After-The-Fact Transactions Are Audited
source Tim Rice
When a PO is generated after the product or service has been provided, the transaction is in violation of university policy. These transactions are referred to as Confirming Orders and pose major risks to the University. Purchasing routinely runs a report on confirming orders and this type of unapproved purchase could cause problems.
Every quarter, Purchasing reports these confirming orders to a chancellor or other administrator at each campus. Ultimately, the individual making the unauthorized purchase could be held liable for the payment.
Vendors also experience problems from confirming orders, including late payments when their invoice is not handled in a timely manner. A vendor may take the step of placing the entire University on credit hold for a single late payment, meaning that a critical order for one department could be delayed due to the inappropriate actions of another department.
Several quick and convenient purchasing methods are available to departments, so an after-the-fact purchase should not be necessary, except in the case of emergencies. Contact your local Purchasing department with any questions.
IUPUI EPIC users: please see the IUPUI News section of this newsletter for more information on handling confirming orders on your campus.