Departmental Purchase Order (DPO)
SUPERCEDED on January 31, 2005
Procedure No.: 55.074
Page No.: 1,2,3,4,5 and 6 of 6
Date Issued: 05/06/92
Issued By: Michael Worley
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- The departmental purchase order (DPO) authorizes departments principal investigators) to place small orders directly with WITHOUT PRIOR APPROVAL BY the Purchasing Department.
This procedure combines the traditional purchase order and requisition forms and may be used to order goods/services with specific restrictions and dollar limits described herein.
- Except where restricted under Section III D herein, users are offered a new procurement option whereby orders may be placed directly with the vendor of their choice. DPO is designed to save administrative costs and expedite delivery on small orders.
Although departments are encouraged to use the DPO procedure, the Purchasing Department will continue to process long form requisitions into purchase orders for low dollar amounts.
III. USE - SPECIFIC DOLLAR LIMITS AND EXCEPTIONS:
Goods, services and rentals (excluding those that require prepayment). Some common examples are: miscellaneous supplies, equipment repair, copying, and page reprints.
- A. DPO WITH A GOODS/SERVICES DOLLAR LIMIT OF $500 (EXCLUSIVE OF SHIPPING) MAY BE USED FOR BUT IS NOT RESTRICTED TO:
B. DPO WITH NO DOLLAR LIMIT MAY BE USED FOR:
Advertising, film rental, subscriptions, books and directories for reference (DPO is not to be used for purchase of books for student or classroom use, or resale); vehicle rental (six passengers or less).
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C. DPO ORDERS ON GRANT ACCOUNTS
All DPO orders used for purchases on grant accounts must be approved by the Office of Research and Sponsored Programs before release to a vendor. Failure to comply may result in charges being transferred to department and/or college accounts.
D. DPO MAY NOT BE USED TO PURCHASE......
DPO may not be used to purchase any goods or services which are already excluded by other University Policies and Procedures, i.e., 55.003, 55.005, 55.031, 55.035 or items on Plant Fund Accounts (account numbers starting with 6).
- DPO FORMS in packets of twenty-five must be ordered from Central Stores on long form requisitions (not the conventional "short form") by using stock number 7.6221. The requisition should specify an administrator's name to whom the forms are being issued. In the event that no name is specified, the name in the APPROVED DEPARTMENT HEAD box will be used. There is no limit on the number of packages that can be ordered at one time. Forms are pre-numbered, should be used in consecutive order, and are for the exclusive use of the budget unit (including grant accounts within that unit) to which they are issued. In the event that an individual to whom DPO forms were issued should leave his/her current position, the name of the interim/replacement person(s) must be reported to Central Stores.
The DPO initiator may use one of two order processing options:
- Confirm availability and price by phone or catalog, then type the DPO form and obtain authorized signature. A Signature Authority should remove and retain the Department Copy upon signing. Items may not be added after the form has been signed by the Signature Authority and subsequent separation of the form pages. The vendor's copy may then be carried, mailed or Faxed to the vendor, or order may be phoned in.
- Obtain authorized signature on form and take form to vendor's counter where detail of items and prices will be added. Remove vendor's copy and leave with vendor. Return remainder of form to Signature Authority for completion and forwarding of all copies. If an invoice is obtained from the vendor when item(s) is(are) picked up, staple it to the green DPO copy before forwarding.
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Blank forms should be stored in a secure location and any theft reported to the Purchasing Department. Negligent use or handling of DPO forms by the administrator to whom the forms were issued may result in any charges being assessed to the respective unit's budget. The DPO initiator shall have sole responsibility for dealing with issues that may arise from the use of DPO forms (i.e., problems regarding late deliveries, incorrect invoices, incorrect items and/or quantities, damaged material, warranty claims and inferior product must be corrected by the initiator and not referred to the Purchasing Department).
The budget encumbrance resulting from DPO orders will be incurred during the fiscal year that the goods/services are received.
- V. FORM DESCRIPTION AND INSTRUCTIONS FOR COMPLETION
- IT IS PREFERRED THAT DPO FORMS BE TYPED. If not, they must be printed in a legible manner. If continuation pages are necessary, attach 8-1/2 x ll bond to each DPO copy and reference the pre-printed DPO number on each page. Spaces must be completed as described below.
Date the order was typed.
Complete account number(s), dollar distribution and account approval (a separate approval space is provided for situations where different accounts require approval by different individuals). If more than four account numbers are to be used, type "SEE BELOW' on last line and type balance of account numbers and respective dollar distribution anywhere in body of the form.
DIRECT QUESTIONS TO:
Name and phone number of person to contact with questions regarding the order.
CUFS vendor code and the vendor's name, address, city, state and zip code. The vendor number may be obtained from a PO sent to the same vendor (in your departmental file). Leave blank if code is not available.
SHIP AND INVOICE TO:
The ship to address must be filled in completely with department name, address, building and room number, city, state and zip code. Enter "PICK UP" if items are to be picked up. Do not instruct vendors to ship through OU Central Receiving.
Enter the quantity of units desired.
Unit of measure (e.g., each, pack, case, feet, pounds etc.).
PART NUMBER AND DESCRIPTION:
Catalog number and description.
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Unit price is to be completed with a confirmed unit price. Existing price agreements, contracts, vendor sources, etc., are available from the Purchasing Department upon request.
The extended price must be entered, and must equal the amount in the quantity column times the amount in the unit price column.
EXPECTED DELIVERY DATE:
A preferred delivery date.
PLUS TRANSPORTATION, FRT. OR POSTAGE:
Write in any shipping expense that was added by the shipper.
Write in "grand total" for all goods and shipping expense.
A Signature Authority must sign the DPO form before the white copy is mailed or carried to the vendor. This individual will be responsible for all phases of the budget unit's DPO procedure.
Signature of Dean, Director or Department Head. A signature in this space must be obtained before release to a vendor in budget units where internal policy requires additional administrative approval.
The four parts of the DPO form and their purpose are:
WHITE VENDOR COPY:
When items are to be picked up, the white copy will be presented to the vendor. When ordering by phone, the pre-printed DPO number will be referenced, but the vendor copy destroyed. When ordering by mail or FAX, the vendor copy is to be mailed or faxed (do not send by both methods).
GREEN ACCOUNTS PAYABLE COPY:
The green copy is to be retained by the initiating unit until the order is complete. Upon final completion, the addition of a signature and the date of receipt confirms that goods/services were received, and approves the invoice for payment. This copy must be completed and forwarded to the Budget Office immediately upon receipt of complete original invoice.
Upon receipt of all goods/services on the order and receipt of the complete invoice, the initiator will provide the additional information required on the DPO green copy, enter any freight or shipping charges which may have been charged and staple the original invoice with one additional copy on the back. If the vendor sends the invoice directly to Accounts Payable, clerks will access the on-line CUFS DPO log table and obtain the proper department address to which invoices must be forwarded for approval.
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If necessary, correct the total dollar amount at the bottom of the DPO "EXTENDED PRICE" column, then send the green order copy with invoice stapled on back to the Budget Office immediately. Packing slips and statements will not be accepted as original invoices. Be sure the account number(s) is(are) legible on the green copy.
BLUE INITIATING DEPARTMENT'S COPY:
Departments should maintain a log of all DPO's issued including: initiator, vendor, order number and date issued. It is recommended that departments maintain two files; CLOSED for completed orders and OPEN for orders that have not been received.
YELLOW ADMINISTRATIVE COPY:
Is an additional copy for colleges, departments or the Office Of Research and Sponsored Programs (ORSP) to use in accordance with respective control requirements (to be used by ORSP for Restricted Accounts). If not a Restricted Account, copy may be retained by the college or department.
Do not send the green copy until the order is completed to your satisfaction and no further deliveries are expected. Any partial cancellation of the order must be indicated on the DPO form before forwarding it to the Budget Office.
VOIDING DPO ORDER FORMS:
To "void" an order, mark all copies "VOID", send the green copy to the Accounts Payable department, and discard or recycle all other copies. Cancellation or voiding of orders after release to a vendor must be approved by a vendor representative and that person's name written on the voided green copy as follows: "ORDER CANCELLATION APPROVED BY XXXXXXXX ".
RETURNING GOODS PURCHASED WITH DPO FOR CREDIT OR EXCHANGE:
Items to be shipped out of Ohio University should be processed by direct contact with a carrier and payment made to the carrier by a separate DPO. Any checks or credit memos received by initiating departments should be sent to Accounts Payable with a note of explanation and reference to the appropriate DPO number.
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VI. Responsibility, Improper Use
The DPO option is a responsibility delegated by the Director Of Purchasing (OU POLICY & PROCEDURE #55.003). Utilization of DPO is not mandatory but is available to budget unit administrators who are willing to assume the responsibility. This delegated authority is a privilege that can be suspended as a result of misuse. Some examples of misuse are:
- IT IS THE RESPONSIBILITY OF EACH INDIVIDUAL USING THE DPO FORM TO READ AND UNDERSTAND THIS POLICY AND PROCEDURE. IT IS ALSO RECOMMENDED THAT HE/SHE HAVE A WORKING KNOWLEDGE OF THE CURRENT LONG FORM REQUISITION PROCEDURE.
- Pyramiding - The practice of splitting transactions to divide a large purchase (over $500) into smaller ones. Splitting of a DPO is defined as more than one DPO to the same vendor, the same days and on the same account.
- Purchase of items for personal use.
- The use of DPO forms without authorization from the person to whom the forms were issued.
- Failure to adhere to the policy and procedure as described herein.
- Purchase of any items described above in Section D. "DPO MAY NOT BE USED TO PURCHASE " (page 2)
Upon signing the designated space in the lower left corner of the DPO form, the individual (Signature Authority) is certifying that he/she:
- has received and reviewed the DPO Policy & Procedure.
- understands the policy and procedure and accepts responsibility for DPO orders bearing his/her signature.
- understands that the procedure may be suspended if Policy and Procedure is violated.
It is the responsibility of the Administrator to whom the DPO forms are issued to control their distribution, use and selection of budget unit Signature Authorities. Individual colleges, university departments, Office Of Research And Sponsored Programs or budget units will establish internal guidelines for issuing and use of DPO forms.
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Dick Piccard revised this file (http://www.ohiou.edu/policy/s55-074.html) on February 2, 2005.
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