Purchasing Card Program
Policies and Procedures ManualTable of Contents
COMPLETING A PURCHASING CARD TRANSACTION
General
Repair of Equipment and Catering
Using the Purchasing Card for Grant Purchases
Placing your Order
Billing Instructions
Shipping Instructions
Acceptable Documentation
Receiving your Shipment
Returns, Damaged Goods, Credits
Order Entry and Reconciliation with P Card Web Solutions Management Software
Disputed Transactions
Erroneous Declines
Controls
Department Control Environment
Canceling an Account
Changes to an Account
Renewal of Existing P Cards
Bank of America Customer Service
GENERAL
Determine whether the Purchasing Card is the most appropriate process to use for the purchase:
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Become familiar with the “Guide for Selecting the Correct Process When Acquiring Goods and Services” (Attachment 10) to make sure that you are using the correct process.
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Check the list of Purchasing Card Restrictions (Attachment 6) to make sure it is not a restricted item.
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Identify whether a State or University contract is available that is applicable to your purchase.
NOTE: Contract information is available on the Purchasing Department’s web site at www.purchasing.ua.edu or by calling a Buyer in the Purchasing Department who is responsible for the items(s) you wish to purchase. All University contracts must be honored. Approval must be obtained from a buyer to purchase items from a different source when they are available on a University standing contract.
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Determine if the intended transaction will be $1,999.99 or less including freight and does not exceed your monthly authorized Purchasing Card transaction limit.
REPAIR OF EQUIPMENT AND CATERING
The purchasing card is not to be used for services of any kind. (repairs, catering, rentals,etc.)
REPAIRS: To arrange for repair of equipment, a requisition will be entered in Banner as a regular order. Once the requisition is entered and completed, the department user will email the Purchasing Department at emergencyrepairs@fa.ua.edu with a verbal purchase order number request citing the requisition number. The email address will be set to forward the message to the Office Associate I, Administrative Secretary, and Bid Clerks respectively. If the primary person responsible for opening the email and forwarding it to the appropriate buyer is out of the office, the other delegates will be responsible for handling the request in descending order. The emergency request will be forwarded to the appropriate buyer. The buyer will review the requisition, transfer it to a purchase order, and email the department with the Purchase Order number. Repairs are subject to the State of Alabama bid law.
CATERING: To arrange for catering services, purchase food from restaurants, or recreational events, the requesting department will create an internal purchase order number, place the order, and process payment on a miscellaneous disbursement voucher. See Entertainment Purchases (Attachment 9) for complete instructions. NOTE: The section on Entertainment from the University of Alabama Spending Policies(Attachment 10) is included in this manual and should be consulted before obligating University funds for these purposes to ensure appropriate policies and procedures are followed.
USING THE PURCHASING CARD FOR GRANT PURCHASES
The Purchasing Card may be utilized for grant purchases, however, the use of the card for a grant or contract requires some forethought since the purchasing authority has been transferred to you through issuance of the card. Careful judgment must be exercised before you make a purchase with the card against grants. You must clearly understand what constitutes an allowable charge to your particular program. You should be aware, for example, that supplies on grants must be “lab” and not office supplies. If you have questions in this area, the Contract and Grant Accounting staff is available to assist you.
Grant Purchases Checklist
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Grant purchases are permitted provided that the item purchased is an allowable charge against the grant;
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The Purchasing Card cannot be used for charging Department costs to a grant account;
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Grant purchases must be made in accordance with the terms and conditions of the grant;
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The grant account cannot be used as a clearing account for card purchases;
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FRS account and sub code assigned to the purchase must be appropriate;
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When placing an order against a grant account, the “received date” must be within the terms of the grant or contract;
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Card purchases can be charged to a grant account through the re-allocation process only. If an incorrect account or sub code is used, correction shall be required and accomplished through a subsequent cost transfer;
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Submit Reconciled Bank of America Statement with supporting documentation to Accounts Payable within prescribed deadlines;
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A direct benefit must be shown for all card purchases made against a grant account;
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Any questions should be directed to the Office of Contract and Grant Accounting.
PLACING YOUR ORDER
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Determine the items to be ordered, pricing for each, and vendor. Note: It is always a good idea to obtain a faxed or emailed quote.
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Obtain a P-Card Log number (PC#) by using Pcard Solutions management software or obtain the PC # from your Department Reconciler if you do not reconcile for yourself. The P-Card Log number will become your purchase order number, which will be used as a tracking number with the vendor, on shipped packages and receipts, and within the Purchasing Card process.
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Call, visit, email or fax the supplier that you selected to place your order.
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Identify yourself as a University of Alabama employee. State that you are making a tax-exempt purchase using a University Corporate Visa Purchasing Card. For in-store purchases, present the vendor with the Visa card. For telephone orders, state the cardholder name, Visa account number and expiration date. The University’s State of Alabama tax identification number is located on the back on the Purchasing Card. Remind the vendor that Visa regulations stipulate that vendors are to ship orders before processing transactions for payment. Place your order using the Log number as the purchase order number. Confirm the pricing, availability, and expected ship date.
BILLING INSTRUCTIONS:
Emphasize to the vendor that the receipt copy is to be included with the shipment, preferably, or mailed to YOUR billing address as follows, not to the University's Accounts Payable office. Receipts can also be faxed to your department fax number or emailed to you.
The University of Alabama
Department Name
Attn: Jane Smith
Box 870123
Tuscaloosa AL 35487-0123
SHIPPING INSTRUCTIONS:
It is very important to provide clear and specific shipping and mailing instructions to the vendor to ensure receipt of your order. The order number (PC#) must always be included on the shipping label. Always ask how the order will be shipped. All orders transported by UPS or Fed Ex can be delivered directly to the ordering department and should be addressed as follows:
The University of Alabama
PO # PC 00012345
Department Name
ATTN: Jane Smith
Building Name and Room Number
Tuscaloosa AL 35487
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If the purchase is made by fax, retain a copy of the order form and fax confirmation for your records. If the purchase is made over the internet, print a copy of the summary page for your records. Some internet merchants will email a receipt to you.
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Ask the vendor to provide a "priced packing list" with each shipment, retain a copy of the Purchasing Card sales slip and original receipt for each in-person purchase.
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Provide the supplier with your name, department name, phone number, and complete delivery instructions. All goods shipped by UPS or Fed Ex should be delivered directly to the department.
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After the order is placed, provide all transaction information to the Department Reconciler including the Purchasing Card Transaction Form with itemized list and pricing for all products ordered.
ACCEPTABLE DOCUMENTATION
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Each transaction on the Purchasing Card must be represented by an itemized receipt or other acceptable form of documentation that verifies the date of purchase, the vendor or vendor name, each item purchased and the price of each item. For record keeping purposes, the following items should be maintained:
Sales receipts
Priced Packing slips
Cash Register Receipts
Faxed Receipts
Emailed Receipts
Summary order information from internet sites
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All receipts that are smaller than 5” x 8” MUST be taped (not stapled) to a sheet of bond paper that is 8 ½ “x 11” to prevent loss. Multiple, small receipts can be affixed to a single sheet of paper.
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When an itemized receipt is not available, itemized supporting documentation must be secured. In many cases, when placing orders by telephone or fax, the packing slip may provide the itemization needed.
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If documentation has been lost or misplaced, contact the vendor for a duplicate copy. If a duplicate copy is impossible to obtain, complete a “Purchasing Card Missing Receipt Affidavit” (Attachment 4) and forward to the Department Reconciler. NOTE: Repeated use of this method will subject the Cardholder to loss of privileges.
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Each department will be required to maintain a file of all documentation associated with Purchasing Card activity, in addition to the originals forwarded to Accounts Payable for allocation.
RECEIVING YOUR SHIPMENT
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Open and inspect all shipments promptly.
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Make sure the supplier correctly filled your order and that all items are in good condition. Verify that you have received all of the items in the quantities specified on your Purchasing Card receipt or priced packing list. Mistakes or damages should be reported to the vendor immediately.
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Verify that sales tax was not charged. The University of Alabama is not liable for sales tax in the state of Alabama. The University’s tax liability in other states differs from state to state. Sales tax charges will be monitored and questioned. If you are charged sales tax in error, request a credit.
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Save the Purchasing Card sales slip, itemized receipt, or priced packing list, and shipping documentation.
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Always retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. Most items cannot be returned without the original packing materials. Also, most vendors have a thirty-day return policy. After that period, you may not be able to return your items or you may be charged a restocking fee.
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Forward the required documentation to the Department reconciler.
RETURNS, DAMAGED GOODS, CREDITS
The Cardholder is responsible for working with the supplier for the return of incorrect, duplicate, or damaged merchandise purchased with a Purchasing Card.
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Read all enclosed instructions carefully. Often a customer service telephone number and other instructions are included on the packing slip and/or receipt for returns.
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Many suppliers require a "Return Authorization Number" or “Return Service Authorization” before they will accept a return. If you neglect to acquire this return authorization from the supplier when it is required, the package may be refused and/or no credit issued to your account.
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In some cases, there may be a restocking fee. If the supplier is responsible for the error or problem, you should not have to pay this or any other fee. However, if they are not responsible you may have to pay it. You may use the Purchasing Card to pay this fee as long as it does not exceed any of your limits.
Note: See Merchandise Return Procedures for Supplies (Attachment 8) for more specific instructions on returning supply orders.
ORDER ENTRY AND RECONCILIATION WITH PCARD WEB SOLUTIONS MANAGEMENT SOFTWARE
Pcard Web Solutions management software is the third party software purchased by the University to manage the Visa Purchasing Card Program. It provides a method to track active orders, reconcile transactions to on-line Bank of America transaction data, and acquire reports based on selective criteria. Visa orders are entered into an order log that assigns a unique PC number to each entry. Bank of America transaction data is downloaded on a daily basis enabling large users of the Visa Purchasing Card Program to reconcile as often as they deem necessary. Reconcilers have easy access to the transaction activity for each Visa card for which they are responsible.
DISPUTED TRANSACTIONS
If there is a discrepancy on the Visa Purchasing Card monthly statement, you should first contact the vendor to try to resolve the problem. If it is resolved, verify that the correction has been made when the next monthly statement arrives.
If the matter cannot be resolved with the vendor:
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Contact Bank of America at 1-800-300-3084 directly for assistance.
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Mail or fax to Bank of America at 1-800-253-5846 a signed Bank of America Cardholder Statement of Disputed Item (Attachment 3) to document the reason for the dispute. Send a copy of this form to Accounts Payable with your reconciliation.
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Any disputed items reflected on the monthly statement must be reconciled and allocated to a Banner FOAPAL at that point. Any credits resulting from disputes will be allocated back to the account initially charged.
Vendors are paid by Visa within three (3) days of submitting the Purchasing Card transaction data to Visa, while the University pays Bank of America for all card purchases once every 30 days.
ERRONEOUS DECLINES
There may be situations when a vendor receives a transaction-declined message at the point of sale when processing a VISA Purchasing Card transaction. If you do not know the reason for the decline, contact the Bank of America at 1-800-300-3084 for an explanation. If the decline was in error, the Cardholder should immediately contact the Purchasing Card Administrator for assistance. If the purchase is being made outside of normal business hours, the employee must find an alternate payment method or cancel the purchase and contact the Purchasing Card Administrator during normal hours.
CONTROLS
The University’s Purchasing Card program uses both internal management controls and management reports designed to ensure the proper use of Purchasing Cards. Purchasing, Accounts Payable, and Internal Auditing use management reports to monitor card use for compliance with University policies and procedures and state law. Personal use of the Visa Purchasing Card is not allowed. All purchases made on the card must be for Official University business. Misuse of the card will result in revocation of the card, disciplinary action up to termination, and possible filing of criminal charges.
DEPARTMENT CONTROL ENVIRONMENT
Each department is responsible for establishing an appropriate internal control environment for University Purchasing Card responsibilities, including approvals, audit ability, adjustments, record keeping, reporting, reconciliation, segregation of duties and supervision.
CANCELING AN ACCOUNT
When a Cardholder leaves a department or separates from the University, the Budget Manager or Approving Official must provide immediate notification to the Purchasing Card Coordinator. The cardholder is required to return the card and all current outstanding documentation on the account to the assigned Reconciler prior to final separation. The Approving Official or Budget Manager shall forward the card along with a memorandum to the Purchasing Card Coordinator requesting that the card be cancelled.
CHANGES TO AN ACCOUNT
All changes to a Cardholder’s personal information must be promptly reported to the Purchasing Coordinator, including changes in last name, home address, home telephone number, campus location, campus telephone number, reconciler, approving official or default account number.
RENEWAL OF EXISTING PURCHASING CARDS
A new Purchasing Card will automatically be sent to the Purchasing Card Coordinator within the month of expiration in advance of your current card’s expiration date. Renewed cards will be distributed by the Purchasing Card Coordinator to existing cardholders.
BANK OF AMERICA CUSTOMER SERVICE
Bank of America Customer Service is available 24 hours a day, 365 days a year at 1-800-300-3084 for reporting a lost or stolen card, and to discuss disputes.