SECTION OVERVIEW AND POLICIES

New York State uses the Statewide Financial System (SFS) to create, approve, and dispatch Purchase Orders (PO). The purpose of this section is to describe (i) how the State will use the SFS to electronically authorize POs, and (ii) methods for dispatching POs.

Note: This section does not apply to bulkload agencies who do not use the SFS Purchasing Module to approve and dispatch POs to vendors. Instead, bulkload agencies should refer to their internal policies and procedures for guidance regarding PO dispatch.

Process and Transaction Preparation:

Electronic Authorization of Purchase Orders

Online agencies use the SFS to electronically authorize POs. Online agencies are not required to physically sign a PO prior to sending it to a vendor. Instead, POs created and approved in the SFS will include “Authorized Electronically” on the PO’s signature line. Electronic authorization of POs is more efficient because the entire PO life cycle, from creation through dispatch, can now be handled electronically.

Agencies should ensure users are mapped to appropriate roles in the SFS.

The PO Approver will approve POs for the agency. POs created from staged contract releases and requisitions meeting specific criteria will be auto-sourced to a PO in an approved status without entering PO workflow. As a result, users with a Contract Processor role or a final Requisition Approver role have the ability to approve a PO. For additional information about auto-sourcing POs, please see Section 6 - Auto-Sourcing Purchase Orders of this Chapter.

Electronic Purchase Order Dispatch

Agencies must identify and record a classification for each vendor added to the Statewide Vendor File. This classification should reflect the type of business relationship the vendor has with the State. The classification selected determines if a vendor is “open for ordering,” which allows the vendor to receive purchase orders electronically from the SFS.

Vendors added to the Statewide Vendor File after April 1, 2017 which are open for ordering will have a default PO dispatch method of email. Please see Chapter X, Section 4.A – Vendor Classifications of this Guide for additional guidance on classifications.

If the PO dispatch method is “email,” once the PO has been authorized and is ready for dispatch, SFS will send the PO to the email address the agency selected on the purchase requisition or updated on the purchase order before approval. Refer to Section 2 – Purchase Requisitions of this Chapter for additional information on purchase requisitions.

If the default dispatch method is “print,” and there is an email address associated with the ordering address on the PO, the agency can switch the dispatch method to “email.” The PO would then be emailed to the vendor as if “email” was the default dispatch method.

One-time Electronic Purchase Order Dispatch

Agencies can enter an alternate “one-time” email address on a PO if (i) the vendor does not have an ordering email address or (ii) there is a need to send the PO to an alternate email address from the existing default ordering address. The SFS will deliver the PO to this alternate email address.

When an agency uses a one-time email address, an email notification is sent to the vendor. Vendors are responsible for updating the email ordering address and PO delivery method on the Statewide Vendor File. Agencies should refer to Section X.4.B - Addresses of this Guide for guidance related to vendor address changes.

Guide to Financial Operations

REV. 10/04/2023