Purchasing and accounts payable

Should purchase requisitions be GST inclusive or exclusive?

Exclusive. The system will automatically calculate the GST component. The formula to deduct GST is to divide the amount by 1.1

For example, total amount is $20: 20 / 1.1 = 18.18, therefore $18.18 is the value to enter into the system.

What should I do for approval of Requisitions which exceed the Level 3 Financial Delegation?

When approving purchases that are outside of your delegation you will need to manually direct the requisition to an appropriate ad-hoc approver.

At a system level, it will not physically stop you doing the approval because it is above $10K or is a fixed asset, and as such, as a Level 3 approver you are required to make a conscious choice to re-route it to the relevant approver. Instructions for including ad-hoc approvers are available in the eProcurement Training Guide.

What should I do if I can't find the required vendor in the system?

Ensure your vendor has been approved before contracting them to provide goods or services. Failure to do so could result in significant delays in payment. Suppliers of services must meet the independent contractor assessment criteria.

The Vendor Application / Change of Vendor Details Form (doc 264kb) should be used to request a new vendor be entered onto the system or to update an existing vendor's details where necessary.

The usual time-frame for vendors to be added to the system is approximately 2 - 3 days from receipt of the completed form (provided the form has been completed correctly, there are no discrepancies in the information supplied, and it has been approved by the Strategic Procurement Manager).

What should I do if I can't find the required product in the OrderMax catalogue?

Products can be added to the OrderMax Catalogue by emailing a request to Procurement.

What number should I quote to vendors - the requisition number or the purchase order number?

When contacting vendors you should ONLY quote the purchase order number. Requisition numbers are internal to the University and will have no relevance to the vendor.

How do I know who my requisition has gone to for approval?

You should always click the 'Save and Preview' approvals button before submitting a requisition for approval, as this will allow you to see who it will be routed to before you submit it.

After a requisition has been submitted for approval you can view it by going to the Manage Requisitions page. Find the Requisition and select 'View Approvals' from the 'Select Action' drop-down box and then click 'Go'. Click on the 'Multiple Approvers' link within the Line Level Amount Approvals Pending box. This will give you a list of all the Approvers that were notified. If there is only one Approver, their name will appear instead of the 'Multiple Approvers'.

How do you create a requisition without GST, or with split GST?

The change to GST is made on the 'Review and Submit' page when creating a requisition. Details of this process are available in the eProcurement - Basic Learner Guide (see Resources).

How often does the University process payments to vendors? What can I do to ensure that they are paid on time?

The University has one weekly payment run which is based on 30 days from invoice date.

All purchases must be made using a purchase order or NAB FlexiPurchase Card. Purchase orders should be raised prior to purchase.

Payment to a supplier can only be made where the invoice can be matched to a valid purchase order, and a goods receipt has been processed in the system.

The requester of the goods or services is responsible for ensuring they complete a goods receipt entry in the system. Once entered, the invoice will be paid within 30 days provided the invoice matches the goods receipt.

In order for a supplier to be paid on time the following must have occurred:

  1. The transaction must be with an approved supplier.
  2. There must be a valid purchase order and goods receipt within the system.
  3. The invoice is matched to the goods receipt and purchase order without variance.
  4. The invoice is processed prior to 4pm on a Wednesday.

If all of the above are correct the payment is made in accordance with the 30 day terms.

What do I do with vendor tax invoices?

All invoices should be sent to Federation University Australia - Accounts Payable, PO Box 663, Mount Helen 3353. This address appears as the bill to address on the purchase order. If you receive an invoice with your goods, please forward it Finance for processing, or payment will be delayed. Electronic invoices can be sent directly to finance.payables@federation.edu.au.

How will vendors receive the University's purchase orders?

The preferred method of sending purchase orders is via email. Preferred Vendors of the University should provide Finance with an appropriate email address. Approved requisitions are sent out as purchase orders every day at 3pm and 6pm.

Purchasing cards should be used for urgent and minor purchases, or frequent purchases of low value. They shouldn't be used for equipment or personal transactions.

Alternatively supplier contracts can be put in place for frequently purchased items. Please contact Procurement for further details.

How can I ensure timely payment of vendor invoices?

In order to ensure timely payment to suppliers, we require the Vendor invoice quoting a valid purchase order. Vendors should be advised to quote purchase orders on all of their invoices. This invoice can then be sent directly to Finance. Note that the purchase order amount should match the amount on the vendor invoice. The only exception to this would occur in the case of a partial delivery or partial payment of an amount only order.

Payment cannot be made unless the requester of the goods or services has completed a goods receipt in myFinance.

How can I reduce the number of Vendors calling for clarification on purchase orders?

Always ensure the 'Send to Vendor' checkbox is selected on the 'Add Items and Services' page. If the problem persists please notify the Service Desk quoting the purchase order number, requester, and requisition number(s).

How can I ensure that vendors don't call administration and teaching staff requesting payments?

Provided a valid purchase order has been raised, quoted on the invoice and a goods receipt has been processed there should be no late payments.

Staff requesting goods and services are responsible for raising requisitions, ensuring approval and receipting goods received.

Finance are responsible for matching invoices received from suppliers to goods receipt and purchase orders and following up any variances.

Variations to purchase orders are referred back to the requestor for verification and approval prior to payment. Note that this process takes time and may result in delayed payments.

How does the Financial Delegation function within the myFinance system for purchase orders?

Approval is based on the department that you are assigned to and your Financial Delegation. All staff are responsible for being aware of their delegation level and using the Ad-hoc Approver function to seek approval for purchases that are outside of their delegation.

Remember that Assets of $5,000 or more require DVC approval, amounts greater than $10,000 generally require Dean, DVC approval and amounts greater than $15,000 require a minimum of three written quotes. Purchases greater than $100,000 are required to undergo a tender process.

Further information on purchasing requirements can be obtained from Procurement.

Why do some item categories have * at the start of the item category description?

These categories have been set up for items that need to be capitalised in the Asset Register. If you select one of these, the system has been set up so the requisition line will have an asset profile and be marked to capitalise the line item.

For purchases that are to be expensed, such as stationery, select an item category that does not have the description starting with *.