Purchase Orders Required

Nothing may be bought for the company by any employee without getting a purchase order (PO) approved BEFORE the purchase is made. Purchase order forms are available from Accounting.

A CSW is submitted along with the PO (see PL “CSW”). Once approved, the PO is an authorization to purchase and a record of what was ordered. Both forms are usually needed when purchasing. For repetitive purchases such as office supplies that are self-explanatory, a CSW is not required.

All entertainment, travel, gas, supplies, paper, pens, stationery, printing, repairs, materials, outside labor, advertising, contracts for goods or services, postage, displays, boxes, findings, and all items/services subject to being paid for are included in this purchase order system. There are no exceptions! The question is, “Does this cost money?” If so, a PO and CSW are required.

Include in your PO how this purchase will be paid: will the company send a bill, will we send a check immediately, will we pay with cash, do we have to order with a credit card and if so, what kind (some companies do not take American Express)?

Once you complete the PO and attach a CSW, route it to your supervisor for his or her approval. If approved both forms are turned in to the CFO’s mailbox in the Message Center. The CFO along with other management personnel approve or deny Purchase Orders based on many factors including the state of our company budget.

If your PO/CSW is approved you will get a copy back, and you now have the authority to make the purchase. When you call to order the item, give the company the purchase order number so that it can appear on their invoice. If you receive a receipt by email or snail mail, forward the receipt to Accounts Payable in the Accounting Department.

When you receive the item, verify that we were charged the correct price then attach your copy of the approved PO to the invoice or packing slip and turn it into Accounting.

If you use your own money to make the purchase, submit the receipt with the approved PO to get reimbursed.

If you have an approved PO/CSW for $300, but then you call to order it and find out that it will cost a total of $315, you must resubmit your PO/CSW for the additional $15.

If your PO was not approved, it will be returned to you marked “disapproved.” If there is more data about why it should be approved that was not included on the original CSW, you may add this data and resubmit the purchase order.

The PO/CSW may just be returned to you with a “CSWP” on it. This means “CSW Please” as not all data was given to justify your solution or make it clear that this is the right solution. Your work was not “complete”, and more info is required. Add the missing information and resubmit the PO.

Subscriptions or services that renew annually also require an approved PO before renewing, just like any other purchase. This prevents us from continuing to pay for a service or app that isn’t being used anymore, or switch to a different plan. Submit the PO 6 weeks before the renewal date as many services require 30-day notice to cancel.

Subscriptions or services that are billed monthly and continue monthly until canceled must be approved annually on the anniversary date of the initial subscription. Submit the PO 6 weeks before the annual anniversary date as many services require 30-day notice to cancel.

The person who uses the subscription or service is responsible for submitting the PO to renew it. If more than one person in a department uses the subscription or service, the manager of the department is responsible for submitting the PO. If more than one department uses it, the department managers will agree on who will be responsible for submitting the PO. If it’s an IT subscription or service that several departments use, the IT manager is responsible for submitting the PO.

Anything purchased without an approved purchase order including automatic renewals may be considered a personal purchase by the person ordering, and that person may be stuck paying for the item. Authorization or approval by your supervisor to make a purchase does not change the requirement to obtain an approved PO from the CFO before ordering.

If the CFO is not available for some period, she may authorize the COO to approve POs. The CFO may also give approval for POs by email or phone to place the order and will sign the PO upon her return.

A purchase order system gives predictability to our expenditures so that we don’t overspend. We aim to spend our money where we will get the biggest return on that investment. We don’t spend on things that would be “nice to have” or because we want it. We use our money to make more money. Before you submit a PO for a purchase, ask yourself if this purchase is necessary or just something that you want, and what kind of return we will get back for spending the money. Then make that clear in your CSW.