5.3.1 Purchase Requisitions

Formerly Known As Policy Number: 54

This policy applies to expenditures from all university funding sources. For detailed procedures and resources, refer to the Fingate website. This policy aligns with Administrative Guide Memo 1.1.1: Code of Conduct, Guide Memo 5.1.1: Procurement Policies and applicable federal regulations.

Applicability:

This policy is applicable to: 

• Purchases to be owned by the university

1. Initiation of Purchase Requisitions

The university offers several purchasing methods, including iProcurement, to enhance efficiency and reduce costs while managing risk and compliance. Schools and units can select suppliers or independent contractors that meet their needs, as long as they follow university policies. 

All acquisition activities, including purchase requisitions, reimbursement requests, and invoices, are initiated and processed by authorized individuals through the university's Oracle Financials system. Purchases can be initiated in iProcurement via one of three methods:

1. Catalog requisitions: Purchases made through Amazon Business and SmartMart Catalog Suppliers.
2. Non-catalog requisitions: For goods or services not available through the university’s catalog options.
3. Procurement Contracts: Generally required for engaging an external party to perform a service, including zero dollar ($0) agreements. Refer to the contract process.

The Office of Research Administration manages subawards, but payments are processed using iProcurement Purchase Orders. 

2. Roles and Responsibilities

Specific roles and responsibilities related to purchase requisitions include:

1. Preparer: The department purchaser initiates purchase requisitions, including supplier selection and completing and attaching any required documentation, where applicable.
2. Approver: The department approver reviews transactions for compliance and appropriateness. The approver may not report to the preparer or be the beneficiary of the purchase.
3. School/unit management: Managers and financial approvers monitor purchasing activities and compliance with policies.
4. Central review and approval, FMS Procurement Services:

a. Validates competitive supplier selection above a specified threshold for non-catalog purchase requisitions.

b. Holds designated authority to draft, sign and execute procurement contracts, as these create financial or non-financial obligations for the university.

c. May route purchasing transactions to additional university offices and/or require additional documentation, for example a Data Risk Assessment.

For an overview of roles and responsibilities in procurement activities, refer to Guide Memo 5.1.1: Procurement Policies. 

3. Delivery and Receiving

a. Delivery Points

Deliveries usually go directly to the ordering department. Special procedures for hazardous materials are managed by the Environmental Health and Safety Office.  A Procurement buyer can advise on special delivery requirements. 

b. Receiving

Receiving is required for capital equipment and must be recorded for payment, refer to How To: Receive Goods for detailed procedures.

c. Expediting

Procurement can expedite orders when notified by a department or supplier that an order needs special attention, such as failed delivery.

d. Claims

University departments handle shipping claims, but Procurement can assist with damage claims, returns, or repairs of defective items. For losses or damage over $1,000, contact the Office of the Chief Risk Officer.

e. U.S. Customs

International shipments sent to Stanford require customs broker coordination. Refer to Shipping, Freight Importing and Customs Services.