identified as an exclusive vendor.

Vendor Selection

Vendor Discounts:

The Purchasing Department regularly negotiates volume discount purchasing agreements with various vendors. The University will pursue vendor discounts and volume purchase agreements based on its educational, not-for-profit status and the purchasing level of commonly used products. A University vendor listing has been compiled by the Purchasing Department.

Product/Vendor Substitutions:

The Purchasing Department will not change specifications or make product substitutions without the approval of the requisitioning department. The Purchasing Department may, however, question the quality of any kind of material requested to ensure the best interests of the University are being served.

Selection of product sources and vendors is the responsibility of the Purchasing Department. Suppliers suggested by the requisitioning department may be considered unless the exact product is available from an established University vendor. If materials or service must be furnished by a particular vendor, justification must be submitted with the requisition.

Departmental requirements for a specific product or service will be of utmost importance. However, the Purchasing Department is responsible for ensuring that the value received by the University is maximized.

Vendor Search: (FTIIDEN)

To focus your search and minimize the list of potential vendors, first tab over to the "last name" column and type the first few letters of the name with a "%" sign, the Banner "wildcard", at the beginning and end. The system is case sensitive and spelling specific so enter as few letters as possible. Press F8 to execute the search.

Vendor names include no abbreviations and no punctuation except apostrophes.

The vendor search screen contains room for fifteen vendors: To view additional vendors that match the selection criteria, arrow down.

All organizations (e.g. associations, academies, societies, etc.) may be searched for by the acronym.

The full name of the organization will appear in the requisition when the vendor has been selected. Vendor's which include an individual's name should be searched for by the last name. For example %Wiley% should be entered in the "last name" column when searching for John Wiley and Sons.

University, city and state names are listed under the name of the state. For example, %Missouri% should be entered in the "last name" column field when searching for University of Missouri or the State of Missouri.

Page content owned by: Business Services

Revised: Wednesday, 19 Dec 2007

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