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After-the-Fact Purchase Transactions
An "After-the-Fact" purchase transaction is a purchase that has been made by a
faculty or staff member without prior issuance of an approved purchase order or use of a
Purchasing Credit Card, and then, an attempt is made to initiate a purchase order
after-the-fact in order to pay the supplier invoice. Such a transaction violates
University
financial policy #2301. School or Center senior financial officers will be advised of
employees in their area who place orders for products and/or services without prior approval
of a University purchase order or Purchasing Credit Card, and in turn, create financial
liability and risk for the institution.
After-the-fact purchase transactions create significant payment and supplier relationship
problems for the University. In many cases, these transactions:
- Place the University at financial and credit risk and result in higher than necessary cost paid for products and services.
- Create unnecessary administrative effort in the Schools or Centers, and in central administration.
- Bypass the University's encumbrance requirement.
- Violate purchasing policies including utilization of contract suppliers.
- Lack competitive bids for transactions with an aggregate dollar value of $5,000 or more.
- Lead to significant supplier payment issues including possible credit hold by suppliers.
- Result in supplier contracts with unfavorable terms and conditions signed by unauthorized University personnel.
- Could result in duplicate payments to the supplier.
BEN Buys PO Managers (purchase requests <$5K) and Sourcing Managers (purchase
requests >$5K) in Purchasing Services are required to reject any purchase order for what
is believed to be for payment of an after-the-fact transaction supplier invoice.
Instructions for Payment of Unauthorized After-the-Fact Transactions
If you previously initiated a transaction that created an After-the-Fact supplier invoice,
it must be processed via a
C-Form.
School and Center C-Form activity is analyzed as part of the
Procure-to-Pay Enhancement Project and formal reports are available
to the School or Center senior financial officers to manage performance in their organization.
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