Purchasing Card Frequently Asked Questions
- What is considered appropriate documentation for my purchase and how long should it be kept?
- I've heard of individuals using the Purchasing Card for travel-related expenses. Has the policy changed and can I use my card for travel?
- If I use my card to register for a conference, do I need to record it on my Travel Expense Report?
- I realize we cannot use the card for hospitality expenses, but what about food purchased for business events?
- Who has the Signatory Authority to sign agreements and contracts?
- One of my cardholders is paying a monthly fee for access to Palm.net service for his Palm Pilot. Is this service payable on a Purchasing Card?
- There are times when the Purchasing Card transactions do not show up on WISDM for the correct timeframe but come through a month later instead. Why does this happen?
- What procedures do I follow if I discover questionable charges on my card?
- What is considered appropriate documentation for my purchase and how long should it be kept?
The cardholder is responsible for keeping a log of all orders placed or picked up with the card. If the log is kept electronically in spreadsheet form, it should be printed off every two weeks, at which time the receipts are to be attached. If the order is phoned or faxed in, the paperwork that accompanies the delivered product should be attached. An invoice is preferable; however a packing slip is acceptable. If ordering over the web, the web order screen should be printed and used as documentation. A copy of the registration form should be attached if the card is used for registrations, and if an item is picked up, the cash register receipt must be attached. If this receipt is vague and does not contain the proper details (i.e. vendor, date, item description and price) it is the cardholder's responsibility to print the information on the receipt. If the cardholder cannot obtain any type of documentation, the transaction details must be written up by the cardholder and attached to the log.
The completed transaction log is then routed on to the Site Manager to audit and edit. The Site Manager confirms that each purchase listed on the log is accompanied by a receipt for acceptable items, then reconciles the log to the PVS Software or Accounting Control Ledger Sheets. The logs are then filed in a central department office. The correct record retention location must be reflected on the Cardholder Agreement Form. The records are to be stored for the required seven years (the current year + six).
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- I've heard of individuals using the Purchasing Card for travel-related expenses. Has the policy changed and can I use my card for travel?
You may not use your card for travel expenses, other than registrations, unless you have received approval from your Dean's Office and the subsequent required training. A few Divisions are approving the use of the card for the three DOA approved expenses, which include 1) Hotel 2) Airfare and 3) State Contract Car Rental. The approved individuals are required to go through a second training session that deals with travel regulations and the required documentation. If you are interested in the travel option, you must go through your Dean's Office.
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- If I use my card to register for a conference, do I need to record it on my Travel Expense Report?
Yes. When you complete a TER for the related trip, the registration payment should be indicated by placing "PR" (indicating a Purchasing Card transaction) and the dollar amount paid, in the gray-shaded, direct billed column of the report. A copy of the registration form, which details the amount and what it includes, must be attached to the log. Registrations are considered a travel expense and must be assigned a travel class code. The cardholder is responsible for indicating the edit information on the log sheet and the site manager is responsible for making the change via the PVS software or a non-salary cash transfer.
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- I realize we cannot use the card for hospitality expenses, but what about food purchased for business events?
Food purchases, under $5,000, for UW-sponsored business events are allowable on the Purchasing Card if they are actual, reasonable, necessarily incurred in the discharge of official duties and approved by the respective Dean's Office. All food purchases for UW-sponsored events must meet the specific requirements for refreshment breaks, meals, reception expenses and the composition of attendees, as outlined by the UW System Administration, Office of Financial Administration. The food purchase requirements are defined in the "Headquarters City and UW-Sponsored Events Policy", located at: http://www.uwsa.edu/fadmin/meetguid/appa.htm The required documentation is outlined in detail on the individual Meal, Reception, and Refreshment forms found on the Accounting Services Travel Page . The documentation specified on the forms must be attached to the relevant "Purchasing Card Transaction Log" and retained for the required 7 years. Individual meal expenses are not to be processed on the card.
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- Who has the Signatory Authority to sign agreements and contracts?
The Director of Purchasing Services has signature authority for procurement contracts and agreements for the UW-Madison campus. Individual cardholders are considered to be "designated agents" and are allowed to sign external contracts less than $5,000 themselves, under the following conditions:
- Signing the contract commits no other University Department, other than the signing department.
- The contract is a simple transaction committing the University to pay a specific sum in return for specific, clearly defined product/services. Commitments cannot exceed one year in duration and have no penalty clauses associated with them, nor, any clauses requiring the University to give up any rights.
All external contracts must be signed with the Director's name followed by the agent's initials, and current date. Refer to the guidelines in IPP15 and PPP14 before signing a contract. If you are uncomfortable with editing and signing a contract, please forward the document to Jim Keach, Purchasing Services, for proper handling. A copy of the signed agreement must be attached to the cardholder's transaction log.
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- One of my cardholders is paying a monthly fee for access to Palm.net service for his Palm Pilot. Is this service payable on a Purchasing Card?
Yes, this service is payable on the card. The employee benefits obtained from the use of the service should be documented in writing and attached to the log containing the initial payment for the service.
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- There are times when the Purchasing Card transactions do not show up on WISDM for the correct timeframe but come through at a later date instead. Why does this happen?
Our two-week billing cycle ends on a Saturday. The Site Managers usually collect the logs on Monday, which gives them 3-1/2 days to complete their edits. At noon on Thursday, the mapper file is run and sent to DoIT to be posted against WISDM. Any edits entered incorrectly in the system are kicked out for correction. The Site Manager then needs to be contacted to obtain the correct coding. The number of invalid edits has been as high as 250 for a two-week period. If the Site Manager does not reply to the requested information and the default coding cannot be assigned to the transaction because it too is invalid, the processing of the entire file is held up. Therefore, it is very important that the edits get entered correctly and you let us know when your default coding changes.
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- What procedures do I follow if I discover questionable charges on my card?
A single questionable charge to a valid appearing vendor, should be disputed via the Dispute Form. If one or more charges to a questionable vendor appear, the bank should be contacted and the card should be cancelled. Please see the "Questionable Charges Flowchart" for the proper procedures to follow.
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Purchasing Card Index
