PUR 304–04: The Purchasing Card

To facilitate the purchase of low-value items and items from contracts in the fastest and most efficient manner

University policy

Departmental purchase transactions

This section is intended to explain the proper use of the Purchasing Card program. Details of the program are in The Purchasing Card: A Guide for Users, as described below.

The Purchasing Card is a corporate liability card. It is a method to spend university funds from a specific agency/org.

Department leadership must agree to participate in the Purchasing Card program before cards will be issued to the department staff members.

Purchasing and Business Services publishes a cardholder’s guide that provides the details of the Purchasing Card program. The Purchasing Card: A Guide for Users is incorporated herein by reference. The Purchasing Card: A Guide for Users may be viewed on the Purchasing and Business Services Web site or obtained from Purchasing and Business Services. All forms used in the Purchasing Card program may also be found on this Web site.

The current generic dollar limit per Purchasing Card transaction is $5,000. This limit can be set for each individual card, and departments can obtain a higher transaction limit by justifying the need.

Card users must retain the cash register slip, card transaction document, and all other point-of-sale documents, including Purchasing Card statements in the department for five years. These items are either retained by the cardholder or submitted to a designated monitor in the user’s department. In either case, the cardholder must attach the transaction documents to the monthly memo statement from the bank and submit them for review to an independent person in the cardholder’s department for review. The reviewer signifies that the transactions are reasonable and appropriate by signing the monthly memo statement. Card transactions map to an object/sub-object code in Advantage based on the merchant category code of the supplier from whom each purchase is made. Departments may also use PaymentNet, a Web-based application to change suborg, object, and subobject codes before the transactions are posted to Advantage.

The Purchasing Card can be used only to conduct university business. It may not normally be used to purchase the following items:

1. ASU tuition payments
2. alcoholic beverages
3. anything costing more than $5,000 (unless you provide a copy of the transaction documents to Property Control so the equipment items are picked up on property records)
4. ASU Foundation payments (other than conference registration and other payments for which services were rendered by the ASU Foundation)
5. animals, live (contact Animal Care at 480/965–4386)
6. bottled water (unless with a card tied to a local account for an event)
7. capital equipment (items costing more than $5,000, unless you provide a copy of the transaction documents to Property Control)
8. car rentals (while in travel status)
9. cash advances
10. copiers (contact Office Machine Rental and Repair at 480/965–5418)
11. fines and penalties
12. firearms, ammunition, and explosives (PD has an exception)
13. flowers (except on a card tied to a local account and for an official purpose)
14. food (prohibited on a state account; permitted on a sponsored account only if specific approval is received in writing from the Office of Research and Sponsored Projects Administration)
15. furniture (except Hon commercial furniture through Corporate Express; for all other furniture contact Furnishing Services Group at 480/965–0578)
16. gasses (contact Laboratory Stores at 480/965–9079)
17. gifts and contributions
18. increases of $25,000 or more (increases of $25,000 or more require a P-Card Single Transaction Limit Increase Request for $25,000 and Greater form)
19. legal fees (contact university general counsel at 480/965–4550)
20. loans and advances
21. material prohibited by state or federal law (such as fireworks or controlled substances)
22. narcotics and all drugs
23. personal purchases
24. printing of anything with the ASU logo or wordmarks (contact Design Print Services at 480/965–3529)
25. printing of department letterhead, business cards, or envelopes (contact Design Print Services at 480/965–3529)
26. purchases from ASU employees (against state law)
27. purchases in which an ASU employee who participates in the purchase process has a conflict of interest (against state law)
28. radioactive materials
29. rare and precious metals
30. services from an individual rather than from a company (because of tax reporting requirements)
31. splitting purchases to circumvent the card single transaction limit

    and

32. travel expenses for employees. (Use the Diners Club Corporate Travel Card for lodging and food associated with employee travel. Airfare and conference registration fees for employees may be paid with the Purchasing Card. Lodging in the metropolitan Phoenix area for interviewees, consultants as agreed via contract, or other nonemployees may be paid with the Purchasing Card. Lodging and food purchases may be charged on the Purchasing Card for ASU-hosted events and conferences. “ASU-hosted events and conferences” is defined as an event or conference that ASU presents and sponsors.)

Sponsored accounts have additional restrictions on office supplies and postage to include overnight services such as Federal Express or Airborne.

The Purchasing Card is the preferred method of making small-dollar transactions.

For further information about prohibited transactions, see

1. PUR 203, “Prohibited Purchases”

   and

2. the Financial Services Policies and Procedures Manual—FIN 401–03, “Prohibited Transactions.”

For more information on conflict of interest, see the Academic Affairs Policies and Procedures Manual—ACD 204–08, “Conflict of Interest.”

For information on direct and facilities and administrative costs, see the Research and Sponsored Projects Policies and Procedures Manual—RSP 508–01, “Charging Direct and Facilities & Administrative Costs to Sponsored Projects.”

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