FAQs on Purchase Orders

PO FAQs

01. When should I raise a Purchase Order?

A purchase order must be created for any commitment over $10,000. A Purchase Order acts as a contractual agreement between the supplier of the goods/services and the University. Should there be any exceptional circumstances, an approval must be obtained from Chief Financial Officer prior to placing any orders.

02. What procurement factors should be considered before raising a Purchase Order?

As a Purchasing Officer, it is your responsibility to ensure that the following procurement aspects are addressed prior to raising a Purchase Order in FinanceOne:

Contracted Supplier - if a contracted supplier already exists for the provision of the goods or service then they must be used. Where a decision is made to purchase from a supplier other than a contracted supplier, you must be able to provide upon request documentation supporting the decision (for example sole supplier evidence). For a full list of the University's contracted supplier arrangements, please click here.
Quotations - as per the Procurement Handbook, the adequate number of written quotes must be obtained based on the value of the item/service. Please click here for more information regarding the value thresholds.
Shipping - it is essential to check whether there will be any additional charges for shipping/delivery or if this is already included within the quote. Checking these in advance will prevent any unexpected charges that may not have been budgeted for in the associated cost centre.
Goods and Services Tax (GST) - there are certain circumstances where a GST will not be applicable, particularly purchases from overseas. Please visit the University's Tax website for more information regarding GST eligibility.
Insurance - UniSA has purchased transit insurance to cover the tranportation of some goods, artworks and research samples. Please visit the Insurance website to view the conditions such as value, types of goods, packaging requirements, domestic/international requirements, etc. Alternatively, you can contact the University's Insurance Team on ext: 21678 or email: insurance@unisa.edu.au
Payment Terms - the University's normal terms of trade are payment within 30 days for goods and services from the date of a correctly rendered compliant Tax Invoice and satisfactory receipt of the goods or services. These payment terms should be made clear from the outset when dealing with new suppliers on behalf of the University. Any deviation from these payment terms should be negotiated with the supplier prior to placing the Purchase Order. Alternatively, approval to change payment terms will need to be requested in writing to the Manager: Strategic Procurement. More information can be found in Vendor Maintenance Guidelines section 5.
Payment Schedule - the University's standard payment instalments for large items is 30% payment as a deposit, 60% payment once the purchase has been shipped (please obtain evidence of shipment, such as a consignment note) and 10% payment on delivery and installation (please always ensure that the item is in good working order). As above, any deviation from this payment schedule should be negotiated with the supplier, or alternatively you can contact the Strategic Procurement Team if you require any additional assistance.
Installation and Training - any costs associated with installation and training should always be clarified in advance where necessary.
Customs - if the item has been purchased from overseas then Australian customs will need to be addressed. We strongly encourage you to familiarise yourself with the international rules for the interpretation of trade terms used in international trade (INCO Terms), which can be found by clicking here. You may be required to use a customs agent to act on your behalf - we recommend DB Schenker who has been working closely with the University for some time. Contact details can be found by clicking here.
Ethical Sourcing - it is good practice to check that the goods you will be purchasing have been manufactured responsibly. If you have any concerns, it may be worth asking the supplier about their labour standards, safe and hygienic working conditions, wages and benefits, immigration law compliance and environmental standards.
Local / Australian Businesses - preference should be given to purchasing Australian produced goods and services where possible.
Building and space - contact Facilities Management Unit so they can assist you with identifying any remedial works required to the proposed location for this equipment.
Work, health and safety - contact your local WH&S representative so they can assist you with ensuring that the equipment has been considered for appropriate WH&S requirements. Also see the 'Purchasing and Safety' WH&S Procedure.
Legal - contact the Legal Services team for assistance reviewing supplier terms and conditions. Please click here to access the Legal Enquiry form.
Finance and budget - contact your local Accounting Team to ensure that they have adequately prepared the budget associated to this project (e.g. cost centre, etc.).
Assets - prepare an Asset addition form for purchases greater than $10K by completing a FS65 Asset Addition form and provide it to your local Accounting Team.
Independent Contractors – give consideration to whether the supplier you engage is an employee or a contractor. Refer to the guidance available for Independent Contractors for further information.
Contract for Services - it is good procurement practice to prepare a Contract for Services when engaging suppliers where specific requirements have been agreed between parties. This will also ensure that any relevant terms and conditions have been adequately covered off, etc. The Legal Services team manage a range of contracts/legal documents that UniSA staff can access including a ‘Contract for Services’ via their document generation software call Contract Express. Contract Express allow authorised users to prepare and create commonly used documents (such as contracts and other legal documents) endorsed by UniSA Legal. At this stage, access to this system is available on request only and therefore the process from here is to contact Sandra Ciaramella on ext: 27628 or email: sandra.ciaramella@unisa.edu.au who will discuss access to Contract Express. She will also talk you through how to use the system and what is available, etc.

03. When can I capitalise a purchase?

Typically, capitalisation takes place when the value of the purchase is more than $10,000. Items purchased for less than $10,000 generally cannot be capitalised. When purchase is more than $10,000, you will need to complete FS65 Asset addition and provide to your local Accounting Team.