PURCHASING

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.

[Click here to jump to the Purchase Request page.]

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 PO 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.

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

When an unusual circumstance arises, which causes noncompliance with UT purchasing procedure, a request for exception can be made. For example, if someone is requesting a reimbursement without an itemized receipt, or if a contracted individual is paid later than 30 days from receipt of invoice.

[NEEDED: AMY/SHELBY'S INFORMATION ABOUT EXCEPTION REQUESTS WITHIN SDCT]