Best Practices: Purchase Orders

Effective July 1, 2006

This table lists specific purchase types and the object/sub-object code for each in the Advantage Financial System, as well as any restriction on the amount that can be purchased without a purchase order (e.g. Advertising purchases over $5,000 would require a PO) and a link to the corresponding reference in the FIN Manual of Financial Services policies and procedures.

For more information on purchasing procedure and purchase types, see the Purchasing Procedure Guide.

Notes

1. Requests for reimbursements for employee-paid or student-paid expenditures are subject to any and all approvals that are required for the item or commodity. (Example: Reimbursement of business meals and food and related expenses expenditures charged to state funds for recruiting purposes requires the appropriate provost's or vice president's approval in advance of the expenditure.)

2. When personal services from independent contractors cost more than $10,000, the director of Purchasing and Business Services should be contacted concerning contract/purchase order requirements (see PUR 307-04, "Retaining Consultants and Independent Contractors").

3. Payment is made to an independent contractor who is not an ASU employee. Service is typically for a limited time. To pay an independent contractor without a purchase order, services must have been completed. Otherwise, a purchase order or Personal Services Contract is required to initiate and/or authorize the work to be performed (see PUR 307-04, "Retaining Consultants and Independent Contractors").

4. Limitations for moving expenses are established within each provost's and vice president's operating area. For moves costing more than $5,000, staff members use Purchasing and Business Services moving contracts. Contact Purchasing and Business Services for current moving contracts. If requested, a purchase order is issued to cover expenses billed to the university. Moving expenses paid to an ASU employee or on behalf of an ASU employee are reported as additional income on Federal Form W-2.

5. Commitments for guest lecturer fees, performer fees, and honorariums costing more than $10,000 shall be made by a contract signed by an individual authorized to execute contracts on behalf of the university (see PUR 202, "Contract Signature Authority").

6. Faculty and staff may procure goods or services directly from a vendor and submit the vendor billing for payment if:

a. the purchase cost of the transaction is less than $5,000
b. the items do not constitute personal compensation to individuals for services rendered
and
c. the original vendor's receipt is provided at the time payment is requested.

7. Payments for advertising costs of $5,000 or less do not require a purchase order. There is no dollar limit on using a PV to pay advertising invoices from the Human Resources’ advertising contractor as long as the PV references the contract number (see the Staff Personnel Policies and Procedures Manual- SPP 201-01, "Recruitment/Employment").

Note: This type of recruitment advertising will be billed directly to the department and may be paid with a PV without an amount limitation, as long as the human resources advertising contract number is cited on the PV.

8. Payments for facilities include charges for conference seminars held at hotels or other facilities and include rental charges for the facility itself and related costs associated with the function, e.g., food.

9. Payments for items purchased for resale for $5,000 or less that are made by recognized auxiliary enterprise activities, by the ASU Museum Store, and by the Hispanic Research Center.

10. Use a PV for freight payment ONLY when freight is the only item to be paid (i.e., Federal Express) or if freight was not included in a previous purchase order and now must be paid from a separate invoice.

11. Single copies, or single copies for each of a number of faculty or staff, of books and other reference material may be purchased without a purchase order. All books and reference materials purchased with University funds for classroom use must be purchased through the ASU Bookstore.

12. Copying or printing expected to cost more than $1,000 is done through Design Print Services. They have several printers who were selected based on the quality of their work under contract. Design Print Services posts print requests on their secure Web site, and the printers under contract respond with quote within 48 hours. The work is printed by the lowest cost printer. Upon a request from a department, a non-contract printer can also be requested to submit a quote. Further, copying or printing of any dollar amount involving the use of the ASU logo or wordmark must be reviewed by Graphic Production Services. To ensure that the logo or wordmark are properly used. Finally, all ASU letterhead, envelopes, and business cards are printed at the Graphic Information Solutions program at East Campus. Graphic Information Solutions is an academic program in the Department of Information and Management Technology of the College of Technology and Applied Sciences of Arizona State University at the East Campus.

Purchases that do not meet the above criteria must be made by submission of a purchase request so that Purchasing and Business Services may issue a Purchase Order, by using the Purchasing Card, or by completing a Departmental Limited Value Purchase Order (PDLVPO) if authorized in PUR 304-01, "Departmental Limited Value Purchase Orders."