The purchase order is a contract that legally obligates the University when accepted by the vendor.
The purchase order will be placed with the suggested vendor unless a substantial cost savings can occur through utilizing another vendor. A copy of the completed purchase order (pink copy), will be sent to the department supervisor or the originator of the purchase requisition for their records. Keep the pink copy for your files. Send the invoice to Accounts Payable to pay when goods arrive.
An encumbrance is placed on the account by accounts payable when the purchase order is prepared. This sets aside, or reduces, your budget for that account until the actual invoice arrives. This expense will show up on your monthly budget report as a subtraction from the available budget for that account. If you wish to cancel a purchase order, please notify the purchasing department and they will notify accounts payable to remove the encumbrance from that account. In addition, the vendor will be notified of the cancellation.