Keys to More Effective Purchasing
The LPO is designed to facilitate the purchase of supplies and materials needed immediately. This method is the alternative to the conventional requisitioning process and enables University personnel to obtain small dollar off-the-shelf items which may either be picked up or delivered. The user or using Department controls the process and is responsible for obtaining prices, issuing the LPO, arranging delivery and processing invoices for payment.
The benefits to FAU Departments are:
- Immediate ability to obtain supplies and materials
- Immediate purchase authorization for up to $999 – LPO's are pre-approved
The KEYS needed to purchase materials using LPOs are:
- PERMISSION from an authorized signatory
- BUDGET – Expense funds must be available for purchase in the account
- APPROVAL of the Vendor (Seller) of materials to deliver product and invoice now and receive payment later
How to Request Limited Purchase Orders (LPOs)
LPOs are issued to the requesting Department by Purchasing upon request of authorized signatories using a Standard Request Memorandum (Form LPO 03/07). This form may be obtained by clicking here or by contacting Purchasing Department at Ext. 7-3080. LPOs may be requested in any denomination up to $999. There is no limit to the amount of orders requested at any one time. LPOs are usually ready for pick-up in Purchasing within one day of an approved request. They are not assigned to any vendor at the time of issuance as this is the prerogative of the Department. Each LPO is valid for 120 days after issuance. Since funds are encumbered at the time of issuance, all LPOs are secured by the balance of funds intended. For further information, contact Purchasing Department at Extension 7-3080. LPOs shall be picked up from Purchasing by the requesting department. They will not be sent through University or US Mail as they are a negotiable instrument.
How to Use Limited Purchase Orders
When an item is needed, simply obtain its price and contact the vendor, either in person or by phone. Give the vendor the LPO number and make arrangements to either pick up the material or have it delivered. Keep in mind the vendor will likely provide an invoice shortly after materials are received. If the vendor provides an invoice when materials are picked up, or an invoice is contained in the shipment, the using Department should take all measures to approve the invoice and submit it with a copy of the LPO as soon as possible to the Controller's Office. If the Vendor requires prepayment prior to receiving the material, see the Frequently Asked Questions page and/or contact the Controller's Office to make arrangements.
Record Keeping and Payment
Each Department will be responsible for its acceptance of material, record-keeping, follow-up and processing invoices for payment. Additionally, the Department should monitor the issue dates of each LPO to ensure it has not expired prior to use. Each LPO may be used for one transaction with one vendor. When that transaction has been completed, the LPO is closed upon payment and any remaining balance is returned back to the Department's account. When the Department receives the invoice, it should be signed for approval, attached to a copy of the LPO and submitted to the Controller's Office. Each Department will be issued one copy of the LPO (Vendor Copy). The Department is required to copy and distribute the LPO upon issuance (as applicable). Instructions for use are included on the reverse side of the LPO. Each instruction number corresponds to the same number on the front side of the form to ensure ease of completion. Sample of both sides of the LPO.
LPOs may be canceled at any time prior to expiration by returning the unused Vendor copy to the Purchasing Department along with a cover memo. We suggest hand-walking canceled LPOs to Purchasing as this is a negotiable instrument.
For suggestions for effectively using LPOs, click for Handy Tips.
Items NOT to be Purchased by LPOs
There are certain goods and services that may not be purchased due to prohibition by University Regulation and/or State Law. Those materials prohibited include food, drinks, alcoholic beverages, personal hygiene items, lottery tickets, tobacco or related products, firearms or ammunition, personal stationery, awards, furniture, office equipment (computers, fax, and typewriters) and uniforms. Other prohibited materials and services include office supplies (obtain through Business Services ), memberships, contractual services, maintenance agreements, microwave ovens, cellular phones, pagers, portable heaters, fans, refrigerators, lamps, stoves, ovens, coffee pots, pictures and frames, items of personal or decorative nature, printing, radioactive materials, prescription or non-prescription drugs, controlled substances, pesticides, and explosives. If and when in doubt, contact the Purchasing Department at Extension #7-3080.
LPOs should be issued to established companies and not individuals or personnel providing special services.
Any employee who knowingly and willingly makes purchases or attempts to make purchases that violate State Laws, University purchasing policy, or procedures contained in this text or assists another employee(s) in such purchases, or fails to report the violation, may be subject to disciplinary action in accordance with University regulations.
Abuse of use may result in the suspension of the delegation of Purchasing Authority and the privilege to use this Program.
Please direct any questions to Debra Purcell at 561-297-3080, firstname.lastname@example.org