Handbook of Business Procedures
March 5, 2012
July 15, 2013
7.10.1. POINT PLUS PURCHASE ORDER CHANGES
POINT Plus purchase orders are generated from PBO, PB3, and PB4 requisition documents. All modifications to a purchase order are subject to approval by the Purchasing Office prior to the change taking place.
A. When to Process a Change Order
A change order cannot be used to increase the scope of work beyond its original intention or extend the period of a service beyond the expiration date. Change orders should not be used if the issuance of a new purchase order would achieve the requested action in an equally efficient and economical manner.
The following is a list of scenarios where amending a purchase order is not necessary:
- Change in shipping and handling costs. **If the difference in cost is less than 10% Accounts Payable will pay the invoice. If the difference is greater than 10% Accounts Payable will contact the department to verify charges are okay to pay.
- Change in The University of Texas at Austin’s Bill To and/or Ship To address. The requesting department must contact the vendor prior to shipment of the order and provide the proper address(es).
- Change in the vendor’s Remit To address.
- Change in the vendor’s name, but no change in federal tax identification number.
- Voluntary price reduction by the vendor.
- Cancellation of the entire purchase order. For more information, see the Handbook of Business Procedures, 7.10.4. Purchase Order Cancellations.
The following is a list of scenarios where amending a purchase order is necessary:
- Change/correction to the vendor’s federal tax identification number.
- Cancellation of a line item (but not complete cancellation of the order).
- Addition of a line item.
- Change in quantity of a line item
- Change in free on board (FOB) designation.
- Changes in shipping charges when the charges were originally entered as “not to exceed” a given amount.
- Exercise options included in the original award.
- Exercise a renewal or extension option in accordance with the terms of the original purchase order prior to the expiration date.
- Corrections of typographical errors not affecting the substance of the purchase order.
- Change in the delivery schedule.
- Minor changes in the scope of work.
- Change of any terms and conditions.
- Internal changes to the account distribution and internal corrections to the commodity code. Internal changes and corrections are not communicated to the vendor.
1. POINT Plus Purchase Order Changes
For purchase orders generated in POINT Plus, the requesting department must initiate a change order in POINT Plus (a PXO/PX3/PX4 document).
2. How to Change a POINT Plus Purchase Order
Only purchase orders (POs) that have received final approval may be corrected. A correction or change document cannot be created until any receiving reports for the PO are complete and any pending payment vouchers are final approved or deleted. Requisitions that are pending must be recalled to correct a final approved purchase order:
- While viewing the document in POINT Plus, select COR from the Select an Action drop-down menu on the Purchase Order Summary page.
- If correcting the PO only, click Order Correction.
- If the correction is a renewal, select Order Renewal.
- Once the new document is created, go to the appropriate section(s) of the document and make all necessary changes.
- From the Purchase Order Summary page, type a reason in the Reason for Change field.
3. Approval Process
The approval process is based on the document type of the original requisition.
- Small Purchase Orders (POs generated via PBO requisitions)
Changes are final approved at the departmental level. For changes that affect the vendor (e.g., change in quantity, delivery schedule, etc.), the requesting department is responsible for sending an amended purchase order to the vendor.
- All Other POINT Plus Purchase Orders (POs generated via PB3 and PB4 requisitions)
Changes are final approved by the Purchasing Office. The Purchasing Office sends an amended purchase order to the vendor when appropriate.