Number IPP 20

Dated: 8/19/04
Replaces: 8/12/04

Internal Policy and Procedures

PO Ready Requisition Processing

POLICY:

Requisitions for release as an Official Purchase Order by Purchasing Administrative Support Staff from UW-Madison delegated departments and Purchasing agents located at 21 N Park St. must be supplied with all pertinent information. [Note: Requisitions referencing PRO-E-4 (except section A) most likely will not become official purchase orders.]

PROCEDURES:

I. Delegated departments must submit PO-READY requisitions with all required fields completed for conversion to a purchase order exactly as submitted. All instructions within this paper are applicable. [Illustration #1 is a blank requisition with numbers that directly correspond to the numbers used in this paper. Illustration #2 is a completed PO-READY requisition.] When stamped PO-READY and initialed the requisition is certified to be in compliance with their delegated authority and the State of Wisconsin Procurement regulations. Transactions will be audited after the fact for compliance and accuracy. Missing or incorrect information and/or codes will delay processing at Purchasing.

Ppurchasing agents follow the procedures noted below with an asterisk (*) and certify compliance and accuracy by coding an "E" or "E&R" in the lower right side of the requisition for “enter” or “enter and release” to be processed on the electronic purchasing system.

1. The following are instructions for completing a PO-READY requisition. These instructions contain comments on how the information is used.

1.1 Requisition number - the requisition number plus the 6-digit vendor number (8) becomes the purchase order number. Each requisition number is unique and can only be entered on the electronic requisition file once.

1.2 Requisition date - insert date requisition is prepared using MM/DD/YY format. The date is entered on the electronic requisition file in a retrievable field which may be used for reporting and audit purposes.

1.3-5 Approval signatures - obtain all necessary signatures. Requisitions cannot be processed in the electronic purchasing system without the three signatures (department chair, dean or director, and pre-audit).

1.6 Fund Account information - complete this information to facilitate encumbrance of funding on the requisition. This information is pulled from the campus accounting general ledger system to the electronic purchasing system at the time of requisition entry. The Unit/Division/Department (UDDS) code verifies the accounting information and creates a pre-determined ship-to address which may require editing by the data entry person at Purchasing. Requisitions cannot be processed on the electronic purchasing system without first being encumbered.

1.7 Blanket/Continuing order beginning/ending dates- if applicable, insert these dates using MM/DD/YY format. Blanket orders are used primarily for commodity items, or for applicable services. For Maintenance Agreements, Software Agreements, Leases and Rentals, the beginning and ending dates should be put in the body of the requisition rather than in this “Blanket Order Period” box. [See IPP 43].

1.8 Vendor number - insert vendor number obtained from previous purchase order or by using the Purchasing Inquiry System. Each vendor order address is assigned a vendor number which combined with the requisition number becomes the 13-digit purchase order number. All requisitions submitted for an Official Purchase Order require a vendor number. If a vendor number does not exist, contact your Requisition Processor from Purchasing Services for a vendor number. Vendor address on both the electronic purchasing system and the paper requisition must match.

1.9 Vendor name and address - insert vendor name and order address (not remit-to).

1.9.1 If order is to be directed to a specific individual provide an attention line in the description area (15).

1.9.2 If the requisition is for an order that will be bid, Purchasing will insert as the vendor, UW Purchasing Department with the vendor number 099999. By definition these would not be "P.O. Ready."

1.10 Ship to address - insert the department name, individual's name and address (with zip +4) where the product/service should be delivered. This must be the same information you supply the vendor if contacted. A ship-to address is displayed for requisition entry based on the accounting information (6). Requisition Processor verifies that the displayed information and paper match. This field (based on UDDS#'s) has 1 address display which can be edited by Purchasing staff.

1.11 Contact name and telephone - insert your complete name and ten-digit telephone number, or that of the person to whom questions or problems should be referred.

1.12 Item number - number each item on your requisition.

1.13 Quantity - insert the quantity of each item being ordered. [Example: A product priced and sold in packages of 100 inserts, should read quantity: 1 pkg. Product priced and sold as each should read quantity: 100 ea.] This is very important as the electronic purchasing system multiplies the quantity by the unit price to calculate the total price per item.

1.14 Unit- insert unit description, [e.g., "ea", "pkg", "cs", “lot” or "month" for monthly obligations, "term" for blanket type, leases, maintenance, rental and other continuing order requisitions.] This information is used by the vendor in filling the order and by Accounts Payable when auditing invoices.

1.15 Item description - If order is to be directed to a specific individual provide an attention line. DO NOT put a quantity in front of attention line. Insert description of the product/service to be purchased. Include the catalog, model, serial, stock and/or part numbers. Maintenance/Rental/ Lease P.O. requisitions require model and serial numbers. Accounts Payable matches invoices to description when processing for payment. When applicable, indicate the Order Text Message if known.

1.16 Order message - The order message section is the large free form section where the originator communicates what order action they’ve performed, and they indicate what additional actions are required by Business Services staff.

A. If you have obtained a verbal, letter, or fax quote, please indicate the vendor contact name, phone number, and date of the quote in the body of the requisition.

B. If applicable, in the lower left hand section (above FOB) please indicate the appropriate text message from the list below:

(CTO)-For Confirming Telephone Orders, the vendor will be sent a purchase order copy.

(CFO)-For Confirming fax orders, the vendor will be sent a purchase order copy.

(COL)-For Confirming on-line orders

(CTV)-For Confirming telephone order and verbal quote with full name and date. No confirming copy of the PO will be sent to the vendor unless otherwise noted on the requisition (e.g., "send vendor copy").

(CTN)-For Confirming orders, where the vendor does not need a copy of the purchase order.

C. Indicate inventory information if capital equipment, (i.e. inventory #, previous PO, component part of ________, etc.)

D. Indicate Positive Approval (only when department needs to approve invoice prior to payment).

1.17 *NIGP Codes - insert a 5-digit NIGP code from the list in the State Procurement Manual (PRO-B-3) . If a Department of Administration (DOA) state contract number is referenced -- use the corresponding NIGP code located in the body of the contract.

1.18 Unit price - insert the cost per unit of the items. The electronic purchasing system handles up to three decimal places, if necessary; but will print only two. The total will be based on the decimal unit price and may have to be converted to one lot for the item in order to provide an accurate extended total.

1. Discount - if a discount is applicable to all items, indicate within the first item. If the discount varies between items, indicate the discount within each item.

1.19 Total price - insert the extended total (quantity multiplied by unit price) for each item.([also see 1.18) above].

1.20 Order total - insert the grand total of all items. The requisition total must match the calculated total by the electronic purchasing system or the requisition will be rejected.

1.21 Previous purchase order number - insert the previous purchase order for all continuing order requisitions. This number is entered and is automatically prints printed on the purchase order. When the order is released, a cross-reference is automatically created on the electronic purchasing system between the current and previous order

1.22 *FOB - ("free on board") - insert the FOB terms per the attached FOB type code table. Only codes on that table are acceptable. This information is used to determine who is responsible for shipping charges and at what point ownership transfers.

1.23* Terms - insert the payment terms and applicable cash discounts per Terms of Sale table. Use codes from this table whenever possible. If additional terms are necessary, contact the delegated agents requisition processor. When invoices are audited the cash discount will be deducted from the payment amount based on the code from the terms of sale table.

1.24 Delivery - For all requisitions over $10,000 insert delivery date information using MM/DD/YY format, if applicable.

1.25* Reference - insert the order type from the:

A. Purchase Order Type Codes table. This code serves two purposes. The first letter indicates the type of order [e.g., M-maintenance, P-regular purchase order, B-blanket order, X-contract blanket order, etc.]. The second letter is Accounts Payable audit information [e.g., C-verified pricing, A-unverified pricing, etc.].

B. Print Type - insert the print type from the Print Type Format table.

The fields 26, 27 and 28 will be used during the Accounts Payable audit process to determine compliance.

1.26* Bid Number - insert the bid/contract number [e.g., 00-XXXX] when using a written bid/contract to secure pricing.

1.27* Waiver Number - insert the appropriate waiver number [e.g., 00-7XXX, PROX-X, JL-XXXX, SW-XXXX, etc.] Whenever there is a DOA approval Number and a Waiver number assigned, use only the Waiver number. Use a five-digit commodity code in area 17.

1.28* DOA State Contract Number- insert the DOA 10-digit contract number when using a DOA state contract. Use an NIGP code in area 17.

1.29 General Ledger Entry - date and time stamp and/or agent's enter and release code.

1.30 PO-READY Stamp - affix the stamp, sign delegated agent/assistant (if applicable) initials and date when you have completed the requisition. This stamp identifies the transaction as a delegated PO ready requisition.

1.31 Attachments - (i.e. item list, drawings, specifications, order forms, contracts, etc.) (this does not appear on the requisition form). You must provide copies labeled in the top right hand corner of the attachment with the complete Purchase Order number, Vendor Name and Fiscal Year and to which copy/file they are to be directed as follows [e.g., ABC Company Vendor XXXQXXX-XXXXXX ABC Company, Accounts Payable and requisition]:

A. Attached items list - 3 labeled copies for: (1) Vendor, (1) Vendor File [delegated agents keep this in the department file for requisitions within their delegation], (1) Accounts Payable, and (1) requisition

B. Attachments for the vendor (order form, drawings, specifications, contract)- 1 labeled copy for: Vendor.

C. Cash with Order - 2 labeled copies for: (1) Vendor, and (1) voucher.

Delegated agents requisition processor will process the P.O. ready requisition.

Released orders are printed over night and mailed the next day. If there is a problem with your requisition the delegated agent will be contacted.

Delegated agents should proof the printed copy of the purchase order as received to ensure accuracy of vendor, vendor address, items ordered, etc. If there is an error, contact Purchasing Delegated Agent Requisition Processor immediately. You may, however, contact the vendor by phone to correct the problem and notify Purchasing's Delegated Agent Requisition Processor via e-mail, fax, or by requisition change order request (Cross off the pre-printed requisition number on the requisition. Insert the requisition number to which the change order applies and identify above then number "change order."). Be sure to record the first and last name of the vendor contact and the date of conversation, also whether the vendor requires a hard copy of the change order.

REFERENCES:

PRO-B-3 State Procurement Manual
PRO-E-4 State Procurement Manual
IPP43 Blanket Orders (non contract)
IPP14 Waiver of the Competitive Bid Process

APPENDIX 1 - Blank PO Ready Requisition Example