Business Office Cash Purchase Order Guide

Purchasing: Prepaid Purchase Order (also known as CPO - Cash Purchase Order)

The Prepaid Purchase Order system is intended to facilitate the purchase of items costing less than $500.00

EXCLUSIONS:

1. Prepaid Purchase Orders cannot be used to receive cash.

2. If an Order totals more than the limit of the Prepaid Purchase Order ($500.00), TWO CHECKS may not be used to cover the purchase.

3. Personal or contracted services. Gift certificates for personal services.

4. Items purchased on the State Purchasing Time Table.

5. State of Montana open-end contracts.

6. Items stocked by Central Stores.

7. Payments to other MSU Billings departments or State agencies.

8. Alcoholic beverages and gratuities.

9. Purchase of Flowers (Funeral, Birthday, Sick, etc.)

10. Office Accessories (Food, Coffee Pot/Coffee, Holiday Decorations, etc.)

PROCEDURES:

1. PrePaid Purchase orders must be written for the amount of purchase only.

2. Prepaid Purchase Order forms are issued by the Business Office as needed but not to exceed one week's anticipated need. The number and date of issue will be recorded. The recipient will be accountable for all issued forms. Each form will be signed by an authorized signatory in the Business Office at the time of issuance.

3. Prepaid Purchase Order forms will meet requisitioning requirements by being completed and signed by the fund controller. Each item to be purchased should be listed including the item number, catalog number, description, quantity unit price and total price.

   1. For travel purchases, a travel authorization must be approved by the fund controller in advance.

   2. For entertainment purchases, a hospitality form must be approved by the fund controller in advance.

4. The purchase order portion (upper two thirds) of the Prepaid Purchase Order should be completed at the departmental office before the employee is given the Prepaid Purchase Order. The fund controller's signature is mandatory prior to distribution.

5. At the time of the purchase, the employee picking up the merchandise should complete the check for the amount of the purchase, co-sign it, give the check to the vendor, and obtain an original invoice marked PAID from the vendor. The employee should include the vendor's complete name, address, and Federal ID number. It is the departments' responsibility to provide the Business Office with an original paid invoice from the vendor.

6. All returns for credit or cash should be authorized by the fund controller before the merchandise is returned to the vendor. Authorization consists of completing a Return Authorization form at the departmental office. (Available from the Business Office.) Copy 1 of the Authorization should be sent directly to the Business Office, copy 2 should be retained by the department, and copy 3 should be returned to the cashier with the cash refund, if there is one.

7. The distribution of the Prepaid Purchase Orders copies is as follows:

   1. The check and original purchase order (white copy) should be given to the vendor.

   2. The yellow and pink copies should be returned to the Business Office at least every Monday. An original invoice must be attached to the pink copy. Be sure the Coding Apron portion of the copy has been completed. If the invoice/receipt has been lost, a lost receipt form must be completed and attached to the pink copy of the CPO.

      Lost Receipt Form

8. If issued Prepaid Purchase Order forms are not used within a reasonable length of time, the unused portion may be recalled and a new supply issued.

9. If a department violates the intent of these policies, the department's Prepaid Purchase Order authority and responsibility may be denied. Continued participation will be contingent upon strict compliance with the rules governing the use of the Prepaid Purchase Orders.

10. Departments are responsible for controlling all Prepaid Purchase Orders assigned to them. The forms are negotiable upon receipt and must be considered and physically treated as cash.

Revised 07/05