Change Orders to Purchase Orders
Emily J. Hamby, Director of Purchasing Division
Effective October 2, 1995 change orders are not needed if the purchase order price reference is to a price list and the difference between the purchase order and the invoice is not over $100. The first line of the description on the purchase order will read:
* Key #1 In accordance with vendor’s catalog or price list dated.
* Key #2 In accordance with Vendor quotation for printing dated.
Change Orders are not needed to close purchase orders if the last invoice to be paid against the purchase order has FINAL or COMPLETE, either hand written or rubber stamped on the invoice. They will be closed in Payables when the invoice is processed.
Change orders are not needed to increase the purchase order to pay for freight charges if the Purchase Order says “FOB Shipping Point” or “FOB Shipping Point Prepay and Add”.
A change order, where the only change is to an account number, an object code, or to close a purchase order, may be sent directly to Payables.
Change orders to blanket purchase orders may be worked in Payables if:
The blanket statement begins with “Key 10”, these orders are coveredby bids, contracts, or sole sources.
The blanket statement begins with “Key 11”, and the total of theoriginal purchase order and all subsequent change orders do not totalmore than $11,000.
Remember, change orders for blankets should be limited to one per month and in even dollar amounts unless to cover the final invoice.
Change orders worked in Payables will not produce hard copies for your or the vendor’s records.