Purchase Order Documentation

Approving Authority:	Council
Establishment Date:	26 March 1997
Date Last Amendment:	17 December 2001
Nature of Amendment:	6.4.2
Date Last Reviewed:	3 April 1996
Publication Reference:
Contact Officer:	Director, Financial Services

6.4	6.4.1 Requisitions Introduction Requisitions may be raised and authorised by delegated officers for the procurement of goods or services from internal or external vendors. They are intended for use by personnel, who do not have direct access to the Flinders Finance System. The document will be used as an input document for communicating details of goods/services required. Requisition forms are for internal use and are numbered sequentially. An official purchase order may be prepared from an authorised requisition. The requisition forms are supplied in pads and can be obtained from Flinders Press. Procedure 6.4.1.1 The requisition form will be completed in BLOCK LETTERS with the following details: Name and Address of suggested vendor including contact’s name, telephone and fax number. All requestor’s details, ie: name, telephone number, location etc. Ship to location — insert exact location of where items or goods are to be delivered. Required date of completion or delivery (insert in ‘Comments’ section). Note: Date to be specified; ASAP, Urgent etc are NOT acceptable. Please ensure only realistic dates are entered. Asset details, if applicable. Vendors reference number or part number, if known. Description of the goods or services required. Quantity required – using only whole numbers and the supply unit, eg: 12, 2 kg, 4 doz, 18 box, 10 litre, 40 jar, 5 pkt. Unit price, eg: the price of each unit of supply (Note: This is the price after any discount offered). The Flinders Finance System has no provision for processing discounted prices. Requestor’s will calculate the discounted unit price before entering details on the purchase requisitions. Value of the total price for each requisition line (less discount if applicable) ie: the unit price multiplied by the quantity required. Accounting flex-field (Note: all fields need to be completed). Total cost of the requisition. Currency of the requisition if not Australian dollars (AUD). Indication if inspection required. Signature of the cost centre manager, the budget holder or an authorised officer to allow commitment/expenditure of the funds. 6.4.1.2 After the Requisition has been signed by the Authorised Officer the requestor will retain the blue copy and forward the white copy to the Buyer or Purchasing Officer. 6.4.1.3 When the Requisition is received by the Buyer or Purchasing Officer each form will be checked for accuracy. Incomplete forms will be returned for action by the requestor or nominee. 6.4.1.4 After confirming accuracy of the Requisition an official purchase order will be created, the white copy will be forwarded to the vendor or internal supplier and the yellow copy will be retained. Note: Preparation of two or more requisitions for the purpose of avoiding financial delegation limitations is not permitted.
	6.4.2 Official purchase orders Introduction A Purchase Order is an official document issued by a Purchasing Officer (Buyer) to procure goods or services on behalf of the university. The document is printed on two part continuous stationery, under the university letterhead and logo. If supplemented by a duly authorised requisition, the Purchase Order will be signed by the originator. If there is no requisition the Purchase Orders will be signed by an officer who holds a financial delegation. There are three types of orders as follows: Standard Purchase Order A legal contract used for the procurement of goods/services when the vendor, goods/services, costing and shipment address are known and the order is expected to be delivered in full at an agreed future date and at an agreed price. Planned Purchase Order A legal contract used for the procurement of goods/services whose delivery is spread over a specific period of time. The Planned Purchase Order (PPO) reserves funds and enters a commitment against a selected cost centre, whenever a Release is issued against the PPO as more goods are required. Blanket Purchase Agreement Created when the details of the goods or services , vendor information and a specified period of time is known but there are no set delivery schedules. The Blanket Purchase Agreement does not reserve funds against a cost centre. A Release is issued whenever more goods are required. Principle A Purchase Order will be required for all asset purchases and items, goods and services where early delivery is not anticipated and where the value of the acquisition exceeds $1,000. Procedures to prevent fraudulent use of Purchase Orders will be in place. Procedure 6.4.2.1 Where there is not an authorised requisition, (see 6.4.1) goods or services may be requested by raising a Purchase Order approved by an officer who holds a financial delegation. 6.4.2.2 The Purchase Order will be forwarded to the Cost Centre Manager or an authorised staff member for signature. 6.4.2.3 The Purchase Order will be initiated and if required printed from the purchasing module by the Buyer. 6.4.2.4 The completed Purchase Order will be faxed, mailed or phoned through to the relevant vendor. 6.4.2.5 The Flinders Finance System Ordering System will automatically allocate a number with a Buyer identifying suffix, to all purchase orders. Notes: Staff should note that once an official order has been placed, cancellation may result in the payment of compensation to the supplier. From time to time requisitions are endorsed ‘sole supplier’. It is necessary in cases where the value exceeds $1,000, to have a statement from the vendor’s confirming that they are the sole supplier.
	6.4.3 Receipting of Goods/Services Introduction All goods/services requested by purchase orders will need to be receipted to allow invoice matching. A hold will be put against a purchase order if it has not been receipted which will stop payment of the order. Receipting is an on line function. Principle All goods and services relating to a purchase order will be receipted on the system. Procedure The Buyer will take the following action: 6.4.3.1 Confirm with the Requestor that the goods/services have been received. 6.4.3.2 Ensure any further expenditure authorisation is given prior to PO revision ie: higher quantities/costs of goods/services. 6.4.3.3 Revise purchase order details if necessary. 6.4.3.4 Enter the receipt details onto the system. 6.4.3.5 Record the receipt number on the hard copy of the purchase order. 6.4.3.6 Forward the invoice to Accounts Payable. Additional/Background information. Requestors are responsible for checking deliveries and informing the buyer of the accepted quantities and costings.
	6.4.4 Vendors Introduction Vendor is a generic term for all staff, students, and suppliers who are paid money from the Accounts Payable system. The vendor file which contains the details of all current vendors is shared by all modules of the Flinders Finance System. Principle Additions to the vendor file will be made following appropriate authorisation. Input to the Flinders Finance System will be undertaken by personnel other than those whose duties include raising of purchase orders or drawing cheques. Procedure 6.4.4.1 Standard rules for recording names of vendors have been established which will create: less chance of duplicate vendors in the system; easy inquiry by vendor name; less chance of duplicate payment. Entering rules: There will be no full stops, commas, or apostrophes, in a vendor’s name, eg: ABC COURIERS. UPPER case letters will be used. There will be no spaces between initials eg: ABC COURIERS. The following abbreviations will be used with no punctuation: South Australia(n) – SA Australia – AUST Proprietary Ltd – PTY LTD Corporation – CORP Association – ASSN Company – CO Where the vendor’s name includes ‘and’, the ampersand (&) will be used, eg: A & B COURIERS, with a single space after the first letter and the ampersand. Wherever possible use acronyms (eg: ETSA) rather than the full name. Acronyms will not be used when the abbreviated form is not well known and/or is not recognised by the vendor. Chinese names will be entered in full. The family name may be entered either as the first name or the last name depending on the convention adopted by the individual. When checking the vendor on the system, be aware that FOO SENG WONG may be the same person as WONG FOO SENG. Peoples titles will be used, eg. Ms, Mr, Dr, Prof. together with first name, second initial and surname, eg. Mr Peter J Smith 6.4.4.2 Each week a routine check will be made by the Accounts Co-ordinator to ensure that all new vendors and vendor sites added to the system have been properly authorised, assigned to the correct Pay Group, and set up with correct payment terms.