Introduction To Purchasing Card Principles

1. Introduction To Purchasing Card Principles

2. Define what a Purchasing Card (P-card) is List the benefits of using a P-Card List the instances when you use a P-Card List restrictions of using the P-Card List your responsibilities regarding the P-Card List the steps to follow when the products order are defective or incorrect List the people involved in the Purchasing Card Approval Process List available Purchasing Card resources Objectives

3. What is a Purchasing Card (P-Card)? It is a Visa credit card with your name and GSW State University’s name embossed on the card The credit card is issued by Bank of America to purchase goods/items on behalf of GSW GSW is responsible for the payment of the goods/items you purchase on the credit card 3

4. How it all works Behind the Scenes 4 Procure to Pay with Pay on Receipt Browse supplier catalog over web Self-Service Web Requisitioning Procurement workflow automatically creates purchase order or release against a blanket PO. PO sent to supplier via EDI or fax. Supplier sends ASBN and ships goods Pay on Receipt automatically creates matched invoice Automated invoice approval EDI or other electronic payment to supplier Procure to Pay with EDI Invoices Browse supplier catalog over web Self-Service Web Requisitioning Procurement workflow automatically creates purchase order or release against a blanket PO. PO sent to supplier via EDI or fax. Supplier transmits EDI invoice EDI invoice enters Payables through EDI Gateway and Payables Open Interface. Advice notice transmitted via EDI to supplier on problem invoices. Automated invoice approval EDI or other electronic payment to supplierProcure to Pay with Pay on Receipt Browse supplier catalog over web Self-Service Web Requisitioning Procurement workflow automatically creates purchase order or release against a blanket PO. PO sent to supplier via EDI or fax. Supplier sends ASBN and ships goods Pay on Receipt automatically creates matched invoice Automated invoice approval EDI or other electronic payment to supplier Procure to Pay with EDI Invoices Browse supplier catalog over web Self-Service Web Requisitioning Procurement workflow automatically creates purchase order or release against a blanket PO. PO sent to supplier via EDI or fax. Supplier transmits EDI invoice EDI invoice enters Payables through EDI Gateway and Payables Open Interface. Advice notice transmitted via EDI to supplier on problem invoices. Automated invoice approval EDI or other electronic payment to supplier

5. What are the Benefits of Using a P-Card? Offer the opportunity to streamline the processes of procuring and paying for goods and services Reduces the administrative process costs Reduces the volume of accounts payable transactions Reduce costs associated with small dollar purchases Streamline purchasing and payment procedures Reduce the administrative burden Simplifies and automates the purchasing and payment process Reduces purchasing cycle time and expedites delivery Provides management information Allows reallocation of resources to more “mission critical” needs Expands number of possible merchants Increases competition Typically, 80% of transactions only represent 20% of total dollars spent 5

6. Consider the Benefits of the Purchasing Cards 6

7. Consider the Benefits of the Purchasing Cards 7

8. Consider the Benefits of Purchasing Cards Purchasing Cards improve procurement cycle times According to the 2005 Purchasing Card Benchmark Survey*, the average procurement cycle is reduced by 6.3 days Suppliers are paid within 48-72 hours of a posted transaction Employees receive goods/services faster 8

9. Consider the Benefits of Purchasing Cards Cost breakdown of Traditional PO and P-Card Transactions* PO Purchasing Card 9

10. Consider the Benefits of Purchasing Cards The elimination of process steps results in transaction cost savings According to the 2005 Purchasing Card Benchmark Survey*, the average cost of a traditional PO based process was reported by respondents to be about $90 The average cost of a Purchasing Card transaction was estimated to be about $22 10

11. When Do You Use a P-Card? 11

12. Where Can You Use a P-Card? 12

13. Some of the Restrictions 13

14. Some of the Restrictions 14

15. Things You Must Do Regarding Your P-Card… 15

16. What Rules Do You Follow?

17. Things You Must Do Regarding Your P-Card… Ensure complete understanding of GSW’s reconciliation process Maintain a copy of all receipts Review and maintain reconciliation documents Follow the procedures regarding Cardholder approvals Follow the established purchasing guidelines Maintain adequate documentation (WHAT, WHY, WHERE/location) Tape ALL small receipts to an 8-1/2 x 11 sheet of paper Summary Sheets due by the 10th of each month by 3 PM 17

18. Things to Watch For… Make sure that Sales Tax is not charged on your purchases 18

19. When Is Your P-Card Suspended? you do not follow the State’s and GSW’s policy and procedures you do not complete your reconciliation process in a timely manner (due by the 10th of each month by 3 PM) of habitual misuse of fraudulent activity. When this is the case, you will be terminated and prosecuted 19

20. When Do You Cancel Your P-Card? you are leaving employment you are taking extended leave from your job

21. What Happens When the Product is Broken or You Did not Order It? Contact the vendor immediately and document your actions If you are unhappy with the vendor’s response, contact your Purchasing Card Program Coordinator to initiate a Dispute If you do not recognize a charge, contact the vendor for a proof of purchase or delivery If you suspect fraudulent activity – contact your Purchasing Card Program Coordinator immediately for further instructions 21

22. Who is in the Chain of Command? 22

23. P-Card Program Resources To review GSW’s Purchasing Card Policy, go to the Business Forms page and click on Procurement Card Policy To review Georgia State Purchasing Card Policy and on-line resources: http://statepurchasing.doas.ga.gov/00/channel_title/0,2094,35226973_36298628,00.html 23

24. P-Card Program Resources To review WORKS Payment Manager on-line training materials: https://payment2.works.com/wpm/bookmark To contact P-Card Administrator: nrooks@gsw.edu To contact P-Card Coordinator: atallent@gsw.edu 24

25. Questions? 25