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Procurement Tools- Controllers Group Training
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Procurement Tools
Procurement Tools

• Lets Review Purpose
• Purchasing Card
• Convenience Check
• Fast Track Payment Request
• Purchase Order (Requisition)
• Extensity
• Special AP Upload Spreadsheet
• Petty Cash Fund Research Subjects (Temporary)

• Wont Review Today
• University Travel Card
• Agency Check
• CPO
• Bookstore Card

• Lets Review Purpose
• Purchasing Card
• Convenience Check
• Fast Track Payment Request
• Purchase Order (Requisition)
• Extensity
• Special AP Upload Spreadsheet
• Petty Cash Fund Research Subjects (Temporary)

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Purchasing Card

• Provides convenience and flexibility to campus
• Limited to small dollar purchases,
  2,000/transaction, 20,000 per month
• Some Use Restrictions
• No travel except 1st night hotel
• No hazardous materials
• Some blocked merchant categories
• Approved by department-designated approver

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Convenience Check

• Use only where other procurement tools cannot
  reasonably be used, e.g. Costco
• Same limits as Purchasing Card but not
  interchangeable with P-card
• Penalty for misuse
• If P-card or other procurement
  tool could have reasonably been
  used
• Transaction fee to university
• Approved by department-designated approver

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Fast Track Payment Request

• Only for authorized goods/services categories,
  any amount
• For established vendors new vendor requests
  required before a commitment to vendor
• Manual process initially using web-tools later
  electronic submission
• Fast Track system access and approval is limited
  to trained associate buyers only!
• Submitted payment requests by others will be
  rejected

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Purchase Order (Requisition)

• Purchasing expertise adds value to acquisition
• Should be used for
• Non-Fast Track category items
• Fast Track category items where assistance is
  desired to locate or negotiate with a vendor
• Consider for any large dollar transaction
• Dual approval, including cost center manager or
  contact

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Extensity

• All Extensity transactions approved by designated
  department approver or alternates
• Travel Application/Approval process
• Travel Advances
• Travel Reimbursements
• Business Reimbursements
• Reimburse for personal purchases of goods for
  University (P-card use preferred)
• .Continued

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Extensity - continued

• Other small payments to individuals (proxy)
• Recommended for 1-5 transactions
• Refunds (e.g. event refunds, dept. fee refunds)
• Research subjects to be paid by check
• Never used to pay
• Independent contractors (use Fast Track or PO)
• Awards (use Fast Track or Special AP Upload)
• Royalties (use Fast Track or Special AP Upload)

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Special AP Upload Spreadsheet

• Small payments to individuals
• Recommended for more than 5 transactions
• Can be used for
• Department refunds
• Research Subjects to be paid by check
• 1099-Awards, 1099-Royalties
• Never to pay for personal services or employment
  related
• Submitted by email from Controller
• Link to Special AP Upload Spreadsheet
• http//finserve.byu.edu/Finserve.jsp?page65

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Petty Cash FundResearch Subjects (Temporary)

• Small payments to research subjects where
  anonymity is required or expedient
• Established at request of Controller
• Accountability for funds on hand
• Petty Cash account adjusted regularly as payments
  are made
• Support typically will be the documented
  acknowledgement of expenditure for intended
  purpose by 2 knowledgeable personnel

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• Situation 1
• Law School has a list of 69 students, each due a
  study carol deposit refund to be paid by check

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• Situation 1Procurement Tool
• Special Accounts Payable Spreadsheet Upload
• Reminders
• Only individuals, no companies
• Only refunds, research subjects, 1099- awards,
  1099-royalties
• Never for goods or services payments
• Link to Special AP Upload Spreadsheet

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• Situation 2
• Two weeks later, Law School has an additional
  list of 4 students, each due a study carol
  deposit refund to be paid by check

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• Situation 2Procurement Tool
• Extensity-Business Reimbursement (Proxy)
• Not demonstrated because Extensity process rules
  are being adjusted now to allow. However, same
  process as Situation 4
• Reminders
• OK for refunds, research subjects
• Not for goods or services payments

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• Situation 3
• A physics researcher wants to provide a 10 cash
  payment to an estimated 80 people to induce
  participation in her study

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• Situation 3Procurement Tool
• Petty Cash Fund-Research Subjects (Temporary)
• Reminders
• Available from Fin. Services website
• Not a Change Fund!
• Approved by Controller
• Example
• http//finserve.byu.edu/Finserve.jsp?page65

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• Situation 4
• A faculty member spends 55 of his own money to
  purchase supplies because he saw a good deal over
  the weekend

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• Situation 4Procurement Tool
• Extensity-Business Reimbursement
• Reminders
• Encourage P-card use
• Link Extensity

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• Situation 5
• A researcher is headed to Romania for a 5 month
  trip to complete field studies. She needs
  25,000 to use in the research while on
  assignment.

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• Situation 5Procurement Tool
• Depends on available banking options
• Reminders
• Requires LONG LEAD TIME
• Contact University Treasurer, Richard White for
  arrangements
• Approval by own VP and International VP-Sandra
  Rogers regarding foreign travel

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• Situation 6
• A coach is planning a recruiting trip and needs
  an advance of 800 to cover meal allowances and
  incidentals

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• Situation 6Procurement Tool
• Extensity-Travel Advance
• Reminders
• Payable to employees or graduate students only
• Should be accounted for before next advance
• Link Extensity

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• Situation 7
• A chemist needs a special microscope valued at
  7,500. She determines what she needs and is now
  ready to buy

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• Situation 7Procurement Tool
• Purchase Requisition
• Reminders
• Capital Equipment requires a P.O.
• Provide specifications, product and vendor
  recommendations
• Purchasing will evaluate and provide options

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• Situation 8
• An administrator is signing up to attend a
  conference the conference allows on-line payment
  of the 1,100 fee using a credit card

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• Situation 8Procurement Tool
• Purchasing Card

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• Situation 9
• A department needs to issue payment to a panel of
  5 speakers for services rendered at a recent
  symposium

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• Situation 9Procurement Tool
• Fast Track
• Reminders
• 1099 IC approval process
• Associate Buyer approval
• Link to Fast Track

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• Situation 10
• The department sends a student to Costco to
  purchase a digital camera

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• Situation 10Procurement Tool
• Convenience Check
• Reminders
• Use where no other procurement tool will work
• Penalty for misuse, poor planning does not
  constitute an emergency!

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• Convenience Check
• Rules for Convenience Check Use
• http//finserve.byu.edu/Finserve.jsp?page57

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• Situation 11
• Continuing Education needs office space in
  Kirtland, Ohio to provide a temporary teaching
  location for students visiting from the Nauvoo
  Center

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• Situation 11Procurement Tool
• Purchase Requisition
• Reminders
• Provide requirements and recommendations
• Purchasing will evaluate and provide options

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• Situation 12
• A 500 deposit is required to hold a piece of
  seismic equipment valued at 10,000. Vendor will
  accept a credit card

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• Situation 12Procurement Tool
• Purchase Requisition
• Reminders
• Capital Equipment must go to Purchasing
• Only Purchasing can make commitment before making
  a down payment
• Provide requirements, recommendations

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