USC Procure to Pay Policy Changes
Date: May 2016
Agenda
 Procure to Pay- What is it and Why is it Needed
 Background Data
 Purchasing Responsibilities
 Blanket Purchase Order
 Purchase Order Limits
 Payment Requests
 Additional Webinars
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Procure to Pay
What is it and Why is it needed?
PeopleSoft has been live for 10 months now. The USC community has
shared their suggestions and we have been listening!
Your suggestions prompted the creation of a cross functional team from
General Accounting and Procurement who reviewed the current
processes. This webinar introduces a new policy using good solid
business practices.
The new policy called Procure-to-Pay will provide flexibility and guidance
to assist in all procurement and payment needs. It will be a streamlined
approach to support an end to-end process that begins with goods and
services requisitioning and ends with payments from the accounts
payable system.
The planned effective date for these changes
is June 1st 2016.
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Background Data
 The Purchasing Department created 19,000 PO’s
8 months after Go-live. Of the 19,000 PO’s:
o 65% of the total POs were less than $5K
o 56% of the $5K were less than $1K
o 85% of the payments were less than $5K.
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Purchasing Responsibilties
Purchasing activities are conducted by the Purchasing
Department and by academic and administrative departmental
employees which include:
o
obligations for proper transaction documentation
o
fiscal responsibility
o
ethical behavior
o
adherence to federal and state government regulations
o
compliance with University by-laws and policies.
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Blanket Order Changes
• Blanket Purchase Orders (BPO)
o BPOs are valid for 1 year and will be closed out each fiscal
year.
o Minimum of $10,000 per year or more.
o Minimum of 12 invoices/vouchers issued per Budget
period/year each year.
o When creating the requisition, begin with “Blanket Order” then
a general description of the goods/services being purchased.
o BPO is to be charged to one Account or one Accounting
Distribution line per line item.
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Purchase Order Limits
• Purchase Order Limits
o Transaction must be equal to or greater than $10,000.
o All assets must use a purchase order ($5,000 or greater).
o All radioactive material must use a purchase order
(no dollar limit).
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Payment Requests
Please stay tuned for new expansion of payment
request webinars as a part of the new procure to
pay policy.
Payment Request Updates 5/16, 5/19, 5/24, 5/26
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Questions & Open Discussion
• If you have questions after this webinar, use the Contact Us
page to email Purchasing or General Accounting.
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Upcoming Purchasing
Webinars
• Requisition Process Updates
o 5/11, 5/12, 5/17, 5/18
• Catalog and Category Code Changes
o 5/17, 5/19, 5/23, 5/25
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Thanks for your participation
Page 10