Procedure: 7-103

Effective: July 2, 2001

Owner: Director of Procurement Services

Latest Revision: June, 2001

Preparing Limited Purchase Orders

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

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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2001 by the Rector and Visitors of the University of Virginia. All rights reserved.