Purchase Order Revision Procedure

After an approved purchase order is transmitted to the supplier, there may be a legitimate business reason to cancel part of or the entire order with the supplier. The authorized procedures to process a Purchase Order / Cancel Order (POCO) and terminate the legal obligation to the supplier are listed below. A POCO may be issued for one or more lines of an approved purchase order or the entire order.

The University purchase order is a legal binding contract between the University and supplier. The University is obligated for the cost of the product(s) listed on the purchase order until such time as the purchase order has been canceled via an official notification to the supplier in the form of a Purchase Order Change Order (POCO). Prior to the issuance of a POCO, the supplier must be contacted by the BEN Buys requisitioner to determine if the product(s) has been shipped by the supplier to the University.

If the product(s) has not been shipped, the requisitioner must inform the supplier that the product(s) is not required, that they are not to ship the product(s), and that a formal purchase order change order (POCO) will be issued and transmitted to the supplier. It is recommended that the call to the supplier be documented (date of call and supplier contact name & title) for future reference.

If the product(s) has been shipped, a purchase order change order (POCO) is disallowed. In this case, resolution must be addressed via a Return Goods Authorization (RGA) and supplier credit if the products(s) have already been shipped and invoiced by the supplier. The supplier credit will offset the invoice that was issued upon shipment of the product(s) by the supplier.

All returns are subject to the supplier's formal return policy and may be subject to a nominal restocking charge. The supplier may refuse to issue a RGA and credit if the product(s) ordered is a special order or non-stock product(s).

It is the responsibility of the BEN Buys requisitioner to request the RGA, arrange for the pickup or shipment of product(s) back to the supplier, and track the credit to ensure receipt of credit in Accounts Payable to offset the supplier invoice.