Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
The purchase authority dollar threshold indicates from where an authorized Purchase Order may be issued. The unit issuing the Purchase Order is responsible for all aspects of the Purchase Order including but not limited to:
Purchase Orders can be issued for purchasing standard goods or services that are “off the shelf” or fairly typical. For more complex purchases, a different form of Contract should be contemplated.
PaCS is responsible for issuing Banner Purchase Orders for purchases that exceed $25,000. Departments and Business Centers are not authorized to issue procurements that exceed $25,000. Purchases may not be fragmented in order to circumvent the necessary processes associated with issuing purchases over the $25,000 threshold, see PaCS Policy and Procedure 103-002.
Except for purchases subject to BOLI PWR, Business Centers will issue OSU Purchase Orders for purchases between $5000 and $24,999.99 referencing the appropriate terms and conditions on the PaCS website. Exceptions include those allowed in PaCS 303-012.
Except for purchases subject to BOLI PWR, Departments may issue Departmental Purchase Orders or Banner Purchase Orders for purchases at and under $4999.99.
Purchase Orders $5,000 and greater will be issued through Banner and reference the appropriate Standard Terms and Conditions listed on the PaCS website at: http://fa.oregonstate.edu/pacs/resources/information-vendors/terms-and-conditions. Business Centers should contact PaCS if unsure about which terms and conditions apply to their purchase. OSU Purchase Order Standard Terms and Conditions prevail over Vendor terms and conditions. Under no circumstances should Department or Business Center staff allow or agree to make changes to OSU Purchase Order Terms and Conditions. If a Vendor requests changes to the terms and conditions, submit request to PaCS for review.
Purchase Order changes and modifications should be initiated by the unit that initiated the Purchase Requisition by sending their request for the change or cancelation to PaCS. Only PaCS may cancel or change a Banner Purchase Order. PaCS will review requests for changes and cancelations to determine feasibility prior to making any changes or cancelations. In some cases, changes or cancellations may not be allowed.
Banner has an automatic function that disallows the completion and encumbering of a Purchase Order greater than $25,000 for Business Centers. If a Department or Business Center requests completion of the Purchase Order, the unit completing the Purchase Order must review the signed Purchase Requisition, ensure any applicable approvals or processes have been completed and keep a record of the purchase.
When a Purchase Order is approved in Banner an encumbrance is created against the Index. When an invoice is entered into Banner and is not linked to the original Purchase Order, the Purchase Order encumbrance remains open. Purchase Order encumbrances must be monitored by the Purchase Order issuer and the encumbrance deleted by the Purchase Order issuer before the end of the fiscal year.
A capital asset is generally described as a single asset with a minimum value of $5,000 except in special cases approved by Property Management. All Capital Assets shall be purchased according to the Property Management Polices and Procedures: Software, consumables, minor equipment not permanently affixed to the equipment and maintenance cannot be considered part of the asset value. Freight, training, and set up can be a part of the asset value. The proper transaction account code must be used as indicated below:
When an asset involves a trade-in, the original purchase order should reflect the original value of the asset without consideration of the trade-in credit. The intent to make a trade-in and the value, which will be received for the trade-in, should be covered in item text. The trade-in value will be given during invoice payment by using journal voucher processing. When a trade-in is referenced, the department should be reminded they must check with Surplus Property and Inventory Control and complete a Property Disposition Request (PDR) before the purchase. All Trade-Ins shall follow the Property Management Policies and Procedures. A copy of the PDR and the Purchase Order shall be provided to Inventory Control.
For additional information related to Purchase Order Trade-In’s see PaCS 301-008.
Generally, an exchange of OSU goods or services for a Vendor’s goods or services in whole or at a discounted rate is not allowable. This practice unfairly eliminates Vendors who may not wish to accept OSU goods and services and disproportionately lowers or eliminates the overall price of the goods without accounting for the trade or discount.
When an asset involves a “discount” from a vendor, the purchase order should reflect the actual discounted cost paid rather than the inflated cost prior to discount.
The following is a list of commodities and payees that do not require issuance of a Purchase Order prior to payment. The following excludes procurement of items that are capitalized equipment:
For procurements under $25,000: Business Centers may pay using a Banner invoice.
For procurements over $25,000: unless granted Banner unrestricted invoice access by the Procurement and Contract Services Chief Procurement Officer and Business Affairs, Business Centers must request an invoice completion from PaCS (see PaCS 304).
Banner FIS unrestricted invoice access may be used for payments only as allowed on the Purchase Order Exception list or as approved by PaCS. For audit documentation purposes, written justification for not issuing a Purchase Order should be stated in the document text of the Banner Invoice document. When referencing use of a Contract, the contract number should be:
Unrestricted invoice access utilized in a manner that falls outside of this policy, procurement Oregon Administrative Rules or related PaCS policies and procedures may be rescinded by the Procurement and Contract Services Chief Procurement Officer and Business Affairs.