Purchase Orders Procedure
Westminster’s policy regarding approval for purchases is that any purchase expected to be incurred over $1,000 must be approved before purchase or ordering, by requesting a purchase order.
Certain ongoing, contractual expenses over that dollar threshold are permitted without a purchase order. Examples of those expenses are payments for the following: Security contract, Utilities, Cleaning contract, Employee payroll benefit payments. If there are specific questions about whether or not a PO is needed, please contact the Business Office.
The appropriate process for requesting a PO is as follows:
- Before any order is made, a Purchase Requisition must be filled out.
- The Purchase Requisition must be filled out with the Vendor name & address, item description, price and GL account number to be charged.
- The Purchase Requisition must then be signed and dated by the individual who is requesting the PO, the department head and the department’s cabinet member.
- Once the Purchase Requisition contains the appropriate signatures, the form needs to be forwarded to Accounts Payable in the Business Office.
- The Accounts Payable office will then create a Purchase Order (PO), which is then approved by the Controller and/or the CFO (if over $10,000). Once the Controller or CFO approves the PO, the purchase has been approved.
- The Accounts Payable Office will either fax or email the PO to the company to place the order or will fax or email the approved PO to the requestor, who will place the order.
Once the ordered/purchased item has been received, depending upon the method of purchase, one of the following two procedures must be followed:
- If the order is placed online and a College credit card is used to make the purchase, a copy of the PO must be included with your monthly credit card requisition. This way we can ensure that the items off the PO have been purchased and we can liquidate the PO.
- If the order is placed and the company invoices for the purchase you do not need to do a check request once the invoice is received. Payment of the invoice will be initiated by attaching a copy of the PO as well as signing and dating the invoice and sending to Accounts Payable. Accounts Payable will then match up the invoice with the original PO and create a check to pay the invoice.