P-301 Automatic Purchase Orders (APO)
Micro Purchase
Responsible Executive: Treasurer and Chief Financial Officer
Responsible Office: Procurement Services
Date Issued: May 29, 2015
Table of Contents
 Overview
 Exceptions
 Authorization
 Pricing
 Return of Merchandise
 Splitting Purchases
 Related Policies or Procedures
Overview
The Automatic Purchase Order (APO) expedites the placement of small non-catalog, routine orders
through extending purchasing authority to departments for this type of procurement. The APO is used
for goods and service transactions with a total dollar amount less than $3,000. Exceptions are outlined
below.
This method of procurement provides a convenience for the using department. Please carefully read all
of the instruction below before using the Automatic Purchase Order. All fiscal approvals and restricted
commodity approvals are still required.
Exceptions
Copy-Print Process
When a requisition is missing the following information the request will be reviewed by Procurement
Services.
 No Supplier
 Requesting a New Supplier
 Non-US Supplier (Customs Process)
 Missing Part Number
 Shipping Terms
Authorization
The delegation of the limited procurement authority to a department means the departmental user
accepts and is responsible for compliance with all State of Indiana, Federal Regulations and Purdue
University policies and operating procedures governing procurement. This includes adherence to all
exclusions, restrictions and limitations of such purchases. The Automatic Purchase Order must be in
compliance with Purdue University’s Conflict of Interest policy.
Pricing
Micro-purchases may be awarded without soliciting competitive bids if the price is considered to be
necessary and reasonable.
It’s critical that current and accurate pricing be obtained when creating a requisition. The objective is to
expedite processing for micro-purchases while minimizing discrepancies when invoices are processed.
Return of Merchandise
Authorization from the supplier must be obtained for returns. Please contact the supplier for
instructions prior to returning goods. It is the department’s primary responsibility to obtain the return
authorization and to make arrangements for returning the items. It is also the department’s
responsibility to ensure that credit is issued for all returned goods. If difficulty with the supplier occurs
please contact Procurement Services for assistance.
Splitting Purchase Orders
Requisitioners may not use multiple Automatic Purchase Orders for one requirement. Splitting
requisitions which keeps the individual order under the $3,000 when the total dollar amount
requirement is over $3,000 is not permissible.
Related Policies or Procedures
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Conflict of Interest Policy
Creating Requisitions in Ariba QRC
Procure to Pay Process
Purchase vs Lease or Rental