306: Purchasing and Payment Methods
Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Departments should utilize one of the methods of purchasing and payment for direct purchases. As is the case with purchases, payments should not be separated or fragmented in order to circumvent rules and policies.
306-001: Procurement Card
Departments are encouraged to make direct purchases by using their procurement card for those purchases applicable under the OSU procurement card program. This method of purchase is an, efficient method of acquisition and payment. Instructions regarding how to utilize your Procurement Card are located at the OSU Business Affairs website http://oregonstate.edu/fa/businessaffairs/accountspayable/purchasingcard.php
OSU Accounts Payable oversees the OSU procurement card program through the credit card purchasing program established by OUS. For more information go to the OSU Fiscal Operations Policy.
306-002: Purchase Orders
When it is not feasible to utilize other more efficient methods of direct purchasing, OSU departments or Business Centers may wish to issue a Purchase Order. Departments may issue a departmental Purchase Order or a Banner FIS Purchase Order. Once created, departments can send the Purchase Orders directly to the Vendor. For purchases $5,000 and over issuing a Purchase Order is required unless an exception under 303-012 is utilized.
306-003: Store Credit Accounts and Applications
There are rare instances where use of the Procurement Card is not feasible and the Vendor will only accept a Purchase Order after OSU has been approved for a credit account with the Vendor. In those rare cases, departments may initiate establishing such accounts as long as it does not exceed a credit limit of $5000, does not result in a commercial credit account, revolving credit account or credit card. Only those individuals with Contract Signature Authority are authorized to sign the credit application.
To establish a credit account, departments or Business Centers should complete credit applications with the information that pertains specifically to their department such as the department name, contact information and billing address. PaCS will complete the business credit information requested such as tax id number, references, DUNS number, and other financial information on the credit application. Once the department has filled in their information, credit applications should be submitted to PaCS for signature via email at firstname.lastname@example.org. This is the preferred and most efficient method of submittal however if this method is not feasible departments may fax their request to (541) 737-2170 or via campus mail to PaCS.
The submittal will be assigned to an analyst who will then review the credit application, modify any terms or conditions contrary to what OSU can agree to, attach the Business Credit Information attachment, sign and return to the appropriate Business Center or department.
306-004: Prohibited Procurement Mechanisms
The following procurement mechanisms are prohibited:
- Commercial credit or revolving credit accounts
- Credit cards other than the OSU Procurement Card, ghost card or other procurement cards maintained through Accounts Payable.
- Any method that circumvents applicable approvals or procurement rules.
306-005: Auto Pay Vendors
Auto Pay is an OSU program where the monthly statement of all invoices from the vendor(s) is processed by Accounts Payable rather than by individual departments. The Auto Pay program is managed by Business Affairs. For more detailed information go to FIS 408.
306-006: Payment Terms
All Purchase Orders and Contracts should indicate payment terms of Net 30 even though pursuant to ORS 293.463 and OAR 580-061-0050 we are not required to pay interest on late payments until the 45th day after payment is due. Cash on delivery, prepayment or payment prior to receipt of any goods or services should not occur unless pre-payment conditions exist as noted below. Cash to accompany orders must be managed by the department with Accounts Payable.
Prepayment to vendors is highly discouraged because it renders payment for goods or services that have not yet been received. This omits OSU’s ability to withhold payment when goods or services have not been delivered. When a vendor requires prepayment the following conditions must exist:
- There is no other vendor from which OSU can purchase the goods or services; and
- Prepayment is required as part of the purchase order contract terms and conditions; and
- PaCS has approved the prepayment by signing the purchase order or contract.
Vendor documentation may be required to verify that prepayment is the only acceptable form of payment.
306-008: IRS W9 Forms
PaCS maintains current expenditure and revenue W9’s for the University. Tax ID number 93-6001786 is used by all OUS institutions for expenditure transactions or purchases. The name listed on the W9 is “Oregon University System”. Tax ID number 48-1278540 is used solely by OSU for revenue transactions. The name listed on the W9 is “Oregon State University”. The names listed on the W9’s are in accordance with the Internal Revenue Service records and should not be changed. Departments will not be issued separate W9 forms.
Departments may not create or sign new IRS W9 forms or alternate W9 forms. Occasionally a vendor may request OSU to fill out an alternate W9 form capturing information on the IRS W9 form as well as additional reporting requirements. It is recommended that the department first try to use the already completed IRS W9 forms on file at PaCS using the appropriate Tax ID number for the type of transaction (expenditure or revenue) being conducted. If the vendor does not accept the IRS W9 and requires the alternate W9 to be completed, send to PaCS for processing.