Purchasing Services, Division of Business Services
University Policy
Rationale/Purpose:
Purchasing Services issues Change/Cancellation Orders to modify existing Purchase Orders with concurrence of user department.
Policy:
Usages and Limits:
A Change Order IS issued to change all open PO’s (either a specific or blanket order for the following reasons if the change amount is greater than $100.00):
The Vendor Number changes.
The Vendor Name changes.
Accounting Services has requested that Purchasing always issue change orders for name changes (for their audit tracking purposes).
A key element of the contract against which the PO has been issued changes (FOB, terms, items ordered etc).
A key element of the order has changed (FOB, terms, referenced documents, item ordered etc.).
The scope of the deliverable service changes significantly.
Additional items were added or removed to the order by the department.
The vendor requests (and receives agent approval for) a language change on the PO.
The department wishes to change a beginning and end date to coincide with a grant term. Time period of commitment changes.
A Change Order is NOT issued to:
Modify the accounting code (fund, account, division, department, activity, or class). Departments should follow their internal procedures.
Modify the encumbered dollar amount for budgeting purposes.
Add items or change pricing if the increase is less than $100 and the Invoice total is less than $5000.00.
A Cancellation Order IS issued:
When the vendor cannot provide product
By request of department when item(s) are no longer required.
When funds are no longer available.
To change vendors.
Cancellation Order is NOT issued:
When a Change Order is appropriate (see above)
To modify encumbrances.
Procedure:
Procedures for a Specific Order:
DELETING ITEM(S): The department should e-mail, send a memo, or call the purchasing agent of record. Indicate the Purchase Order number, the item(s) to be deleted, and the reason for the deletion (e.g., no longer needed, too long for delivery). The Purchasing Agent of record will review and issue a Change/Cancellation order to notify the vendor. Accounting Services and the department will receive a copy of the Change/Cancellation Order.
ADDING NEW ITEMS OR INCREASING ITEM(s) QUANTITY: The department MAY request the vendor to add a new item(s) to the order or to increase the quantity of an original item(s) if: it adds LESS than $100 to the order total, the item(s) fits within the class code of the order, and the vendor does NOT require a Change Order. If the order total increases by more than $100 or the vendor requires a Change Order, the department should e-mail, send a memo or call the Purchasing Agent of record. Indicate the Purchase Order number, the item(s) and/or quantity to be added to the order, and the reason for the addition(s). The Purchasing Agent of record will review and issue a Change Order to notify the vendor. Accounting Services and the department will receive a copy of the Change Order.
EXCHANGING ITEMS RECEIVED The department should e-mail or call the Purchasing Agent of record. Indicate the Purchase Order number, the item(s) to be exchanged, and the reason for the exchange (e.g., wrong model or color). The Purchasing Agent of record will issue a Change Order to notify the vendor. Accounting Services and the department will receive a copy of the Change Order.
INCREASING OR DECREASING ITEM(s) PRICE: The Purchasing Agent of record will review price change(s) and may issue a Change Order to the vendor if appropriate. Accounting Services and the department will receive a copy of the Change Order.
CANCELLATION: The department should e-mail, send a memo or call the purchasing agent of record. Indicate the Purchase Order number and the specific reason(s) for cancellation. The Purchasing Agent of record will review or discuss with the department contact person and determine if the cancellation is appropriate. A Cancellation Order will be issued to notify the vendor and Accounting Services. Accounting will cancel the encumbrance. The department will receive a copy of the Cancellation Order.
Procedures for External Blanket, or Contract Blanket Orders:
CHANGING the END DATE: The department should send an e-mail to the agent of record indicated on the PO, stating the new date. NOTE: The Blanket/Contract Order CANNOT EXCEED 12 MONTHS. The Purchasing Agent of record will issue a Change Order to notify the vendor. Accounting Services and the department will receive a copy of the Change Order.
INCREASING OR DECREASING ENCUMBRANCES: To make any types of changes to your PO and encumbrance (including closing POs and changing dollar amounts or funding), you will need to complete an Encumbrance and PO Management form. Completed forms should be submitted to the Dean’s office for approval via email and then routed via email from the Dean’s office to Purchasing. Change Orders cannot be issued to modify the encumbered dollar amount for budgeting purposes.
ADDING OR DELETING ITEMS: Before ordering any new item(s), the department MUST e-mail, send a memo or call the Purchasing Agent of record indicating the Purchase Order number and the items to be added or deleted from the order. Any added item(s) must fall within the class code description of the original order. The Purchasing Agent of record will issue a Change Order to notify the vendor. Accounting Services and the department will receive a copy of the Change Order.
EXCHANGING ITEMS RECEIVED The department is responsible for returning the item(s) and ensuring that credit has been received. No Change Order is required for the replacement item(s).
CANCELLATION: Cancellations can be processed:
BEFORE any items have been received.
At least 60 days PRIOR to the ending date of the blanket type order.
Upon formal notification from RSP for grant sub agreements.
The department should e-mail or send a memo to the Purchasing Agent of record.
Indicate the Purchase Order number and the specific reasons for cancellation. The Purchasing Agent of record will issue the Cancellation Order to notify the vendor of cancellation of the order. The department and Accounting Services will receive a copy of the Cancellation Order.
CONTACT. If you have any questions regarding Change or Cancellation Orders, please contact the Purchasing Agent of record via e-mail or phone call, or Purchasing Services reception at 262-1526 and you will be routed.
