Purchase Requests and Purchase Orders

The following provides policy guidance to faculty, staff, students and others with respect to the use of a Purchase Requisition to establish the request for goods and services for use by a school or department of the University. The Purchase Requisition will then be converted to a Purchase Order after receiving the required approvals.

Reason for the Policy

The policy ensures that those responsible for issuing requests for goods and services through the University Procurement system (CU Marketplace) understand the requirements and process for these requests. The policy is designed to maximize the efficiency and convenience of the purchasing process, consistent with good business practices and in full compliance with all applicable federal regulations.

Primary Guidance to Which This Policy Responds

This policy responds to all applicable Federal procurement laws and regulations, including but not limited to Uniform Guidance CFR 200.320 - 200.326 and the Federal Acquisition Regulation (FAR). 

Responsible University Office & Officer

Responsible University Office: Purchasing

Responsible University Officer: Vice President for Procurement Services

Who Is Governed By This Policy

This policy applies to everyone working at the University, or working on behalf of the University, who issues requests for goods and/or services through the CU Marketplace. 

Who Should Know This Policy

All University employees or others responsible for any aspect of purchasing goods and services on behalf of the University should be familiar with and guided by this policy.

Exclusions & Special Considerations

Facilities specific engagements (Morningside and CUIMC) that utilize Task Order Agreement suppliers up to the then-approved Task Order threshold do not require the issuance of a Purchase Order

Purchase Requests

A Purchase Request initiates a formal Purchase Requisition to buy a good or service within the University’s Procurement system, the CU Marketplace. A Purchase Request typically contains supplier information, requested product or service information, catalog number, and supporting documentation, as applicable. The department, delivery information, and budget information are added on the Purchase Requisition. After being provided the appropriate approvals, a Purchase Order (PO) is dispatched to the supplier. The information on the PO is used to fulfill the order.

There are two types of CU Marketplace Purchase Requests:

  1. Catalog - these are created by selecting goods from catalog suppliers in the CU Marketplace and creating requisitions using the shopping cart feature.
  2. Non-Catalog - these are created by entering the goods and/or services in the non-catalog Goods and Services Request Form and adding them to the shopping cart.

 

Purchase Requisition Requirements

A Purchase Requisition is an authorized request for the purchase of goods or services through the Purchasing Department. The following are examples of when a requisition is required.

  • You are making a purchase that cannot be accomplished through the use of the University Purchasing Card (P-card)
  • The supplier has requested the issuance of a formal Purchase Order
  • You are purchasing a Restricted Commodity (see Transactions Requiring Special Approvers policy)
  • You are requesting services
  • Lease finance requests

A Purchase Requisition is not required for:

  • Honoraria 
  • Utilities
  • Subscriptions
  • Banking & Real Estate Transactions
  • Temporary staffing (completed through CUHR)
  • Travel Reimbursements and direct payments to travel-related vendors
  • Stipends
  • Prizes and Awards
  • Human Subject payments

*Note: In the event the transaction is utilizing Sponsored Funds, supporting documentation consistent with the funding source and Uniform Guidance must be submitted to Procurement whether or not a Purchase Requisition is required. Please consult the University’s Competitive Procurement Policy.

Required Elements of a Purchase Requisition

Instructions to complete a Purchase Requisition in the CU Marketplace can be found here. Once the Purchasing staff receives your requisition, they will review it for completeness when applicable. Requisitions will be returned for missing documentation, incorrect cost center, incomplete or vague descriptions or specifications, no intended purpose or questionable intended purpose or improper cost center signature authority. If everything is in order, the requisition is prioritized and processed.

Purchase Orders (PO)

A Purchase Order is a document, based on a submitted Purchase Requisition that is reviewed and processed through the University’s Purchasing Office indicating the type, description, quantities and agreed-upon price for a good and/or service. When accepted by the supplier it forms a binding agreement between the University and the supplier.

There are two types of Purchase Orders:

  1. CU Marketplace – Non Catalog PO: these are Purchase Orders that require Purchasing approval prior to being sourced to a supplier and dispatched to that supplier.
  2. CU Marketplace – Catalog PO: these are Purchase Orders issued through the CU Marketplace for catalog items from select suppliers who have University Wide Purchasing Agreements (UWPAs) with the University and do not require Purchasing approval for order values below $50,000.  Users can access the supplier’s discounted catalog pricing by punching out to their ordering-enabled web sites through the CU Marketplace. These PO’s are processed electronically and are invoiced directly through the CU Marketplace.

Change Requests (CR)

A Change Request represents a modification of an existing Purchase Order requested by a department. This change can be:

  • Updated quantity
  • Change in pricing
  • Revised delivery date
  • Account modification
  • Cancellation of a PO

Change requests to a Scope of Work, services, contract extensions and supplier name must be completed through the initiation of a new Purchase Requisition. Please review the University’s policy for Change Requests. 

Direct Goods Pickup

It is important to note that goods purchases should always be delivered by the supplier to an approved University location. In the event there is an exceptional requirement to have the goods purchase picked up by the customer directly or delivered to a non-University location, this must be pre-approved in writing by the school/department Senior Business Officer. This written approval by the Senior Business Officer must be submitted as supporting documentation to Procurement when either performing the receiving function (see below for the related policy) as part of the PO process or through a University payment process (i.e. PO voucher, PCard, etc.).

Please note: In the CU Marketplace, receiving is required for catalog orders when the line item for an order is equal to or greater than $5000 for all category codes.  Please see the University’s Receiving policy for more information.

Roles and Responsibilities in the CU Marketplace

Roles in the CU Marketplace

Shopper

  • Shops for goods and/or services where there is a University business purpose based on departmental needs.
  • Creates shopping carts in the CU Marketplace.
  • Completes information (such as chartstring) on the requisition document. Note: this is not required and can be done by the Procurement Initiator.
  • Assigns shopping carts to Procurement Initiator to submit into workflow

Please Note: Student Officers must be opted in or opted-out by their School or Admin Unit.

Procurement Initiator

  • Shops for goods and/or services where there is a University business purpose based on departmental needs.
  • Creates shopping carts or receives carts from department shoppers in the CU Marketplace.
  • Completes a quality check on the requisition, enters any remaining required fields (i.e., chartstring)
  • Reviews and submits requisitions for approval.

Department Approver

  • Reviews and approves or returns requisitions.
  • Acknowledges that requested goods and services are in accordance with University policies and procedures and are charged to the appropriate account.

Ad Hoc Approver

  • These are Approvers inserted into workflow manually for specific transaction for additional review and approval either due to funding source or value of transaction.

Special Approver

  • Formerly known as Prior Approver, required for certain regulated commodities such as radioactive materials, animals for research, capital equipment, lasers etc.
  • Reviews and approves or returns requisitions requiring special approval.

Purchasing Approval (Central Purchasing)

Purchasing will review CU Marketplace catalog orders over 50K, sponsored transaction over $10K, all non-catalog goods orders over $500 and all non-catalog services orders.

  • Performs vendor analysis, may obtain bids and quotes, negotiates contract terms, and supports user/supplier customer service functions
  • Reviews requisitions for completeness and compliance. Works with Procurement Initiator and Departmental Approvers to resolve outstanding items and compliance issues.
  • Approves requisition, allowing the requisition to be converted to a PO.

 

Contact

Hugh A. Horowitz, AVP Purchasing Operations (212) 854-4111

[email protected]