THE PURCHASING
PROCESS
Presented by Crystal Korpan, Manager of Purchasing
Summary of Purchasing Process
 Requisition
 Purchase Order Input
 Purchase Order Review/Approval
 Purchase Order Processing
 Ordering and Receipt of Goods/Services
 Vendor Payment
Purchase Requisition
Requisition
 Each site/department has a set of discretional
budgets and funds from which to use
(Maintenance and Operations Fund, Capital Funds, Student Club and
Auxiliary Funds, Extracurricular Activities Tax Credit Funds, Civic
Center Funds, Gifts and Donations Funds, etc.)
Requisition
 Purchase requisitions are created to
document and track the request and
authorization to purchase goods/services
Requisition
Each site/department administrator is
responsible for reviewing and approving
purchase requisitions and the funding used to
pay for them
Purchase Order Input
 Upon approval by authorized site or
department administrator, purchase
requisition can be input into District
purchasing system (AS400).
 Exceptions – Funds that require additional review
or authorization before inputting such as Capital,
Student or Auxiliary Funds
Purchase Order Review/Approval
 At the end of each work day, the Purchasing
Department prints off reports containing every PO
that was input into the AS400 that day. (Green Bar)
These include:
 General Purchase Orders (M&O, Tax Credit, Gifts and
Donations Funds)
 Grant Purchase Orders (Any Grant Funds)
 Capital Purchase Orders (Any Capital Funds)
 Student Account Purchase Orders (Student Club Funds)
Purchase Order Review/Approval
 All Green Bar reports are distributed the next morning in
the Finance Department to their respective fund group
manager. Fund managers review each PO for:
 Fund Compliance
 Budget Compliance
 Account Code Compliance
(Anything needing to be changed is either modified or held until
compliance is in check.)
Purchase Order Review/Approval
 Finance Department delivers Green Bar reports to
Purchasing Department for final review (same day). Review
is for:
 Procurement Code Compliance
 Proper Authorization (e.g., Technology Services authorization on
technology, Governing Board approval on out of state/overnight
student trips)
 Purchasing Efficiency (e.g., We may be aware of more cost
efficient solutions in some cases.)
 Accounting of every PO number for the day has been reviewed
(Typically 50 – 100 PO’s daily)
Authorization Threshold 50K
 Governing board has authority to approve or
delegate authority for bids at other levels
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(Procurement Code)
Bids at threshold (50k) are brought before the
board (Policy DJA)
State Contracts (incl. ADE approved SPED) are
excluded from this process
Number of vendors over 50k
(all 116 are already on contract)
Currently number of vendors 35k – 50k
(of 43 only 3 are not already on contract)
Purchase Order Processing
 The Purchasing Department prints all
approved PO’s from the daily Green Bar
reports (same day).
 The Purchasing Department separates and
distributes all PO’s to their respective campus
or department for inter-office mail delivery.
Ordering and Receipt of
Goods/Services
 Campuses/Departments requesting the
purchase receive an authorized PO and may
place the order with the vendor at this time.
Ordering and Receipt of
Goods/Services
 Orders for goods are received at the District
warehouse and delivered by the warehouse
to the originating site.
Vendor Payment
 Accounts Payable Department receives
invoices and compares to receiving report
(prepared by either warehouse or site).
 Payments to vendors made weekly. Each
group of checks produces a voucher.
 Voucher report is printed for final review by
the Governing Board Clerk.