Why tighten the policy like this?
For several years now, Radboud University has confirmed arrangements digitally using a written purchase order, to comply with laws and regulations. This approach also ensures that orders are handled efficiently. Unfortunately, it appears that we still have the situation at our university where orders are placed with suppliers/providers without recording a written purchase order beforehand. The supplier then sends invoices to the Accounts Department directly. Despite this approach not being in line with our university arrangements, these invoices have still been processed to date and paid after the appropriate approval. From 1 February, this will no longer be allowed and only invoices with a purchase order will be processed. So, if there is no purchase order, the invoice will be returned to the supplier and a purchase order will still have to be created before the invoice can be paid.
Recording arrangements in writing in Oracle has a number of advantages:
- The arrangement is checked by the Purchasing Department for legality, such as: obligation to issue an invitation to tender, terms and conditions, price, etc.;
- The Finance Department checks whether the budget is sufficient;
- Recording against the correct budget number (project/specification) means that the commitment is recorded and this increases financial visibility;
- Invoices can be settled more efficiently and thus paid faster (in line with agreed time frames).
How does the purchasing process work with a purchase order?
The budget holder asks the supplier(s) for (a) quotation(s) or records the arrangements in writing, in an email for example.
- The budget holder asks a colleague with ordering authority (this at least includes all management assistants) to record the order request in BASS/Oracle.
- The Purchasing Department then assesses the order request in terms of legality, price, terms and conditions, etc.
- The order request is checked digitally by the Finance Department of the faculty or unit concerned.
- The order request is approved digitally by the budget holder.
- Following all approvals, the supplier receives an email with Radboud University’s General Terms and Conditions and a purchase order number.
- After the product or service has been delivered, the supplier sends an invoice stating the purchase order number to the following email address: facturen [at] cif.ru.nl. This may also be a partial invoice. It is not necessary to submit an order request for every invoice. Instead, this can be done for the entire order in one go provided it concerns just one supplier.
- Once the service or product has been delivered, the orderer records this in BASS/Oracle.
- If the invoice corresponds to the order request and receipt/performance has also been declared, the invoice is made payable directly by the Accounts Department.