HBP Part 7.8.4 Making a Purchase

Handbook of Business Procedures

Date published: September 7, 2018
Last revised: September 7, 2018
Issued by: Purchasing

7.8.4. MAKING A PURCHASE

The Procard Program is offers university colleges, schools, and units (CSUs) a fast, flexible method for purchasing low-dollar, low-risk purchases from vendors that accept the MasterCard credit card.

The Procard is not a means to replace other procurement/payment methods and does not exempt the cardholder from any procurement or payment procedures and policies. This section outlines what must take place prior to any purchase made using the Procard.

A. Shipping

  1. On campus
    The shipping address on all items should be the cardholder’s CSU address.

    Do not ship items to the Procard billing address. If a vendor will only accept the billing address for shipment, contact the Procard Administrator for additional options.

  2. Off campus
    Shipments, including subscriptions, CANNOT be sent to a personal residence.

    Off-campus shipping is considered any location not included in the purchasing center index. This means any location that has not been vetted by the university. The acceptable list of off-campus shipping addresses usually includes any and all University of Texas at Austin buildings/facilities. If the location in question does not fall into this category, then prior approval must be requested from and approved by the Procard Administrator before the item is shipped to that location.

    Off-campus shipping requests must include information from the requestor, such as the items in the shipment, the location where purchase is being shipped, the card that will be used to purchase those items, and the reason why the item is not being shipped to campus. 

  3. Billing Address

    1616 Guadalupe
    UTA, Suite 3.302
    Austin, TX 78701

B. Verify Vendor Tax Standing

If a cardholder expects that a purchase may exceed $500, then the cardholder is responsible for verifying that the vendor is in good tax standing with the State of Texas prior to making the purchase.

The sections below provide two ways to verify a vendor’s tax standing. If the vendor displays as being on “HOLD”, then they are not in good tax standing and another vendor must be used.

In the case where the desired vendor is on “HOLD” and is the only one who can supply the product in question or if the vendor is not in the system at all, inquires should be addressed to Vendor Identification (VID) Section.

This verification must be made by searching for the vendor's name and UT EID in either *DEFINE or POINT Plus. *DEFINE will have an asterisk next to the vendor name on the GG4 and GG3 commands if the vendor is on hold. POINT Plus will have "HOLD" next to the vendor’s name.

Examples:

*DEFINE GG3:

POINT Plus:

A GGV with the vendor's relevant taxpayer info must be submitted if a vendor is not on file in *DEFINE or POINT Plus.

If you do not have access to either of these systems, please speak with your electronic office manager.

C. Verify Vendor SDN Status for Foreign Purchases

For all foreign purchases, the cardholder is responsible for verifying that a potential vendor does not appear on the list of Specially Designated Nationals (SDN) issued by the United States Department of the Treasury Office of Foreign Assets Control (OFAC). Under Executive Order (EO) 13224 issued by the President of the United States, all government entities are prohibited from doing business of any kind with people, organizations, businesses, countries, or other entities that appear on this list. This verification can be made by searching for the vendor's name on the SDN List.

D. Verify Purchase Excludes Sales Tax

All purchases made with a Procard are exempt from State of Texas sales tax. Cardholders should monitor all transactions to ensure that tax is not charged on any Procard purchases. A vendor may request a tax-exempt form.  Cardholders can find university tax-exempt information on the Tax Exempt Information page.

It is always in the cardholder’s best interest to discuss the university’s tax status with the vendor prior to making the purchase. 

If a purchase is made and the transaction includes tax, the following should occur:

Scenario

Resolution

Charged sales tax within the State of Texas

Speak to the vendor about refunding the amount of tax charged.

If the vendor refuses to refund the amount

Return the item.

If the vendor refuses to refund the amount and the item cannot be returned:

The cardholder is responsible for refunding the amount of tax charged to the account.

 

 

Charged sales tax outside of the State of Texas:

Make a goodwill attempt with the vendor to request that the sales tax be removed. If the vendor will not refund the sales tax for the purchase, they are not required to do so and the university will pay the sales tax.

While the Procard is tax exempt within the State of Texas, we request all cardholders do their due diligence to have all tax removed from any transaction.

The cardholder can also seek a refund of sales tax with a request to the Texas Comptroller’s Office: https://comptroller.texas.gov/taxes/sales/refunds/

 

 

Part 7. Purchasing - Table of Contents