Purchase Orders

General Information

Purchase orders Less than $1,000.00:

• There is a negative receiver process for those purchase orders which are less than $1,000.00. Purchasing does not send a receiver/cream copy to the department for these orders. Accounts Payable will automatically pay these orders without approval from the department. If the department does not want payment to be made, they must contact Accounts Payable as soon as possible.  

Purchase Orders $1,000.00 and Over:

• Upon receipt of your order, complete the receiver/cream copy of the PO which includes indicating the quantity of each item received and an approving signature. Return this copy to Accounts Payable as soon as possible.  
• If partial shipments are received, indicate this on the cream PO and send it to Accounts Payable. Accounts Payable will then return the original receiver/cream copy to the departments for completion upon receipt of other items  
• If you do not intend to pay for certain items (returning for replacement or credit), please let Accounts Payable know as soon as possible. Often replacement invoices are received and no information is available as to why these invoices have been sent.  
• Sometimes vendors send invoices to the department rather than to Accounts Payable. If a department receives an invoice, it should be sent to Accounts Payable with the completed receiver/cream copy of the PO or late fees will be applied.
• If payment terms have been agreed upon by the vendor and department for major equipment purchases (i.e. computer systems), please contact Accounts Payable.  

Blanket Orders:

All invoices to be paid on a blanket order must include the following:  

• Blanket order number  
• Index and account/s to be charged  
• Signature for approval of payment  
• Amount to pay if different from the invoice amount  
• If any of this information is not included, the invoice will be returned to the department for completion.

Please do not hesitate to call Accounts Payable at 7-2371 if you have questions.  

Payment Purchase Orders - $1,000 or more

 After processing a purchase order to buy supplies, services, equipment or other capital assets, (see purchasing's web site at http://www.admin.mtu.edu/pur/) a receiver/cream copy of the PO is sent to the department for those orders of $1,000 or more. Upon receipt of the goods and/or services, the department should examine the goods and/or services to ensure they were received/rendered in an acceptable manner.  

PROCEDURE

If satisfied after inspection, the department must include the following on the receiver and send it to Accounts Payable:  

• the quantity of each item received  
• authorized signature  
• the date goods/services are received  

If all goods/services have been received, the department can indicate "Complete" on the receiver rather than entering quantities of every item and forward the receiver/cream to Accounts Payable.  

If partial shipments are received, the department should:  

• indicate the quantity of each item received on the cream PO  
• obtain an authorized signature on the receiver  
• indicate the date goods/services are received  
• send the completed  receiver to Accounts Payable  

Accounts Payable will then return the original receiver/cream copy to the department for completion upon receipt of the remaining items/services.  

The purchase order directs the vendor to send invoices to Accounts Payable. Vendor invoices should include:  

• Michigan Tech Purchase Order number  
• Vendor invoice number  
• "Remit to" address  
• Itemized description of goods/services  
• Amount of each item  

If the department receives an invoice from the vendor directly, it must be sent to Accounts Payable immediately so prompt payment can be made. If a receiver has not been returned to accounts payable, the invoice should have an authorized signature indicating payment can be made and the purchase order number, if it is not provided by the vendor. Late fees may be charged to the department for late invoices.  

Upon receipt of an invoice, it is matched to the purchase order. If there are no discrepancies, the invoice is set up for payment within any terms indicated on the invoice or within 30 days if there are no terms indicated. The University does take advantage of discounts when possible to realize cost savings. If payment terms have been agreed upon by the vendor and department for major equipment purchases (i.e. computer systems), please inform accounts payable of such circumstances.  

Price and/or quantity discrepancies are generally approved by the purchasing buyer prior to payment.

Payment Purchase Orders - less than $1,000

 Purchase Orders which are less than $1000 have a negative receiver process. Accounts Payable will automatically pay these orders without approval or receivers from the department. The receiving department should inspect the goods/services to be sure they are delivered in an acceptable manner.  

PROCEDURE  

• Since no receiver is required, the department does not receive a cream copy of purchase orders which are less than $1,000.  
• If a department receives an invoice, it must be sent to Accounts Payable immediately so prompt payment can be made. Late fees may be charged to the department for late invoices.  
• If payment should not be made automatically, it is the responsibility of the department to inform accounts payable of these circumstances.  

Vendor invoices should include:  

• Michigan Tech Purchase Order Number  
• Vendor invoice number  
• "Remit to" address  
• Itemized description of goods/services  
• Amount of each item  

Blanket Order Invoices

A blanket order is issued to purchase expendable items from a single vendor over a certain period of time, often being the fiscal year. Items are purchased under one purchase order rather than processing separate orders each time supplies are needed. Equipment cannot be purchased on blanket orders.

All blanket purchase orders must include names of individuals who are authorized to purchase items. Blanket order invoices are charged to various accounts and are not encumbered.  

PROCEDURE

• If a purchase is made locally, the individual should obtain an invoice from the vendor.  
• Invoices must be sent to Accounts Payable immediately to ensure prompt payment to the vendor.  
• All blanket order invoices must include the following information before being sent to Accounts Payable for payment:  
• Vendor name
• Items being purchased
• Blanket Order number
• Index to be charged
• Account code to be charged
• Authorized signature  

The department is responsible for indicating the index, account code, blanket order number and authorizing signature. Accounts Payable will return invoices to the department if any of this information is missing which will delay payment and may result in late fees/service charges being charged to the department.  

• There must be an adequate balance in the blanket order. If additional funds are needed, a change order to the purchase order must be processed.  

If a purchase is not made locally, invoices may be sent to the department or to Accounts Payable. If the department receives the invoice, the above procedure should be followed. If the invoice is received by Accounts Payable, the invoice will be forwarded to the department for the index, account code, blanket order number and authorized signature.