What Are They:
Limited
Purchase Orders (LPOs) are a four part form and somewhat
like a blank check in that they are taken to a local
business and filled out to purchase items totaling up to
$2,500. LPOs should be treated as a blank check and
kept in a secure place.
Where You Can Use Them:
You can use an LPO at
any local business that agrees to accept a Limited
Purchase Order from the University of Alaska Anchorage.
Many businesses are familiar with UAA’s LPO process
already.
What You Can Use an LPO For:
LPOs are designed as a
convenient method for University employees to “shop” for
non-repetitive use, in-stock items or same-day services
not exceeding $2,500. LPOs may only be used at local
vendors within the State of Alaska. Think of them as a
“cash and carry” tool, meaning that you spend your LPO
and pick up your merchandise at the same time. For
example, a University employee performing field research
or traveling on University business within the state may
use an LPO for items required for his or her University
business as long as the purchase is made “same day” and
within Alaska. Although competition is not required, it
is still expected that the best possible price be
obtained and that no favoritism be shown in selecting
suppliers.
Food Purchases with an LPO:
Food purchases are
those purchases made using the 3008, 4008, or 8115
object codes. Non-representational purchases are
carefully monitored and must be documented by a blanket
authorization letter or a
representational/non-representational form.
What You Can't Use an LPO For:
-
To purchase any item of
capital equipment.
- For anything over
$2,500. LPOs may not be combined for a
single purchase.
-
LPOs may not be used to
order items.
-
LPOs may not be used to
purchase items from an out-of-state vendor.
- Absolutely no
'back-ordered' items.
- Personal items.
- Weapons.
- Hazardous materials
or chemicals.
- Computers.
- Contract items from
a non-contract vendor.
- Pharmaceuticals.
How to Get Them:
Prepare a brief memo
in the following format. Fax it to Procurement Services
at 786-6519. Call 786-6500 with questions about LPOs.
TO:
Procurement Services
FAX: x 6519
FROM:
You and your Dept
RE: LPOs
Please prepare
(how many--up to a limit of ten) LPOs. Then list:
1. Department
2. Contact
person
3. Department
Phone No.
4. Department
Org number (account number)
NOTE: Fund 2
accounts need prior Grants & Contracts approval.
5. Account
Code (object code)
6. LPOs
are for up to $2,500, a request for a specific
amount is not required.
7. When
the LPO is needed. (If you need the LPO the same
day as you send the memo, call Procurement Services
to see if the LPO can be prepared right away.)
8. The
memo must be signed by someone with signature
authority on the specified budget.
How to Spend LPOs:
The employee making
the purchase is given the four-part LPO. Take the LPO
to the business. Make your purchase of in-stock items
and present the LPO as payment. Fill in the Vendor name
and address. Fill in the items purchased -- be as
specific as space allows. Verify that the amount
charged on the LPO is correct. Sign at the bottom at
“Signature of Purchaser”. The clerk will process it and
give you a receipt. The business should get the top,
white, original LPO copy. The UAA employee keeps all
other copies and the receipt to submit for final
processing.
Limited Purchase Order Advantages and
Disadvantages:
Advantages:
1. Departments can
"shop" for items directly from a vendor. This is
especially advantageous for RUSH items that are
authorized for purchase on an LPO.
2. Reduces paperwork
for small dollar, large volume purchases.
Disadvantages:
1. Limited to in-state
and local vendors.
2. Total of purchases
must not exceed $2,500.
3. Items must be
off-the-shelf and in stock.
4. No back orders
allowed.
Click
here for Banner Finance
Documentation on instructions for LPO's.
