Purchasing Procedures

The Purchase Order is the normal instrument by which goods are procured to fill a requirement. It is the seller’s authority to ship and invoice for the goods specified on the order. It is a legal instrument which expresses the buyer’s part of the contract of sale. Once accepted, it has the legal force of a binding contract.

THERE ARE THREE (3) TYPES OF PURCHASE ORDER FORMS:

Limited Purchase Order (Small Dollar orders)

Limited Purchase Orders are given to department secretaries in groups of ten. The person picking up the forms at the Purchase Department must sign and be responsible for them. Each form will have a Purchase Order number on it and is a pre-approved Purchase Order with a LIMIT of $500.00. These forms are to be used by the department for immediate emergency orders. Furniture, equipment and maintenance contracts are NOT allowed on this form.

When using a Limited Purchase Order:

• The form has four (4) parts (White, Pink, Blue, Green) and should be filled out completely.
• The White copy should get faxed or mailed to the company/vendor (the Purchasing Department does NOT get the White copy).
• The Pink copy should be sent immediately to the Purchasing Department so that there is a record of the order on file.
• The Blue and Green copies are kept at the department until the order is received.
• The Blue copy (receiving) should be signed at the bottom when the order is received, and should be sent to the Purchasing Department. This copy is REQUIRED by the Purchasing Department in order to pay the invoice.
• The Green copy should be marked paid and kept on file at the department.
  Copies of Invoices are NOT sent back to the department.

Purchase Requisition – For a Regular Purchase Order

Purchase Requisition forms are available from the Purchasing Department and should be kept in the department. The requisitioner may fill out the form with the company/vendor they wish to order from (or can contact the Purchasing Department for information on where to get the best price or get a quote). A excel spreadsheet Requisition form can be obtained from this website.

The Form must be filled out completely and should include:

• “Suggested Vendor” (fax number should be included if available).
• “Ship To” Department, Address and Name of person ordering.
• Specific “Date Required” for the item to be received (not ASAP).
• “Description of Requested Items” should include quantities desired, type of package, complete specifications of model and item number as well as price.
• “FOPAL Account” include complete number to charge.
• Department Head approval and/or persons responsible for the budget.

After the form is completed, the department Secretary should keep the Yellow copy and send the White copy to the Purchasing Department. (The Yellow copy is your record.)

The Purchasing Department will issue a Purchase Order from Banner and place the order with the company by fax (if included on the Purchase Requisition) or by mail.

The Blue and Green copies of the Purchase Order will be sent to the department by campus mail. The Secretary should check it against the Purchase Requisition and keep it with the Requisition. When the order is received, the Blue (receiving) copy should be signed and sent to the Purchasing Department.

Blanket Purchase Order

Requesting a blanket purchase order:

A Blanket Purchase Order is to be used to take advantage of discounts (if paid net 10) or to facilitate many small immediately needed items. Blanket Purchase Orders are not to be used for one single item over $1,000, but rather for small item supplies that a department must order in a timely manner. (Example: Plant Operations items needed for an electrical repair). Furniture, equipment and services CAN NOT be placed on a Blanked Purchase Order. The dollar amount requested for the Blanket Order or vendor can be declined by the Procurement Manager.

A Blanket Purchase Order is requested on a Blanket Purchase Requisition form at the beginning of the fiscal year in July. The Blanket Purchase Order should be requested when the company / vendor will be used for many small item supplies throughout the year. NO account number should be put on the Requisition for a Blanket Purchase Order. The Purchasing Department will send a copy of the invoice to the department requesting the account number to charge when an invoice is received and the account number can be different on each invoice.

The Blanket Purchase Order tells the supplier/vendor that a specific department has been approved to call in orders using the Blanket Purchase Order number for the fiscal year, but all the items totaled cannot total over the specific amount listed on the Blanket Purchase Order. A Blanket Purchase Order will ALWAYS start with a “B” instead of a “P” to distinguish between a regular Purchase Order and a Blanket Purchase Order. The Blanket Purchase Order number must appear on the invoice.

The Green copy of the Blanket Purchase Order is the ONLY copy that will be returned to the department requesting the Blanket Purchase Order.

To place an order the department can call in an order using the “B” Purchase Order number, or can type the order in Excel or Word including the “B” Purchase Order number on it and fax it to the vendor. (The Purchasing Department does NOT need copies from the department of what was ordered.)

When an invoice is received by the Purchasing Department from the Vendor with a Blanket Purchase Order number on it, the invoice will be stamped at the Purchasing Department requesting the Account Number information to charge the Order and an approval signature. Once the Account Number and approval signature are on the invoice, the department Secretary should make a copy of the invoice (to keep a running total of the purchases on the Blanket Purchase Order) and forward to the Purchasing Department so that payment can be made.

ALL ORDERS FOR SUPPLIES, EQUIPMENT, FURNITURE AND MAINTENANCE CONTRACTS MUST BE PLACED ON A STANDARD PURCHASE ORDER AND GO THROUGH THE PURCHASING DEPARTMENT—THEY CANNOT BE PLACED ON A BLANKET PURCHASE ORDER.

Change Order

If a Blanket Purchase Order reaches it’s dollar limit at any point during the year, a Change Order can be done to increase the amount of the Order. You will be notified by the Purchasing Department if the Blanket Purchase Order is getting near the limit.

Change Order for “Account number” changes

If a purchase order is completed and the account number needs to be changed, it can be done if it has not been paid. A change order form must be completed, approved and sent to purchasing. After the account number is changed in Banner, the change order form will be attached to the original requisition to be kept in the file for record.

NOTE: If any deposits or payments have been made from the purchase order, the balance of the open order is the only account that can be changed. Any payments already made would have to be changed with an account transfer through the controller’s office.

Deposit Required or Pre-Payment Required

There are times when deposits may be required by a supplier. If this is the case, please supply a written statement from the supplier stating that a deposit is required and the deposit amount. The purchase requisition will need to be done for the full amount of the purchase, with the deposit information attached. The Purchase Order will remain open for the balance and an invoice will be required after the event or material is supplied in order to pay the balance.

All deposits for events, materials or service must go through the Purchasing Department.

If pre-payment is required by the company/vendor, the Purchasing Department will try to find the same item at a company/vendor who will accept the College Purchase Order. Pre-payment may be approved is a company/vendor cannot be found. (Check with the Purchasing Department first, before requesting pre-payment.)

If a Deposit is Required, the Purchasing Department will need a copy of the documentation from the company/vendor stating that a Deposit is Required.

Point of Contact for Each Department

The Purchasing Department needs to have one person who is the “point of contact” for the department. Usually it is the secretary for the department, unless there is no secretary. This is the best location for the paperwork to be controlled.

The Blue and Green copies of a Purchase Order will be sent to the “point of contact” person to keep on file.

Any invoices from orders on a Blanket Purchase Order will be sent to the “point of contact” person who should then have the account number assigned and signed by the appropriate person.

When an invoice is received by the Purchasing Department, a request for the Blue receiving copy will be sent to the “point of contact” person, who should then find out if the items were received and forward the Blue receiving copy to the Purchasing Department.

New Vendor

If you are in contact with a vendor for a special item you need to order and you know we have not dealt with the vendor previously, we will need to get a W-9 (business tax ID number) from the vendor. We will not be able to enter the invoice for them to be paid until their W-9 information is in the Banner database. (This includes a deposit or pre-payment check.)

Overnight Mail

Lafayette College has contracted pricing for overnight mail services with Fed-Ex and UPS overnight. If you need information on account numbers, forms or on-line access, call Linda Jroski (x5016) or Patty Curto (x5017) in the Purchasing Department.