Purchase without a purchase order procedure

Purchases can be made without purchase orders for the following:

  • Physical goods less than $20,000.
  • Procurement of emergency replacement items.
  • Recurring Services less than $20,000, unless prior approval (via email) has been obtained from their approved financial delegate.
  • Travel arrangements facilitated by the Travel Approval Process.
  • Exceptions to this rule are for the Library where all purchase orders for books, periodicals and subscriptions are made via the ILMS system and then process the vendor invoice for payment.

When a purchase is made outside the guidelines contained within this document and a vendor invoice has been issued to RMIT, regardless of value, the invoice should be approved and processed for payment per section 3.4.2. The breach of the guidelines will be recorded and communicated to line management for the appropriate disciplinary action.

Overview

A high level overview of the direct invoice is shown below.

Purchasing without a purchase order

For purchases below $15,000 in value, the vendor invoice will suffice documentation of the written quotations.

All unauthorised purchases beyond individual approved financial delegation may result in disciplinary actions.

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Process flow

receipt of invoice

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Procedure

All purchases made without a Purchase Order require approval from the Approved Financial Delegate upon receipt of invoice.

Invoices can be received upon the delivery of the goods or services or sent directly to the Procurement Processing Department.

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Procuring goods or services

The following procedure is performed by the Requestor of the goods and services unless otherwise stated:

  • Liaise with the relevant supplier(s) to obtain the best prices for the goods or services required.
  • Select the vendor.
  • Treat ‘Dangerous Goods’ with care and caution. The See the Health, Safety and Security Policy
  • Document any new dangerous goods handling protocols.
  • Liaise with the vendor and request goods or services.
  • Organise delivery of goods or services.

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Approving an invoice received locally

If the invoice is received by the Requestor or the local area where the goods were delivered or the services completed, the following is performed:

  • The invoices can only be processed if the invoice is original. If the invoice is not the original, contact the vendor and request original invoice. If an original invoice or reprint cannot be obtained, contact the Procurement Manager for the guidelines of how to progress transaction processing.
  • For contractor and agency payments ensure that the timesheet is matched to the invoice. Information recorded on the invoice is to match the hours recorded by the contractor. Any discrepancies should be noted and followed-up.
  • Where the invoice contains GST free and GST inclusive components, the components must be split, clearly denoted and accurately calculated. For items GST free use ‘P0’ and for items inclusive of GST use ‘P1’ to denote their status. Refer to section 17.8 for non-standard tax codes.
  • Seek approval of the invoice from the Approved Financial Delegate. The Approved Financial Delegate must authorise the invoice with a signature.
    • Whilst the transaction has been committed to RMIT, it is at the discretion of the Approved Financial Delegate to obtain from the Requestor their management strategy on any budget details/concerns.
  • Affix the Payment Approval form and complete the internal order and cost element details on the invoice.
  • Review Approved Financial Delegation of authority listing.
  • Based upon the value of the transaction submit documentation for approval by the Approved Financial Delegate.
  • The Approved Financial Delegate is to forward the approved invoice to the Procurement Processing Department.
  • For travel services the invoice is to be matched to the approved travel authority document.

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Approving an invoice received by accounts payable

The following procedure is performed by the Procurement Processing Department unless otherwise stated:

  • Date stamp the receipt of the invoice.
  • Identify the Requestor or the Department where the goods were delivered or the services performed.
    • The invoices can only be processed if the invoice is original. If the invoice is not the original, contact the vendor and request original invoice. If an original invoice or reprint cannot be obtained, contact the Procurement Manager for the guidelines of how to progress transaction processing.
  • If unable to determine the Requestor or the Department, contact the vendor to obtain additional information.
  • The RMIT Payment Approval form is to be used for authorisation of invoices. Refer to Form 6: Payment Approval.
  • Input original invoice and block for payment using SAP Transaction FB60 or F-43.
  • The internal order is the owning departments default internal order number and the most appropriate cost element for the goods or services based on the description provided on the invoice.
  • Scan invoice and send requesting proof of delivery and approval.
  • File original invoice in ‘Pending file’.
  • Receive approved invoice from the Requestor or Approved Financial Delegate, including internal order and cost element.
  • Process the Invoice.

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Processing an invoice

The following procedure is performed by the Procurement Processing Department unless otherwise stated:

  • Upon receipt of the approved invoice, verify the Approved Financial Delegate.
  • Match the approved invoice copy to original invoice that was filed pending approval.
  • Complete the internal order and cost element details.
  • Unblock the invoice for payment using SAP Transaction FB60.
  • For Contractor Services, the naming standards that will be used to appropriately describe the service are as follows:
    • ‘Invoice number - Contractor Name - Week Ending Date’.
    • This will allow the tracking of the invoices paid month end accruals can be prepared.
  • File the invoice by posting month and Vendor.
  • The invoice will be processed in the appropriate ‘Payment Run’ based upon the invoice date and the vendor’s trading terms.

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Claim forms

The RMIT Claim form is to be only used for the following purposes:

    • Awards/Prizes
    • Fee refunds for short courses
    • Cash float claims (to be used for claims up to $100.00). Invoices substantiating the claim must be attached.
    • Apprentice allowances

All Claim forms are processed according to Purchase without a Purchase Order. Refer to form 11 for the SAP Claim.

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