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Procurement has made some changes to the purchase order procedure effective ‘immediately’ (referring to email from procurement dated 2020/03/20)
Highlights
- One of the leading change in the ordering procedure will be that POs will need to be issued based on contract terms rather than on Fiscal Year.
- Standing orders will now be replaced by Long Term POs which must be setup for the contract term and not the fiscal year (see further details on budget constraints).
- It is important to note that current long term PO (currently known as standing order) will NOT be closed at fiscal year-end. They will now roll over in the new fiscal year.
- If you wish to have any current PO or standing order PO closed, please use the following form: https://www.mcgill.ca/financialservices/forms/poliquidation
- The practice of stand-alone POs (as we know them today) will slowly be phased out and replaced with more on-contract spend.
Newly defined PO types
1. Contract/Catalog Purchase Orders
- Requisitions are to be issued against contracts using Punch-out, Hosted, University-Managed Catalogues or Internal Stores
- One PO can be created for the contract term or individually as goods/services are required
- Delivery date should be set for the contract end date
- One or more invoices can be paid against contract
- PO will be allowed to roll over fiscal years to align with contract term (long term PO)
- PO amount is to be setup for initial budget available (long term PO) in any given fiscal year however the same PO will be used through the term of the contract by leveraging the change order procedure for the new fiscal years
Examples: Stationery purchases from Staples, Lab supplier from Fisher and VWR, catering with Dana Hospitality using punch-out catalogues
2. Unplanned Goods/Service on Contracts
- Requisitions are to be issued against contracts using (i) catalogue items or (ii) non-catalogue items, via the MMP free form (only when catalogue items are unavailable)
- Requisitions can contain a combination of catalogue and non-catalogues items
- Long term POs (previously known as standing orders) are to be setup for the contract term
- Delivery date should be set for the contract end date
- One PO can be created for the contract term or individually as goods/services are required
- University-managed catalogue items should have an estimated quantity planned for acquisition under the budget available in any given fiscal year (change order procedure to be used to re-encumber in new fiscal year) during the contract term
- Non-catalogue items should have an estimated amount of spending planned for acquisition under the budget available in any given fiscal year (change order procedure to be used to re-encumber in new fiscal year) during the contract term
- PO will be allowed to roll over fiscal years to align with contract term
- Invoices will then draw down from the PO quantity and amount
3. Stand-alone POs not on Contract
- Requisitions must be created for the contract term (allow for yearly roll over to the new fiscal year)
- Delivery date should be set for the contract end date
- Requisitions must be supported by one or more quotes or price lists, as per Procurement Policy and Guidelines
- For purchases that the Act Respecting Contracting by Public Bodies (R.S.Q., C-65.1) does not apply to (i.e. Crown Corporations such as Canada Post or Quebec public bodies such as Hydro Quebec).
- PO will be allowed to roll over fiscal years to align with contract term
- PO amount is to be setup for initial budget available in any given fiscal year however the same PO will be used through the term of the contract by leveraging the change order procedure for the new fiscal years
- There could be one or more invoices against one PO
- Use of this type of PO will be reviewed and pre-approved by Procurement (annually)
- This practice is to be slowly phased out to the point of becoming an exception, as additional contracts are put in place by Procurement Services to meet the University’s needs