Procurement Services 205: Cash or Prepaid Purchase Orders

Purpose

To provide a method of purchasing items when a payment must accompany the order

Reference

University of Alaska Procurement Manual (not available online) Board of Regents Policy & Regulation 05.06.400

Definitions

Cash or Prepaid Purchase Order: A "Cash" or "Prepaid" purchase order is a purchase for which Accounts Payable generates a check that is mailed with the purchase order to the vendor. This method is used when total or partial payment must accompany the order. 

Policy

Limitations A prepayment is an exception to the university's normal practice of paying only after the receipt of goods or services. Departments should use discretion when requesting a prepayment because it weakens UAA’s position to recover the payment if something goes wrong with the order.
A prepayment for services is generally not allowed, although a “partial cash pay” in the form of a negotiated advance may be approved. Cash payments may not be used for purposes of financing a vendor or a contractor performance.
Uses Appropriate uses include orders for deposits, subscriptions, publications, retainers, and memberships.
Initiating a Prepayment To request a cash or prepaid purchase order, enter a requisition into Banner and request the purchase order be set up as a cash or prepaid purchase order.
Click here for Banner Finance Documentation on instructions for requisitioning for Purchase Orders.

Effective: 10/25/2005