1. Customer Training Scott Pigeon Penni Douglas 1

2. 2 Procurement Services Website*Procurement Services Guide to Procurement Vendor Portal Travel Training Shop Clemson buyWays – Clemson’s online e-procurement systemClemson buyWays VISA – Procurement Card (P-Card) ProgramVISA From FAQ’s to Contracts, Sam’s Card Program to Surplus Property, the Procurement Services website should be a bookmark in your browser for quick reference for all topics relative to purchasing and payment Where To Start? * http://www.clemson.edu/cfo/procurement/http://www.clemson.edu/cfo/procurement/

3. 3 Procurement Questions buyWays or Bidding Queries Customized Training Supplier Registration Available Contracts Dept. Spending Reviews Sourcing Catalog Suppliers

4. Topics Ethics/Conflict of Interest Procurement Policy & Guidelines Buying Paying 4

5. Ethics The South Carolina State Ethics Act The South Carolina State Ethics Act governs ethical behavior for state employees: Do not use position for personal gain Do not make payments to public officials Do not disclose confidential information Overall code of conduct should be beyond any ethical concern or question 5 http://workgroups.clemson.edu/FIN5337_HR_POLY_PROC_MANUAL/view_document.php?id=118

6. Ethics As an employee you may be given the authority to be an agent of Clemson University (shopper, cardholder, accountant) Accountability and responsibility Business purpose Actions outside of the policies, may be subject to disciplinary action or your personal liability 6 http://workgroups.clemson.edu/FIN5337_HR_POLY_PROC_MANUAL/view_document.php?id=118

7. Conflict of Interest Clemson canNOT purchase from the following: A University employee, goods and/or services. An employee’s business in which he/she owns more than 50% of the business An immediate family member Requests for exceptions are submitted via email to the Procurement Director Mike Nebesky (mnebesk@clemson.edu) 864-656-2067Procurement Director(mnebesk@clemson.edu) 7 http://www.clemson.edu/cfo/procurement/policies/psv_policies/psv12pol.html

8. Buying Clemson University is a State Agency & must comply with the SC Procurement Code and utilize the established State contractsState contracts Contract items are available in buyWays o Suppliers with contracts are indicated with Our Buyers Manager – Shirley Alexander MRO/Facilities – Allison Patton Lab/Scientific – Jody Burgess IT/Software – Tammy Crooks Furniture, A/V, Agricult. – April Pitts 8

9. State Contracts Air Conditioners Lamps/Ballasts Furniture Fuel Ice Machines Lab Equipment Landscaping Equipt Computers Network Equipment Office Supplies Medical Supplies Copy Paper Printing Photo Film & Supplies Printers & Toner Disaster Recovery Projectors Radio Equipment Software Temporary Services Tractors Vehicles Video Conferencing Equipment 9

10. Buying – The 2 Ways Purchase order (including the Direct Payment which is a purchase order NOT sent to a vendor) in buyWays, or Procurement Card, ≤$2,500, unless a higher card limit is approved. 10 Lynn Crawford (crawfo5@clemson.edu) Procurement Card / Sam's Club Card Administrator 864-656-2808(crawfo5@clemson.edu)

11. Buying 11 Dollar LimitRequired Actions < $2,500Price Fair and Reasonable $2,500 - $10,0003 References > $10,000 (Sole Source)Justification to Proc Director $10,000 - $50,000Public Bid $50,000 - $100,000 (Protestable) Public Bid or proposals > $100,000 (Protestable) Public Bid and VP approval > $2,000,000 IT Purchases*Public Bid by State Procure > $2,000,000 Gds/Services*Public Bid by State Procure * Indicates the University’s Procurement Certification

12. Paying Timely payment Invoices should be entered upon receipt for buyWays –PO – already approved –Enter Non-PO Invoice which routes for approval Payment to vendor is based on the vendor payment terms specified in PSFT system – Default Net 30 All vendors are required to register with Clemson prior to doing business As a state agency, Clemson has 30 days after receipt of goods to pay any invoice 12

13. Paying Requisition ~ PO ~Invoice (Preferred Method) Any amount AND a legal binding contract exists with checks and balances for Clemson and the vendor - PO before invoice Forms Payment Request Form (Invoice liability without prior PO) or one of the exemptions Direct Purchase Form For encumbrance purposes as in a declining balance for utility payments for the budget/fiscal year Procurement Card ≤ $2,500 (unless a higher limit card is approved) 13

14. 14 Paying Vendor Resources – all vendors must register through our vendor portal to receive a PO and/or payment Dedicated Vendor Portal Vendor Registration Terms and Conditions Payment Inquiry Assist Vendor Bidding Instructions Procurement Policy Payment Policy/Options Vendor Payment Status Judy MacMullen (judymc@clemson.edu) Vendor Maintenance Administrator 864-656-5584 buyWaysvendor@clemson.edu(judymc@clemson.edu) buyWaysvendor@clemson.edu https://www.clemson.edu/finance/procurement/venreg/vendorpayments.html

15. 15 Do not change chartfield strings or approved funds when entering an invoice in buyWays where the approval has already been obtained Do not change payment terms Payment terms are selected by the supplier upon registration Paying

16. Payment Methods Vendor Check ACH (Automated Clearing House or Direct Deposit) Departmental P-Card (VISA) PayMode (Electronic Funds Transfer) Wire Transfer (Normally for Rapid Funding to Overseas accounts) Interdepartmental Journal Entry (General Ledger movement of funds between departments) Interdepartmental Transfers (IDT) Movement of funds between state agencies 16

17. Clemson University is NOT tax exempt You are responsible in determining tax applicability. Some specific items/commodities are tax exempt. View list: Tax Exemptions Please ensure that your requisitions are marked accordingly 17

18. Sales Tax Sales tax is imposed on the sale of goods and certain services in South Carolina Statewide the sales tax is 6%, however counties may elect to impose an additional X% local sales tax Generally, if tax is not on the invoice, the vendor is not registered in SC 18

19. Purchases of tangible goods purchased from an out of state vendor for use in South Carolina Use tax is complimentary to the sales tax Serves to “even the playing field” where out of state sellers are concerned Purchaser is liable for the use tax Use Tax is accrued on the invoice and paid to the SC Tax Commission by Accounting Services. SC Tax Commission Use Tax 19

20. 20 Purchase ItemDescriptionTaxable Maintenance Contract for Equipment or Item Purchased with Equipment/Tangible Property even if listed as a separate line itemYes Maintenance Contract for Equipment or Item Purchased at a later date or not purchased in conjunction with the productNo Maintenance Contract for Software Purchased with Software that was delivered electronicallyNo Maintenance Contract for Software Purchased Delivered Tangible Property (Disk, Flash Drive, etc)Yes Software Purchased or Delivered Tangible Property (Disk, Flash Drive, etc)Yes SoftwareDelivered ElectronicallyNo Software Internet websites that allow customer use of software on that website. Companies that provide customers access or use of software are referred to as Application Service Providers (ASP).Yes Warranty Purchased with Tangible Property even if listed as a separate line itemYes Warranty Purchased at a later date or not purchased in conjunction with the productNo Renewals of existing agreements (maintenance, warranty, or software updates and licenses) are subject to tax based on the original purchase. http://media.clemson.edu/procurement/TaxUpdates9.1.11.pdfhttp://media.clemson.edu/procurement/TaxUpdates9.1.11.pdf Tax (Maintenance, Warranty, Software)

21. Same amount of tax is due whether the item is bought in state or out-of-state Buy 2 lawn mowers from Smith Lawn Supplies, Clemson, SC, Price: $275 x 2 =$550 + $38.50 Sales tax (7%) = $588.50 (pay to vendor) Buy 2 lawn mowers from internet company Price $275 x 2 = $550 (pay to vendor) Use tax $38.50 (pay to SC Dept of Revenue) 21 Tax

22. Most purchases are taxable unless R&D exemption applies Installation stated as a separate line item is non-taxable Labor is non-taxable when the labor is stated as a separate line item from the parts Do not say something is Taxable and then enter 0% for tax in buyWays CXML (electronically integrated) suppliers should collect SC sales tax 22 Tax

23. 23 R&D Tax Exemption Equipment used 50% or more directly and exclusively for research and development purposes may be exempt from sales and use tax Completing / signing the separate form is NOT required if PI/Approver approves a requisition indicating purchase is R&D tax exempt If you have questions, please contact Accounting Services for further clarification

24. Freight – FOB Clemson – taxable – this is the default for all Clemson purchase orders Tax is added on freight when entered in the freight field Freight – FOB Shipping Point – not taxable. If freight is not taxable, the amount should be entered as a separate line item, line item marked non-taxable Freight paid directly to freight company – not taxable 24 Freight & Tax

25. 25 Do not pay freight on state contract items ordered unless special delivery if requested Freight has been negotiated by the state in the contract pricing Freight & Tax

26. 26 REMINDERS! 1. Item Description = “see attached” or “per quote” 2. PO vs. payment PO 3. Price References < $10K or Sole Source Justification 4. Contracts that Need Signatures 5. Attachments – Internal vs. External – 1x ONLY 6. Sole Source Justification 7. Select Contract or Exemption 8. Attach Invoices 9. Copy Previous Orders 10. Account Numbers - Get it right the FIRST time