Indiana University Purchasing

Instructions for Automatic Purchase Orders

The Automatic Purchase Order (APO) facilitates quick placement of small, routine orders. It extends purchasing authority to a department for these transactions. The total dollar amount of goods/services for any single APO cannot exceed one thousand dollars ($1,000). This amount includes cost of shipping. Other restrictions apply and are described in section "C" of this document.

Please read all of these instructions carefully before using the Automatic Purchase Order. This is an additional method of procurement providing a convenience for the using department. However, failure to comply with these procedures can result in revocation of a department's right to use APOs.

1. GENERAL INFORMATION
1. Departments are given a $1000.00 APO limit.
   The delegation of limited purchase authority to a department allowing use of the APO means the departmental user accepts and is responsible for compliance with all State of Indiana and Indiana University policies, rules and regulations governing procurement. This includes adherence to all prohibitions, restrictions, and limitations of such purchases. The APO may not be used to make purchases from: (1) Indiana University employees or their spouses, (2) business concerns of which an IU employee (or spouse) is a sole or principal owner, or (3) corporations of which an IU employee (or spouse) is a major officer or primary employee.
   
   The APO must not be used to reimburse Indiana University employees. The proper vehicle for reimbursements is the Indiana University Disbursement Voucher with receipts attached.
2. ADDITIONS, DELETIONS, CHANGES, CANCELLATION OR VOIDING AN APO: Any revision of the original APO must be completed by the Purchasing Department. Use the EPIC note screen to notify Purchasing of requested changes by placing the Email ID of a Purchasing staff member (via the appropriate commodity area) in the field provided on the note screen.
3. RETURN OF MERCHANDISE: Authorization from the vendor must be obtained for returns. A Return Goods Authorization number is usually given by the vendor, and must be visible on the outside container. A Material Return Slip and Shipping Permit must be completed prior to the return of any item. The return slip should include the purchase order number and a description of items returned. A copy of the return slip is packaged with the items being returned. If the vendor is responsible for return shipping, notify the vendor to issue a call tag for the package (at Central Receiving or at the department). If the department returns a package, retain documentation of the shipment.
4. TELEPHONE/FACSIMILE ORDERS: If an order is phoned to a vendor, the APO should have a line item that states "Confirming" to avoid a duplicate shipment being made.
5. STACKING: You may not use multiple APOs for one requirement. "Stacking" APOs which keeps the dollar amount of the individual order under $1,000.00 but the total requirement over the $1,000.00 limit is not permissible.
2. COMPLETION OF THE APO
1. Complete all fields in EPIC. Under the "Items" tab, the field titled "RESTRICTED" should be left blank.
2. If you enter a "BEGIN AND END DATE under the "Payment Info" tab, the requisition will be forwarded to Purchasing since this is the trigger for a Recurring Payment Order.
3. Complete line item information in EPIC.
4. If you require a check enclosed APO, change the Method of Transmission from Fax to Print. The APO will need to be printed by the initiator of the requisition They will receive an FYI in their Action List. Select the "EPIC PO Print Doc" from the Action List to open the PO Print Screen. Select the "print" button. A PDF document will open and you can print through normal Adobe Acrobat print functions.
5. APO approval is completed by the Fiscal Officer or their Delegate.
6. Transactions for hospitality require approval from the appropriate source. Contact University Budget Office for UA accounts, Bloomington Budget Office for BL accounts, and Contract and Grants for C&G accounts. This approval information must be listed on the next available description line. Any APO for hospitality without this approval information will not be paid. The invoice will be sent to the department asking them to obtain the appropriate approval or to make arrangements to pay with personal funds or through the Indiana University Foundation.
7. The following is a list of hospitality object codes for your convenience:
   • Conferences & Workshops: use object code 4026 for hospitality
   • Auxiliary & Service Units: object code 4868 should be used for promotional expenses. Actual auxiliary hospitality expenses (non-promotional) should be charged to object code 4025.
   • Designated Other Funds (23) Accounts Funded by External Sales: use object code 4868.
   • Grant, Contract and Gift Accounts: use object code 4027 for hospitality.
   • Student Activity Hospitality: code as appropriate; object code 4028 (Student Activity Fee Hospitality Expense) or the appropriate recruitment object code, etc. or contact your campus business office for assistance.
8. Please review the institutional policy governing hospitality expenses (see http://www.indiana.edu/~vpcfo/policies/accounting/i-50.html). A summary of key points is presented here for your guidance in preparing orders and documentation.
3. APO cannot be used for the following:
• Animals
• Furniture, furnishings
• Orders to University employees for personal service
• Inappropriate Purchases (An inappropriate expenditure is one that "personal" in nature and is not for the purpose of the institution.)*
• Plants and Flowers
• Professional Services
• Purchases involving trade-in
• Radioactive materials
• Recurring payments (leases, rentals, standing orders, etc.)
• Reimbursements to Indiana University employees
• Travel or travel-related expenses, including reimbursement
• Weapons, ammunition