Procure to Pay Presented by TTU Procurement Services.

Procure to Pay

Presented by

TTU Procurement Services

Mission Statement

The Procurement Services mission is to provide value-oriented procurement, contract and payment services in support of the University's mission to excel in instruction, research, and outreach. We assist university departments in procuring the highest quality goods and services for the best value possible in a timely and efficient manner while adhering to the requirements of university, state and federal laws, regulations and procedures.

Steps to Buying and Paying

Getting a Quote

Quotes are required above $10,000 unless:– Bid/RFP– Punch-out or hosted catalog in TechBuy– Contracted vendor in TechBuy favorites (Aqua One, OccMed,

Xerox). – After the fact (in which case an invoice is required).

Quotes help protect the buyer (requires vendor to honor what was promised)

Serves as a legal promise along with the PO **You wont have to itemize the requisition if a quote

accompanies the order (Xerox maybe an exception).

Quote Best Practices

Should be current (not expired). Should include all shipping & handling. Reference the quote number on the requisition and attach to

external attachments. May want a quote, less than $10,000 when:

– Sole source– Exempt purchase– Emergency purchase– Guarantee pricing

Bid/Proposal Rules

Under $10,000.00, no bids are required. Purchases from a historically underutilized business (HUB) are required to the fullest extent possible.

This includes a one-time order or a series of orders during a fiscal year (ex. toner cartridges).

Between $10,000.01 & $30,000.00, Three informal bids/quotes are required, and two of the three must be from certified Texas HUBs. The informal bids should be documented on the Informal Bid Form in TechBuy. If the department receives one or more non-responsive quotes from the HUB vendors, then the department shall solicit, at a minimum, three HUB vendors

Above $30,000, formal bid/RFP is required unless it is an exempt purchase or on a contract. Email [email protected] for assistance.

Bid/Proposal Requirements

Not required:– TTU contract purchases– State of Texas/GSA contracts– Cooperative contract purchases– Exempt purchases– Sole source– Discount letter

Types of Contracts

Cooperative contract (E&I, BuyBoard, US Communities, TIPS, TAPS, Provista, others).

Government contract (TxMas, DIR, Texas SmartBuy, TIBH, GSA).

Piggyback off of other State agency (ex. A&M, North Texas, etc.) A negotiated contract resulting from a bid or other procurement process (ex. Aqua One,SlateGroup, etc.).

Benefits to Using an Existing Contract

No bids are required (are not limited to $10,000).

Discounted or previously negotiated pricing. Other possible benefits (free shipping,

extended warranties, free returns). Better value for University (on some kinds of

contracts the higher the spend the better our pricing is).

Cooperative Contract Purchases

A Cooperative Purchasing Group is a profit or non-profit business that serves members in a single industry. These are competitively bid by the Cooperative. The University can utilize these contracts with no additional bid requirements.

See listing of vendors/contracts below.

http://www.depts.ttu.edu/procurement/purchasingContracting/purchasingInfo/documents/List%20of%20Cooperative%20Contracts.xls

CooperativesSee purchasing website under

Cooperative Groups

BuyBoard DIR E&I First Choice GSA Harris County HGAC NJPA PACE Provista Region 16 ESC NCPA (new)

Region 17 Region 19 TAPS TexBuy TIPS TCPN TPASS TxMAS UT Alliance US Communities Western States Contracting

Alliance (WSCA) NationalIPA (new)

Exempt Purchases

Advertisements Artwork(original) Catering, Meals and Food Services

(not food for resale) Conference Expenses (promotional

items for attendees) Direct publications subscriptions,

newspapers, videos, software purchased from manufacturer – not resale

Exhibit Spaces Travel (all travel rules must be

followed) Freight Legislative Information Services Hotels and Conference Rooms Lecturers/Guest Speakers

Registration Fees and Related Expenses

Memberships Fees and Dues Moving Expenses for Employees Training Services Student Travel (except chartered air) Purchases from Federal Agencies Purchases from Local Governments or

Quasi-Governmental Agencies

Internal Services from TTU, TTUHSC or Angelo State

Postal Services Purchases from Other State Agencies,

Including Public Institutions of Higher Education

Utilities

Tip!!

How to find contract pricing:

http://www.depts.ttu.edu/procurement/purchasingContracting/documents/How%20to%20find%20contract%20pricing.pdf

AND http://www.depts.ttu.edu/procurement/purcha

singContracting/purchasingInfo/documents/List%20of%20University%20Contracts.xls

Emergency Purchases

Emergencies occur as the result of unforeseeable circumstances and may require an immediate response to avert an actual or potential public threat.

Only justified to prevent loss of life, health, safety, welfare, or property.

Lack of planning or loss of funds at end of fiscal year does not constitute an emergency.

May still be required to be competitive. Should attempt to use contracted and HUB vendors. Example: Fire, flood, terrorist attack

Sole Source Purchases

A proprietary purchase (also known as a “sole source” or “JPP”) is one in which a product or service is available only from one vendor. A proprietary purchase is justified only when an equivalent product or service competition is not available.

In order to complete a proprietary purchase, the end user will have to prepare the “TTU Justification for Proprietary Purchase” form in TechBuy. Justification must be based upon unique technical or performance characteristics.

For research products/equipment, detail what unique characteristics the product/equipment has that makes it essential for research study.

The written justification must include:

Explanation of why the unique specifications for the good or service are required

Details on the unique features of the good or service

Reason that competing products or services are not satisfactory

Any other relevant information to support the sole source documentation

Sole Source Purchases

It may be that a vendor holds a patent or copyright for a particular product.

Personal preferences for certain brands or products does not adequately justify limiting competition. Price cannot be a determining factor.

Resellers cannot be sole source. The form is not required on a purchase of less

than $10,000.

Quiz

Who can name one of the benefits of using and existing contract?

Create a Requisition in TechBuy

Punch-out vendor (contract)

Hosted catalog (contract)

Shop Everything(contract)

Forms (all other orders)

Punch-out Contracts

A punch-out is with a contracted vendor. The requisitioner/shopper actually visits the

vendors site through the TechBuy system. Do not use the vendors direct website as it

does not offer TTU contract pricing (you can reference the website though to ensure best pricing – if you find a cheaper rate than what is in the TechBuy System, please email TechBuy support).

Punch outs

Abacus-Hub Airgas-Hub America to

Go Apple B&H Photo Bio-Rad CDWG-Hub Complete

Book-Hub

Dell-Hub Fisher-Hub Home Depot-Hub

Grainger-Hub Fastenal-Hub IDT Life/Invitrogen MSC- Hub Perkin Elmer

•Praxair-Hub• Promega •Sexauer-Hub•SHI-Hub•Sigma-Aldrich•Staples-Hub•Steelcase-Hub•VWR-Hub

Tips!!

Each punch-out has different capabilities.

The following chart details the capabilities of each Punch-out vendor:

http://www.depts.ttu.edu/procurement/purchasingContracting/documents/supplemental/Hosted%20Punchout%20Summary.pdf

Tips!! Continued

Punch-out orders that have been pending for a few weeks due to insufficient budget, financial manager approval or other similar issues maybe rejected due to the quote expiring or price increases. This is mainly an issue at the beginning of every fiscal year and in January.

Hosted Catalog

The vendor hosts a limited number of products. Provides easy ordering on contract pricing (you

don’t have to create a form). Many have cXML and E-Invoicing capabilities. Twenty-three contracted vendors available including

Agilent, Roche, Santa Cruz, TIBH (HUB), Empire Paper (Hub), Wesco, Cole Palmer

Shop Everything Purchases

For some TTU negotiated contracts, you can search for the product by the Shop Everything Top feature. (Ex. business cards, bottled water, TIBH products, drug tests).

The pricing is available on a contract so you are not limited to $10,000.00.

Shop Everything will also provide you with Hosted Catalog pricing/products. (Ex. search for “Hammer”).

Forms

Forms are used for all other types of purchases.

Bid rules must be followed. The correct form type must be used, or the

order will be rejected or returned. The vendor does not have to be set up to

start a requisition form but must be set up to complete the purchase order.

Vendor Setup

For any vendor not already available in TechBuy, we will need the following information:

– New vendor form http://www.depts.ttu.edu/afism/AFISMFormRepository/ProcurementDept/Vendors/new%20vendor%20setup.pdf.

– W8-Ben for foreign vendors – An ICQ will be needed annually for any vendor providing services and is an individual or sole proprietors. Do not need for research participants or commodities

Vendor Debarment

Vendors on Hold – Departments may not make any purchase or payment to a vendor who is on hold with the State of Texas or the Federal Government.

Individuals who obligate the University with a vendor who is on hold will be held personally liable.

Vendors with poor performance may be put on hold with the State as well.

Conflict of Interest

Officers, faculty, and staff (“employees”) of TTU may not have direct or indirect interests.

May not receive any financial benefit. Employee may not have dual employment. May not conduct transactions with a relative. See OP 72.03

http://www.depts.ttu.edu/opmanual/OP72.03.pdf

HUB Policy

All Texas agencies are required to make good faith effort in increasing business opportunities to Historically Underutilized Businesses (HUB).

Must be 51% owned by female or minority group.

We can lose appropriations from the State for not complying – it is law!

Identifying HUB Vendors

Go to Texas Comptroller Site:

https://mycpa.cpa.state.tx.us/tpasscmblsearch/index.jsp

You can search by vendor name or categories. If you know the location of the HUB, you can search by city or county.

Identifying HUB Vendors By Name

Identifying HUB Vendors By NIGP Class Code

Identifying HUB Vendors By Category

Search Parameters

Identifying HUBs in TechBuy

You can also scan through existing vendors in TechBuy to see if they are HUB or Federally certified.

We have five new Hub partnerships, Home Depot(Lone Star), Empire Paper(Lone Star), Praxair(Summus), MSC(Native Nations) and Sexauer(LTH)

TechBuy Hub Search

TechBuy HUB Search

Legend

Forms

After the Fact (non-compliant order)

Animal Purchases Bid/RFP Blanket Order Change Order Conference Registration Construction Federal Equipment Vehicle Rental-Enterprise &

National

Gifts, Awards & Prizes Guest Lodging Informal Bid (between

$10,000.00 and $30,000.00) Membership Non-catalog One Time Payment (non-

compliant order) Justification of Proprietary

Purchase (new) Direct Pay Form (coming

soon)

Change Order

In many instances, best practice may be to create a new purchase order rather than change.

Blanket change orders should be prepared just like PO change orders.

Anything that has already paid will have to have a cost transfer. http://www.depts.ttu.edu/fst/

No change orders on punch-outs (these are automated so we don’t have a chance to change before they are placed or paid).

No change orders on after-the-facts!

Change Order

Change order on FOAP is only required when changing the org code (that is where the security is).

To change fund, account, or program, just email [email protected].

When increasing an order that is greater than the Payment Services tolerance ($100 or 10%), a change order is required.

Change Order

Cannot create a change order on a PO closed in the previous fiscal year (create a new PO for the new FY).

We cannot increase a PO for the previous fiscal year using last years funds.

Standing/Blanket Orders

Standing or blanket orders may be established with vendors for repetitive purchases throughout a fiscal year.

For contracted vendors, these may be set at any dollar threshold.

For non-contracted vendors, these will be set at $10,000.00 or $30,000.00 provided that the vendor extends a 15% discount to the University or Informal Bids are obtained.

Blanket Orders

The blanket orders do not encumber any funds and are not associated with any accounting when set up in banner.

There must be a complete description of the goods and services that will be purchased and all FOAPS listed on the blanket order that will be used (see blanket instructions on our website). Orders with generic descriptions will be returned for revisions.

Blanket orders will be set up on a fiscal year basis. The orders will automatically expire on August 31st. A new blanket order will need to be created for the next fiscal year. You do not have to email Techbuy Support to cancel or close.

Blanket Orders

Each FOAP that will be used must be listed on the blanket or will not be allowed. Payment Services will verify the FOAP listed on the invoice with those listed on the blanket order.

Blankets must be submitted for the full amount (ex. $10,000.00). As a reminder, blanket orders do not encumber funds so the budgets will not be tied up.

Once $10,000.00 has been expended, bidding will be required unless exempted, contract or a discount letter.

Blanket Orders

Not allowed on blanket orders:– Travel– Federal equipment purchases– Purchases on punch-out vendor items– Texas SmartBuy contract items– Construction– Chemicals and gases – Memberships/registrations– Purchases of animals– Reimbursements– Vehicles– Gifts/prizes– After the fact purchases– Capital equipment– Controlled substances– Purchases using any state funds will be allowed on Standing Orders

Blanket Orders

For any sponsored projects, additional requirements apply There must be a line item breakdown of each account code pool

For example: Line one – 7A0080 – other professional services Line two – 7C0916 – lab computer equipment controlled Line three – 7D0030 – telecommunication services Line four – 7G0010 – rental of furnishings If multiple projects are being included on one blanket order, each

FOP should be included on each applicable line level.

Blanket Orders

It is the end user’s responsibility to write the FOAP & blanket order number on each invoice & submit to Payment Services for payment. This is done by using the comment feature on the purchase order.

Go to Cognos report FI070 to see data as it will not show on other Cognos reports as a encumbrance payment (there is not an encumbrance).

The PO will be numbered with a “PB” prefix.

Blanket Orders

New blanket order policy can be found at: http://www.depts.ttu.edu/afism/AFISMFormRepository/ProcurementDept/PurchasingAndContracting/Training%20and%20Work%20Aids/blanket%20order%20policy%20073114.pdf

Standing Orders

Encumbers funds and allows for multiple, repetitive purchases throughout the fiscal year.

Use the Non-Catalog form and enter “Standing Order for…” in the description. You must use a complete description.

Standing Orders

Enter the transaction for the estimated annual amount.

You must still adhere to bidding/RFP rules. Generally, cannot use appropriated funds for

these transactions (11,12,13 and 14). Email TechBuy support for exceptions.

Submit the invoice to Payment Services with detailed FOAP payment instructions if you have multiple FOAPs encumbered.

Standing Orders

You will be able to see the PO in Cognos (recommend FI030) and can track the PO’s and payments easily.

Standing Order PO’s will have normal PO numbers (P).

Balances must be released at end of fiscal year. Email TechBuy support for releases.

Should not close unless certain all invoices are complete.

After the Fact One Time Payment

A non-compliant order- audit issue

No State funds Mark the “invoice

attached” flag on the requisition.

Do not flag “advance payment”.

Non-compliant Causes accounting

issues, reporting issues

Must submit original receipts to Purchasing and Contracting.

Conference Registration Memberships

Registration can be here or pcard

Mark as advance pay Identify the members on

the form Include other expenses

as part of registration (meals, etc.) if it is part of the registration expense.

Memberships No social

memberships Must verify on the

membership list on Procurement Services website.

Guest Lodging Form

For use when reserving local rooms for guests.

How To Guide: http://www.depts.ttu.edu/procurement/paymentTravelServices/docs/Training%20Guide%20for%20Guest%20Lodging%20Program.pdf

Vehicle Rental Form

This form may be used for online reservations from either Enterprise or National Car Rental.

With either company the order will be placed with Enterprise Rental Cars.

This form is for official business travel only. You may use the link to make personal

discounted reservations, however the University cannot pay for such expenditures.

Mixing Punch-out and Non-Catalog

Each vendor with a TechBuy punch-out has different IT capabilities.

Most vendors with punch-out orders cannot have PO’s that have mixed non-catalog and punch-out items.

Airgas is an exception because it is faxed (you have to add a line item for the cylinder charge).

Using the Non-Catalog Item

Using the Non-Catalog Item

Good to use to add shipping or miscellaneous expenses.

Good to add multiple line items for forms that are really long (ex. Proprietary Purchase or Informal Bid).

Will not work with punch-out vendors. Exception is Airgas as they are not cxml.

After the form is created, the requisition can be customized

– Ship To Addresses– Accounting Date– FOAP– Cart Name– Priority Level– PI Information– Prepared for (must

have shopper authority or higher on the org code)

– Adding Contracts– Internal

notes/attachments– External

notes/attachments– Advance pay/invoice

attached/recur pay– Vendor distribution– Contract

Adding Notes and Attachments

Quotes should be scanned and attached to the “External Attachment” side.

Artwork should be attached to the “External Attachment” side.

Notes for Vendor should be on the “External Notes” side.

Notes for Payment Services/Purchasing should added to the “Internal Notes” or “Internal Attachments” side.

Contracts

Contracts may not be signed by anyone who is not authorized by the Board of Regents.

All contracts must have legal review and approval of the Contracting Office and/or General Counsel.

Contracts and the signed routing sheet should be scanned and attached to the requisition.

Non-expenditure contracts can be sent over with the signed routing sheet through campus mail or scanned and emailed to the Contracting Office at [email protected]

Contract Review Process

$0-$100k reviewed and signed by Procurement. $100k-$500k & University; reviewed by PS, reviewed

by General Counsel & signed by VPA&F. $100k-$500k & System; reviewed by PS, reviewed by

General Counsel & signed by CFO System. Above $500k review by PS, review by GC, approved by

Board, signed by Chancellor. In times of budget cuts, the Administrations reserves

the right to conduct additional reviews.

Contract Language

Must be Texas law. Cannot indemnify another party. Must include the dispute resolution. Payment terms must be Texas terms. We carry limited insurance (amount & types).

Splitting Accounting

Open the “Line and Header FOAP Summary” on the requisition.

Go to the line item that you want changed and click the edit next to that line.

Click the “add split”. You can add several splits on a single line item.

On the line item you have the option of splitting by: “amount of price" or “amount of quantity”.

Your splits can include combinations of any FOAP element (ex. Fund or Account Code).

Splitting Accounting

Splitting Accounting (Copy to other lines)

TIP!!!

The same copy to other line option also works on Ship to information!

Most of the punch-outs do not have the capability to support multiple ship to lines.

Requisition Workflow

Department Authorization

Budget Authorization FOAPAL Approval Vehicle approval JPP Sponsored programs Fixed assets

IT purchases EH&S Buyer (1-11) ORS Approval Purchasing New supplier Create PO

Workflow Explanations

Department Validation – an extra review (by department’s request) so that one person can review all transactions by a department (not recommended)

Budget – the budget step reviews FGIBAVL in Banner. The FOAP must have the available balance. Some FOAPs must also have the account pool set up.


FOAPAL Approval – Requires Financial Manager or designee granted to approve the transaction. Based on org code & determined by role/$ amount.

Vehicle – any vehicle purchased must be approved by Fleet Management. By selecting “vehicles” on the form, it triggers this workflow step.


ORA (sponsored programs)– on funds 21, 22, 23 (plus 12D, 12E, 25B) and if it is above $10,000, it will be routed to ORA for additional grant review/approval.

Fixed Assets – anything coded as 7J0, 7C0190, or 7C0200 will be reviewed by Property Inventory for proper coding and asset tagging.


IT Purchases – anything in this category will route to IT if $10,000 or greater. May be based off of form category or vendor category.

EH&S – if marked as Hazardous, Toxin, Radio., controlled substance, rad minor, select agent, or a product that has a CAS number flagged by US Govt. as terrorist watch.


Justification for Proprietary Purchase – workflow to review JPP’s for validity. Reviewed by Purchasing

Office of Research Services – any transaction submitted on a federal form is reviewed by ORS.


Buyer – workflow triggered by category on a form. This directs the order to the correct buyer. The more accurate the category, the faster it is processed.


Purchasing – various other purchasing department reviews (ex. State funds and manager review above $30k, etc.)

New Supplier – if a vendor is not set up in Banner the requisition will stop. It will expedite the order if you can assist with getting a New Vendor Form/ W-8Ben for us.

Purchasing Categories

Ads for Employment - Advertisements in newspapers, magazines and journals for employment

Agricultural Equip/Supplies - Equip and supplies used for agricultural purposes. May include seeds, hay, feed, supplies for animal care, agricultural supplies for research purposes, farm equipment

Air charters - Chartering of aircraft for groups of travelers. May include charters for athletics teams and recruiting and charters for administration. Generally, chartering of aircraft is not permissible for other purposes and air travel should follow travel policies

Alcohol and Services-Purchase of alcohol and bartending services as allowable Architectural/Engineering/Interior Design Services - Services of licensed architects,

landscape architects, engineers, and interior designers Athletic Equip/Supplies - Equipment and supplies used for athletic teams or

recreational sports Audio/Visual Equip/Supplies – lease or purchase of AV equipment Banners and Signs-Banners and signs including both temporary and permanent

signage. This category will also include the installation of permanent signage


Book/Subscription/Ref Material-Purchase of books, periodicals, magazines, journals, subscriptions and reference materials. May include online subscriptions and database access services

Booth Rentals-Rentals of booths and exhibit space for conventions, conferences, seminars, expositions, meetings, etc.

Chemical and Gases - Chemicals and gases. Includes any hazardous material charges, dry ice, cylinder charges or demurrage

Coke Contract - Purchase of Coke products as allowed by the Coca-Cola contract Communication Equip/Supplies-Purchase of communication equipment, supplies

and services. May include, telephones, pagers and networking equipment. This will include the installation and repair services of this equipment

Computer Hardware/Software - Purchase of computer hardware and software. May include monitors, printers, keyboards and peripherals needed to use computer hardware

Consultants - Purchasing of services for consultants. The definition of a consultant is an individual or entity that studies or advises an operation or project at the University. Must have Board approval


Copiers-Purchase or lease of multifunctional devices including a copier, fax, scanner or printer or a machine with any combination of the capabilities. The category will include the supplies needed for these machines and any copy or service charges needed

Delivery Services – Delivery and courier costs. Includes the University's Federal Express account

Elevator Maintenance-Expenses related to the repair and maintenance services for elevators

Facility Maintenance-Expenses related to the repair and maintenance services for facilities including roofing, removing or moving walls, general maintenance, painting, plumbing, electrical work, HVAC, projects that do not increase the value of the building. Does not include major construction.

Fees and Other Charges-Fees that may include: notary fees, charges, inspection fees, visa fees, licensing fees, etc.

Fire Sprinklers, Security and Alarms-Products and services related to the purchase, installation and maintenance of fire sprinklers, security systems and alarms


Flowers and Decorations-Purchase of flowers and decorations. Includes flowers and plants given as gifts

Food & Entertainment – Food and entertainment expenses as allowed by Operating Policy 72.05. Need food form

Fuels and Lubricants-Fuels and lubricants needed to operate vehicles or machinery. Includes butane, de-ice, diesel, additives, gas, grease, kerosene and oil

Furniture -All furnishings. Includes file cabinets, accessories, chairs, and all other types of furniture

Hotels and Group Travel - Hotels for group travel (usually where a contract is required). Not to be confused with the Guest Lodging program for local (Lubbock) hotels. Must comply with travel policies

Industrial Equip/Sup - Heavy equipment not otherwise classified such as chiller and plant

Insurance-Insurance purchased on behalf of the University Interior Finishes – Purchases of carpet, window treatments, floor coverings, etc.


Janitorial Supplies- Janitorial supplies including equipment used in janitorial services

Lab Analysis and Testing Services -Purchase of services for lab analysis or testing services. Includes drug testing services

Landscaping and Grounds Maintenance-includes the maintenance of sidewalks and repaving of parking lots

Laundry Uniforms and Clothing-The original purchase of uniforms and clothing. Includes all maintance of uniforms and maintenance such as dry cleaning, alterations, etc.

Leases Facilities/Land - Leases or rental of facilities, living quarters, office space, warehouses and land. Includes expenses related to the lease

Legal Agreement -Agreements for legal counsel. Must be approved by the General Counsels office

Moving Services -Services for moving both offices and personal belongings for employees

Music/Royalties/Licenses – Purchase/lease of music rights, royalty fees, and licenses of copyrighted material


Musical Instruments -Purchase of musical instruments, accessories. Includes maintenance of musical instruments

Office Supplies -General office supplies. TTU has a mandated contracts with Staples. Any exception should be addressed to [email protected]

Other Advertisements -Any advertisement other than those for employment. May include magazines, journals, newspapers, radio, billboards, internet, and television

Other -All purchases of goods or services not belonging to another category. Performances and Cultural Events-Services and related expenses for academic and

social performances, speakers and cultural events Pest Control- Services and products used for pest control including interior and

exterior control Pharmaceuticals - Pharmaceutical products used in research Photography and Film Processing-Services and products used in photography.

Includes film processing, negative development, media storage of images, etc. Plaques and Engraving-Goods and services needed for plaques and other engraving s Postage-General postage and other postal services including postage meters


Printing/Printing Equip/Supplies – Services, equipment and supplies needed for all printing(does not include toner for printers)

Professional Services - Professional services including doctors, veterinarians, accountants, financial services including investments, counselors, surveying services, therapists, etc. Any service where a degree and certification/license is required

Promotional Items-Promotional items used to promote the University or specific programs/departments. Includes the services of designing and producing such promotional items

Scientific/Medical Equip/Supplies - Equipment and supplies used for research purposes. May include parts to fabricate equipment and maintenance and repair of all equipment

Telecommunication Equip/Supplies-Telecom(network) equipment containing the following keywords, routers,switchs,wireless,eithernet,hubs, repeaters and VPN

Vehicles- Purchase and maintenance/repair of vehicles. Includes various types of vehicles such as golf carts, vans, motorcycles, etc.

Water/Coffee - Purchase of water/coffee and related supplies such as cups, creamer, sugar, etc.

When a requisition is urgent, mark it as urgent on the req. If it is extremely urgent you should also send an email to [email protected].

TIP!!

Quiz

Is it ok for a TTU employee to conduct transactions with a relative?

Name the two non-compliant forms.

A purchase order is a legal document that binds the University and the vendor (like a contract).

Once the requisition completes, the PO process begins.

The budget is checked (in TB stage) and the funds are finally encumbered (they are not encumbered before this step!).

The PO will be automatically distributed by TechBuy (cxml, fax, or email depending on vendor setup).

PO will become a “P” or a “PB” when successfully completed.

Requisition becomes a PO

Adding Comments to PR/PO

At any point you can add a comment to the PR or you can add to the PO, once the PO is created.

User can copy anyone at TTU on the comments by selecting an email address.

Can attach documents to the attachments and share with other users.

Now if you see a name in italics in comments that person is no longer with TTU

Tips!!

The comments max out at 28 allowable comments. If you need more comment space, you can comment on the requisition associated with the PO or the change order PO if there is a change order.

Adding Comments to PR/PO

Finding my Reqs and PO’s

Recently Completed PR’s located in the drop down arrow by your name in TechBuy.

Recently Completed PO’s located in the drop down arrow by your name in TechBuy.

Document Simple Search>My Requisitions (same info as recently completed).

Document Simple Search> My Purchase Orders (same info as recently completed).

Recently Completed & Pending

Document Search – My Requisitions/ Purchase Orders

Quiz

When is an order actually encumbered?

Receiving

Receiving is required for the following:– For all purchase orders on state funds (FOPs

beginning with 11, 12,13 and 14)– For all purchase orders on grant or sponsored

program funds (FOPs beginning with 21, 22, or 23)

– For all purchase orders that total more than $5,000, regardless of the form used in TechBuy.

Receiving

For advanced payments, the receiving rules apply at the time the goods or services are received, not at the time of payment. The fact that the PO has already been paid does not relieve the department of the obligation to enter a receiver as required.

Tip!!!

Just because a PO is created and/or a receipt is entered does not mean that payment has been or will be made. An invoice must be sent to Payment Services. Email [email protected] any invoices you receive.

Receiving

When a product is received, it should be thoroughly inspected to make sure it matches the specifications detailed on the PO and/or quote. Any shortages, overages, or damaged, returned or noncompliant goods or services should be noted.

Shortages should be reported to the vendor & Procurement Services immediately. Verify if the item is back-ordered.

Overages & duplicates may require a change order in TechBuy if the difference in cost to the original PO will exceed the lesser of 10% or $100.

Receiving

Be advised that if the overage causes the transaction to go over $10,000.00, the change order will not be approved if bids were not obtained.

Damaged items should be reported to the vendor immediately, in order to determine a remedy. Also, email [email protected] and make sure that the damaged goods are marked as returned in the receipt report, so that they are not paid for.

Shipments that do not meet specifications should be rejected at the time of inspection. Notify the vendor immediately and email [email protected].

Quiz

Does a Purchase Order automatically pay when a receipt is entered?

Payment of Invoices

Department Responsibilities – Create a purchase order prior to receiving the goods

or services.– Verify that the goods & services received are the

goods and services that were ordered & are satisfactory.

– Enter receipt when required.– Review invoices in the TechBuy system for all E-

Invoicing vendors.

Payment of Invoices (Cont.)

If the vendor sends an invoice to a department, it should be sent immediately to Payment Services by comment on the PO. Failure to send invoices in a timely manner may result in the department being liable for interest on the payment.

Invoices for payments against blanket PO’s require departmental approval, irrespective of the dollar amount. The department must include each FOAP that the invoice should be paid from on each invoice.

Notify Payment Services via email if an invoice is approved in error by adding a comment in Techbuy and notifying TechBuy support ([email protected]).

Payment Terms

The State of Texas requires payment of invoices within 30 days of the later of receipt of goods/services or receipt of invoice unless payment is disputed or we will have to pay interest. The interest rate is adjusted each year by the State.

PS needs a few days to pay each invoice, so failure of a department to get an invoice to us within 5 business days of the deadline will result in your department being responsible for the interest charges.

Prepayments & Advance Payments

Per Texas Comptroller guidelines, advance payments are allowed under the following types of purchases:

– library books, databases and other published materials necessary for the efficient operation of the institution’s library

– payments to federal or state agencies– lease payments– subscriptions (up to six weeks in advance)– rental fees for a meeting or conference booth– annual maintenance agreements (regardless of whether it covers more

than one appropriation year however, on appropriated funds, the university may not charge a fiscal year for the purchase of services if the services are rendered during a different fiscal year)

– registration fees.

Prepayments & Advance Payments

The University may make advance payments for additional reasons if cost savings will be realized or it is in the University’s best interest to do so to serve the public purpose.

Texas Education Code 62.021, prohibits the use of HEAF funds to pay for goods or services before the delivery of said goods or services.

Best Practice to verify with ORA on advance payments on federal or grant funds.

Recur Payments

Some purchase orders that require a regular monthly amount that does not change during the fiscal year can be set up as a recur payment. (ex. lease of space)

There cannot be any additional charges (just the regular monthly amount).

Check the “Recurring Payment” option on the requisition.

Invoices will not be required for payment.

Early Payment Discounts

Cash discounts are acceptable and will be taken if earned by the University. Examples include a 2%/10, which would indicate a 2% discount if paid within ten days of an invoice date (they must have the check).

Departments should be mindful of all discounts and ensure that invoices are received in PS in a timely manner so that the University can realize a cost savings.

Tax Exemptions

The University is exempt from Texas state sales tax.

Taxes of other states are not applicable if purchased in another state and shipped to a Texas location. Texas Tax Code 151.

Other state sales taxes will apply if purchased and delivered in another state.

Tax Exemptions

The State of Texas is exempt from federal excise taxes for specified commodities.

Email [email protected] for assistance with taxes or you can send the following letter to the vendor for evidence of exemptions: http://www.depts.ttu.edu/afism/AFISMFormRepository/ProcurementDept/Credit%20Tax%20Letter%20Updated.pdf

Payments on State funds

The payment of invoices for purchases on appropriated funds (11, 12,13 and 14) is done through USAS. USAS is a computerized accounting system for the State of Texas. PO’s containing either all appropriated funds or partial appropriated funds will require a check to be issued by the State of Texas. In the event there is a combination of funds, the vendor will be issued more than one check, one from the University & one from Comptroller’s Office of the State of Texas for each portion. If the State of Texas portion of the payment is greater than $5,000, the payment will be scheduled out 25 days in accordance with State regulations.

E-Invoicing

Many vendors in TechBuy are set up as E-Invoicing vendors. For these vendors, an electronic invoice will be submitted by the vendor into the TechBuy system. Payment is scheduled 14 days after the receipt of the invoice in the system and is automatically made to the vendor.

Tip!!!!

*Issue – if the PO and the invoice do not match, the remaining encumbrance is not released. Please request a close through [email protected]. We will auto close anything $5 or less each month.

E-Invoicing Vendors

Agilent Technologies Apple B&H Photo Bio Rad Burgoon/Grainger Chemglass Complete Books CompSol/CDWG Cuevas/Airgas Fisher Integrated DNA Lone Star/Empire

Lone Star/Home Depot PDME/Fastenal Perkin-Elmer Promega Corp Qiagen Roche Santa Cruz Biotechnology SHI Sigma-Aldrich Summus/Dell Summus/Staples Summus/VWR Wesco

Foreign Wire Transfers

In addition to all other invoice processing requirements, wire transfer requests for foreign vendors must include complete instructions for the receiving bank; these include name & address of the bank, IBAN or Swift Code, account number, & the name on the account. In general, wire transfers will take up to seven days to credit an account. Some banks will charge additional fees for a wire transfer & these expenses will be passed on to the department. When payment is to be made in a foreign currency be sure to indicate the currency type on the invoice.

Tip!!!

How does a department get notified that payment has been made? Other than reports, is there an email process or is this going to be developed? There is not an email process. They can review FI030 or FI137 each morning to see payments and open encumbrances. FI070 will provide data for blanket orders. For E-Invoicing vendors you can set your email to notify you when an invoice is submitted.

Credit Memos

Credit memos issued from the vendor will be entered into Banner by Payment Services as a direct pay credit. The credit will reference the PO in Banner. The credit will be processed on the next payment to the vendor.

E-Invoicing vendors will submit credits through TechBuy and show on the PO Invoice history.

Hard Copy Invoices

Most vendors will mail invoices to Payment Services (PS).

For those invoices that come to departments, the departments should scan and attach the invoice to the: 1. receipt or 2. make a comment on the PO. The PO only allows for a max of 28 comments with attachments.

Notification for a Receipt/Invoice

Any time you attach an invoice, you must notify Payment Services.

On the receipt, you should send an email to [email protected].

On the comment, you can select “Payment Services” – see next screen.

Adding a Comment to Payment Services or Purchasing

Enter Purchasing to search for purchasing support and payment services to search for Payment Services support.

Quiz

What is the Payment Services Tolerance on paying invoices?

Are advance payments of any kind allowed on HEAF funds?

Closing of Encumbrances

All encumbrances should be reviewed regularly. FI030 and FI137 are good reports to review.

Encumbrances can be released at any time, but departments should verify that all invoices have been received AND been paid.

It causes additional work for purchasing to reopen closed PO’s and could cause you to lose funds. Ex. If we close a PO after FY or grant end, the funds will go back but if invoice comes in, you will have to pay with new FOAP/funds.


The system will automatically close orders under $5. It is a good idea to leave a balance of $25 or more on standing orders. (Blankets are not closed by this process but will lapse on August 31st).

Some vendors don’t pay the final invoices until late Sept/Oct (ex. Xerox)

Payment Services can only close encumbrances when they make a payment, otherwise Purchasing must close the encumbrances.


Send an email to [email protected] – include the PO number, the amount, the vendor, and if it is a full close or partial release.

We can release partial encumbrances – let us know the amount and the line/FOAP info.

Tip!!!

Review FI137 Cognos report when you get back to your office to monitor your open encumbrances.

Reimbursements

Reimbursements are generally not in compliance with University procedures and should be avoided.

Reimbursements cause the University to be non-compliant with 1099 reporting.

IRS requires reimbursements to be made within 60 days or will be taxable.

In addition, we are not getting TTU contract pricing when a user purchases on their own.

TIP!!!

If you cannot find the Fund or Organization code in TechBuy, just email [email protected]. Some values will fail to come over from Banner when FST/ORA are setting up the values and Purchasing will have to enter manually.

TechBuy Accounting Guidelines

In addition to budget checking on the FOP or FOAP elements, there is a security element based upon the organization code. Each user must have permission on EACH organization code that they use. The Financial Manager must go to team.texastech.edu and grant permission (different roles can be granted) on EACH org code that is used.


Certain FOAP’s are budgeted by the budget pool. When that is true, departments will have to make sure sufficient budget is set up in the budget pool. For example, if using state funds and you are purchasing consumables (7C0 budget pool), you will need to make sure you have funds budgeted in the pool for at least the amount of the transaction.

Tip!!

The How To guides are good resources if you don’t know what account code to use.

http://www.depts.ttu.edu/procurement/purchasingContracting/howToGuides/index.asp

Capital Assets (7J Account Code)

Land/land improvements Capitalize All Buildings/building improvements $100,000 Facilities and other improvements $100,000 Equipment (unit cost) $5,000 Library books/materials (collections) Capitalize All* Software $100,000

*Consumables are never capitalized


CONSUMABLE means a good that perishes with use and that, under usual circumstances, will be entirely used during the fiscal year in which it is purchased.

CONTROLLED ASSETS are assets that have a value between $500 and $4,999.99 for that asset type. Hand guns and rifles are controlled at any dollar amount. Controlled assets include stereo systems, cameras, video recorders, desktop CPU’s, projectors, and portable CPU’s (account codes 7C0190 and 7C0200).

Services

SERVICE an act or a variety of work done for others, especially for pay. Services are reported on IRS form 1099 annually to each vendor.

ICQ – required for individuals and sole prop. It is not required for goods or when paying a corporation, partnership, or research assistant.

HEAF Funds (13)

Can Use

Equipment (lifespan of 1 yr. or more) *

Constructing & equipping buildings

Land Library books & materials Major repair or rehabilitation of

buildings Must be E&G buildings only

Can’t Use

Lease/Purchase Consumables Auxiliary expenditures Not for renewals Rental of software For any advance pay

except Library Books

Allowable Expenditures

http://www.depts.ttu.edu/procurement/purchasingContracting/documents/supplemental/Funds%20Allowable%20and%20Non-Allowable%20Revised%205-9-08.xls

Support

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Quiz

Do you need to email Techbuy Support to close blanket orders?

Procure to Pay Presented by TTU Procurement Services.

Documents

Transcript of Procure to Pay Presented by TTU Procurement Services.