ANDERSON 101:ANDERSON 101:

PurchasingGoods & ServicesGoods & Services

July 2011 Update

AGENDA

• Policy contextPolicy context• Overview• Purchasing Goods & Services• Reimbursements• Vendor Set-Up Requirements

O Ti P t• One Time Payments• Do’s and Don'ts Summary• Reference Web LinksReference Web Links

Policy ContextPolicy Context

Policy Contexty

• Rules and regulations from several organizations govern o r p rchasing policies:our purchasing policies:

1. UCOP Policy Business 43 - Material Management2 UCLA Policy 740 Purchasing of Goods & Services2. UCLA Policy 740 - Purchasing of Goods & Services3. UCLA Policy 741 - Low Value Purchases4. Internal Revenue Service Regulations5. California State Law

• State of California Public Contract Code• State of California Labor Code Sections

6. Bylaws and Standing Orders of the Regents

OverviewOverview

Business at UCLA

• Several campus departments assist with the review and issuance of payments for goods and services:

Purchasing

Accounts Payable

Travel Accounting

PURCHASING PROCESS

RequestorU-form to Bus Office

w/back-up docs

Greater than $5K or Requires Signed Contract

Bus Office Less than $5K & NO Signed Contract

Purchasing LVO

RequestorPlaces order with vendor

PurchasingPlaces order with vendor

PAYMENT PROCESS

RequestorRequestorReceives Goods &

Vendor InvoiceWrites Order # on Invoice

Bus OfficeD I i M t h O d ?

Invoice

Does Invoice Match Order?Sufficiently Detailed?

Accounts PayableInvoice Reviewed

Scheduled for PaymentScheduled for Payment

CHECKING PAYMENTS

Requestorh k d iOFSR to check Ledger & Open Commitmentwww.bruinbuy.ucla.edu

Responsibilities of pAccounts Payable (AP)

• AP pays the invoices• excluding payments relating to travel, entertainment reimbursements, and

payroll– Original vendor invoices are required for payment

processingprocessing– Incomplete documentation will result in payment delay

• Standard vendor payment terms are “net 30 days” from h i i d hi i i blthe invoice date; this is not a negotiable term

• Vendor inquiries on payment status should be forwarded to AP for resolutionto AP for resolution

• Vendor may use the UCLA Vendor Self-Service website to check track the status of invoicewebsite to check track the status of invoice payments approved by AP (http://vendor.accounting.ucla.edu/VIS/Web/Home/Login.aspx)

Responsibilities of UCLA Purchasing

• UCLA Purchasing has sole responsibility and authority g p y yto sign all contracts and agreements

• Is responsible for enforcing federal and state laws relating to the acquisition of goods and services

• Prior approval by Purchasing must be obtained for the following transactions:g– Purchases of vendor services– Purchases requiring a contract or terms & conditions– Some transactions exceeding $5,000g ,

• Per federal and state laws, all purchases in excess of $100,000 must be subjected to competitive bid

l Rule: NEVER SIGN ANYTHINGNEVER SIGN ANYTHING

Rule: Rule: ALWAYS OBTAIN A PURCHASE ALWAYS OBTAIN A PURCHASE ORDER BEFORE AUTHORIZING

PURCHASE OF GOODS OR PURCHASE OF GOODS OR SERVICES

Rule: Rule: NEVER GIVE A

REQUISITION NUMBER TO A VENDOR

Responsibilities ofpAnderson Business Office

The Business OfficeThe Business Office • Issues Low-Value Orders (LVOs)• Reviews all reimbursement requests prior to submission

t AP T l A tito AP or Travel Accounting• Reviews purchase requisitions prior to submission to

UCLA Purchasing• Verifies that vendor invoice details and submits the

invoice to AP• Arranges for department check depositsg p p

Responsibilities of Anderson Department Unit

• Forward the appropriate documentation to Business pp pOffice fund manager for LVO or purchase order creation (e.g. Universal Form, vendor quote)

• Places order with the vendor after LVO number isPlaces order with the vendor after LVO number is received

• Verifies goods or service are received• Receives invoice and reviews for accuracy• Receives invoice and reviews for accuracy• Submits the original invoice and supporting documents

to Business Office fund managerS b it ll i i d i b t i l t• Submits all invoices and reimbursements in a completeand timely manner

• Verifies that the vendor has been paid

Purchasing Goods & ServicesPurchasing Goods & Services

Purchasing Methods at UCLAg

• UCLA provides several options to pay for goods and p p p y gservices provided by outside vendors:1. Low-Value Order (LVO)2 P h O d2. Purchase Order3. Commodity agreements4. Pro Card

Low-Value Orders (LVO)( )

• Issued by the Business Office• Generally restricted to the following:• Generally restricted to the following:

1. Does not exceed $5,000 AND2. Does not require a contract or terms & conditions

• The Business Office must receive the following in order to issue an LVO:1 Completed Universal Form1. Completed Universal Form

Full detail of the purchased goods Funding source (FAU) Business justificationjApproval signature for the expense

2. Any additional supporting materials you may have

Purchase Orders

• Transactions exceeding $5,000 or requiring a contract may require approval by UCLA Purchasingy q pp y g

• Process for purchase order approvals:

Department unit submits purchase

Business Office prepares a

requisition in B i B

Purchasing reviews

requisition if

The department i i ifi d fsubmits purchase

order request to the Business

Office

BruinBuy system and forwards supporting materials to Purchasing

request; if approved, a

purchase order number is

created

unit is notified of the approval via

PAN notice

Purchase Orders - Continued

• The Business Office must receive the following for all p rchase order req ests:purchase order requests:1. Completed Universal Form

Full detail of the purchased goods Funding source (FAU) Business justificationApproval signature for the expense

2 Any additional supporting materials you may have (e g2. Any additional supporting materials you may have (e.g. vendor proposal)

• Department units are strongly encouraged to submit requests at least 3-6 weeks in advance of the expected transaction date

Purchase Order Exceptions: C dit A t Commodity Agreements

• Commodity agreements are negotiated agreements containing special terms and pricing between thecontaining special terms and pricing between the University and approved vendors

• The UCLA Vendor Agreements List provides an index ofThe UCLA Vendor Agreements List provides an index of items for which agreements have been negotiated and established (refer to www.purchasing.ucla.edu)E amples of endors that ha e commodit agreements:• Examples of vendors that have commodity agreements:– OfficeMax: Office supplies– KST Data: Computer products– Tangram Interiors: Furniture– Ricoh: Copiers

Procurement Card (Pro-Card)( )

• The Pro-Card is a Visa credit card authorized by the Uni ersit to designated emplo ees for the p rchase ofUniversity to designated employees for the purchase of goods under $2,500

• Pro-Card benefits:1. Accepted by most vendors that take Visa2. Ensures payment to vendors within 48 hours3 Eliminates purchase order and invoice processing3. Eliminates purchase order and invoice processing4. Combines ordering and paying into a single process

• The Pro Card is only held by designated Business Office fund managers

Pro-Card - Continued

Allowable Purchases Restricted Purchases•Books•Computer accessories

•Items for personal use•Business travelp

•Advertisement •Entertainment•Subscriptions•Registrations•Capitalized equipment•Cash advances

Purchasing ServicesPurchasing Services

• Services must be paid directly by the University; reimbursement of personal payments for services is unallowable

• The Business Office must receive the following for all service purchases:1. Completed Universal Form

Full detail of the services Funding source (FAU)Funding source (FAU) Business justificationApproval signature for the expense

2 Vendor proposal2. Vendor proposal Total amount to be charged Itemization of how the total amount was computed Period of performanceDetailed description of provided services Scope of work Location of where services will be rendered

Purchasing Vendor Services –Continued

• Services to be provided by an independent contractor or• Services to be provided by an independent contractor or consultant require the following additional support:– Pre-hire Worksheet*– Independent Contractor/Consultant Form*– Contractor/Consultant CV– Updated insurance certificate**– Endorsement page– Sole Source Request Form (if applicable)*– IRB Approval (if human/animal subjects are involved)pp ( j )

*Forms can be located at www.purchasing.ucla.edu**For insurance requirements or details regarding an insurance waiver, please contact your Business Office fund manager

Rule: Submit all vendor service

documents at least 3-6 weeksdocuments at least 3-6 weeksbefore commencement of

iservice

V d S U R iVendor Set-Up Requirements

Vendor Set-Up Requirementsp q

•All vendors who have not transacted with the University before must be established in the BruinBuy system by y y yUCLA Accounts Payable•The Business Office must receive the following for all vendor set-up requests:vendor set up requests:

1. W-9 form*2. Current certificate of insurance

*http://www.accounting.ucla.edu/ap/forms/ucla_w9.pdf

ReimbursementsReimbursements

Reimbursements

• Reimbursements for non-travel and non-entertainment expenses are exceptions to the normal procurement p p pmethods and may take longer to process

• Goods should be purchased using the University-approved procurement methods and should only be purchased with personal funds as a last resort

• Restrictions:• Restrictions:– NO Services: Services cannot be paid for with personal

funds– Postage: Must be purchased through UCLA Mail Services– Dollar threshold: Reimbursements > $500 are only allowable

for travel and entertainment expensesfor travel and entertainment expenses– Partial reimbursements are unallowable

Reimbursements - ContinuedReimbursements Continued

• The Business Office must receive the following for all reimbursement requests:1. Completed Universal Form

Full payee name and employee/staff ID number Full detail of the purchased goodsp g Funding source (FAU) Business justificationApproval signature for the expense

2. Original, itemized receipt

3. Proof of payment C dit d C d i t h i d l t 4 di it f d Credit card: Card receipt showing payee name and last 4 digits of card

or card statement showing vendor name and amount paid Check: Copy of the front and back of cashed check (a bank

statement’s copy is acceptable) C h R i t h i t d i h Cash: Receipt showing payment was made in cash

O Ti POne Time Payments

One Time PaymentsOne Time Payments

• One time payments are payments made to individuals as a one time transaction.

• Examples of one time payments are honoraria and awards/prizes

• The Business Office must receive the following for allThe Business Office must receive the following for all one time payment requests:1. Payee’s full legal name (professional title, and affiliation)2 P ’ t dd2. Payee’s permanent address3. Social security number4. Funding source (FAU)

i j ifi i5. Business justification

• Additional documentation is required for payments to foreign visitors; please contact your Business Officeforeign visitors; please contact your Business Office fund manager for details

Do’s and Don'ts SummaryDo s and Don ts Summary

Do’s and Don’ts Summaryy

DO: DON’T:

1) Do obtain an LVO or Purchase Order 1) Don’t make purchases exceeding $5 0001) Do obtain an LVO or Purchase Order BEFORE authorizing a purchase.

1) Don t make purchases exceeding $5,000 without obtaining prior approval

2) Do use the University’s vendor agreements and discounts to purchase goods and services

2) Don’t make purchases using personal funds unless it is a last resort

3) Do utilize the Business Office and UCLA Purchasing’s knowledge and experience when working with vendors who require a contract

3) Don’t sign any contracts for goods and services on behalf of the University

4) D l i h B i Offi f d 4) D ’ k i b di4) Do consult with your Business Office fund manager for purchasing options if the amount exceeds $500 and the purchase does not relate to travel or entertainment

4) Don’t seek reimbursements exceeding $500 for purchases other than travel and entertainment

5) Do take advantage of the services provided by UCLA Document and Bulk Mail Services

5) Don’t purchase stamps or other postage with personal funds as they cannot be reimbursed

ANATOMY OF A PURCHASE ORDER NUMBER

Department Code*

Unique Order #

ChangeOrder #

ClassCode

0300 N AB123 00*Also known as an FS code

Common Class Codes

Order Class Description Notes

A Release Systemwide and Local Agreements (Class K) or Restricted Blankets (Class B)(Class K) or Restricted Blankets (Class B)

BBase Restricted Blankets (department-specific) Campus Purchasing

D Onetime Repair

F Class K Release Systemwide and Local F Class K Release Systemwide and Local Agreements (BruinBuy Only)

K Systemwide or Campuswide Agreements Campus Purchasing

M Educational Media

N Low Value Order (BruinBuy only)

PPurchase Orders

Campus Purchasing will Fax Vendor

Q PCard

R Requisitions (create Memo Liens) NEVER FAX

T TravelT Travel

X Special Items (see BruinBuy/PAC) Manual for types of transactions

Recommended ClassesRecommended Classes

• BruinBuy PAC ReviewerTra el & Entertainment Polic• Travel & Entertainment Policy

• Travel Express Training – Level 1• Travel Express Training – Level 2

Classes can be enrolled via http://map.ais.ucla.edu/go/1002297

Reference Web LinksReference Web Links

Anderson Business Office http://www anderson ucla edu/x14223 xmlAnderson Business Office http://www.anderson.ucla.edu/x14223.xml

UCLA Accounts Payable www.accounting.ucla.edu

UCLA Purchasing www.purchasing.ucla.edu

T l A i l l dTravel Accounting www.travel.ucla.edu

UCLA Tax Services www.tax.ucla.edu

BruinBuy System www.bruinbuy.ucla.edu

UCLA Business & Finance Policies http://www.policies.ucla.edu/businessfinance.htm

UCOP Business & Finance Policies http://www.ucop.edu/ucophome/coordrev/ucpolicies/#bf

UCLA CHR T i i & W k h htt // i l d / /1002297UCLA CHR Training & Workshops http://map.ais.ucla.edu/go/1002297

Questions?