SECTION OVERVIEW AND POLICIES
This section provides Business Units with guidance on using a purchase order (PO) in the Statewide Financial System (SFS) when making a purchase on a Procurement Card (PCard). This guidance applies only to Business Units who reconcile procurement card transaction in the SFS.
Online Business Units may not use the PCard to purchase from Business Unit contracts or Purchase Authorizations. Business Units may use the PCard to purchase from Centralized Contracts and for purchases under the Business Unit’s discretionary spending authority.
It is a best practice for Business Units to record a PO in the SFS when purchasing goods and services with a PCard. Creating the PO in the SFS will allow the State to (i) enhance procurement intelligence, (ii) increase buying power, and (iii) better manage planned cash spending.
In addition to the guidance contained in this section, Business Units should refer to Section 2 – Purchase Requisitions and Section 3 – Purchase Orders of this Chapter, for more information regarding purchase requisitions and POs. Business Units should also refer to the Office of General Services’ (OGS) Procurement Guidelines for additional information related to procuring goods or services.
Process and Transaction Preparation:
The following section outlines when a Business Unit should or may create and approve a PO for purchases when using the PCard. In these cases, the Business Unit must check the box on the PO to indicate the use of the PCard and then select the applicable masked PCard number from the drop down menu. Alternately, where applicable, the Business Unit may select these options on a requisition, which will be carried forward to the PO.
Where practicable, Business Units should create and approve a PO in the SFS for planned purchases.
Examples of planned purchases include:
Point of Sale Transactions
Where practicable, Business Units should create and approve a PO in the SFS for point of sale purchases. Due to the nature of point of sale transactions, it may not be feasible for a Business Unit to create and approve a purchase order in the SFS prior to completing the transaction. Business Units should create and approve a PO after the point of sale transactions when a confirming PO would enhance the Business Unit’s procurement intelligence.
Point of sale transactions may be appropriate in the following circumstances:
In certain scenarios, it is acceptable for the cardholder to complete a point of sale transaction with the PCard without the Business completing a PO. In these cases, Business Units should account for PCard charges on reconciliation vouchers as described in Chapter XII, Section 6.Q.1, Paying and Reconciling Procurement Card Charges of this Guide.
Centralized Contract Purchases
OSC will publish additional guidance regarding the use of a PCard for Centralized Contract purchases prior to EE1 go-live in April 2015.
Guide to Financial Operations