March 5, 2012
March 5, 2012
7.10.3. STATE CONTRACT PURCHASE ORDER CHANGES
State contract purchase orders are generated from PB7 and PB8 requisition documents. All modifications to a purchase order are subject to approval by the Purchasing Office prior to the change taking place.
Note: If the supplier offers a department an alternate item because the original item is no longer available, the requesting department must remove the original item from the original purchase order and create a new purchase order for the new item.
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 the university’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.
- Addition of a line item. The requesting department must create a new purchase order.
- Exchange (e.g., when an item is swapped for an identical item that was broken, or the wrong item is shipped).
- 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 in quantity.
- A change/correction to the vendor’s federal tax identification number.
- Internal changes to the account distribution.
- Cancellation of a line item (but not complete cancellation of the order).
- Change in free on board (FOB) designation.
- Changes in shipping charges when the charges were originally entered as “not to exceed” a given amount.
- Corrections to the commodity code.
B. Creating a Change Order
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 PX7 or PX8 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 for correction. 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.
- 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.
Note: An FYI copy on the Purchase Order Summary page does not display the COR action in the Select an Action drop-down menu.
3. Approval Process
Changes are final approved by the Purchasing Office. The Purchasing Office updates the state contract purchase order as needed. Updates to state contract purchase orders are automatically dispatched to the vendor.