Different Methods of Purchasing
When to Use the Different Methods of Purchasing
The following table shows when to use the different methods for acquiring goods and services. These are the upper limits approved by the Institution that a department or administrative unit can not exceed. A department may set actual transaction limits or administrative unit may be lower than the limit stated here. Consult your department to find out your specific limits. Explanations of each category follows the table.
|Dollar Value||Purchasing Card||Request For Payment||Purchase Order|
|Less than $100||recommended||not recommended||not recommended|
|$101 to $500||recommended||recommended||not recommended|
|$501 to $2,500||recommended||recommended||not recommended|
|$2501 to $9,999||not available||recommended||as needed|
|$10,000 and Over||not available||not available||required|
Less than $100.00
- Submit the original sales slip, with a Request For Payment, to Accounts Payable. You will be reimbursed via paycheck.
- Many individuals have been assigned purchasing cards. Payments made for items purchased on the card are made electronically. Procedures for acquiring and using this card are provided in the Procurement Guide.
Note: You may find yourself using a particular supplier many times during the course of the year for small dollar purchases. In this case, a "Blanket Purchase Order" may be the best means of conducting business. If you are in this situation, contact the Procurement Department to discuss your options.
$101 to $500
Many suppliers allow you to charge your purchase to an individual or master account. In these situations, the suppliers will provide you with an invoice. A Purchase Order is not required. You may use a Request For Payment or Purchasing Card as above.
$501 to $2500
A Purchase Order or Purchasing Card is needed for purchases greater than $500.00 but less than $2500 that are not categorically exempt (see above).
Last updated: December 1, 2014