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Buying and Paying Basics

Before You Buy

Think first about buying internally

  • Most durable goods purchased at the University eventually pass through Surplus Property, often in excellent condition with many useful years of life left in them. This property is available to departments, please see the Surplus Property website for more information.

Then think about buying on contract

  • University and state contracts usually offer the best prices.
  • Vendors are known and approved, and their performance is monitored.
  • Contract vendors have a vested interest in keeping all their University customers happy.

Buying From Outside Vendors

Some purchases may be made directly by departments, but many must be processed by Procurement Services due to their dollar value or the nature of the purchase.

  • Consult the Guidelines for Competition to determine if your purchase will require competition or other processing by Procurement Services or if your department may order it directly.
  • Reference the other links under "Buying & Paying" in this page's navigation bar for full information on paying for purchases acquired through all purchasing methods.

There are three methods by which departments may purchase for themselves those goods and services which do not require processing by Procurement Services. It is important to understand the restrictions and requirements for each method before making a purchasing decision.

  1. University Purchasing Card (PCard):
    The PCard may be used for purchases of $4,999 or less or for air and rail tickets in any amount. There are, however, restrictionspopup on the types of purchases that can be made and a special procedure must be followed if the price of travel tickets exceeds the individual card holder's established spending limits.
  2. Limited Purchase Order:
    Purchases of less than $5,000     may be ordered directly and paid automatically by the simultaneous submission of an LPO, or may be purchased against an existing standing order LPO. See restrictionspopup .
  3. Payment Voucher:
    Orders of less than $50,000 for goods or services meeting the requirements for demand payments may be placed directly and paid by submission of a PV.

All other orders require competition and must be processed by Procurement Services:

Purchase Requisition

Goods and services which require competition, or are restricted from purchase on the PCard, LPO, or PV, cannot be purchased directly by the department and may only be acquired through the submission of a Purchase Requisition.

Following departmental approval, our buyers will review the requisition, seek appropriate competition, create a Purchase Order to the selected supplier, and place the order.

Paying Outside Vendors

All payments for goods and services must be processed by Procurement Services. The payment procedures vary depending on the method used to purchase.

Reference the other links under "Buying & Paying" in this page's navigation bar for full information on paying for purchases acquired through all purchasing methods.

  • Invoices for POs and LPOs must always reference the PO Number and should be sent directly to Procurement Services - Accounts Payablepopup for payment processing.
  • Vendors cannot be paid for LPOs until they are registered in the Integrated System Supplier List. Please see Adding a Vendor for an LPO for instructions.
  • University Purchasing Card payments are made directly by the University to BOA Visa. Cardholders keep a log and receive a monthly statement from BOA Visa for reconciliation. There will now be a window of several days each month during which it is possible to change or split the PTAEO (charged account) of each transaction which is in the Integrated System from that month's billing.
  • Invoices to be paid by Payment Voucher should be sent to the department. It is the department's responsibility to submit Payment Vouchers promptly and correctly so that vendors receive timely payments, as required by law. These payments can also be reconciled using reports provided in the Integrated System application.

Standing Orders

A standing Purchase Order allows departments to obtain one PO or LPO for a specified dollar amount and then place multiple purchases against that order, authorizing payment only for each purchase.

Creating a standing order:

  • The total cost of the good or service for a 12-month period determines whether the order requires competition, and what methods may be used to place the order.
  • For orders totaling $4,999 or less for the 12-month period, we recommend the University Purchasing Card.
  • It is important that the 12-month cost can be accurately projected when creating a standing order.

Purchasing against a standing order:

  • The vendor must be given the PO Number from an existing, approved Purchase Order in the system.
  • Vendors should be instructed to invoice only for the amount of each individual purchase.

Managing a standing order:

  • Exercise special vigilance when receiving and when reconciling receipts against paid invoice copies.
  • If discrepancies are detected, notify an Accounts Payable Specialist immediately, so that vendors are not paid for items not yet ordered or not received in good condition.
  • Remember that small dollar purchases add up. If the total amount invoiced against a standing LPO reaches $5,000, the final invoice will become a problem invoice and will require special processing by Procurement Services before payment can be made.

Law

As a public institution the University is governed by the Code of Virginia. Other laws which directly apply to purchasing are:

Policy

Procurement Services defines policy as what we are required to do, by law, and by the combined policies of the Commonwealth and the University. All activities carried out and administered by Procurement Services are subject to these policies: