Dated: 09/21/95
Replaces: 2/27/86
Internal Policy and Procedures
Cash With Order / Cash Advance Order
POLICY:
If requested by a department or vendor a Cash with Order (CWO) or Cash Advance Order (CAO) transaction will be processed if deemed appropriate by Purchasing.
PROCEDURES:
I. ORDERS UNDER $100
- Reception/Correspondence (R/C) will enter and release requisitions
marked “Cash with Order” by the department as CWO orders.
- If a requisition has an attachment, R/C staff will label the attachments as follows:
2.2. If two copies, label one for the Voucher and the other for mailout with the vendor’s copy of the PO. If you have questions about processing an attachment or attached list see IPP 8.
II. ORDERS BETWEEN $100-5,000 (BEST JUDGMENTS)
- Requisition Entry will give to appropriate agent.
- Agent will sort per IPP 5 and return to Requisition Entry for entry and release of orders. If cash is appropriate, see III.3. for processing instructions.
III.ORDERS OVER $5,000
- Requisition Entry will enter and forward CWO and CAO requisitions to
the assigned purchasing agent.
- The purchasing agent will review the CWO request for appropriateness
of both price accuracy and and make the decision whether to process as
CWO. Rationale for appropriateness follows:
2.1 Vendor requires cash. (Agent will advise department that their
money is at risk without product in hand.)
2.2 Blanket orders or confirming orders are not processed as CWO.
3. If cash is appropriate:
3.1 Orders requiring partial payment in advance (generally dictated
via a competitive process) are processed as CAO’s.
3.2 CWO’s for deposit accounts cannot be partial payments.
Further payments on deposit accounts require separate requisitions and
must reference the previous requisition number and account number.
3.3 Payments to individuals as opposed to corporations must show a
tax payer ID number (which can be a Social Security Number) in the body
of the purchase order.
3.4 "Terms" stated on CWO order must be "CASH"
3.5 "Terms" stated on CAO order must be vendor's terms,
such as 30,50,20.
3.6 "Print type" must be "CWO" for Cash With
Order or "CAO" for Cash Advances. Emergency Transaction (ET’s)
orders are print type "WTO". The agent must check appropriate
cash with order box on the Emergency Transaction walk thru form.
3.7 CWO or CAO must be entered in the Order Message (PF
11). TYPED in the body of the order CAO also requires that the exact
amount of the advance be typed in the body of the order as follows: "CASH
ADVANCE $ ." Total amount of the order must be the gross amount,
NOT the net amount.
3.8 CWO payments are generally made by "C" series (10 day
check) unless the agent specifies "K" series (3 day) check. If
“J" series or "J" series(1 day) check is required,
agent places . This is accomplished by placing a memo with appropriately
labeled information in the attachments mail box (labeled voucher copy)
on the day the order is released. Other special instructions should be
also handled this way, (i.e. "Department wishes to pick up check,
etc.")
3.9 Foreign vendors are paid in U.S. dollars unless foreign
currency is required by the vendor. If foreign currency is required,
agent must place a note in the voucher attachment basket with explicit
instructions to assure that check is accurately processed. An order
message (PF11) note should be entered to read “Accounting Note:
Please pay in _________________ (name of currency) to equal
______________ (U.S. dollars).”
4. Distribution instructions for of any purchase order attachments are detailed in IPP 8.
REFERENCE:
IPP 8
IPP 5
Pro E 7
University Pre Audit Manual Chapter J
Bureau of Finance PreAudit Manual
Wisconsin State Statute 16.77
Financial Policy and Procedure Paper 23