Purchasing/Spending Process: Making Purchases
Authorization and Approval.
Cost Object Responsible Person. Every University purchase must be approved by the person responsible for the cost object being charged. Approval may be designated by initialing the original invoice in the "OK to pay" space on the accounts payable stamp or in the appropriate space on the Accounts Payable Split-Coding Form. (See also Authorization and Approval Review.)
Business Travel. All out of town and all overnight business travel must be approved in advance with completion of an SAP Automated Travel Request or a Blanket Travel Authorization form . See Pre-Trip Tasks and Planning.
Signature Stamps. The use of signature stamps is prohibited.
Delegated Authority. Approval authority may be delegated if the person responsible for the cost object performs a post audit review using the SAP financial reports. Any delegation of authority should be formally adopted in writing, and filed in the University department. Accountability for all approvals lies with the person responsible for each cost object charged regardless of whether his/her approval authority has been delegated or not.
Bids/Requests for Proposals. (See Business Services - Bidding Process)
Business Purpose. The University of Nebraska's stated purpose for existence per Executive Memorandum No. 2 issued January 9, 1976 is "providing educational opportunities for [Nebraska's] citizens, for discovering and disseminating new knowledge, and for extending educational public service to the people and the institutions of the State". All payment requests made by University programs and personnel NOT found to reasonably support this stated purpose will be denied. See also Personal Expenses.
Charge Accounts. Certain vendors allow purchases of goods and services on open account. University personnel making such purchases must be authorized to do so. The purchaser will be responsible for retaining the original purchase receipt or charge slip and for transmitting it to the department personnel responsible for payment processing. Care must be taken to give appropriate information to the vendor at the time of purchase:
Foundation Funded Expenses. (See UN Foundation Accounts)
Obtaining Vendor Information. During the process of parking a vendor invoice into SAP, it may be discovered that the correct vendor cannot be found. In order to complete the vendor setup, the following information should be requested from the vendor and transmitted to the Accounts Payable office:
A completed and signed Form W-9 containing the vendor's legal business name, the vendor's federal tax identification number, the correct remittance address, and the vendor's legal business type.
A completed and signed US Citizenship Attestation Form when applicable.
A completed and signed Notice to Out-of-State Provider of Personal Services when applicable.
A completed and signed Form W-4NA when applicable.
This may be accomplished by requesting that the vendor forward the form(s) to the Accounts Payable office via fax (308-865-8326) or by mail.
Preferred or Prime Vendor Contracts. Purchases from vendors with whom the University has negotiated preferred or prime vendor contracts are accomplished by signing on to the vendors' internet sites, using University User ID's and passwords, and ordering goods/services directly. The vendors subsequently submit detailed reports/statements of all charges to the University for verification. Payments to these vendors are made via electronic funds transfers. For a description of the current preferred or prime vendors contacts, see University Contracts.
Other On-line Purchases. University purchasers should use discretion when making internet purchases to ensure that the purchases are being made from reputable vendors. Adequate screen shots or printouts should be made by the purchaser at the time of purchase to document 1) the type of purchase made, 2) the unit and extended prices and 3) complete contact information for future reference. Documentation should also be prepared to show that the on-line purchase was appropriately authorized. When a University procurement card was used to make the purchase, all documentation should be retained with department procurement card records. When the purchaser makes a business purchase using a personal credit card, the documentation must be attached to the University of Nebraska Employee Expense Statement from SAP Automated Travel or an Employee Non-Travel Expense Voucher when the claim is submitted for payment.
Procurement Cards. A University of Nebraska US Bank VISA card (procurement card) may be presented to a vendor for the purchase of certain types of goods. The transaction is processed in a manner similar to other types of credit card purchases. For policies and procedures governing the issuance and use of University procurement cards, see Business Services - Procurement Card. (See also Procurement Card Review.)
Providing Sales Tax Exemption Number. See Taxation Issues - Sales Tax Exemption, Nebraska or Sales Tax, Out of State.
Purchase Orders. A purchase requisition may be submitted to Business Services to request a purchase order be prepared and transmitted to a vendor. For policies and procedures governing the use of purchase orders, see Business Services - Purchases Requiring A Purchase Order.
Purchasing from Other State Agencies. Interagency Billing Transactions (IBT) are invoices that represent purchases from other agencies of the State of Nebraska. (See Transactions between UNK Departments and NE State Agencies.)
Purchasing from Other University of Nebraska Campuses. (See Transactions between UN Campuses.)
Purchasing from University Employees. No article or service may be purchased from any University faculty or staff member without prior written approval by the Vice Chancellor of Business and Finance. The written approval must be attached to any request for payment submitted to Accounts Payable and made on behalf of a University employee.
Vendor Discounts, Taking Advantage of.