PURCHASING OVERVIEW
There are three categories that represent the bulk of SDCT purchasing: Procurement Card (ProCard), Purchase Order, and Authorization for Professional/Individual Services.
For information on the policies and procedures of Accounting and Financial Management at The University of Texas at Austin visit the Handbook of Business Procedures. Information on Purchasing can be found in Part 7. Purchasing.
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ProCard
Departmental account ProCard holders purchase or check out cards to purchase common goods not available through Today’s Business Solutions, or office supplies needed on an ad hoc basis from Office Max/Depot with an official discount card + ProCard.
All ProCard transactions must be documented with receipts, coding, and account information for monthly cycle reconciliation. The cardholder is responsible for matching each purchase with an automated report for departmental approval. Anyone using the ProCard for SDCT purchases must provide accurate, detailed information about their transaction.
Here is the Disallowed List, items which CANNOT be purchased using the ProCard.
Examples: Travel-related items, restaurants, parking, gifts, and any kind of service or agreement.
Purchase Order
Purchase orders (POs) are another way to buy materials and supplies for the department. A purchase order is created to encumber funds for the desired items, and to verify that encumbrance to the vendor. After delivery, the PO is used in conjunction with the vendor’s invoice to authorize a payment by check or direct deposit.
Some vendors will not begin work or provide goods or services without a PO.
Authorization for Professional/Individual Services
In addition to covering the purchase of goods, purchase orders are used to pay non-employees for services (unless for direct-billed travel expenses only).
Some services require a business contract, rather than a PO. Business contracts are processed outside of the college (by the UT Business Contracts office) and generally require a longer lead-time to complete.
This chart–The Purchase Order vs Contract Matrix–shows the criteria for deciding which document to use.
Example, we would use a purchase order to hire a graphic designer, while a guest speaker would require a business contract.
Additional Purchasing Information & Policies
Tax
It is college policy to not reimburse sales tax on purchases except for restaurants and in the case where the
purchaser provided the state tax-exempt certificate and an out of state vendor would not honor the exemption.
In all other cases, the sales tax cannot be reimbursed.
Please visit the Sales of Goods & Services page to access instructions in completing the Sales Tax Exemption
form for use in purchasing. Texas Sales Tax Exemption
Payment Terms
The University of Texas at Austin makes payments to vendors based on the Texas Prompt Payment Act, which
states that payment is overdue on the 31st day after the latest date below:
• The date the university receives the goods under the contract.
• The date the performance of the service under the contract is completed.
• The date the university receives an invoice for the goods or service.
The university refers to the payment terms of the Texas Prompt Payment Act as “Net 30”: payment of the net
(full) amount will be made within 30 days of the invoice or receipt of material or service, whichever is later.
Payment Term Exceptions
Occasionally, a vendor will offer an early payment discount to the university and the terms offered will be noted
on the invoice. Accounts Payable will attempt to take advantage of the prompt payment discount terms when
processing the invoice. Otherwise, the invoice will be paid according to the university’s standard Net 30 terms.
One example of an alternate discount term is 2%10 Net 30, which means that a 2 percent cash discount is
given to the university if the invoice is paid within 10 days after receipt; otherwise the net amount is due in 30
days.
Prepayment
Payment for goods and services is usually made after the actual receipt of goods or the completion of services.
However, there may be times when prepayment is appropriate. For information on prepayment, see the
Handbook of Business Procedures 9.1.4. Prepayments. If a prepayment is appropriate or required by a
vendor, the Dean’s Office will submit the necessary paperwork for exception.
Requests for Exception to Purchasing Policy
ENTERTAINMENT
Expenditures of University of Texas at Austin funds for entertainment should support the institutional mission, and must serve a business purpose.
Generally, entertainment expenditures include food and beverages, facility rentals, flowers, invitations, and other similar expenses.
All payments or reimbursements for entertainment expenses must be accompanied by an Official Occasion Expense Form (OOEF), which details the cost, the reason for the expenditure, and the names of everyone present for the occasion.
SDCT processes a DocuSign template version of this OOEF form.
Reimbursement for entertainment expenses
Reimbursement of official occasion expenses--such as UT-related business meals, and condolence flowers--must include a complete list of all attendees and their titles (if they number less than 10).
COFA mandates meal reimbursement limits as follows:
-Breakfast/Lunch $40 per person
-Dinner/Reception $75 per person
-Gratuity may not exceed 20%
-Alcohol must not exceed total cost of food, pre-tax
Here is the
REIMBURSEMENTS
Reimbursement Guide
Texas Sales Tax Exemption
Meal Reimbursement Limits
Request for Exception to Purchasing Policy