Purchase to Pay

Purchase to Pay Process Map: Identify Need for Buying Goods Purchase to Pay introduction Identify need for Goods Identify potential suppliers Purchasing Equipment over £100k Check correct payment route Tenders and Quotations Order goods/services Order with requisition No purchase requisition Using Marketplace Payment Requests Receive or Reject goods/services Manage invoices Open PO's and Invoices on hold Key Financial Controls

Purchasing Equipment over £100k (Capital)

Note: For all equipment costing over £100k the purchasing process must be managed appropriately as detailed below. For research equipment you should also refer to the Research Awards and Projects process.

All equipment transactions over £25k must be recorded as an asset on the University's Fixed Asset Register.

1. Identify Costs

It is important that before proceeding with a major equipment purchase the financial impact of the purchase is fully understood and the funding identified. In addition the Purchasing Procedures(which provide best practice guidance), must be followed. Where there is any uncertainty you should liaise with the Finance Division and Estates Services as follows to ensure:

  • Purchase price, including any ongoing maintenance requirement, is best value for money. Contact the Purchasing Team.
  • VAT is appropriately handled. Contact the Tax Team.
  • Impact on financial revenue and capital plans is clear. Contact your Divisional Financial Controller.
  • Installation, health and safety, and operating issues are addressed. This should include any legal issues relating to leased or rented premises. Contact the Estates Services.

2. Complete Business Case

A formal business case is required for all capital equipment purchases over £1m or where central University funds are being sought. Appropriate authorisation (by your Head of Department and Divisional Office) is required as part of this process. The type and value of purchase will determine to which approval body you should submit the business case for review:

Other Equipment purchases (fully funded and under £1m) do not require a Business Case, but should be approved via the relevant divisional/departmental decision making structure.

3. Purchase approval

The decision to purchase the capital equipment item, including a completed business case where appropriate, should be reviewed at the next available meeting of the appropriate decision making body.

  • If the purchase is approved, the relevant Project Leader or Departmental Administrator should be notified.
  • If the purchase is rejected, the relevant Project Leader or Departmental Administrator should be notified and advised on the reasons for rejection.
  • Where further information has been requested a revised request should be put forward for approval.

4. Project expenditure

Where the equipment purchase is to be charged to a project, a Project Expenditure Approval Form (PEA) - Equipment Projects must also be completed and signed off by the department and division, and returned to the Capital Accountant for project setup (contact details below). The Capital Accountant will then notify the Project Leader of the Oracle Financials project code to use when raising a Purchase Order.

5. Initiate purchase

With all the necessary approvals in place you should liaise with the Purchasing Team to initiate the purchase of the required equipment as per the Tender Process.