|Note:||At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.|
PUR 304–01: Departmental Limited Value Purchase Orders
To allow university departments to issue purchase orders for low-value materials
Purchasing and Business Services
The fastest and easiest method of making small-dollar purchases is by using the Purchasing Card.
The slowest and most expensive method of making small-dollar purchases is the requisition/purchase order/invoice/receiver/check method. Accordingly, the use of a requisition (RX document in Advantage) to make small-dollar purchases is discouraged.
The second slowest and most expensive method of making a purchase is the Departmental Limited Value Purchase Order (PDLVPO)/invoice/receiver/check method. The Departmental Limited Value Purchase Order program is optional. It is best used only when the supplier does not accept a Purchasing Card.
The preferred method of making small purchases for authorized departments is the use of the Purchasing Card. Accordingly, departments are expected to use the Departmental Limited Value Purchase Order (PDLVPO) only in those cases in which a Purchasing Card cannot be used.
The PDLVPO is issued directly to the supplier by the individual department without obtaining approval from Financial Services or Purchasing and Business Services, so long as the purchase does not appear on the list of PDLVPO Prohibited Purchases. Hard copies of PDLVPOs may be faxed to suppliers to obtain needed items faster.
Multiple PDLVPOs may not be used to cover a transaction totaling more than the $5,000 limit.
For Order Forms
The order forms are prenumbered and must be kept in a secure place. The control form is used to list all PDLVPOs issued, including the order number, supplier, date, amount, paid status, and account number.
For Problem Resolution
The issuing department assumes the responsibility for resolving all problems (e.g., incorrect invoicing and pricing, breakage, quantity/quality errors, returns, and late deliveries).
Commitments made with PDLVPOs are encumbered. Receiving reports are required. Accounts Payable will automatically pay the supplier’s invoice up to the $5,000 limit after a receiver has been processed by the issuing department.
Authority for Changing Object Codes and Agency/Org Numbers
Accounts Payable is authorized to change the object codes when appropriate. PDLVPOs will be subject to periodic audits by Purchasing and Business Services and the Arizona Board of Regents’ Internal Audit staff. If the agency/org number used on the PDLVPO is invalid, Accounts Payable will try to telephone the person who released the PDLVPO. If a valid agency/org number is not provided within one working day, Accounts Payable may select a valid agency/org number for the department (usually the department’s state agency/org) and process the payment.
Volume buying enables ASU Stores to offer common office supplies at prices that are lower than prices off campus. ASU Stores will not deliver items purchased through the PDLVPO program that could have been purchased through ASU Stores. Departments must either pick up these items from the supplier or arrange for the supplier to deliver them directly to the department.
PDLVPOs cannot be used:
The privilege of using PDLVPOs will not be made available to departments that misuse the system or fail to control the use of the forms, or that fail to enter the PDLVPO document into Advantage within three working days, or that fail to submit receivers or invoices in a timely manner.
For information on procurements handled by Purchasing and Business Services, see the policies in PUR 303, “Off-Campus Orders.”
For information on other methods of procuring low-value items, see:
For further information on disbursements for and procurement of itemized prohibited purchases, see the policies in the Financial Services Policies and Procedures Manual—FIN 400, “Disbursements.”