7.8.5. POST PURCHASE
After Procard purchases are made, there are things that must be done in accordance with The University of Texas at Austin policy.
Large purchases, such as computers or tablets, must be reported to Inventory Services. Additional details about controlled and capitalized products and values can be found online. Items that store university information, such as computers and tablets, must also be tagged by Inventory Services. Departments may have additional requirements that should be discussed with a college, school, or unit’s (CSU’s) Office Manager.
It is the cardholder's responsibility to ensure all items are received and to follow up with vendors to resolve any delivery problems, order discrepancies, or issues involving damaged items.
In order to maintain internal controls, a university employee other than the cardholder (a third party not involved in the original purchase) is responsible for verifying the receipt of items purchased. Receipt of all items must be documented.
When receiving an item purchased with the Procard, the receipt and/or packaging slips must note when the item was received and by whom.
For details about how all receipts should be retained, refer to The University of Texas at Austin Records Retention Schedule. All such documents must be turned in to the Approving Official/Reconciler no more than three days post purchase.
C. Record Keeping and Retention
Cardholders are required to retain documentation for all Procard purchases (receipts, VP7s, and other supporting documentation related to purchases). These records must be maintained for a minimum of four years (three years, plus the current fiscal year) as required by the University of Texas Records Retention Schedule (UTRRS). Refer to Verifying Images and Retaining Documents for more information.
Receipts must be matched to the VP7 during the reconciliation process; the VP7 will not be approved without the supporting documentation. Cardholders have three days from the date of purchase to submit a transaction receipt to their Approving Official/Reconciler. If the Procard is used by more than one person, a transaction log must be maintained. Additional documentation may be requested from your Approving Official.
For phone orders, ask the vendor to include a sales receipt in the package.
For internet orders, print the online order confirmation or print a copy of the confirmation email received from the vendor. Details of what was purchased, the cost of each item, and where the material was shipped must be included as part of your supporting VP7 documentation.
All completed and approved VP7s, including all supporting documentation, must be submitted to Records Imaging Services. For questions about documents submitted for imaging, contact your Unit Records Manager (URM) or the Records Management office.
Records of the location of these documents (receipts, VP7s, and other supporting documentation related to purchases) must be kept.
If a receipt is lost, destroyed, or misplaced, cardholders must first contact the vendor to request another copy of their receipt. If the vendor is unable to supply a new receipt, cardholders must complete the following steps and include as much detail as possible:
- Recreate the receipt to the best of their ability using their Procard log, statement, and any other details they can gather.
- Complete the Procard Missing Receipt form.
- Make notes in the VP7 document about the loss of the receipt, the steps taken to obtain a new one, and the processes used to create a duplicate.
Note: The Procard Missing Receipt Form is not meant to be used in lieu of a receipt issued by the vendor and should only be used when all other options have been exhausted. If this document is used in excess, it will result in an investigation of a cardholder’s card use. Any cardholders not abiding by university policies will have their card privileges suspended.
Credits and Returns
By rule of the State Comptroller, cardholders are not allowed to receive cash refunds, including gift certificates or store credit, for returned merchandise. This restriction includes any vendor programs that offer additional items or benefits for purchasing through them, such as store credit in the form of gift cards or cash back. These type of items cannot be tracked and so cannot be used in conjunction with the Procard.
All credits or refunds must be applied to the same Procard and account used for the original purchase. If cash is ever given when items are returned, the money must be deposited immediately into the account where the charge originated using a VC1 document. The VC1 document must also be cross-referenced to the VP7 where the charge occurred and vice versa.
VP7 payment vouchers are created at the end of each 30-day billing cycle period, charging the account number specified on the cardholder application for each transaction. VP7(s) are electronically routed for approval to the individual(s) designated by your electronic office manager. The cardholder must have submitted all receipts and supporting paperwork related to their Procard transactions to the Approving Official, and the transaction log for the Procard should also be made available for reconciliation with the VP7 document. The cardholder must turn in all receipts and supporting documentation no more than three days post-purchase.
The cardholder is responsible for retaining documentation for all purchases. Receipts must be matched to the VP7 during the reconciliation process in order to approve the VP7 document. If documentation is missing, then the document should not be approved. If the Procard is used by more than one person, a transaction log must be maintained and turned in as part of the supporting documentation.
See Record Keeping and Retention for details on how these documents should be handled.
Billing cycle close dates
The closing date for the billing cycle is usually on the third of the following month. Refer to the Procard Cycle Dates page for more details.
Approval of payment vouchers/VP7s
The designated college, school, or unit (CSU) Approval Official must verify the charges and approve the VP7s by the final approval date shown on the VP7 creation email. Failure to review and approve VP7s by this date will result in infraction actions taken by the Procurement Card Program.
Please be aware, while cardholders cannot approve their own VP7 documents, they are responsible for validating that this document was approved prior to the approval deadline.
- VP7 Routing
*DEFINE VP7 routing is determined by the default account number used by the card in question. To understand how VP7 Routing works, refer to the details below and to askUS
- Using a valid and active account number, *DEFINE determines what Routing (Master) View the Procard account number is in.
- If there is a special routing sequence for VP7 documents exists in the Routing (master) View for the account, the VP7 document will
- follow that special VP7 routing sequence and
- assign the first nonsubstitute on the first desk in the special VP7 routing sequence as the creator of the document
- If no special routing sequence for VP7 documents exists in the Routing (Master) View for the account, the first logon ID listed on the default desk of the office manager will be assigned as the creator of the VP7 document.
- To route correctly, the VP7 document creator desk must meet the following requirements:
- The first person on the desk cannot be a substitute. You may change the substitute status of the first person on the desk or reorder desk assignees so that the first person on the desk is not a substitute.
- The people assigned to the creator desk cannot all also be on the signer desk of the Routing (Master) View for the account.
- The creator desk must be linked to an authorization view that the VP7 account is in, and the linked desk/view must have at least update status for VP7 documents.
- The VP7 will route to the Procard Administrator if any of the following is true:
- there is no account number associated with a line item
- there is no desk assignee on the creator desk
- the account number is inactive or has insufficient funds
- there is a conflict within the Routing (Master) View (f you cannot approve the VP7 due to a Routing (Master) View conflict, please contact the Procard Administrator for instructions before the final approval deadline for that cycle)
If an object code is restricted for the account number used, the object code will default to 1000 and prevent the document from being approved. To correct this situation, find an account number that will allow you to purchase the item using the appropriate object code.
The Procard Administrator cannot change routing. CSUs should work with their Electronic Office Managers to correct any VP7 routing issues.
If a default account number is no longer valid and needs to be changed, a request can be sent to the Procard Administrator. Only the Procard Administrator can change the default account number assigned to a Procard.
Cardholders will be the first point of contact if there are any issues with a VP7 for the cardholder’s Procard. The Procard Administrator may require the cardholder’s assistance in getting information, or may be in contact with the final approver to correct any errors regarding the VP7.
If you are aware of any reason your VP7 will not be approved in a timely manner, contact your Procard Administrator prior to the final approval deadline.
Contract and Grant Account Object Codes
Contract and grant accounts (26-accounts) must identify certain items by object code. Object codes and any required account number changes must be made on the VP7 document.
- Office supplies must be coded 1401.
- Equipment over $500 must be coded 1837.
- Computers must be coded 1847.
- Telecommunication must be coded 1867.
Once a purchase is completed and posted or when the VP7s have been generated, charges can be split into multiple accounts. This is not the same thing as split transactions, as split charges occur after the transactions have been made and posted with the bank. These transactions cannot exceed the cardholder’s single transaction limit.
E. VP7 Corrections
If a VP7 correction is not covered by one of the two document types below, contact the Procard Administrator for assistance.
If a final-approved VP7 needs correction, a VT6 document should be created using the 01 Format.
If a purchase was mistakenly placed on the Procard and the vendor refuses or is unable to refund the card directly, the cardholder must create a VC1 document to reimburse the account that was charged incorrectly. When creating the VC1 document, the cardholder must enter notes to include the original VP7 document ID where the error occurred and an explanation about what led to this event.
If the item in question was purchased without sales tax but sales tax should have been applied to the purchase, the cardholder must contact the vendor directly to resolve this issue.
Infractions against Procard policy are not limited to violation of Procard or university policy. Some examples include:
- split transactions
- state sales tax being charged
- purchase of an item listed on the disallowed purchases table
- failure to have a VP7 approved prior to the approval deadline
- failure to adhere to Procard Policy
The first infraction against Procard policy results in a warning letter. If any other infractions occur within a year of issuance of the warning letter, the following actions will be taken:
- Second infraction: 30-day suspension of card privileges
- Third infraction: permanent loss of card privileges
A cardholder cannot apply for another card if a card was canceled due to violation of Procard policy.
Improper use of the Procard can result in the cancellation of the Procard and possible lawful action taken against the offending party.
For audit purposes, all Procard documentation related to purchases made on the Procard must be retained, per The University of Texas at Austin Records Retention Schedule, by the CSU for a minimum of three years plus the current fiscal year (four years total). This documentation must also be imaged. The Office of Internal Audits may audit all Procards at intermittent times. Records may also be reviewed monthly by Accounting and Financial Management, the Purchasing Office, Payment Services, and the Office of Internal Audits using electronic reports from the bank and imaged VP7 documents.
Part 7. Purchasing - Table of Contents