Purchase Orders - Changing

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Scope

This procedure covers requesting, evaluating, and processing purchase order changes, including purchase order changes resulting from receiving discrepancies and changing any PTAEO information, including Expenditure Types.

Refer to the Procurement Services website [http://www.virginia.edu/procurement] for additional information.

System References

Purchase Orders - Approving [NAV5011U]

Purchase Orders - Changing [NAV5012U]

Purchase Orders - Correcting Invalid GL Date [NAV5050U]

Purchase Orders - Finding [NAV5016U]

Purchase Orders - Printing [NAV5015U]

Policy

Appropriate approvals are required when purchasing goods and services.

Purchase Orders are purchase orders created directly by Departments for purchases of goods and services totaling less than $5,000 to non-contract vendors or less than $50,000 for contract vendors. They may not be used to purchase restricted items for any dollar amount.

Restricted items include:

Any form of goods or services purchased from an employee of the Commonwealth of Virginia
Alcoholic beverages, firearms and ammunition, carpet and window treatments, flowers, framing, furniture, gifts, prescription drugs, radioactive material, and renovation/construction services
A current list of restricted items can be found on the Procurement Services website.

Appropriate approvals are required when purchasing restricted items.

A purchase order is the required contract with a vendor for the purchase of materials and services.

Purchase order changes are approved by the same person/people who approved the original transaction.

Purchasing documents may include one or more of the following:

Purchase Requisition
Purchase Order
Supporting documents, including: specifications, sole source justification, etc.

Purchase requisitions, if approved by Procurement Services, are converted into purchase orders.

Freight charges are generally not included when calculating the dollar value of a particular purchase.

Vendors are also called suppliers in Integrated System documentation.

Responsibility

The Approver is responsible for approving all changes to purchase orders, including:

resolving receiving discrepancies
entering purchase order changes into the system
printing updated purchase orders as needed

Distribution

Director of Procurement Services

Approver^*

PO Administrator

PO Buyer Manager^*

PO Buyer^*

PO Purchaser^*

PO Requester^*

Ownership

The Director of Procurement Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed when a change to a purchase order is required.

The job title Originator refers to one of the following responsibilities:

PO Requester
PO Purchaser
PO Buyer
PO Buyer Manager

This procedure continues from:

Purchase Orders - Issuing [PRO5003U]

Receiving - Resolving Discrepancies [PRO5008U]

Originator

1. Find the existing purchase order in the IS application.

This step is required to ensure that the order exists and has not progressed to a status where it cannot be changed.

Purchasing
N ® Purchasing : Purchase Orders ® Purchase Order Summary
Find Purchase Orders

Refer to Purchase Orders - Finding [NAV5016U].

2. Verify that the change to the order is reasonable and that the order can still be changed. You cannot change a purchase order line that has had an invoice matched to it OR has been received against.

If the purchase order can be changed, goto task #3. Otherwise, end of activity.

3. Negotiate the change with the vendor, as needed.

Record the outcome of the negotiations with the vendor using the attachment (paper clip) icon if needed.

If the purchase order can be changed, goto task #4. Otherwise, end of activity.

4. Unreserve the Purchase Order.

Purchasing
N ® Purchasing : Purchase Orders ® Purchase Order Summary
Find Purchase Orders

Refer to Purchase Orders - Changing [NAV5012U].

5. Make changes to purchase order, as appropriate

A purchase order revision may be created based on the changes you have made to the document.

A revision is created if you make changes that need to be communicated to the vendor (such as different delivery location code, new item description, price, or quantity.)

Other changes, such as changing the PTAEO distribution, category, and expenditure date, do not need to be communicated to the vendor and therefore, no revision is created.

6. Approve the purchase order.

The purchase order will be automatically forwarded to the approver if not self-approving.

7. Correct the GL Date, if necessary.

You will get an approval error if the GL Date is not in the same month as when you are approving the purchase order. This will happen if you create and save a purchase order, and then return to it later, in a different month, to approve it.

Purchasing
N ® Purchasing : Purchase Orders ® Purchase Order Summary
Find Purchase Orders

Refer to Purchase Orders - Correcting Invalid GL Date [NAV5050U].

If you are self-approving for purchase orders, goto task #10. Otherwise, goto task #8.

Approver

8. Review change(s) to purchase order.

Purchasing
N ® Notifications Summary
Notifications Summary

Refer to Purchase Orders - Approving [NAV5011U]

9. Approve or reject the purchase order.

See step #7 above for information regarding invalid GL date errors.

If the purchase order is approved, goto task #10. Otherwise, end of activity.

Approver, Originator

10. Print the updated purchase order, if needed.