Material & Disbursement Services (MSD)
POLICY 16
Effective Date: 07/01/1995
Last Modified Date: 11/14/2003
Purchase Orders Are Binding
When a Purchase Order is written to a vendor by Purchasing Services in response to an offer by the vendor and is based on acceptable terms and conditions, it becomes a binding contract. Breaking or canceling the contract requires the consent of the other party.
Written Acceptance
When a Purchase Order is written to a vendor but is not in accordance with the terms and conditions that were previously offered by the vendor, it does not become a binding contract until the vendor either acknowledges and accepts the Purchase Order in writing, or delivers the goods or services detailed in it.
Penalty for Change
Only Purchasing may request changes to Purchase Orders already accepted by vendors. Most vendors are willing to make reasonable changes to an order without penalty to the purchaser. Generally, a charge is made for changing or canceling an order only when a vendor may have expended funds for fabricating or ordering special equipment or supplies.
Change Order
A Purchasing Change Request, Form P-103, is necessary to make a change in any existing Purchase Order to a vendor. This includes any increase or decrease in the order, cancellation, liquidation, account number change (before invoicing), additional encumbrances, and returns. A separate Change Request is required for each transaction. The form should reflect the requested change and reference the original Purchase Requisition number, Purchase Order number, and reason for the change. Changes can also be requested electronically via the online requisitioning system.
Encumbrance Liquidation Request
The Encumbrance Liquidation Request (Accounts Payable Form EC-111) should not be used for changes to Purchase Orders, except for those that use Student Stores as a vendor. These Purchase Orders are set up in the Purchasing system for encumbrance purposes only and can be altered through use of the EC-111.
Account Number Change
Any account number change required after an invoice has been entered into the computer system, even if the check has not been printed, must be done on the Account Adjustment Request (Form AJ-1). These changes cannot be completed through the Purchasing system.
Additional Information
See also:
MSD Appendix 8, Purchasing Change Request Form P-103
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