Yale Shared Services. Benefits of Creating a Purchase Order: Procure to Pay Tool Kit
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- Clemence Geraldine Richards
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1 Prcure t Pay Tl Kit Benefits f Creating a Purchase Order: Priritized cntract pricing Upfrnt charging validatin Cmmitment is made Details f gds and services prvided Terms and Cnditins are met Wrkflw f payment (invice is nt handled n the back end) Clarity f agreement between department and vendr Service. Slutins. Satisfactin. Page 15
2 Prcure t Pay Tl Kit Example f Sciquest Hme Page Imprtant Tips fr SciQuest: Cmmdities that shuld nly be purchased in SciQuest, fr any dllar amunt Chemicals Cmputers and Supplies Lab Equipment and Supplies Office Supplies Users are able t request new SciQuest vendrs via SciQuest and are prcessed in hurs SciQuest POs shuld be used fr cnferences and ther rganized events, cnsulting services (with a Prfessinal Service Agreement) and ther prfessinal services. OK2Pays are n lnger apprpriate fr these gds and services. Cmmnly Used Frms Standing Order, Change Purchase Order, Cancel PO r Clse PO Cmmitment Resurces purchasing.helpdesk@yale.edu : Purchasing questins and ITS Help Desk: (203) : Technical Questins Additinal Infrmatin fr SciQuest : Service. Slutins. Satisfactin. Page 16
3 Prcure t Pay Tl Kit Example f a Standing Purchase Order (PO) A Standing Purchase Order shuld be created when the purchase f multiple items will be billed with several invices at different times Imprtant practices t remember cncerning Standing Purchase Orders (PO) Vendr wh is invicing fr gds/services needs t be the same vendr name in which the purchase rder is set up fr A vendr shuld include purchase rder number n all invices being submitted against that specific purchase. Charging instructins (PTAEO) used fr purchase rder needs t be a valid PTAEO, and shuld be valid during the life f the PO Unit Price = $1.00 and Quantity = Ttal PO Amunt A Standing Purchase rder can be updated. (i.e PTAEO, Dates, Additinal Mney) Nte: Billing Address and Billing Infrmatin sectins are included n all PO s that the vendr receives, prviding the vendr cmplete directins n hw t invice Yale University t ensure a smth and accurate payment prcess. Service. Slutins. Satisfactin. Page 17
4 Prcure t Pay Tl Kit Example f a Standard Purchase Order (PO) A Standard Purchase Order shuld be created when the purchase f defined item(s) that will be billed against ne invice. Imprtant practices t remember cncerning Standard Purchase Orders (PO) N changes r updates can be made t a Standard Purchas Order (PO) Cannt add mney, change PTAEO, quantity etc. Yu must Clse PO and create a new standard purchase rder. Vendr wh is invicing fr gds/services needs t be the same vendr the PO is set up fr. The quantity rdered and received needs t reflect the same quantity used n PO Cannt add mney r quantity t an existing purchase rder. A new purchase rder will need t be created A vendr shuld include purchase rder number n all invices being submitted against that specific purchase. Charging instructins (PTAEO) used fr purchase rder needs t be a valid ptae, and shuld be valid during the life f the PO. Nte: Billing Address and Billing Infrmatin sectins are included n all PO s that the vendr receives. This prvides the vendr cmplete directins n hw t invice Yale University t ensure a smth and accurate payment prcess. Service. Slutins. Satisfactin. Page 18
5 Prcure t Pay Tl Kit Purchases f Gds and Services Cmpetitive Bidding Yale s cmpetitive bidding threshld is $10,000 Requirement t btain verbal bids n lnger applies Purchases with nn cntract vendrs >=$10K must be negtiated r cmpetitively bid. Fr mre infrmatin: pr02 cmpetitive bidding prcess Prfessinal Service Agreement (PSA) Agreements fr services and/r cnsulting that ttal payments in excess f $10,000 per engagement All agreements must be signed by an authrized signatry f the external service prvider and apprved and signed by authrized University fficial(s), as defined in Prcedure 3210 PR.01, befre the wrk begins. Please refer t plicy Initiating and Prcessing Prfessinal Services and Cnsulting Agreements (PSAs) fr additinal infrmatin. Fr additinal questins cntact purchasing@yale.edu. Sle Surce Frm Departments must prvide a sle surce justificatin in situatin where cmpetitin is nt apprpriate: fr03 sle surce Nte: Purchasing Services will review rders >=$10K fr savings pprtunities Service. Slutins. Satisfactin. Page 19
6 Prcure t Pay Tl Kit CLOSING PURCHASE ORDER COMMITMENTS VS. CANCELING PURCHASE ORDERS Clse PO Cmmitments T use when PO gd/services have been fully received and fully inviced, prcessed and paid. The balance, if any, needs t be relieved frm the PO. (Clsed) New Prcess t Clse PO Cmmitments (Beginning May 1, 2014) Purchasing Services has upgraded the current Cancel Purchase Order Frm in SciQuest t include requesting PO cmmitment clsure. This SciQuest frm replaces the current prcess f ing p.cmmitments@yale.edu. Please use this new frm, named Cancel PO r Clse PO Cmmitment, when requesting either f these services. Once frm in cmpleted in Sciquest PO is Finally Clsed and n future actin can be taken against that specific PO There is NO ntificatin sent t the vendr because it is meant as an internal cmmitment relief prcess/ BUG 310A, can be run t view all Open PO Cmmitments Nte: PO cmmitment cannt be Finally Clsed as lng as there is an pen invice against the PO. Once invice has been psted, PO can be finally clsed and cmmitment relieved. Cancel a Purchase Order A Purchase rder shuld be cancelled when a Purchase rder has been created and either the whle PO r specific line is nt needed any lnger Department ntifies the vendr that PO is being cancelled. Department ges int the SciQuest applicatin and cmpletes the apprpriate frm t cancel Purchase Order Service. Slutins. Satisfactin. Page 20
7 Prcure t Pay Tl Kit Example f the Cancel Purchase Order Frm NOTE: PO is Cancelled but culd pssibly still have an utstanding invice prcessed against it. Vendr is ntified by Prcurement that Purchase Order has been cancelled Service. Slutins. Satisfactin. Page 21
8 Prcure t Pay Tl Kit What Can G Wrng That Culd Delay r Prevent Accurate & Timely Payment Vendr r site/address is nt setup r active in the vendr database r set up fr Sciquest What Can Be Dne t Ensure a Smth Prcess Verify the vendr is active and remit t address is crrect in Vendr Database. Hw? Check in Prcurement Inquiry search by supplier, r cntact the Yale Shared Service Cntact Center. If the vendr is set up yu can verify it is in SciQuest by searching in SciQuest Crrect type f Purchase Order was nt set up Invalid PTAEO (Charging Instructins) Be sure yu have set up the crrect type f purchase rder. Standard vs Standing Verify PTAEO is valid thrugh PTAEO validatr befre sending invice t AP fr payment Purchase Order (PO) invalid, PO Clsed, Line Item nt n PO, Name n PO des nt match Name f Invice, Quantity n PO is wrng vs. Quantity n Invice Invalid Apprver/Authrizer D Nt Clse PO until all invices have been prcessed against that specific PO D nt rder additinal gds against an existing PO. Create new PO thrugh SciQuest Verify Apprver/Authrizer is a valid disbursement apprver in START. Name and signature are legible Where t Submit Inquiry Brief Descriptin Address Purchasing Help Desk IT Helpdesk Any questins cncerning purchase rders, purchase requisitins r vendr cntact infrmatin, Prfessinal Service Agreements, Qutes. Any technical issues with Sciquest r Prcurement Web Page purchasing.helpdesk@yale.edu helpdesk@yale.edu r call Service. Slutins. Satisfactin. Page 22
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