Chapter 9: Additional Acquisition Processes

Creating Blanket Purchase Orders

A Blanket Purchase Order is a purchase order established for the purpose of filling on-going needs for supplies or services.

Use one of these processes to set up a Blanket Purchase Order for a specific vendor, and for a specific period of time.

Important: Do not purchase inventorial items on a Blanket Purchase Order.

Policy Requirements
Creating a Unit Blanket PO using a Standing Order
Creating a Unit Blanket PO for Periodic Payments (monthly, quarterly, etc.)

Policy Requirements

You must initiate a Blanket Purchase Order with a Requisition. The Requisition must be completed and approved before a Blanket Purchase Order can be set up.

Creating a Blanket PO using a Standing Order

A Standing Order is a contract under which a contractor or supplier agrees to provide goods or services to a purchaser on a demand basis; the contract generally establishes prices, terms, conditions, and the period covered, although no quantities or unit prices are specified; shipments are to be made when and as required by the purchaser.

1) Create Requisition

Complete Creating a Requisition: FPAREQN for Document Level Accounting, through step 16, with the following specifications:

• From FPAREQN, select Document Text [FOAPOXT] from the Options Menu, or Right-Click Document Text. The system will go to FOAPOXT: Procurement Text Entry Form. Insert the Blanket PO Document Text clause (BLKTHEDR) and modify information to reflect the current blanket. See Text Entry: FOAPOXT, step 16-iii for instructions for entering and modifying clauses.
  

• When you provide the commodity description in the Commodity Information Block, define a specific commodity, such as copier maintenance services, or moving services. See Requisition Entry: Commodity/Accounting Block: Document Level Accounting, step 3.
   
• Insert the Blanket PO Line Item Text clause (BLKTLINE) and modify information to reflect the current item. See Text Entry: FOAPOXT, step 16-iii.
  

Complete the remainder of the requisition as described in Creating a Requisition FPAREQN.

2) Purchase Order Assignment

Complete Purchase Order Assignment FPAPOAS, through step 3, with the following specification:

• Instead of typing NEXT in the PO field, enter the Requisition Number but replace the R with a B. For example, Requisition R0123456 becomes Purchase Order B0123456. See steps 4-6 of the Purchase Order Assignment process.

3) Create Purchase Order

Complete Creating a Purchase Order FPAPURR, through step 4, with the following specification:

• Type in your Blanket Purchase Order number from FPAPOAS (i.e. B0123456) in the Purchase Order field(instead of NEXT). See step 2 in Document Information.
  
• Convert the document from a Regular PO to a Standing PO by changing the Order Type from default Regular to Standing. <TAB> to the Order Type dropdown menu and type "S", click on the Select Icon , or use the [] Previous Record and [] Next Record keys to choose Standing. See step 4 in Document Information.
  
  
  Note: When FPAPURR is set to Standing Order, the Requisition item’s Quantity and Unit Price field values are multiplied together and this total is placed in the Standing Order’s item Amount field.
  
   
• Complete the remainder of the PO as you would for Creating a Purchase Order FPAPURR.

Creating a Blanket PO for Periodic Payments

A Blanket Order for Periodic Payments is a contract under which a contractor or supplier agrees to provide goods or services to a purchaser and periodically invoices the University for them. Common examples of these include lease payments, rents, janitorial services and publication printing; the contract generally establishes prices, terms, conditions, and the period covered.

1) Create Requisition

A Blanket PO for Periodic Payments must be created as Commodity Level Accounting. To create as Commodity Level, complete Creating a Requisition: FPAREQN for Document Level Accounting, up to the Commodity/Accounting Block. Then do the following:

1. Delete the checkmark in the upper righthand corner labelled Document Level Accounting. This will change your PO to Commodity Level accounting.
   


Important: You must finalize the accounting as Commodity Level Accounting before entering the Accounting Data block. Banner DOES NOT allow you to change your choice later.


2. Cursor appears in COMMODITY field. This field is optional.
    
3. <TAB> to the DESCRIPTION field. Text should reflect the periodic nature of the payment. Use at most 50 characters. Additional information may be added as Line Item Text.
   
   
4. <TAB> to U/M. Enter Unit of Measure code. Click on the Search icon or type [F9] List Field Values to look up and retrieve your unit of measure.
    
5. <TAB> to TAX GROUP. Defaults to CRUZ tax rate. For different Tax Group codes, click on the Search icon or type [F9] List Field Values to look up and retrieve.
    
6. <TAB> to QUANTITY. Enter number of periodic payments to be made.
    
7. <TAB> to UNIT PRICE. Enter price per periodic payment. Decimal only required for cents.
   


Example: For a 1 year contract for janitorial services starting 7/1/07
Description: FY08 Monthly janitorial services
Unit of Measure: MO (monthly)
Quantity: 12
Unit Price: $650


8. <TAB> to ADDITIONAL. Enter any additional charges. Zero defaults if you add no amount here.
   
   
9. Type [control page down] Next Block to go to the Accounting Block.
   
   
10. Cursor appears in the COA field. Accept default.
     
11. <TAB> to INDEX. Leave blank.
     
12. <TAB> to FUND. Enter a Fund code or type [F9] List Field Values to lookup and retrieve your Fund code.
     
13. <TAB> to ORGN. Defaults from header block. If your Org differs from the Header Block default Org, type [F9] List Field Values to lookup and retrieve your Org code.
     
14. <TAB> to ACCT. Enter an account code or type [F9] List Field Values to lookup and retrieve your account code.
     
15. <TAB> to PROG. Defaults from the Organization Code.
     
16. <TAB> to ACTV. Field is optional. If desired, enter activity code or type [F9] List Field Values to lookup and retrieve your activity code.
     
17. <TAB> to LOCN. The Location Code field is only used by Plant Accounting and Physical Planning & Construction in conjunction with Plant Funds to denote the building for which the corresponding transaction is being posted. All other users should leave this field blank.
     
18. <TAB> to PROJ. This field should be left blank - Not used by UCSC.
     
19. Leave NSF OVERRIDE unchecked. Not used by UCSC.


Note: To distribute a portion of the charge to each of multiple FOAPALs, either enter the dollar amount for each FOAPAL or else check the percentage field and specify the percentage in the AMOUNT (USD) field. Banner may not automatically carry the balance forward to the next FOAPAL.


20. <TAB> to PERCENTAGE field. Leave blank for 100% of the cost of this commodity to be applied to this FOAPAL. If you provide more than one FOAPAL, you must specify the division that is appropriate by specifying either the percentages or dollar amounts.
    To specify percentages, click on the PERCENTAGE checkbox.
    To specify dollar amounts, leave the % box unchecked.
     
21. <TAB> to AMOUNT. If you are using only one FOAPAL for this commodity, <TAB> through the fields and the appropriate values will default.
    If you are not specifying percentages for a FOAPAL split, fill in the dollar amount.
    If you checked the % checkbox in step 11, fill in the percentage associated with this FOAPAL.
     
22. If the requisition is to be split over 2 or more FOAPALs, type <> to move to next ACCOUNTING DATA record. Proceed with steps 1-12 above.


Note: If the cost of the commodities is shared among multiple FOAPALs, then Banner checks the Distribute checkbox located in the Commodity block after the FOAPALs are entered.


23. If you change the $ amount(s) for commodities after you have entered your commodities and FOAPALs, the default is for Banner to distribute the new $ amounts as defined when the FOAPALs were entered.
    To manually distribute changes in the $ amounts for commodities, uncheck the Distribute option by clicking on the Distribute checkbox. Then go to the FOAPAL block and make changes to the amount(s) as appropriate. The REMAINING COMM AMT field in the FOAPAL block specifies the $ amount that needs to be distributed.


Tip: Tax will be calculated on every account sequence by the percentage specified. (Banner calculates the percentages if you specify amounts.)


24. Enter the accounting sequence for each additional commodity. Type [control page up] Previous Block to return to the Commodity Data Block. Type <> Next Record to go to the next commodity record on your requisition. Repeat steps 1-14 above to enter the accounting sequences for each commodity.


Note: From anywhere in the Accounting Data Block (FOAPAL), you can review a summary screen of the account sequences by clicking on Options - Review Accounting Information [FOICACT], or Right Click - Review Accounting Information, to jump to FOICACT. Use the arrow keys to move between individual commodity records. (A record exists for each commodity using Commodity Level Accounting.) After you complete your review, type [control q] Exit Screen, click on the Exit icon or Right Click - Exit to exit and return to FPAREQN.


Note: Ignore the View Budget Availability option. Currently unused by UCSC.


25. Once you have completed your accounting distribution, type [control page down] Next Block, or click on Options - Balancing/Completion, or Right Click - Balancing/Completion to move to the Balancing/Completion block. See Complete Your Requisition: Balancing/Completion to complete your Commodity Level requisition.
    

2) Purchase Order Assignment

Complete Purchase Order Assignment FPAPOAS, through step 3, with the following specification:

• Instead of typing NEXT in the PO field, enter the Requisition Number but replace the R with a B. For example, Requisition R0123456 becomes Purchase Order B0123456. See steps 4-6 of the Purchase Order Assignment process.

3) Create Purchase Order

Complete Creating a Purchase Order FPAPURR, with the following specification:

• Type in your Blanket Purchase Order number from FPAPOAS (i.e. B0123456) in the Purchase Order field (instead of NEXT). See step 2 in Document Information.
  
• Complete the remainder of the PO as you would for Creating a Purchase Order FPAPURR.