1. How does this thing work, anyway? This presentation is intended to make filling out a Purchase Order easier; however, some may find it difficult to maneuver around all that glitters, so here are a few pointers: –The show will automatically advance; however, if you would like to stop it at any time, just hit Enter. If you want outta here, hit the aptly named Escape button.

2. 2 Let’s get to know our PO, shall we? A Purchase Order, or PO, is typically used when placing an order for goods or services; a PO is also used whenever a check must accompany the order (supporting documentation must accompany the requisition in order to issue a check).

3. 3 Paint By Numbers…again As with the Accounts Payable PowerPoint Show, we will do the numbers thing here with Purchase Orders. That means this tutorial will take you through the 17 steps required to birth a PO, step-by- step—no more guessing! It’s really very simple. Come, join the fun!

4. 1. Check Boxes Galore This is where you tell the Business Office whether or not a check needs to accompany the order. If nothing is checked, a PO is manufactured as if a check does NOT need to be issued. 4

5. 5 2. Requisition Date Today’s date.

6. 6 3. Vendor Information Enter the vendor name and address where the order is to be sent. A full physical address is needed for, among others, auditing purposes.

7. 7 Item No. This is too often a confusing step—but it wasn’t designed that way. This may surprise you, but this is NOT where you want to put your product number (put your product number in the Description); this is simply where you number your items consecutively, i.e. 1, 2, 3. People tend to want to make more of it than it needs to be, thinking that they need to fit their twelve-digit product number in this teenie- weenie space, and cursing the dolt who designed the form. Well, let the dolt put your mind at ease and simplify things for you: 1,2,3—those are the only numbers that belong here.

8. 8 4. Description—Part I Note the sentence above Description—the sentence telling you to use the “EXTRA SHEET” if ordering more than three items. This is quite possibly the most misunderstood dogma in all accounting lore. This sentence simply means this: If you have more than three (3) items to order, write the words, “See attached” in the Description and simply attach a second page (the EXTRA SHEET does nicely, but any sheet will do). The reason for this: crowding all kinds of items in a small space does not a legible Purchase Order make. If I had a nickel for every PO that had three items on Page 1 and two items on Page 2, I wouldn’t be rich—I’d be filthy rich. So rich you wouldn’t be able to stand me.

9. 9 4. Description—Part II As I was saying, I’d be so rich I wouldn’t have to put together PowerPoint presentations on how to fill out Purchase Orders for a living. But that not withstanding, suffice it to say and nevertheless, if you have 4 items, just write “See attached” and attach the EXTRA SHEET or a reasonable facsimile.

10. 10 5. Quantity Obvious, mayhaps, but tricky, also. (That’s how you get four commas in a five-word sentence.) Okay, if you’re getting one item, put 1 in Qty; if you’re getting a measurement of one item (eg. 10 ml of an item that comes in a bottle), put 1 in Qty and 10 ml in Description. We’ll deal with the whole Unit issue next.

11. 11 6. Unit A typical unit: EACH. It can be as exotic as PKG, or BOX, or CS, but usually, it’s just EACH. Pop Quiz: Q: If you were getting 10 ml of something the comes out of a bottle, would you put “Bottle” or “Each” in Unit? A: Each. Rule of Thumb: If you’ve got a measurement of anything, put it in the Description, not the Unit.

12. 12 7. Unit Price If Unit Price isn’t clear enough, think of it as price/unit.

13. 13 8. Amount Qty x Price = Amount

14. 14 9. Ordering on Page 2 May I refer you to 4. Description—Parts 1 & 2. Short Form: put “SEE ATTACHED” in the ITEM field and NOTHING MORE and record ALL your items on Page 2.

15. 15 10. Requisition Total Amount + Amount Requisition Total

16. 16 11. Cost Center/WBS This is where you will list the Cost Center/WBS budget codes from which you intend to pay the PO.

17. 17 12. Amount This is where you list how much money you would like taken out of each CC/WBS.

18. 18 13. “PURCHASING OFFICE USE ONLY” Enter a brief description of the item here.

19. 19 14. Purchase Order Total Enter total amount of Purchase Order here.

20. 20 15. Quotations Received From Any PO over $2,500 needs to have bids from two additional vendors. The vendor names and bid amounts are listed here and documentation can be attached but it can also be kept in your files, in which case, make a notation of that on the PO so we know where to send the auditor.

21. 21 16. Requested By The person making the request signs here. This person becomes the SHIP TO once the PO is created.

22. 22 17. Approved By The fund controller(s) signs here. This person becomes the BILL TO once the PO is created.

23. 23 “Then what happens?” you ask. I’m glad you asked. When a PO is born, 5 clones (or “copies”) are made— each with its own unique color and purpose. The white copy goes directly to the vendor; the blue and yellow copies remain in A/P custody (for reasons we don’t need to get into here) and the pink and gold copies get sent to the BILL TO. The BILL TO, if you will remember, is the fund controller. Here’s what you need to remember about this conversation: No matter who does the ordering, it is always the BILL TO who gets the pink and gold copies. Theoretically, the vendor will be sending the invoice to the BILL TO, however, if you, as the SHIP TO, receive the invoice, get it over to the BILL TO so it can be submitted for payment. Hurry, they’re waiting. But before you rush off, there’s more. Oh, yes, there’s more…

24. 24 More… On the subject of paying Purchase Orders: For you fund controllers out there, once you receive word the merchandise was received in good order, you need to approve the payment by making some kind of “Okay to pay” notation anywhere on the pink copy. Attach the ORIGINAL invoice to said pink copy and send to the Business Office.

25. There, now. You’re done. Still plagued with questions, concerns or critiques? Contact Accounts Payable. The helpful women who run the place would be more than happy to assist your every Purchase Order need. Be prepared to take a number.