Faculty/Staff > Standing Order Procedures

Definitions:
A Standing Order (SO) is a type of purchase order used for small dollar repetitive orders from the same vendor. SO’s encumber funds for a specific length of time and eliminate the need to do individual purchase orders for each purchase. A Standing Order is similar to a blanket order.

Standing Orders may be used in any division or department if approved by the Budget Manager and other approving authorities for the account. Proper procedures must be established to control orders being placed against the Standing Order.

Equipment can not be purchased with an SO.

Release orders are the individual orders that are placed against a SO. A release order system must be put in place by the Budget Manager to insure control.

Procedures to create a Standing Order:

1. All bid laws must be followed. Process the appropriate bid or quote per the expected annual expenditure or use a competitively awarded COOP contract. Contact the Purchasing Office if you have any questions.
2. Enter a requisition.
   1. Screen 250 information.
      1. Use “Req Type:” SO.
      2. Enter the solicitation number or contract number in the “Quote Ref:” field on screen 250. This is not needed if the total amount is under the quote or bid limit.
      3. Account numbers are entered on screen 250 or 254 depending on the number of accounts to be used and how the costs are to be distributed.
         1. Use screen 250 if only one (1) account is to charged or if two (2) accounts are to be charged on a percentage basis.
         2. Use screen 254 if multiple accounts are going to be used and are going to be charged for specific release orders.
         3. Use the standard “building and room / name / extension” for the “Contact” field.
      4. Screen 251 information.
         1. “Deliver to Address” will be your department’s location. A listing of codes is available by calling the Purchasing office.
         2. DeleteEnter “024” in the “Requisition Text Codes:” field. This will enter the following text.
            1. THIS STANDING ORDER IS IN EFFECT FOR THE DATES INDICATED. PLEASE REFERENCE THIS STANDING ORDER NUMBER ON ALL INVOICES.
         3. DeleteType “Fax to” and the appropriate fax number in the first line of the “Requisition Text” area.
      5. Screen 254 information.
         1. Enter 1. (period) in the “Quantity” field.
         2. Enter “Lot” or other specific unit of measure in the “UOM field.
         3. Enter the amount you anticipate spending during the fiscal year. Funds can be increased or decreased by having the budget manager send an e-mail to the Purchasing Office.
         4. Enter the text shown or more specific text in the “Description” Section.
            1. Replace “DEPT” with the name of the department that will charge against this line of the SO.
            2. Enter the name(s) of the individual(s) that will be able to place orders. DMC full time employees only.
            3. Enter the appropriate account number in the “Account No.” field if each line of the SO is charged to a different account or object code.
               1. Repeat for each account number that will be used.
               2. The PO number to use when placing a release order will be the SO number for single accounts. Include the line number for multiple accounts. (I.e. – S012345-001; 002; 003)
      6. The requisition will be transferred to a purchase order.
         1. A copy will be faxed to the vendor, if applicable.
         2. A copy will be forwarded to the department.

      Procedures to place a release order:

      1. Document the items to be ordered per departmental procedures.
      2. Order the material directly from the vendor via phone, fax or e-mail.
      3. Make sure to have the vendor include the PO number (SO number and line number if there are multiple accounts or objects on the SO) on all packing lists and invoices.

         Procedure to follow after a release order has been placed with the vendor.

      4. Receipt of material.
         1. It is the department’s responsibility to make sure that the College is charged only for those items that have been received.
         2. Packing lists and invoices provided with the material must be legibly signed by the person verifying the material and forwarded to the department’s office for approvals per departmental procedures.
         3. SO’s that are shipped to the College are not received by Central Receiving. The packages are delivered via the No Packing List process.
      5. Invoice payment.
         1. Invoices that are provided with the material shall be approved per departmental procedures and the original is forwarded to the Accounts Payable Office.
         2. Invoices that are received in the mail will be forwarded to the appropriate department for approval and must be returned to the Accounts Payable Office with approval signatures. Scanned invoice copies may be routed via e-mail upon department request.

      Recommended departmental procedures.

      1. Setup a spreadsheet in a checkbook format to include the Standing Order Number.
         1. Enter the original amount and additions as deposits.
         2. Deduct the amount of each release order as the material is received.
         3. Request additional funds if the current amount is used.
         4. Request the amount be reduced if you do not plan on placing release orders for the balance of the fiscal year.
      2. Release order procedure.
         1. Establish a form to identify the vendor, SO, person placing the order, release order date, list of material.
         2. Designate 1 or more individuals to review and approve the paperwork to ensure that the material is needed and approved for use by the College.
         3. The order can be placed directly with the vendor. Indicate on the form how the release order was placed including the vendor representatives name if the release order was placed verbally over by phone.
         4. File the form to be matched with the receiving packing list or invoice.
      3. Material receiving procedures.
         1. Be sure that the items received are matched to the items requested and the paperwork provided with the material.
         2. Report any discrepancies directly to the vendor immediately.
         3. Do not approve invoices for release orders that have discrepancies.
      4. Final payment authorization procedures.
         1. Designate 1 or more individuals to review the paperwork and legible sign the approved invoice.
         2. Make a copy of the invoice for your files and forward the original signed invoice to the Accounts Payable Office.