Memo
Date: June 27, 2014
To: Oracle Financials Users
From: Cathy Garcia, Director of Contract and Procurement Management
Leslie Rutledge, Director of Business Services
Chris Bronsdon, University Controller
Re: Procure-to-Pay Process Updates - Goods
The purpose of this memo is to summarize the updates and processes for the purchasing, receipt, and payment of goods at San Diego State University (the University). These updates will strengthen our controls in this cycle and eliminate certain inefficient processes. Please note that no changes are being made to the ordering or payment of orders for services.
Procurement
Purchase orders (PO’s) for goods will be established by line item with a complete description of the product being ordered, the quantity (for example, 2 each), and the correct amount to be charged for each item. These elements of a PO for goods are important for several reasons. First, we need to clearly communicate to our vendors the details of our order. Second, Business Services needs the information to properly receive the goods in Oracle once physically received in Central Receiving. Finally, the Accounts
Payable Dept. needs the detail to be available on the lines of the PO to correctly match it with the invoice once received.
Effective July 1, 2014 (Fiscal Year 14/15), Contracts and Procurement Management will no longer process PO’s for goods established as a single line item for different types of goods being ordered within the same PO (formerly known as Open Purchase Orders or
OPO). Additionally, PO’s will no longer be created for goods using a dollar amount for the quantity ordered. These practices, which have become widely used at the University in recent years, result in an inefficient and weaker system of controls.
As mentioned above, there will be no change in process as it relates to PO’s for services.
PO’s for services are established with lines which use dollar amount rather than a quantity amount ordered. These types of orders are typically used for one-time service or repair, ongoing maintenance, construction, consulting, etc.

Receiving
All goods, including equipment, purchased using University funds shall be delivered to
Central Receiving, unless an exception has been granted. Once the goods are received in
Central Receiving, all boxes will be opened by Business Services staff to ensure the PO, packing list, and goods agree. Business Services staff will then receive the goods in
Oracle prior to delivering to the campus department which ordered the goods.
At the time of receipt, Business Services staff may need to work with Contract and
Procurement Management staff, vendors, and/or campus departments to resolve discrepancies resulting from incorrectly-shipped or damaged goods. If a campus department is working with a vendor, please remind the vendor that the purchase order number should be included on the shipping documents.
All computers, as well as equipment with an acquisition cost of $5,000.00 or greater, will be tagged for inventorying purposes prior to delivery. This will occur after the computer or other equipment is received in Oracle by Business Services. Business Services staff will then enter these assets in the Oracle Assets module in compliance with the
University’s equipment policy.
There may be a circumstance in which a large piece of equipment must be delivered directly to a campus department. If that occurs, campus departments should contact the
Material Management team in Business Service at ext. 40950 and provide the purchase order number and the day and time of the delivery. Material Management will then work with the campus department to ensure the equipment is properly received in Oracle and tagged.
Accounts Payable
Prior to implementing the processes as outlined above for the procurement and receiving of goods, departments were asked to confirm the receipt of their goods. This process will no longer be required as Business Services will receive the goods in Oracle upon physical receipt and inspection in Central Receiving.
Invoices should continue to be sent to the Accounts Payable Dept. either directly by vendors or through the e-mail ingestion available in Oracle WebCenter Imaging. The invoices will then be matched by the Accounts Payable Dept. staff. The invoice will pay based on agreed-upon payment terms with our vendors, assuming the goods have been received in Oracle by Business Services. Delays in payment to our vendors from inappropriate receiving holds should no longer be an issue. Additionally, the workload for campus departments to research and confirm receipt of their goods will be eliminated.