Purchase Orders(MMP)

A. Before You Order

1. Check if your item can be ordered from a vendor already on MMP (review supplier list). If yes, skip to step 3. If no, follow all steps below.

2. If item cannot be ordered on MMP, determine the frequency of orders that will be placed with the non MMP vendor.

If the vendor will be used frequently,

• Complete the New Supplier Request Form in order to have the vendor added to MMP.
• Complete the Direct Deposit Form-Eng (Canadian Suppliers Only) for new vendor who prefer electronic payments.
• Complete the Employee vs Self Employed Questionnaire (English) the supplier is under a person's name and residing in Canada only
• If the vendor will not be used frequently(onetime payments of a small amount),
• Use Pcard if the expense type and amount are eligible on a Pcard and if supplier accepts Pcard payments

3. Request for Quotation for goods less than $100,000 or contact the finance manager or procurement office for Public Tendering for goods/services greater than $100,000.

4. Determine or obtain FOAPAL to charge for your order.

procument_process_flow.docx

B. Placing Your Order

***Note that internal suppliers (e.g. McGill Computer Store, Foodie Traiteur) have priority over other suppliers. ***

• Place order through MMP

• For general step by step procedure, please refer to the Getting Your Hands On MMP
• For other MMP 'How To's', please refer to How To Use MMP

• Place order using a PCard
• McGill Preferred Vendors
  • For Computer, software and Audio Visual equipment, please refer to IT and related services for more information.
    • Before processing an MCS order in MMP, please obtain a quotation first.
    • For step-by-step instructions on how to process a MCS order in MMP, click here
  • For Laboratory and science related supplies or equipment, please refer to Scientific and Research Related Products for the list of suppliers to use.
  • For Furniture and other office supplies, please refer to Furniture & Office Supplies for the list of supplies to use.
  • For travel related orders, please refer to Travel Services
  • Hotel bookings – see MOHP for contracted hotels and ‘how to’s'
  • For services such as catering, advertising, moving, security, printing etc, please refer to Services for the list of supplies to use

After placing your order you may refer to this link on tracking your order with respect to;

1. Tracking a requisition status
2. Disapproving a pending requisition
3. Viewing PO status
4. Searching for a Requisition / PO / Invoice Number (starting with IV) in MMP
5. Viewing a purchase related document

C. Changing Your Order (change order process doc)

*****A comprehensive Step by Step instruction document is available at https://www.mcgill.ca/procurement/files/procurement/change_order_process_rev_1.pdf. *****

Changes can be a made to a purchase order (PO) for the following reasons:

1. The encumbrance amount set up for this PO is insufficient to cover the payment of the invoice.

Difference in PO invoice amount can be for the following reasons:

• Price per item listed on the invoice is higher than the PO item price.
• One or several items listed on the invoice are not included on the PO.

2. Change of PO elements like:

• Product description
• Catalog number
• Quantity
• Unit price
• Unit of measure
• FOAPAL/split distribution.

Once you have confirmation that the PO has been modified to match the invoice, re-send the invoice to Accounts Payable for processing.

D. Outstanding Purchase Order Reconciliation (Liquidation or Cancellation)

Central Finance sends out a list of outstanding purchase orders to all units on a monthly basis. We are expected to reconcile these POs by checking the status. For example;

• Check if all items have been delivered and all invoices paid. If yes, liquidate PO if no longer needed.
• Rectify any discrepancies with vendor and process a change order if need be. Examples of discrepancies are difference in invoice amount or changes in the number or type of items ordered.

***It is advisable to inform the vendor and the requestor (if not you) before liquidating or cancelling POs.***

PO Liquidation: This applies to POs that have had activity on them after creation but are no longer needed. POs with credit balances may be liquidated if there are no plans for further activity on the PO. To liquidate a PO, complete the web form at https://www.mcgill.ca/financialservices/forms/poliquidation. This form may be completed for more than one PO at a time.

PO Cancellation: This applies to POs that have had no activity since creation and that are no longer needed. I.e. no invoices paid and no goods/services delivered. To cancel these POs, complete the web form at https://www.mcgill.ca/procurement/forms/cancellation

E. Invoices

All invoices must meet the following criteria:

• Clearly reference a valid Purchase Order (PO) number communicated by McGill
• Bear a unique invoice number that will not be re-used on future sales to McGill
• Indicate an invoice date
• Must be billed to McGill University
• Only reflect charges authorized by the Purchase Order (PO) with respect to items, quantities and prices

***Ref: https://www.mcgill.ca/financialservices/gfm/payments/invoices ***

All invoices must be sent as follows

• Accounts Payable will only process invoices received via email at accountspayable [at] mcgill.ca
• Include the McGill Purchase Order (PO) number and the Supplier’s Invoice number in the subject line
• The invoices must be in .pdf format.
• Respect the invoice guidelines as per: https://www.mcgill.ca/procurement/howto/do-business-mcgill

Inquiries about invoices

• All email inquiries as to the status of an invoice payment must be sent to: apinfo [at] mcgill.ca.
• Inquiries sent to accountspayable [at] mcgill.ca will be disregarded.

Reminders

• McGill University’s standard payment terms are on a net 45 basis (and have been since 2014). Exceptionally, McGill University enters into contracts with shorter payment terms. This is then an explicit condition of the Purchase Order.
• Accordingly, suppliers must only follow-up with apinfo [at] mcgill.ca if they have not received payment 45 days past the invoice date.
• Suppliers are encouraged to opt for direct deposit instead of payment via cheque by completing the Epayment form: https://www.mcgill.ca/procurement/forms
• Suppliers must not send the same invoice more than once as this may result in processing delays.

***Reference: https://www.mcgill.ca/financialservices/channels/news/change-supplier-invoice-process-effective-jul-17-2017-and-sep-1-2017-announcement-268843 ***