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Scope
This procedure describes the specific steps that departments need to
take to prepare Limited Purchase Orders (LPOs).
System References [Top]
NOTE: In the Oracle system, there is no separate module for preparing
Limited Purchase Orders as opposed to Purchase Orders. Limited Purchase
Orders are treated as Purchase Orders of less than $5,000 for
non-restricted goods and services.
The Oracle Navigation that corresponds to this procedure is
Limited
Purchase Orders -- Creating.
Policy [Top]
This procedure corresponds to, and should be read in conjunction with,
Purchase
of Goods from Outside Vendors -- Policy VII.C.1.
Responsibility [Top]
The authority to initiate, complete, or change a Limited Purchase Order
rests entirely with departments. Within each department, the responsibility
for approving LPOs is assigned to the PO Requester, the PO
Purchaser, or to a departmental reviewer.
Once approved, the departmental PO Purchaser and PO Requester
have the responsibility for completing Limited Purchase Orders and submitting
them directly to vendors.
An originator is considered self-approving if he or she can
complete and approve LPOs without having to submit them to someone else
for review.
Limited Purchase Orders do not require pre-approval by Procurement
Services.
Distribution [Top]
Ownership [Top]
Please see the Procurement
Services web site for additional information and news about any
recent changes in policy or procedure affecting Limited Purchase Orders.
Procedure Steps [Top]
Special Considerations
The LPO may not be used for purchases made on Medical Center
accounts.
Individual capital equipment orders must be placed on separate
LPOs.
As a non-profit institution, the University of Virginia is exempt from
sales tax on all goods and services except lodging and prepared
foods. University purchases are also not subject to Federal excise and
transportation taxes. It is the department's responsibility to claim
these exemptions whenever submitting an LPO to a vendor. The University
of Virginia will not accept liability for such over-payments.
Users will be able to print a hard copy LPO as a standard report in
Oracle. Please consult the ISP
web site for instructions on printing LPOs.
Submitting the LPO
In Oracle, every vendor must be registered in the Oracle Supplier
List before an LPO can be submitted. Please see Adding
and Registering Vendors -- Procedure 7-101 for adding vendors.
A list of contract vendors may be found on the Procurement
Services web site.
Purchase Orders are generated by the system, so users cannot design
their own numbers and enter the LPO later. In order to give the vendor
the system-generated PO number which must be referenced on the invoice,
you must first have created the LPO in Oracle.
Step-by-step instructions for creating an LPO in Oracle may be found
on the ISP web site in Oracle Navigation under Limited
Purchase Orders -- Creating. Only those persons who have the PO
Purchaser and PO Requester responsibilities in Oracle will
be able to perform this action.
Invoice Requirements
All invoices must include the Purchase Order number. Invoices sent
without a Purchase Order number will be thrown away. The vendor will
have to send a new invoice with a Purchase Order number. Payment will
be made 30 days from the receipt of the new invoice.
Vendors must send all invoices for LPOs to the Accounts Payable division
of Procurement Services rather than to the department making the purchase.
If the vendor sends an invoice to the department, the department must
forward this document to Accounts Payable immediately.
Vendors should not send photocopies or faxes of invoices. Payments
will be made from original invoices except when an invoice is more than
30 days past due. In that case, the vendor may send a fax of the invoice
and Accounts Payable will process it as an original invoice.
If an invoice against an LPO pushes the total amount invoiced over
$5,000, Procurement Services will determine how to handle payment.
Procurement Services will pay vendors for LPO purchases within 30 days
from the date the goods were received by the ordering department, or
30 days from the date a valid original invoice is received in Procurement
Services, whichever is later.
Please see Receiving
Goods and Services -- Procedure 6-102 for instructions on how to
process goods and services ordered through an LPO once they are received.
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