Purchasing

DePaul University maintains a partially decentralized purchasing structure where individual departments are free to select vendors and make purchases within the guidelines set by the Procurement Services office.

Selecting a Vendor
Whenever possible, departments are encouraged to use one of DePaul's preferred vendors. These vendors have negotiated contracts with the university and generally provide lower costs and/or higher quality than competitors. Using preferred vendors assists with standardization and helps create cost-savings. Additionally, ordering from preferred vendors helps give DePaul greater purchasing power which will help with future negotiations.

For items that are not sold by a preferred supplier, departments may select their own vendor. When doing so, departments should evaluate the quality, cost, delivery methods and services provided.

For purchases over $25,000, university policy requires that documentation be kept relating to competitive bids or the basis for vendor selection when competitive bids are not obtained.

Determining Order Method
Depending on the dollar amount and item being purchased, there are several options for placing the order:

For purchases up to $2,500
Purchases under $2,500 generally can be placed on the ProCard. This method allows individuals to make purchasing and payment decisions quickly and efficiently.

Please note that several restrictions exist for ProCard ordering:

• Technology purchase limits will remain at $500 (Desktops, Laptops, Printers, Networking Equipment, Software and related accessories).
• Grant travel may not be purchased with the ProCard
• Leasing expenses cannot be paid by ProCard
• Consulting services cannot be charged to a ProCard
• Gift cards may not be purchased with the ProCard

If the vendor does not accept credit cards, the invoice or a voucher check form can be used for payment. See the Voucher Check portion of this site for more information.

For purchases greater than $2,500
For most purchases over $2,500, the university requires a requisition be opened and a purchase order generated by Procurement Services. Technology items over $500 also require a requisition be placed.

Some services can be paid without the need for a purchase order. These include:

• Exhibition fees
• Legal fees
• Membership fees
• Non-employee reimbursements
• Non-project/grant funded employee travel expenses
• Registration fees
• Subscription fees
• Temporary services

Requisitions and Purchase Orders
If the purchase is being made through purchase order, the individual department must open a requisition through the eProcurement system. A requisition allows a buyer from Procurement Services to execute an order on behalf of the ordering department.

Requisitions are reviewed by a buyer to ensure that following criteria are met:

• Accuracy of data
• Appropriateness of the expense
• Compliance with university policies and procedures
• Correct terms and conditions
• Use of minority and/or preferred vendors (when feasible)

A requisition that does not meet the approval criteria will be denied. In addition, all new vendors are thoroughly investigated to guard against fraud and the use of inappropriate vendors.

Once approved, a requisition is converted to a purchase order. A purchase order is a legally binding contract between DePaul University and the vendor to which the purchase order is issued.

Procurement Services will make every effort to process requisitions within two business days. However, orders from new suppliers and those requiring additional approval from other areas may take longer. To determine the status of a requisition, visit eProcurement or view the training video titled Requisition Lookup.

Budget Process
All requisitions will require chart fields to classify the expense. A chart field is an identifier used by PeopleSoft Financials to classify and allocate financial transactions and is used to determine workflow according to budgetary rules. The chart field is composed of seven components: Account, Fund, Department ID, Program, Class, Project/Grant, and Fiscal Year. A complete list of category/account codes can be found here.

Before a requisition can be submitted, it must pass budget checking. Budget checking will ensure the budget has enough funds available to cover the requested purchase. For example:

Original budget	$30,000
Previously expensed funds	$18,000
Pre-encumbered funds	$3,000
Encumbered funds	$2,000
Available funds	$7,000
Requisition request of $2,000:	Budget Checking PASS
Requisition request of $10,000:	Budget Checking FAIL

The opening of a requisition results in a pre-encumbrance or temporary commitment of funds that is reflected on the department's financial statements. The pre-encumbrance is liquidated after the requisition is cancelled or transformed into a purchase order.

The approval of a requisition to a purchase order results in an encumbrance of the ordering department's budget and it is reflected on the financial statements. The encumbrance replaces the pre-encumbrance that resulted from the corresponding requisition. The encumbrance is liquidated after the purchase order is cancelled or when the invoice has been paid.

If funds are available but the requisition fails budget check, there are two possible reasons:

1. An invalid chart field may have been used to allocate the line items. To resolve this, verify the validity of the chart field and modify it if necessary.
2. There may by insufficient funds available. To resolve this, choose another chart field, or review the financial statements to monitor all outstanding pre-encumbrances and encumbrances. Contact Procurement Services if these items need to be removed from the budget.

Approval Processes
All requisitions require the approval of a buyer before they can be made into a purchase order. To determine which buyer corresponds to the purchase, visit the staff directory. Additional approvals may also be necessary, including:

Purchasing Director

• If the  requisition amount is equal to or greater than $25,000

Office of the Treasurer

• If the  requisition amount is equal to or greater than $75,000

Office of the General Council

• If the requisition amount exceeds $50,000 or falls into a “special risk” contract according to the Contract Requirements and Procedures policy

Office of Sponsored Programs & Research (OSPR)

• If the fund is 500, 501, 502, 510 or 511

Financial Accounting

• If the fund is 700 and the requisition amount is greater than $5,000

Information Services

• If the category code equals "technology" (see list) and total requisition amount is greater than $10,000

Executive Vice President / Provost

• If the category code equals "technology" (see list) and total requisition amount is greater than $10,000

Office of Risk Management

• If the category code equals VE100 or VE150

Student Centers

• If the category code equals MS201