Business and Finance

On-line purchase requisitions are submitted via screens in the Financial Records System (FRS). After a requisition has been created and passed all system verification parameters, the document will be routed electronically to all required individuals for approval based on pre-determined rules which have been incorporated into the system.

A purchase requisition must be completed in advance and in accordance with the policies and procedures included herein to initiate a commitment for goods and services for which Saint Louis University will be financially responsible. The Purchasing Department will review approved requisitions, confirm pricing, and issue a purchase order. Only the Purchasing Department is authorized to commit the University for goods or services through a purchase order. Individuals making unauthorized commitments risk personal liability for any incurred expenses.

Canceling a Purchase Order

A purchase order should be canceled to release encumbered budget funds if all invoices against the order have been received and processed and no additional expenditures are anticipated.

An e-mail should be forwarded to the Purchasing Department to request cancellation of a purchase order. A change order requisition should be submitted to increase or decrease a purchase order.

Change Orders

A change order is a requisition to modify an existing purchase order. Change order requisitions may be used to increase or decrease the purchase order, but should not be used to cancel a purchase order.

A purchase requisition should be processed to initiate a change order. To indicate that the requisition is a change order, the purchase order number to be modified and change order number must be noted on Screen 291 of the on-line requisition. Screen 292/293 should state the amount of the change and the resulting revised purchase order total. After the change order requisition has received all required approvals, the Purchasing Department will issue a revised purchase order.

Check Enclosed Orders

Departments may request that a check be enclosed with certain types of purchase orders such as the purchase of books and software for small dollar amounts and orders with vendor required deposits to confirm custom products and services.

To request a check enclosed order, a comment must be noted on Screen 291 of the purchase requisition requesting that a check be enclosed with the order and that back-up documentation is en-route. After completing the requisition, a copy of the back-up documentation (e.g. completed order form, price quotation, or invoice) identifying the price or deposit requirements, with the requisition number noted thereon, should be forwarded to the Purchasing Department.

Competitive Bidding Requirements

To ensure competitive pricing and cost-effective procurement of goods and services, competitive bids must be obtained on purchases with an anticipated cost of $5,000 or greater.

Price quotations from at least three vendors must be obtained by the requisitioning department or the Purchasing Department for the purchase of items with an anticipated cost of $5,000 or greater. If the bids are obtained by the requesting department, a purchase requisition should be submitted to initiate the issuance of a purchase order. Copies of the bids, with the requisition number noted thereon, should be forwarded to the Purchasing Department when the requisition is created.

Departments may also request the Purchasing Department's help in obtaining required competitive bids. To initiate the bid process by the Purchasing Department, the requisitioning department should forward complete specifications for the needed goods or services to the Purchasing Department. The Purchasing Department, in conjunction with the requisitioning department, will issue a Request for Proposal (RFP), analyze the responses, and award the bid based on compliance with the specifications, expected product quality, delivery price and institutional purchasing objectives. After a vendor has been selected, a purchase requisition must be submitted by the requisitioning department to initiate a purchase order.

The requisitioning department may request that bid openings be held with their representative present by contacting the Purchasing Department. Vendors may not be present, however, at a bid opening.

If a product or service is available only from a single source making it impossible to obtain three competitive bids, a written justification in lieu of bids must be approved by department's vice president and the Purchasing Department. A copy of this memorandum should be forwarded to the Purchasing Department with the requisition number noted thereon, when the requisition to initiate the order is created.

The requisitioning department is responsible for defining product specifications including model, characteristics, service level, and other details describing the product/service to be purchased.

Consignment Purchases

A consignment purchase occurs when equipment the requisitioning department intends to purchase is furnished by a vendor on a trial basis.

A purchase requisition must be processed to initiate a consignment purchase. "Consignment Purchase" should be included in the comments section on Screen 291.

No equipment should be accepted by University departments on a consignment basis without a valid purchase order.

Emergency Purchase Orders

Emergency purchase orders allow departments to bypass normal procurement procedures to directly order minor amounts of goods, services, or repairs, which are needed on an emergency basis to continue essential department operations. Departments may request an emergency purchase order number and immediate authorization to purchase emergency goods and services by calling the HSC Finance Office (Health Sciences Center departments) or the Purchasing Department (Frost departments).

The requisitioning department is responsible for obtaining accurate pricing information prior to requesting an emergency purchase order number.

A confirmation purchase requisition referencing the emergency purchase order number obtained from the HSC Finance Office or the Purchasing Department must be submitted within 24 hours.

When placing the order to resolve the emergency situation, the requesting department should inform the vendor of the emergency purchase order number and that it must be referenced on all invoices and correspondence.

Emergency purchase order use is routinely reviewed to ensure departmental purchases are planned and follow procurement policies. The Purchasing Department will assist University departments to develop procedures to best meet specialized purchasing needs.

Emergency purchase orders should only be used for minor purchases of materials and services or repairs which are needed on an emergency basis to continue essential department operations.

Invoice Payments

Invoices submitted by vendors for the payment of goods and services authorized by purchase orders are processed by the Accounts Payable Department.

All invoices which match the items identified on the purchase order and do not require departmental approval will be paid without departmental approval.

A copy of all invoices charged to standing purchase orders will be forwarded to the requesting department by Accounts Payable.

The receiving report for the purchase order should be returned to Accounts Payable immediately upon receipt of the goods or services. Receiving reports are required for all Q orders, those which equal or exceed $1,000, before the invoice is paid.

All invoices with the purchase order noted thereon, must be forwarded directly to Accounts Payable by the vendor. Non-compliance with this policy may result in a delay in the payment of invoices which may adversely affect vendor relations.

While invoices are immediately processed and entered into the Financial Records System (FRS), they are not paid until they are due. Invoices which have been processed and not yet paid will appear on the itemized list of invoices on Screen 249; however, they will not be reflected in a reduction of the encumbrance on Screens 20 and 21 until the check is actually issued.

Multi-year contracts including equipment leases and maintenance contracts are permitted when they result in cost savings over contracts issued on an annual basis and when the purchased goods and services will serve anticipated departmental needs for the term of the contract.

A purchase requisition should be submitted at the beginning of the contract and each fiscal year thereafter to cover the payments which will fall in that fiscal year. The requisition must specify all lease information including the amount and frequency of the payments, as well as, the payments to be paid in the current fiscal year (i.e. Payments 13 - 24 of a 36 month lease). The contractual agreement with the requisition number noted thereon, should be submitted with the initial purchase requisition.

Multi-year contracts should not exceed a term of three years. Exceptions to this policy which will serve the best interests of the University must be justified in writing by the requesting department and approved by the Purchasing Department.

All requisitions for equipment leases will be reviewed by the Treasurer's Office to examine lease/purchase options. If in the University's best interests, equipment may be purchased by the University and charged back to the requisitioning department in monthly installments.

Office Supplies

The Purchasing Department has negotiated an exclusive contract with Corporate Express for office supplies. This contract offers discounts ranging from 20 to 78% depending on the specific product category. In addition, more competitive pricing from other local office suppliers must be matched by Corporate Express.

All requests for the purchase of office supplies should be submitted on a purchase requisition. The paper American Loose Leaf order form should no longer be used.

Competitive pricing from other local suppliers will be matched by Corporate Express upon receipt of the competitor's price quotation, with the requisition number noted thereon, in the Purchasing Department.

Departments are encourage to establish a standing order with Corporate Express and order online from the Corporate Express website. Please contact Purchasing for further information.

Personal Purchases

Photocopy Equipment Acquisition

Due to the large number of copier manufacturers and dealers, ever-changing technological developments, volume discount potential, service requirements, and purchase/lease alternatives, the Purchasing Department is responsible for coordinating the acquisition and evaluation of photocopier equipment. The Purchasing Department will assist departments acquiring photocopy equipment by simplifying the selection and ordering process while promoting departmental satisfaction and cost-effective copier selections.

To initiate an acquisition of photocopier equipment, the department should notify Steve Brendle in the Purchasing Department of its equipment needs including monthly copy volume, required features such as reduction, sorting, enlargement, paper sizes, etc., lease versus purchase preference, and budget/funding availability.

Based on departmental specifications, the Purchasing Department will recommend at least two copier brands and obtain and review formal proposals from selected vendors with whom the University has established relationships. If requested, the Purchasing Department will arrange an on-site trial of the equipment for a one-week evaluation period. In addition, the Purchasing Department will provide feedback from other departments regarding the proposed photocopier equipment.

After a selection has been made by the requisitioning department, a purchase requisition must be submitted to initiate the acquisition. The Purchasing Department will coordinate the installation of the new equipment and removal of existing equipment.

Terms for the leasing of photocopier equipment should not exceed 36 months. Exceptions to this policy which will serve the best interests of the University, must be justified in writing by the requesting department and approved by the Purchasing Department.

All requisitions for photocopier equipment will be reviewed by the Treasurer's Office to examine lease/purchase options. If in the University's best interests, photocopier equipment may be purchased by the University and charged back to the requisitioning department in monthly installments. These monthly installments will include the actual cost of the equipment and an interest charge.

A purchase order is the official document which authorizes the procurement of goods and services from a vendor for which the University will be financially liable.

To initiate a purchase order, the requisitioning department must complete a purchase requisition which will be electronically routed to pre-determined individuals for approval. After reviewing approved purchase requisitions, the Purchasing Department will issue a purchase order to the vendor. A Receiving Report, which is a copy of the purchase order, will be forwarded to the requisitioning department.

Purchase order numbers are a six digit number preceded by a descriptive alpha character, as identified below. Purchase order number sequences are rolled at the beginning of fiscal year to enable the quick identification of the year to which a purchase order is charged. For example, beginning July 1, 2002, all purchase orders charged to FY03 will be in the 5xxxxx sequence (e.g. P5xxxxx).

P		Purchase Order With a Total Cost of Less Than $1,000
Q		Purchase Order With a Total Cost Greater Than or Equal To $1,000
L		Lease Standing Order (Multiple Payments)
S		Standing Order (Multiple Orders and Payments)
K		Utilities Purchase Order
E		Emergency Purchase Order
U		Unauthorized Order
C		Check Enclosed Order
W		Work Order for Construction/Renovation Project (Facilities Services)

Orders which require an enclosed check will be forwarded to Accounts Payable with supporting documentation for processing.

The Purchasing Department will fax all orders to the vendor as long as a vendor fax number is available on Screen 291. Orders with attachments, such as order forms or checks, cannot be faxed.

Purchase orders will not be issued for amounts under $10. Items costing less than $10 should be purchased with petty cash funds, if available, or by using a Direct Payment Voucher.

Receiving Reports

The receiving report for a purchase order documents the order which has been placed with the vendor and provides a mechanism to verify receipt of goods and services. Upon creation and distribution of a purchase order to the vendor, the Purchasing Department will simultaneously forward the corresponding Receiving Report to the requisitioning department.

Upon receipt of the goods and services, the department should sign and note the date the goods or services were received on the receiving report and return the blue copy of the report to Accounts Payable. Receiving reports are required for all Q orders, those which equal or exceed $1,000, before the invoice will be paid.

Departments should indicate their approval of invoices which exceed the unit price on the purchase order by 20% or more by noting the modified price on the receiving report before signing and returning the report to Accounts Payable.

Standing Purchase Orders

To reduce time, paperwork, and administrative expense, departments may request a standing purchase order which allows multiple orders to be placed against a single purchase order for repetitive or small dollar orders and bulk supplies and materials. Standing orders allow departments to order items and services on an as-needed basis from the specified vendor by referencing the previously assigned standing purchase order number.

To establish a standing order, a purchase requisition should be submitted at the beginning of the fiscal year. The amount of the requisition should be the total amount expected to be purchased from the vendor during the fiscal year.

Purchases against standing orders should be closely monitored by the requesting department to ensure that sufficient funds remain in the purchase order to cover all outstanding invoices and future orders. A change order should be processed immediately whenever it is determined that the standing order will require additional funds.

Standing orders will be issued only to established vendors with whom the University has experience and/or contractual agreements.

Vendor Selection

The Purchasing Department regularly negotiates volume discount purchasing agreements with various vendors for office supply orders. The University will pursue vendor discounts and volume purchase agreements based on its educational, not-for-profit status and the purchasing level of commonly used products. A suggested vendor listing has been compiled by the Purchasing Department.

The Purchasing Department will not change specifications or make product substitutions without the approval of the requisitioning department. The Purchasing Department may, however, question the quality of any kind of material requested to ensure the best interests of the University are being served.

Selection of product sources and vendors is the responsibility of the Purchasing Department. Suppliers suggested by the requisitioning department will be used unless the exact product is available from a vendor at a lower price or if there have been problems with the suggested vendor's product quality, delivery or service. If materials or service must be furnished by a particular vendor, justification must be submitted with the requisition.

Departmental requirements for a specific product or service will be of utmost importance. However, the Purchasing Department is responsible for ensuring that the value received by the University is maximized.

To focus your search and minimize the list of potential vendors, first type as much of the vendor name as possible in the VEND field on Screen 291 (up to 11 characters). If the correct vendor does not appear, then widen your search by typing less than the full vendor name in the VEND field.

The vendor search screen (202) contains room for seven vendors. To view additional vendors that match the selection criteria, press enter.

All organizations (e.g. associations, academies, societies, etc.) may be searched for by the acronym. The full name of the organization will appear in the upper right-hand corner of the requisition screens.

Vendors which include an individual's name should be searched for by the last name. For example, Wiley should be entered in the VEND field when searching for John Wiley and Sons.

University, city and state names are listed under the name of the state. For example, Missouri should be entered in the VEND field when searching for University of Missouri or the State of Missouri.