05:07:01
PURCHASE PROCESSING PROCEDURES
I.
General Requirements
A. Information concerning
purchasing policies, general questions about purchasing, and forms are
available electronically at www.pstcc.edu/departments/business_finance/purchasing/index.html.
B. All merchandise or services
being purchased or reviewed for purchase from outside of the institution must
be processed and ordered by the Purchasing Department. The President, Vice President of Business and
Finance, and the Director of Purchasing are the only personnel that are
authorized to commit college funds for purchase.
C. The only exceptions
to the above requirement are the following:
1.
Library subscriptions, interlibrary loan charges, on-line data base
charges
2.
Payments to students (i.e. refunds and Foundation support)
3.
Fees for official/government inspections, such as of elevators
4.
Postage, freight and shipping charges
5.
Student club expenditures (i.e., agency accounts listed in Ledger 8)
6.
Classified advertisements
7.
Awards, grants, and professional development funding provided by
Pellissippi State Foundation
8.
Facility fees for special courses (bowling, swimming, golf, etc.)
9.
Payments to TBR, campus food services, and the campus bookstore
10.
Payroll (insurance, taxes, direct deposit, etc.)
11.
Petty cash reimbursement to the custodian of the petty cash fund
12.
Fee waiver payments to UT and TBR schools
13.
Airfare for travel on college business
14.
Refund to student loan lenders
15.
Other exceptions as approved by the Vice President of Business and
Finance
II.
Purchase Requisitions
A requisition
form will be completed by the staff member requesting the purchase and
forwarded through his/her budgetary official and his/her supervisor(s) to
obtain approval.
A. Requisition forms are
available in the Purchasing office,
B. Requisition forms are to
include the following:
1. Vendor name and address
2. Description of merchandise
or service(s) to be ordered
3. Quantity of each item
4. Cost of each item
5. Total cost of items [#3x#4]
6. Grand total of order
7. Number of the account to
which the purchase will be charged
8. Authorizing signatures
(budgetary official and/or supervisor)
9. If the purchase request
includes computer hardware or software, a Request for Computer Hardware or
Software form must be completed and attached to the requisition. This form
is available electronically at www.pstcc.edu/departments/business_finance/purchasing/index.html.
Additional
comments or information should be typed in the lower portion of the requisition
form and enclosed in parentheses. These
comments will not be entered on the purchase order.
C. The requisition form is
forwarded to the Purchasing Office where a purchase order will be issued to the
vendor. The blue copy of the purchase
order will be returned to the budgetary official for his/her files.
D.
Petty cash
purchases must comply with the following guidelines before the employee will be
reimbursed:
1. Petty cash may be used for
required purchases not to exceed $250 per day per account.
2. The original receipt must be
submitted with the completed petty cash reimbursement form and must clearly
identify the item(s) purchased.
3. Services CAN NOT be
purchased using the petty cash process.
4. Sales tax is only reimbursed
with agency account purchases (i.e., student clubs, foundation).
5. The petty cash form must be
completed in ink or typed, signed by the account budgetary official and his/her
supervisor, and include the employee's college e-mail address. The petty cash form is available electronically
at www.pstcc.edu/departments/business_finance/purchasing/index.html.
6. Reimbursement to the
employee may be by check or cash depending on the amount of the purchase.
E. Requisitions that total less
than $2,000(with shipping) will be processed within five (5) days of receipt by
the Purchasing Office. If the items
ordered have not been received within 60 days of the date on the purchase
order, the purchaser should call the Purchasing Office.
F. Requisitions that total
$2,000 or more must be processed by bid.
A bid request is submitted to at least three vendors, or to the number
on the bid list. Requisitions that total
$10,000 or more must be processed by written bid. If possible, fifteen vendors will be sent
bids. Bidders will have 14 working days
to respond. After 14 working days, all
bids that have been received will be opened, logged, and returned to the
requesting staff for review. When the
bid package is returned to Purchasing with a recommendation, the bid will be
reviewed by the Vice President of Business and Finance and, if appropriate, a
purchase order will be issued.
G. Requisitions for computer
hardware and/or software require additional review by Information Services;
therefore, additional time should be allowed for processing. The request for computer hardware or software
form is required before review will occur.
III. Receipt of and Payment for
Merchandise
A. All merchandise ordered must
be received by the Shipping/Receiving Department located in the
1.
Requisition indicating "Hand carry" - The original and the
receiving (pink) copies of the Purchase Order will be sent to the requestor.
a. The original Purchase Order
is presented to the vendor as the staff member receives the merchandise
ordered.
b. Once the staff member is
certain that the merchandise is correct and working, the staff member must sign
the receiving copy (pink) of the Purchase Order and forward it to the Accounts
Payable Office. The receiving copy
should be in the Accounts Payable Office within 10 days after receipt of the
order to expedite prompt payment.
2. Requisition for Services - The receiving copy (pink)
of the Purchase Order will be sent directly to the budgetary official
responsible for the order. When all services are completed in a satisfactory
manner, the budgetary official must sign the receiving copy (pink) and forward
it to the Accounts Payable Office.
3. Requisition for
Subscriptions
- The receiving copy (pink) is sent directly to the responsible budgetary
official. When it has been verified that the subscription has begun, the
budgetary official must sign the receiving copy (pink) and forward it to the
Accounts Payable Office.
B. After a delivery has been
received at the
1. The purchase order will be
compared to the shipment to verify the completeness of the order.
2. The key-rec
form will be marked "shipment complete" or "partial shipment
received." If the shipment is
complete, the receiving copy (pink) of the purchase order as well as the key-rec form will be attached to the goods for delivery to the
department.
C.
Shipments that have been received will be delivered to the
department(s) within two (2) working days of receipt.
1.
The staff accepting the merchandise must sign the key-rec form. The yellow
copy of form will be given to the staff member for his/her files.
2. After a review of the
shipment determines that it is complete, the responsible budgetary official
must sign the receiving copy (pink) and forward it to the Accounts Payable
Office.
D. No invoice will be paid in
full or in part until the Accounts Payable Office has the receiving copy (pink)
or a partial receiving form that has been signed by the responsible staff
member.
1.
By signing the receiving copy (pink) or the partial of the purchase
order, the budgetary official indicates that the order has been received and is
correct.
2. The signed receiving copy
(pink) or the partial must be received by the Accounts Payable Office within 10
days of delivery to avoid interest charges from the vendor.
3. For partial deliveries,
Accounts Payable will compare the invoice to the signed partial receiving
report or key-rec form. If the invoice matches the order received, a
partial payment will be processed.
IV. Returned Merchandise
A. If the merchandise that has
been received is incorrect or not in proper working order, the merchandise must
be returned to the vendor by the Shipping/Receiving Department. At no time should the merchandise be returned
to a vendor without notifying the Purchasing Department.
STEPS:
1. Contact the Purchasing
Department to obtain a Return Authorization form, or download it from the Web
at www.pstcc.edu/departments/business_finance/purchasing/index.html. Purchasing will contact the vendor and
provide the following information to the employee:
a.
b. Vendor's Return Merchandise
Authorization (RMA) number
2. Complete a Return
Authorization form listing all requested information. Retain a copy for department records.
3. Package the merchandise for
return to the vendor. Include in the package a copy of the Return Authorization
form and a photocopy of the invoice, if available.
4. Contact Shipping/Receiving
to arrange for the merchandise to be returned.
At the time of the return, the Return Authorization form will be signed
and dated by the department employee who is returning the package as well as by
the Shipping/Receiving employee who is receiving the package.
B. The departmental account
will be credited upon verification of the returned shipment.
Note: If the purchasing
procedures have not been followed (i.e., processing of requisition prior to
purchase, etc.), the employee who ordered the merchandise or service is
responsible for returning the merchandise and/or payment of the invoice.
Approved: Executive Council, March 4, 1991
Editorial
Changes, April 20, 1993
Reviewed/Recommended:
President's Council, December 18, 1995
Approved:
President Allen G. Edwards, December 18, 1995
Approved:
President Allen G. Edwards, August 13, 1998
Approved:
President Allen G. Edwards, March 8, 2000
Approved:
President Allen G. Edwards, December 10, 2002