Purchasing 101 A guide for department administrators presented by: Heidi Williams January, 2012.
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Purchasing 101 A guide for department administrators presented by: Heidi Williams January, 2012
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Transcript of Purchasing 101 A guide for department administrators presented by: Heidi Williams January, 2012.
Purchasing 101
A guide for department administrators presented by:
Heidi Williams January, 2012
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Before You Buy
Read and understand the University’s Standard Practice Guide, section 507.01: Purchasing: General Policy & Procedures
The Standard Practice Guide is online at
http://spg.umich.edu/
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Before You Buy
Consult a Contracts and Procurement representative for clarification of any policy or procedure before making a purchase over $5000.00 or a purchase that requires a “signed” contract regardless of dollar amount.
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Procurement Methods
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University Contracts
http://www.finance.umich.edu/procurement/howtobuy/universitycontracts Procurement Services Contract Administrators are available to assist you
with finding suppliers and products. Contract Administrators are assigned to strategic contracts to monitor performance standards and compliance requirements. Contract Administrators also assist University faculty and staff with contract questions and issues (examples; ordering, invoicing, price matching, and product failures).
Each supplier is provided with a Contract Web Page that includes detailed information on commodities and services, how to use the contracts, and contact information that includes the supplier's sales representative and the U-M Contract Administrator. Use the search above to find the right product or service.
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Epro Requisitions/Purchase Orders
The eProcurement (ePro) Requisition is used to purchase goods and services not available through Internal Service Units or University Contracts, or to release against an M-Pathways contract. The ePro req is the only transaction that you complete in M-Pathways to order goods and services. There are three types of ePro reqs:
Special Request eProcurement Requisition – Use for purchases from external vendors that do not have negotiated pricing with the university or to release against an M-pathways contract. Transactions $5,000 or greater, or those that require special handling, are routed to Procurement for processing and approval.
M-marketsite eProcurement Requisition – Use the university’s online catalog ordering system to place orders from suppliers that have negotiated pricing with the university. These orders are completed as ePro reqs and are routed to Procurement for processing and approval when certain conditions are met (e.g., dollar amount, ChartFields used, etc.).
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Non-purchase order (non-po) Payments
Non-purchase order (non-PO) payments Non-purchase order (non-PO) payments should not be used in lieu of the other procurement
methods. You should use the non-PO voucher only when no other payment method will work. Non-PO vouchers are used for payments that do not originate from a purchase order and when a
supplier will not accept a purchase order or a P-Card. Payments $5,000 or greater must have prior approval from a Procurement Services buyer. Non-PO vouchers are created online in M-Pathways by department users with appropriate authorization.
Reimbursements for cash paid for services can not be made using a non-PO voucher. Contact [email protected] for instructions.
Non-purchase order tips: Payments are made net30 from the date of the invoice. Departments should create non-PO vouchers in M-Pathways to speed up the processing time. Departments need to be sure the “remit to” address under the “Payments” tab corresponds with
the “remit to” on the invoice. Original receipts must be attached to the voucher cover sheet you submit to Accounts Payable. If you have enclosures that need to accompany the check please make the necessary copies
and attach to the voucher. Payments of $10,000 or greater are not finalized until a procurement representative approves the
payment online.
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Pcard Purchases
Do not use the P-Card for transactions that are normally available through a University Contracts or an Internal Service Unit.
Do not use the P-Card for transactions that will be reimbursed by an external party.
Do not use the P-Card for services unless the service is with an incorporated vendor. To determine if the vendor is incorporated, contact the Vendor Maintenance team at [email protected].
Do not use the P-Card for any supplies that total $5,000 or greater. All rules and procedures set forth by Procurement Services and the
Office of the Controller must be strictly adhered to. Failure to comply with these guidelines may result in the suspension of the P-Card and/or disciplinary action up to and including termination.
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The Competitive Bid Process
The University Regents require that all transactions of $5,000 or greater be reviewed by Procurement Services buyers to complete the competitive bid process. If you need to purchase goods or services in the amount of $5,000 and greater, follow the steps below to streamline the competitive bid review and approval process.
Create a special request ePro req in M-Pathways (you can select a specific buyer on the ePro req or leave the buyer field blank and the Procurement Triage team will route the requisition to the appropriate buyer for review).
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Non-competitive Purchase AwardSome purchases are completed without the competitive bid process. A written justification prepared by the department must accompany requests for non-competitive purchases. Departments are encouraged to use the sole source justification form designed for this purpose.
http://www.finance.umich.edu/procurement/forms/sole-source-justification
Please note that Procurement Services must approve this justification.
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The Approval Process
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Spending Authority The Regents delegate spending
authority to the Executive Vice President and Chief Financial Officer, who in turn delegates that function to the Director of Purchasing
Purchasing Services is the sole agent authorized to make commitments against University funds
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UMHS Contracts & Procurement
2500 Green Road
Suite 100
Ann Arbor, MI 48105 [email protected]
http://www.finance.umich.edu/procurement I am also available to come out to your
department and walk you through the epro req process, give me a call to schedule a session with me.
Office: 734.763.9877
Fax: 734.763.9889
Hours: 8:00am – 4:30pm
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Campus Procurement Services
7071 Wolverine Twr
3003 S. State St.
Ann Arbor, MI 48109
[email protected] http://www.finance.umich.edu/procurement
Office: 734.764.8212
Fax: 734.647.0733
Hours: 8:00 am – 4:30 pm
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ON-LINE DEMONSTRATION OF MANAGING YOUR
REQUISITIONS
