What’s changing?
With the launch of OneUniversity we’re implementing a ‘No PO No Pay’ policy. This means that all invoices from suppliers must quote a valid OneUniversity Purchase Order (PO) number.
Exceptions
There are some exceptions to this policy where a PO is not appropriate for the type of supplier or transaction.
There is a perception that it’s impossible to raise a purchase order for a requirement unless a final price is known and that the final price is only known when the invoice has been received.
This would make budget management in the University extremely difficult given that there will be no commitment on the finance system prior to the invoice being received.
Also, it doesn’t allow the University to establish the terms of the agreement with the supplier for scope of work, terms and conditions, etc.
There are varying solutions to this, however some of them such as retrospective POs (raised after the invoice is received) or
POs raised for £0.01 have similar issues. Therefore, the advice is to:
- Raise the PO in advance and use it as a means to engage with the supplier (establish the scope of work and the terms of the agreement/purchase); and
- Ensure the amount on the PO is based on a realistic estimate.
Benefits of No PO, No Pay
→ Ensures that purchases are authorised before goods, services and works are supplied.
→ Enables the University to process invoices efficiently, ensuring a positive payment profile with suppliers/contractors.
→ Enables accurate timely reporting, budgeting and forecasting across the University.
→ Reduces risk to the University by formally agreeing the terms, conditions and deliverables before the supplier/contractor begins any work.
How’s it going to work?
Invoices received with a valid OneUniversity PO number will be processed as normal by Accounts Payable. Invoices received without a valid OneUniversity PO number will be returned to the supplier until a valid PO number can be provided and the invoice is resubmitted.
Things to remember
→ Don’t commit University funds without raising a PO first.
→ Use a University approved supplier in compliance with the Procurement Policy.
→ When raising an appropriate requisition, obtain approval and communicate the OneUniversity PO number to the supplier/contractor.
FAQs
If you have any queries about the No PO No Pay policy, please email procurement@dundee.ac.uk. A suite of FAQs will form part of the guidance around the policy and is available in the Knowledge Base located
within the IT portal at help4u.dundee.ac.uk