Purchasing & Payments Tool Kit - University of Denver2018/12/12 · Purchasing & Payments Tool Kit...

Purchasing & Payments Tool Kit


For Employees

Shared Services Center

2601 E. Colorado Ave.

Denver, Colorado 80210

303.871.7420

[email protected]

www.du.edu/sharedservices

Last Updated: 12/12/2018

mailto:[email protected]

Purchasing & Payments Tool Kit 2

Table of Contents

Table of Contents ............................................................................................................................................ 2

Introduction and Important Information ........................................................................................................ 4

Unauthorized Purchases ................................................................................................................................. 4

Policies ........................................................................................................................................................... 4

Business Operations .................................................................................................................................... 4

Conduct ....................................................................................................................................................... 4

Fiscal & Business Affairs.................................................................................................................................................................................. 5

Tax Exemption .................................................................................................................................................................................................... 5

Tax Exemption Guidelines ............................................................................................................................................................................... 5

Affadavit of Exempt Sale ................................................................................................................................................................................. 6

Tax Exemption in “Brick-and-Mortar” Stores .................................................................................................................................................. 6

Tax Exemption in Online Stores ...................................................................................................................................................................... 6

Commonly Used Vendors & Their Tax Exempt Registration Process ................................................................................................................ 6

Purchasing Process ............................................................................................................................................................................................. 9

Allowable Purchases ......................................................................................................................................................................................... 10

Obtain Quotes ................................................................................................................................................................................................... 10

When Are Quotes Required? .......................................................................................................................................................................... 10

Bid Exemptions.............................................................................................................................................................................................. 10

Contracts and Purchasing Orders ....................................................................................................................................................................... 11

How to Determine if Your Purchase Requires the use of a Contract or a Purchase Order ............................................................................... 11

Insurance Requirements for Contracts ........................................................................................................................................................ 11

Selecting a Vendor ............................................................................................................................................................................................ 12

Preferred Vendors ......................................................................................................................................................................................... 12

Vendor Registration .......................................................................................................................................................................................... 13

If Your Vendor Is Not Registered (You are unable to find them in Banner FTMVEND) .................................................................................. 13

If Your Vendor Is Registered but Their Information Is Incorrect In Banner .................................................................................................. 13

If Your Vendor Is Registered and Their Banner Record Appears To Be Correct .............................................................................................. 13

Quick Tip This Table of Contents

You can click on any

heading in this table of

contents to be directly

taken to that section of

the Tool Kit.


How to Pay for a Purchase ................................................................................................................................................................................ 14

Buying and Paying Guide .................................................................................................................................................................................. 14

Buying & Paying Guide ...................................................................................................................................................................................... 15

Pay the Easy Way- Purchasing Cards ............................................................................................................................................................. 17

Other Factors to Consider .............................................................................................................................................................................. 18

Using a Purchasing Card (P-Card) ..................................................................................................................................................................... 20

Request a Temporary Increase of your Purchasing Card Limit ...................................................................................................................... 20

Documenting P-Card Transactions ................................................................................................................................................................. 20

Examples: ................................................................................................................................................................................................... 20

Pay with a Purchase Order/Requisition............................................................................................................................................................. 21

Types of Purchase Orders .............................................................................................................................................................................. 21

Setting Up a Purchase Order/Requisition ...................................................................................................................................................... 21

Pay with a Check Request ................................................................................................................................................................................. 21

Travel and Expense Reimbursements ............................................................................................................................................................ 22

How to Avoid the Inconvenience of a Reimbursement ................................................................................................................................ 22

Travel Advances ............................................................................................................................................................................................ 23

Honorariums ................................................................................................................................................................................................. 23

Determining if your payment is an Honorarium ......................................................................................................................................... 23

To request an honorarium: ......................................................................................................................................................................... 23

Wire Transfers .............................................................................................................................................................................................. 24

Pay a Non-resident Alien ................................................................................................................................................................................... 24

DU Accountable Plan ......................................................................................................................................................................................... 25

Receipt Requirements ....................................................................................................................................................................................... 25

Documentation Requirements ........................................................................................................................................................................... 26

Statement of Business Purpose ...................................................................................................................................................................... 26

Paying Invoices ................................................................................................................................................................................................. 26

When You Receive an Invoice for an Existing Requisition ............................................................................................................................. 26

If Shared Services Receives an Invoice for an Existing Requisition ............................................................................................................... 27


Introduction and Important Information This Tool Kit is designed to help guide staff members through the process of making purchases and paying for those purchases on behalf of

the University.

Unauthorized Purchases The primary responsibility of Procurement and Contract Services is to ensure the proper, prompt and responsive purchasing of all supplies,

equipment, material, and services for the various departments in accordance with the federal regulations and the policies and procedures

promulgated by the Board of Trustees and the University Administration. This charge applies to all University funds be they University

appropriated, federal, or gift. Therefore, all purchasing activity shall be done either by the Director of Procurement and Contract Services or

under his or her direct order, guidance, supervision, or approval.

The University cannot and will not be obligated for supplies, equipment or services, except those legal obligations created by Procurement

and Contract Services. Any commitment incurred otherwise shall be a personal obligation of the employee.

Policies There are several policies which impact the purchasing and payments process. Shared Services advises that anyone who is making purchases

review these Policies on a regular basis. These policies can be found on the Business and Financial Affairs University Approved Policies web

page.

Business Operations

• Alcohol Purchase

• Allowable Business Expenditures

• Gifts and Gratuities

• Official Function/Entertainment

• Property Control

• Propriety of Expense

• Supplier Code of Conduct

• Travel Expense Policy

Conduct

• Code of Business Conduct

• Conflicts of Commitment and Interest

http://www.du.edu/bfa/policies.html


Fiscal & Business Affairs

• Limits of Authority

Tax Exemption

The University of Denver is exempt from State of Colorado and local sales tax. The University’s tax-exempt number (98-00574) should be

provided to suppliers when making purchases. In general, the purchase needs to be made from University funds (P-Card or check) to qualify

for tax exemption. It is the responsibility of the employee making a purchase to ensure that sales taxes for which we are exempted are not

paid with University funds. This includes seeking a refund for taxes which were charged inappropriately.

Some vendors will require that the University’s certificate of exemption is provided at the time of purchase. Certificates can be found at:

PioneerWeb > Employee Tab > Administrative Processes > Payment Services > Tax Exempt Documents.

• The CO State Sales Tax Exemption Form should be presented when requesting exemption from Colorado state sales or

use tax.

• The City of Denver Tax Exemption Form should be presented for exemption from Denver sales, use, or lodger's tax. For

hotels, motels, and restaurants in this category, the Lodger Tax Exemption Form may also be requested.

• The Multi-Jurisdiction Certificate should be presented if establishing tax exempt status with a company.

Please keep in mind that these guidelines may vary. As a best practice, request that the merchant designate which forms are required for the

situation at hand. Please note that not all DU transactions are exempt from tax.

Tax Exemption Guidelines As a general rule, the following conditions must be met for a purchase to qualify as tax exempt:

• The purchase must be for normal University business expenses.

• Purchases made with personal funds are tax exempt up to $100.

• Purchases over $100 must be made with University funds, either via Purchase Order, P-Card, or Check Request.

• Departments making purchases for resale should contact Shared Services prior to the purchase to determine if tax exemption applies

to the purchase.


Affadavit of Exempt Sale In certain situations, vendors may provide employees with an Affidavit of Exempt Sale to complete and sign. Employees are authorized to

complete and sign these documents, provided that the purchase is being made on behalf of the University and meets the criteria listed above

in the Tax Exemption Guidelines. The product(s) being purchased must be of a type normally sold, leased, rented, or utilized by the

University in the usual course of business.

Tax Exemption in “Brick-and-Mortar” Stores In general, most brick-and mortar retail stores will require that employees purchasing on behalf of the University present the Colorado State

Sales Tax Exemption Form at the time a purchase is made. This can vary between vendors, so the best practice is to call a vendor before you

leave for their location. Many stores will ask you to complete an affidavit certifying that your purchase is made on behalf of the University.

As noted above, employees are authorized to sign these documents when requested.

Tax Exemption in Online Stores Practices regarding tax exemption from online vendors vary greatly. Most larger vendors have a registration process which can take several

days to complete. If you are using a vendor for the first time, it is best practice to contact them as

soon as you determine that you will be using them to find out what their process and requirements

are.

Commonly Used Vendors & Their Tax Exempt Registration Process

The vendors below are used frequently by the DU community. While every effort is made to keep

this information up to date, Shared Services strongly recommends contacting the vendor in

advance of your purchase to ensure that you have completed any necessary steps to have tax

exempted from your purchases.

Vendor Process Overview Notes

Amazon When using the DU Amazon Business

account, tax is automatically exempted.

For more information on the DU Amazon Business account, review the

Amazon Business Tool Kit at: PioneerWeb > Employee > Administrative

Processes > Procurement & Contracts > Preferred Vendors

Best Buy (in

store)

Register for a Tax-Exempt Quick Card at the

Customer Service Desk. You will need to

present the Colorado State Sales Tax

Exemption Form.

Important Note Delays in Tax Exemption

Processing

Note that some vendors have tax

exemption registration processes

which can take several business

days or weeks to complete. This can

result in a delay in your ability to

purchase.


Bestbuy.com Process information can be found here. Note

that this is a 10-15 day process.

A Tax Exempt Quick Card will be mailed to you. This can take 10-15

days to arrive.

Costco (in

store)

You must have Business Membership to

qualify for tax-exemption in store

The University of Denver as an entity does not have an account with

Costco. Individuals in various departments have applied for accounts to

process tax-exempt purchases on behalf of the University. Best practice

dictates that departmental membership cards (i.e. Costco membership

card) should be kept in the office since such memberships may not be

used for personal purchases.

Costco.com

Dominos

Pizza

Costco.Com does not currently offer sales tax

exemption. Follow the directions in their

Sales Tax Exemption Claim Guidelines to

request a refund for the taxes charged on a

specified order.

Please call or visit the store in person to

receive the tax-exemption benefit when using

your P-card. Orders that are tax-exempt

cannot be ordered online.

This applies to the location on Evans and Downing. For questions

regarding tax exemption at this location, please contact the General

Manager at 303-777-6655.

Einstein

Brothers

Bagels

For catering orders: process information can

be found on the catering FAQ site.

Be sure to use your @du.edu e-mail to set your account up as the tax

exemption will be tied to the account for all future orders.

Home Depot The Home Depot Tax Exempt account number

for DU is 1505654743.

Give the cashier the tax-exempt account number at the time of

purchase. No further documentation is needed.

King Soopers Tell the cashier that the purchase will be tax

exempt at the beginning of the transaction.

Complete and sign their form. Be sure to

have the DU tax ID number with you (DU’s

tax exempt number is embossed on the P-

Card).

Office Depot Process can be found on the FAQ site. Note that this process takes at least two weeks.

Safeway Tell the cashier that the purchase will be tax





Card).

Sprouts Tell the cashier that the purchase will be tax


https://www.bestbuy.com/site/help-topics/quick-card/pcmcat222200050022.c?id=pcmcat222200050022

https://www.costco.com/wcsstore/CostcoUSBCCatalogAssetStore/feature-pages/ExemptionClaimWithGuide20060412.pdf

https://ebcatering.com/index.cfm?page_id=104

http://www.officedepot.com/a/customerservice/taxexemptionrules/





Card).

Staples Tax Exemption is automatically applied when

you use the DU Staples Advantage portal.

To request an account, e-mail Shared Services with the following

information: Name, Office Address, Room/Suite Number, Office Phone

Number. Payment must be made with a P-Card.

Target (in

store)

Provide a copy of the Colorado State Sales

Tax Exemption Form and identification to the

cashier at checkout.

Target.com

Create an account using your DU email

address. Email the Colorado State Sales Tax

Exemption form and Multi-Jurisdiction

Certificate. You will receive email

confirmation when the tax exemption has

been processed and added to your account.

You will always see tax on your order initially, however, Target doesn’t

charge tax until an order ships, at which time tax will be removed.

Walgreens Provide a copy of the Colorado State Sales

Tax Exemption Form and identification to the

cashier at checkout. Walgreens cannot

complete tax exempt purchases on their

website at this time.

Walmart Apply by bringing a copy of the following

documents to the Customer Service counter:

Colorado State Sales Tax Exemption Form,

City of Denver Tax Exemption Form and

Multi-Jurisdiction Certificate.

Tax exemption will apply only to the store that you provide with

documentation.

Walmart.com Process and information available at:

https://www.walmart.com/taxexempt/.

mailto:[email protected]?subject=Staples%20Advantage%20Account

https://www.walmart.com/taxexempt/


Purchasing Process

Identify a NeedVerify that the

expense is allowable

Obtain Quotes (If Applicable)

Select a Vendor

Determine the need for a contract or purchase order and start Contract Review Process (If

Applicable)

Determine how to pay for the purchase

Place OrderEnter Requisition

(if applicable)

Recieve Goods/Services

Pay for Goods/Services

Quick Tip This Flowchart

You can click on any of the

underlined steps in this

flowchart to be directed to

more information in this

document.

Important Note Unauthorized Purchases

The University cannot and will

not be obligated for supplies,

equipment or services, except

those legal obligations created

by Procurement and Contract

Services. Any commitment

incurred otherwise shall be a

personal obligation of the

employee.


Allowable Purchases There are several University Approved Policies that dictate how funds can and can and cannot be spent. You can find these policies at:

http://www.du.edu/bf a/policies.html. Be sure to review these policies regularly as they are subject to periodic change.

Obtain Quotes It is generally good practice to price transactions and collect quotes from a variety of sources before selecting a vendor. The lowest price

may not always be the best value. Units should consider the total cost of ownership, which includes the purchase price, transportation,

handling, inspection, quality, rework, maintenance, disposal and other associated costs.

When Are Quotes Required?

Amount Quotes Notes

Less than $5,000 No quotes required A written quote is helpful to expedite the requisition process

$5,000.01-$25,000 Two (2) verbal quotes Consider the total cost of ownership, a written quote for the vendor you select is needed to

create the requisition

Over $25,000 Three (3) written

quotes

Consider the total cost of ownership

Bid Exemptions • There are a few circumstances and items excluded from the above bid process. Please note that failure to anticipate needs or to allow

sufficient time for bidding is not a valid exception to the competitive bidding requirements. Common exemptions to the bidding

requirements are: Items purchased from current University, state, federal, or other cooperative contracts

Emergency purchases when:

• Human life, health or University property is in jeopardy

• Repairs of equipment involving hidden dangers

• Repairs are immediately needed for equipment where delay would lead to higher expense

• Library acquisitions (books, periodicals and films)

• OEM (Original Equipment Manufacturer) requirements for equipment currently under lease, rental, warranty or maintenance

• Design compatibility with existing equipment

• Only known source of supply such as only available from a government agency

• Support renewals for existing applications where competition is not practical based on the cost and time involved with replacing the

existing application

http://www.du.edu/bf%20a/policies.html


Contracts and Purchasing Orders Did you know that a Purchase Order is more than just a way to pay for something? When a vendor

accepts a Purchase Order, they are agreeing to DU Terms and Conditions for that sale. Those Terms and

Conditions are a legally binding agreement which specifies payment terms and provides protections to

the University should the vendor fail to complete a project or deliver good(s) in a satisfactory manner.

How to Determine if Your Purchase Requires the use of a Contract or a Purchase

Order If you are working with a vendor who requires a contract, you should first ask them if they would be

willing to accept the DU Terms and Conditions. If they are not, work with your Business Officer to start

the Contract Review Process to have their contract reviewed, approved and signed. To expedite the

contract review process, contact a Shared Services Contract Administrator early on in the process.

If a vendor does not provide a contract, you may still need to ensure that the transaction has the

appropriate protections. There is no black and white answer to what types of purchases need a Purchase

Order. Below are guidelines to help you determine whether your purchase needs to be bound by DU

Terms and Conditions. If you are at all unsure, please feel free to contact Shared Services so that we can

evaluate your situation and help make a determination about how to proceed.

Insurance Requirements for Contracts Please note that vendors will need to provide proof of insurance with their contract. Enterprise Risk Management manages the insurance

requirements. You can find the most recent requirements at: http://www.du.edu/sharedservices/vendor/insurance.html.

Does Not Require Use of a PO

May Require Use of a PO Always Requires Use of a

PO

Low-risk purchases of goods

(i.e.- food items from a grocery

store, office supplies, catered

lunch for a small group from

common restaurant-pizza,

sandwiches, etc.)

High Risk Purchases of goods (i.e.

- volatile chemicals, explosives,

etc.)

Transactions over $5,000 that are

not covered by a Contract and are

not low-risk purchases.

Services-when work is being

performed on campus by a third

party (i.e. - Fire Alarm

maintenance Services)

Important

Note Signing a Contract or

Agreement

University policy prohibits

employees from signing any

contracts or agreements on

behalf of the University,

regardless of the amount of

money associated with the

contract/agreement.

http://www.du.edu/sharedservices/vendor/termsandconditions.html

http://www.du.edu/sharedservices/vendor/termsandconditions.html


http://www.du.edu/sharedservices/vendor/insurance.html


Selecting a Vendor In most cases, you are free to choose vendors who meet your needs and the requirements of the University. However, a few items must be

purchased through Preferred Vendors.

Preferred Vendors Shared Services maintains a list of preferred vendors for certain services. For specific information on how to make purchases with these

vendors, please consult with Preferred Vendor documentation which can be found at:

PioneerWeb > Employee Tab > Administrative Processes > Procurement & Contracts > Preferred Vendors

Vendor Item Requirements

CDW-G Adobe Software All Adobe Software should be purchased through this vendor.

Amazon.com Employees should use the Amazon Business Portal for University related purchases.

Apple and Dell Computers All computer purchases must be made through University Technology Services.

DU Central Receiving Copier Paper Central Receiving provides the best value on copier paper and can deliver quickly to

on-campus locations.

Konika Minolta Copiers Employees are encouraged to use Konika Minolta. The University has negotiated

special pricing and service options for departments.

Dilley Printing Letterhead, Business

Cards & Envelopes

Employees are encouraged to use Dilley. They have official templates for all DU

related stationery and their process is tailored to DU needs and Marketing and

Communication standards.

Baileys Moving Services Moves that take one hour or less to accomplish should be completed by Facilities

Services. Moves that take longer than one hour can be arranged through Bailey’s.

These moves should be coordinated with Facilities.

Staples Advantage Office Supplies The Staples Advantage site is available to employees of the University. Employees

are encouraged to use Staples Advantage whenever they can provide the best value

for supplies.

FedEx Shipping Services Employees are encouraged to set up an account with FedEx which will allow

shipping services to be direct billed to their budget by Shared Services. Contact

Shared Services to establish an account.


Vendor Registration Once you choose a vendor, you need to make sure that they are set up to be paid by the University. The IRS requires that your vendor provide

us with certain tax information before we issue payment. Note that this is not a necessary step for vendors who will be paid with Purchasing

Cards. You can see if your vendor is already registered in Banner Screen FTMVEND.

If Your Vendor Is Not Registered (You are unable to find them in Banner FTMVEND) Direct them to register online at http://www.du.edu/sharedservices/vendor/index.html and let them know that they should do this as soon

as possible. Although the Vendor Registration process is fairly quick and easy, there can be delays if the vendor doesn’t have the proper tax

information. It helps to let your vendor know that they should list you as their “Contact at DU” in the registration form.

If Your Vendor Is Registered but Their Information Is Incorrect In Banner Have the vendor e-mail [email protected] to update their record.

If Your Vendor Is Registered and Their Banner Record Appears To Be Correct You may proceed initiating your transaction

Quick Tip Interpreting Vendor Data in

FTMVEND

If you see only a Start Date in a

vendor record, the University has

all information needed to pay this

vendor. If you see both a start date

and a termination date, the

information on file needs to be

updated. Direct the vendor to

contact Shared Services to update

their information.

http://www.du.edu/sharedservices/vendor/index.html


https://www.du.edu/sharedservices/vendor/vendorregistration.html


How to Pay for a Purchase There are several ways to pay for purchases. To determine the best payment method, use the Buying & Paying Guide below. Also found on

PioneerWeb > Employee Tab > Administrative Processes > Payment Services

Buying and Paying Guide


Buying & Paying Guide


Pay the Easy Way- Purchasing Cards If you are making a purchase with a vendor who will accept a credit card, it is always in your best interest and in the best interest of the

University to use your Purchasing Card. Using your Purchasing Card greatly reduces administrative burden both to your department and to

Shared Services. The chart below illustrates the steps required in a fairly straightforward purchase where only a single payment needs to be

made and no outside contract is involved.

Steps Required for Each Payment Method

Crimson text- Steps taken by Departments Gold Text- Steps taken by Shared Services Center Black Text- Steps

taken by Vendor

Request temporary increase of purchasing card limit (if needed) › Increase purchasing card Limit › Provide purchasing card information to vendor › save receipt › Upload receipt to Pioneer Travel and Expense › Add expense to an expense report › Review and approve monthly expenses

Ensure vendor is registered in Banner and contact information is up to date › Explain Vendor Registration to Vendor › Gather appropriate tax information and Register › Enter a Check Request in Banner › Department Approver Review & Approve Banner Transaction› Email Shared Services with attached invoice, approval to pay and Transaction Number as subject line › Review and approve Check Request in Banner › Cut a Check to Vendor › Mail check and any enclosures to vendor

Ensure vendor is registered in Banner and contact information is up to date › Explain Vendor Registration to Vendor › Gather appropriate tax information and Register › Enter a Requisition in Banner › Department Approver Review & Approve Requisition in Banner › Submit supporting documentation to Shared Services › Review and approve Requisition in Banner › Create a Purchase Order & send to Vendor › Create and send an invoice › Receive Invoice, Review, Approve & Submit to Shared Services › Cut a Check to Vendor › Mail check and any enclosures to vendor

Purchasing Card Check Request Requisition/P.O.

7 Steps 9 Steps 12 Steps


Other Factors to Consider Purchasing Cards not only provide the fastest, easiest way to

purchase, they also provide the lowest cost and are the clear

winner in many other aspects. You don’t need special Banner

access and training, vendors get paid faster, it generates less

paperwork making it a sustainable choice, and all parties know

that the payment has been made. It also provides you a

mechanism to dispute the charges if something goes wrong.

Purchasing Card

Check Request

Requisition/Purchase Order

Banner

Training

Required

No Yes

Yes

Time for

Vendor to

Receive Payment

Immediate

12 days average

from receipt of invoice

(or receipt for reimbursements)

Net 45 or Net 30

Cost to the University Factors considered: labor,

supplies, postage

Lowest Cost to the University

Moderate Cost to the

University

Highest Cost to the University

Risk to the

University

Moderate Credit Card Fraud is not

uncommon; however, the issuing bank provides

protection for most fraud.

Moderate Misuse by employees can

be harder to detect immediately which could

lead to greater loss.

Low A large amount of documentation is required for this payment

method and the University is generally in contact with the Vendor, which makes misuse by employees difficult. Purchase Order fraud

does happen, but Shared Services has practices in place to reduce our

institutional risk.

FAQ By giving an employee a Purchasing Card, Am I

Exposing the University to the Risk of Misuse?

In some ways, it can feel like you are putting DU at risk for financial

fraud by issuing Purchasing Cards to most of your employees. It’s

important to keep in mind though, that there are a lot more controls on

payments made with a credit card than there are on those made with

checks.


Misuse by employees is limited by per-transaction and

monthly spending limits.

Two levels of approval (Business Officer and Shared

Services Processor) for all

transactions.

Three levels of approval (Budget Officer, Higher

Level Approver, and

Shared Services) reduce

risk.


Using a Purchasing Card (P-Card) P-Cards are the easiest way to make any purchase on behalf of the University. Simply:

1. Present your card to the vendor (or use the vendor’s online payment system)

2. Save your receipt (only required for purchases over $75.00, except lodging.)

3. Upload and attach your receipt in Pioneer Travel and Expense.

For full details on the P-Card program including P-Card applications, processes, and procedures, visit:

PioneerWeb > Employee Tab > Administrative Processes > Payment Services > Purchasing Card

Request a Temporary Increase of your Purchasing Card Limit P-Cards have a per-transaction limit of $5,000. If you need to use your P-Card for a transaction that is over that limit, you can request to

have your limit temporarily raised. To do so, your Business Officer should e-mail the Program Administrator requesting the increase. Include

the following information in the e-mail request:

• Name of cardholder

• Amount of transaction

• Date on which payment will be made

• A copy of the e-mail you received notifying you that your contract has been approved and signed (applicable only to purchases that

involve a contract)

Documenting P-Card Transactions

A statement explaining the business nature of the transaction is required for each individual P-Card purchase. Business purpose

statements provide a clear concise explanation of how each transaction is necessary and beneficial to the University. They must

answer the questions: what, who, when, where, and why.

These electronically documented notes are an essential component of the auditing process. Reviewing transactions weekly while

entering comments is also best practice in preventing fraud.

Examples:

• Hotel for WX conference in San Diego 5/3/18-5/6/18

o Include the event information with travel notes

• Lunch (only time individuals could meet) with J. Smith, A. Johnson, and donor for XY program

o Meal meetings must be infrequent, necessary, and regarding a DU program/project

• GoPro LCD screen for XY program time-lapse project

o Be as specific as possible-avoid “supplies” as a note unless it is a regular general office supply order

https://www.concursolutions.com/



Pay with a Purchase Order/Requisition In order to understand the Purchase Order/Requisition process, you need to understand the difference between a Purchase Order and a

Requisition:

• A Purchase Requisition is a request made to Shared Services for a purchase order to be issued to a vendor for the procurement of

goods or services

• A Purchase Order is an agreement (governed by DU Terms and Conditions or a Separate Purchase Contract) between the University

and a vendor. The terms and conditions or contract specify each party's rights and obligations.

Types of Purchase Orders • Standard Purchase Orders are the legal documents that govern transactions and properly protect the department and University. A

Purchase Order is utilized for the purchase of goods or services in excess of $5,000. They are generally used for purchases with a

single payment transaction.

• Standing Orders are used for repetitive services or items from a single vendor over a specified term (usually a fiscal year). This type

of PO is charged to a specific FOAPAL and is requested by entering a requisition into Banner.

• Blanket Orders are also used for repetitive services or items from a single vendor over a specified term (usually a fiscal year). This

PO type does not require that a requisition be entered into Banner. This type of order is used when there will be multiple payments

made to the purchase order which will be charged to multiple FOAPALs. The FOAPALs to be charged are not encumbered and not

specified on the PO–these must be specified with each invoice for payment. Please complete and email the Blanket Purchase Order

Request Form to request a Blanket Order. Email the form to Shared Services. This form is located at:

http://www.du.edu/sharedservices/media/documents/procurement/forms/blanketorderform.pdf

Setting Up a Purchase Order/Requisition Before you start a Purchase Order/Requisition, be sure that your vendor is registered with DU. To generate a Purchase Order, you enter a

Requisition in Banner. Banner will assign a document number, which is used to reference the requisition. After approvals, Procurement and

Contract Services will generate a Purchase Order from the Purchase Requisition which will be given to the vendor when the order is placed.

If you are not using DU Terms and Conditions, you should enter a requisition once your contract has been approved and signed.

Step by step directions can be found at:

PioneerWeb > Employee Tab > Administrative Processes > Procurement and Contracts > Purchasing Policies & Training

Pay with a Check Request A Check Request (formally known as a “Direct Pay”) is a payment from the University to the payee. To use this method, enter the transaction

into Banner using form FAAINVE. The vendor invoice number entered must match identically to the vendor’s invoice. Then e-mail vendor-

[email protected] with the following:


http://www.du.edu/sharedservices/media/documents/procurement/forms/blanketorderform.pdf




• Transaction number as the subject line (commonly called the “I” number)

• A scanned copy of the vendor invoice must be attached to the email

• Show payment approval using one of the following two options:

1. In the email, state that the “goods and services were received”

-or-

2. Sign the invoice and mark “OK to Pay” prior to scanning and attaching

No cover sheet is required.

Check requests should not be used if the total value of commodities or services is over $5,000 (Example: multiple payments to one vendor

that total $15,000).

Forms and specific directions can be found at:

PioneerWeb > Employee Tab > Administrative Processes > Payment Services > Check Request

Certain transactions can only be paid with Check Requests, regardless of the amount of the transaction. These are:

• Non-employee and non-student travel and reimbursable expenses

• Student prizes/awards

• Honorariums

*Note- The University no longer reimburses employees for purchases made on Amazon.com. Use the Amazon for Business account to make these

purchases. See PioneerWeb > Employee Tab > Administrative Processes > Procurement & Contracts > Preferred Vendors for more information.

See the Buying & Paying Guide to determine the recommended payment method for various scenarios.

Travel and Expense Reimbursements Reimbursements are payments made to pay for out-of-pocket costs incurred by individuals making purchases on behalf of the University.

Many reimbursements can be avoided by using P-Cards, Amazon for Business or

Purchase Orders/Requisitions. Reimbursement requests are processed via Pioneer

Travel and Expense. Itemized receipts are required, regardless of the amount of the

reimbursement. . Reimbursement payments are made within five days of the relevant

expense report being submitted and approved in Pioneer Travel and

Expense. Expenses submitted more than 90 days after being incurred will be

reported as additional income to the employee, per IRS guidelines.

How to Avoid the Inconvenience of a Reimbursement Employees are encouraged to utilize the University Purchasing Card and the Pioneer

Travel and Expense tool to make purchases. Both tools remove the need for

employees to make out-of-pocket purchases and seek reimbursement. There are few

vendors that will not accept a credit card. If you don’t have access to a DU P-Card

(either a department card, a managed spend card, or a regular P-Card in your name),

Important Note Direct Deposit for Employees

Shared Services highly recommends that

employees sign up to have expense

reimbursements and travel advances direct

deposited to their bank account to avoid the

delay of having a check processed and

mailed to them. Sign up at:

PioneerWeb > My Resources > Employee

Information > Expense Reimbursement

Direct Deposit.


consult with your Business Officer. They may suggest you apply for a card or they may ask another cardholder in your department to make

the purchase with their card.

• Amazon for Business- If you can purchase your desired item(s) on Amazon and they offer competitive pricing, you will find it much

easier to use the Amazon for Business Account than to wait for a reimbursement. Use of this account gives you free two-day shipping

on most orders over $49. Consult with your Business Officer or find more information at: PioneerWeb > Employee Tab >

Administrative Processes > Procurement & Contracts > Preferred Vendors

• Pioneer Travel and Expense – the travel booking tool available to DU employees offers discounted airfare and itinerary planning.

Travel details import directly into the tool for easy processing.

Travel Advances A Travel Advance Request can be requested in Pioneer Travel and Expense from the Requests tab. These requests should be made between 7-

14 days before travel to allow for approvals and payment processing.

Honorariums

Determining if your payment is an Honorarium An honorarium is a payment in recognition of service in the form of a special, non-recurring event for which a fee is not legally or

traditionally required. This type of payment should not be used to pay businesses, corporations or partnerships or for services billed via

invoice. Honorariums are not governed by a contract; the fee is not set or negotiated by the recipient.

You can use the questions below to determine if your payment can be processed as an honorarium. If your answer to any of these questions

is yes, you cannot process this payment as an honorarium.

1. Is the individual a business, corporation or partnership?

2. Was the payment amount negotiated between the University and the individual?

3. Is there a contractual agreement?

4. Are the individual’s services recurring?

5. Is the individual an employee or student employee?

6. Did the individual set the price?

To request an honorarium: • Complete an Honorarium Request Form and have it approved by the Dean/ Director/Authorized Approver and enter a Check Request

in Banner. The form can be found at: PioneerWeb > Employee Tab > Administrative Processes > Payment Services > Check Request

• Ensure that your payee is registered as a vendor at DU

• Complete a Check Request in Banner. The Honorarium Request Form serves as the cover sheet. Uncheck the “document accounting”

box.


• Checks can be picked up from Shared Services for hand-delivery at the event; please indicate pick up is required by completing the

ENC/P field in Banner under Tools>Options>Header Additional Information>Enclosure/Pickup (“P”).

Honorariums are not used to pay for performances or services provided by outside consultants or employees. Current employees must be

paid through Payroll Services and consultants should submit original invoices for speaking fees.

Honorarium recipients will receive a 1099 or 1042-S as required by the IRS.

Many consulting relationships are initiated with contracts. Follow the University's limits of authority policy when signing contracts (DU

Policy 2.10.030), Limits of Authority.

Wire Transfers Wire transfer requests should only be used when an alternative form of payment (check, ACH (US only) or credit card) is not possible. Please

allow at least two days for wire transfers to be processed. Payees should be registered DU vendors before wires can be issued. New payees

should register at https://www.du.edu/sharedservices/vendor/vendorregistration.html.

The wire transfer request form can be found at:

PioneerWeb > Employee Tab > Administrative Processes > Payment Services>Forms

Pay a Non-resident Alien Payments made by the University to or on behalf of an individual must be reviewed to determine the U.S. tax residency status of the payee or

beneficiary of the payment. Payees may be U.S. tax residents, or they may be tax residents of another country (commonly referred to as

nonresident aliens). Payments made by the University to nonresident aliens can be taxable under U.S. law. If you are unsure of the status of

an intended payee and you think they might be a nonresident alien, contact Shared Services to assist with this determination. All payees,

whether they are US tax residents or not, should be established as vendors with Shared Services prior to the date of payment.

If you are considering engaging a nonresident alien or other foreign entity, it is important to let them know in advance that all payments

made to, or on behalf of, a nonresident alien are reportable to the IRS. These payments are usually subject to income tax withholding of

30%, which will be withheld from the payment. If the payee believes a refund is due on the withholding, a tax return can be submitted by

the payee to the IRS requesting the refund.

We will need to contact your vendor to collect information on the intended payee’s U.S. tax residency status, immigration status, and the

type of payment being made to the individual to determine tax withholding and reporting requirements.

Examples of payments made to nonresident aliens include, but are not limited to:

• Awards

• Certain Travel Expenses

• Consultant Payments

http://www.du.edu/bfa/media/documents/policy/limits_of_authority.pdf

http://www.du.edu/bfa/media/documents/policy/limits_of_authority.pdf

https://www.du.edu/sharedservices/vendor/vendorregistration.html


• Honoraria

• Independent Contractor Payments

• Living Allowances

• Scholarships/Fellowships

• Stipends

Contact Shared Services at 303-871-7420 or email [email protected] to get help with these payments.

DU Accountable Plan In accordance with IRS regulations, the University has an accountable plan that allows it to reimburse employees for authorized business

expenses with no impact on taxable compensation. The accountable plan rules apply to all payments, reimbursements, or advances for

authorized business expenses both travel and non-travel related. The IRS outlines accountable-plan rules as follows:

To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules.

Your expenses must have a business connection—that is, you must have paid or incurred deductible expenses while performing services as an

employee of your employer.

You must adequately account to your employer for these expenses within a reasonable period of time. You must return any excess

reimbursement or allowance within a reasonable period of time.

Expense reimbursements shall be made within 10 business days of the date the expense was incurred or the date travel was completed if the

reimbursement is travel related. Expenses submitted more than 90 days after being incurred will be reported as additional income to the

employee, per IRS guidelines.

The University's Travel Policy authorizes reimbursements for necessary and reasonable expenses incurred when traveling on official

University business. Travelers are expected to operate in the best interests of the University at all times, and to use the most cost effective

means of travel consistent with the work assignment.

Receipt Requirements These receipt requirements define the documentation required for business-related purchases processed using a University-issued P-Card or

personal funds with a reimbursement request.

When a purchase is made using University funds, whether via reimbursement or P-Card, the University is assuming ownership for those

products or services, as well as the receipt. It is the responsibility of the individual making the payment to obtain acceptable receipt

documentation for submission when applicable. It is also the responsibility of the appropriate employee to ensure that any outside purchase

restrictions for the use of sponsorship/grant funds are met alongside University requirements.

In order to maintain compliance with IRS regulations and the University of Denver’s Accountable Plan, a statement of business purpose must

be recorded for all transactions. This requirement includes all expense types, payment methods, and payment amounts. Submission of

receipt documentation, however, follows the following guidelines:


http://www.du.edu/bfa/media/documents/policy/Travel_Expense_Policy.pdf

http://www.du.edu/sharedservices/payment/travel.html


Expense Type P-Card Personal Card or Cash Lodging (Room accommodation

Expense)

Receipt required Receipt required

All other allowable expenses If less than $75, no receipt is

required. If $75 or more, standard

receipt specifications apply.

Receipt required

Standard Receipt Specifications The standard receipt specifications required for all submitted receipts include:

3. Merchant Name

4. Transaction Date

5. List of Items Purchased or Services Provided

6. Total Amount Paid

7. Method of Payment

Documentation Requirements Statement of Business Purpose Business purpose statements provide a clear concise explanation of how each transaction is necessary and beneficial to the University. These

statements must accompany all business-related purchases processed using University funds and contain:

1. What was purchased or what services were provided

2. Who the expense is for or who was in attendance (University affiliation should be included)

3. When and Where the expense took place

4. Why the expense is reasonable and appropriate for University business

Expense approvers are responsible and accountable for verifying the necessity of all business purchases.

Paying Invoices When You Receive an Invoice for an Existing Requisition To have Shared Services pay your invoice, take the following steps:

• Review the invoice for accuracy

• Make sure the invoice references the purchase order number

• If a blanket PO was used, include FOAPAL to be debited

• Sign and date the invoice and mark it "ok to pay"

• Submit the invoice to Payment Services by scanning and e-mailing it to [email protected]



By submitting an invoice to SSC Payment Services for payment, University units are attesting that:

• They have received the good or service

• The payment amount is correct

• The payment should be made

• The payment is business-appropriate

If Shared Services Receives an Invoice for an Existing Requisition We will scan the invoice and forward it to the Business Officer for your department. Follow the steps above to approve it for payment.

Purchasing & Payments Tool Kit - University of Denver2018/12/12 · Purchasing & Payments Tool Kit...

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