Purchase Order Procedure
Version
1.4
TRIM file number
N/A
Short description
A procedure on purchase order
Relevant to
All employees
Authority
This Procedure has been approved by Executive
Director Division of Finance in accordance with the
Policy on Delegations and Authorisations Delegation Schedule 1, GOV10.
Responsible officer
Manager Procurement
Responsible office
Division of Finance
Date introduced
30 June 1994 when approved
Date(s) modified
30 June 2000, 30 November 2003, 10 October 2011
Next scheduled review date
October, 2012
Related University documents
Related legislation
Public Finance and Audit Act 1983
Policy on Delegations & Authorisations
Key words
procedure, purchase order
1.
PURPOSE
This procedure describes how purchase requisitions are processed into the Banner
Finance system to create a purchase order for goods and services or used for the
payment of an invoice received.
2.
SCOPE
2.1 A purchase order must be raised for all purchases of the University except for
purchase card transactions, petty cash or direct pays.
2.2 With exception of orders raised by the Division of Library Services and Division of
Information Technology Computer Shop and Faculties and Divisions issued with
a direct pay stamp, all purchase orders require the completion of a purchase
requisition prior to the order being raised.
3.
PROCEDURE
3.1
Raising Purchase Orders
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
Purchasing will enter the completed purchase requisition into the Banner
system using the originators requisition number to create the order. Due
care is to be exercised to ensure the purchase order contains the correct
shipping and delivery details and invoice address.
As required, new vendor numbers and details (including ABN) will be
generated by Purchasing using the approved guidelines.
Purchase Orders can be entered using either as a document or
commodity level accounting. All asset purchases are to be created using
commodity level accounting and the appropriate tax code of either GST
or FREE.
Purchase requisitions will be entered using the Banner Requisition Form
(FPAREQN) with the completed requisition to be approved and forwarded
for posting.
Following the posting, buyers will assign the requisitions they have
entered to a buyer code using the Buyer Assignment Form (FPAABUY)
with the assigning of purchase order numbers using the Purchase Order
Assignment Form (FPAPOAS)
When assigning purchase orders on Banner, the purchase order number
must always be generated by using the NEXT feature.
Once the order is entered the purchasing officer will, after checking that
all entries are correct, approve the order and forward it for posting.
Once posted the orders can be printed with the original despatched to
the supplier. All orders will be processed at the Wagga Purchasing Office
with duplicate order together with the purchase requisition being returned
to the originating campus.
The Division of Facilities Management are permitted to process directly
into the Purchase Order Form to create a purchase order without
processing through the requisition stage. Special care is to be exercised
to ensure all details of commodity, accounting and delivery details are
correct prior to posting the document.
3.3 Responsibilities
Budget Centre Managers
3.3.1 Ensure that accurate, authorised and complete purchase requisitions are
forwarded to Division of Finance for processing.
3.3.2 Ensure that sufficient funds are available.
Division of Finance
3.5.4 Ensure that purchase requisitions are accurately processed with correct
account code, supplier and other appropriate relevant information in a
timely manner.
3.5.5 On a weekly basis correct purchase orders on the PO Suspense List
(FPIPORS).
3.5.6 On a monthly basis review outstanding purchase orders to close any
purchase orders that are complete with a nil balance (FPPPOBC) or an
outstanding encumbrance.
Table of amendments
Version
number
1.1
1.2
1.3
1.4
Date
30 June
1994
30 June
2000
30
November
2003
10 October
2011
Short description of amendment
Originally policy submitted for approval
Amendments for the introduction of GST
Refine the procedure following processing changes
Procedure modified and updated into the new format