- Procurement Home
-
Procurement Resources
- Procurement Resources Overview
- How to Use buyWays
- Contracts
- Procurement Exemptions
- Procurement Methods
-
Procurement Policies
- Procurement Policies Overview
- Procurement Policies and Procedures
- Sustainable Procurement Policy
- No PO, No Pay
- Vehicle Policies and Procedures
- Disbursement Policies and Procedures
- buyWays Procedures
- Proposals, Bids and Contracts Guidance
- Procurement Ethics Policy
- Supplier-Related Policies and Procedures
- How to Buy and Pay
- Concur Travel & Expense
- Supplier Resources
- Business Services
No PO, No Pay
The University Procurement Policy for Purchase Orders mandates that “The procurement of all goods and services must be based on a purchase order issued to the supplier through our eProcurement system prior to the delivery of the goods or commencement of the service. Except when approved in writing by the Director of Procurement, when placing orders using a Purchasing Card, or when paying approved direct expenditures.”
Benefits of “No PO, No Pay”
- Ensures that purchases are authorized before goods or services are supplied.
- Enables the University to process invoices efficiently, thus ensuring a favorable payment profile for suppliers.
- Allows our teams to have accurate, timely reporting, budgeting and forecasting across the University.
- Removes potential risk to the University by formally agreeing to the terms of engagement before the supplier/contractor commits to delivery,e., having favorable T&Cs with all our purchases.
Requesting Expenditure
Per the University’s “No PO, No Pay” policy, any invoices received from a supplier that do not clearly state a valid Purchase Order provided by the University will be rejected and returned to the supplier. The only exceptions relate to goods and services listed on the Direct Expenditure list below.
Exception to No PO, No Pay - Direct Expenditures
The following expenditures/circumstances do not require POs. This list is under constant review, and we will communicate any further changes as needed. Find more information on the 2-step process for direct expenditures.
Expenditure | Comments | Corresponding Account Codes |
---|---|---|
Utilities (electricity, gas, water) |
Use to pay utility bills that we receive as monthly statements. Departments should consider issuing POs to encumber funds to help manage their budgets. |
7018, 7020, 7777 |
Telecommunication/Phone |
Use to pay phone or internet bills that we receive as monthly statements. Departments should consider issuing POs to encumber funds to help manage their budgets. |
7009, 7010, 7337 |
Building Leases |
Use to pay lease payments for real property leases approved through the University/State process. A copy of the lease should be included with the invoice. Departments should consider issuing POs to encumber funds to help manage their budgets. You MUST also ensure the signed lease, approved through the LCAS Office, is attached to the invoice. |
7313, 7340 |
Food for students or business meals – must be with previously contracted suppliers |
Use to pay catering bills. On campus, this would consist of Aramark invoices unless an exception is granted for another caterer. For off campus locations, be sure any catering contracts are signed according to the University signature policy and that procurement rules are followed based on dollar limits. |
7045, 7046, 7332, 7341, 7777 |
Medical Expenses |
Use to pay medical expenses. This option is to be used by HR and Athletics only; the service must be provided off campus. |
4787, 7031 |
Student Travel |
Use to pay individuals or when an amount is unknown prior to travel. Hotels and travel agents SHOULD be issued PO if possible. |
2484, 6030 |
Insurance |
Use to pay insurance premiums. It is recommended that POs be issued to agents to help with encumbrances and budgets and make invoicing easier. Be sure insurance policies adhere to procurement guidelines regarding bidding and price references when required. |
7310 |
Stipends |
Use to make payments to individuals only. If paying a business, it is most likely a service regardless of what it is being called and should not be a Direct Expenditure - PO required. |
7316 |
Participant Support |
Use to make payments to individuals only. If paying a business, it is most likely a service regardless of what it is being called and should not be a Direct Expenditure - PO required. |
7550, 7552, 7553, 7560, 7561 |
Refunds |
A refund ONLY applies when Clemson is holding someone else’s money that they paid us, and we need to give them back all or a portion of that money. It is NOT a payment to reimburse them or pay them money that is theirs that we received from some other source. When appropriate, use the Non-Supplier Payment Form to process a true refund when the supplier is not registered in buyWays. |
2409, 4931, 7325 |
Awards, Scholarships and Honoraria |
Use to make payments to individuals only. If paying a business, it is most likely a service regardless of what it is being called and should not be a Direct Expenditure - PO required. Honorarium - You are either giving them an award/gift payment as a thank you for visiting or entering a contract with them agreeing to pay for travel, etc., in exchange for their visit. You can’t mix the two. The first example would most likely fall under this section of direct expenditure. |
7304, 7305, 7306, 7307, 7501 |
Dues, Registrations, Memberships, & Sponsorships |
Use for professional development and training primarily. Issue a PO if the amount and supplier are known beforehand. |
4606, 4601, 4610, 6018, 7026, 7027, 7347, 7348 |
Athletic Officials |
Use to pay officials associated with NCAA athletic events, including officials, timekeepers, etc. |
7023, 7024 |
Athletic Travel |
Use to pay for student athletic travel. |
6029, 6034-6038, 6043-6049, 6055-6056, 6063-6068, 6072-6073, 6041-6053, 6054- |
Madren Center Resale Items |
Use by Madren Center to pay Martin Inn or third parties for items sold as part of Madren Center event contract. |
2453 |
Subscriptions – magazines, newspapers, etc. (Does NOT include software/IT Service subscriptions) |
Use to pay subscriptions for publications like newspapers or magazines. This option does NOT include IT services that refer to subscriptions. |
7327 |
Employee Travel |
Employee travel should follow the employee travel policy and guidelines. Most employee travel is to be handled as personal reimbursement. However, occasionally, a department may contract with a travel agent for lodging to be paid directly. This option should be the only time this account should be used in buyWays. |
6001-6024 |
Banking or Financial Transactions (with Bank of America, TigerStripe relates, dining plans, managed print, computer store inventory) |
Use to make payments that are in essence, non-procurements or for making transactions involving payments of funds that reflect a transfer of funds collected per contractual requirements. It only applies to those entities/purposes specifically listed here. |
1116, 1204, 1415, 2002, 2406, 2409, 2514, 4620, 7029, 7732, 2492 |
Tax Only Payments |
e.g., property tax payments or county-specific tax assessments. Do not use to pay sales tax on an order. |
2434, 2435, 2477, 7302 |
Royalty Payments |
Use to pay royalties due to a third party based on contractual agreements. Amounts may not be known until the invoice is received and accounts are reconciled. |
7025 |
Expenses to another University related to athletic contests (guarantees, tickets, etc.) or regulatory refund of money to third parties |
Use to pay other universities for financial commitments related to athletic contests (CUAD) or by Regulatory Services to issue refunds mandated by State regulations. |
2409, 7035, 7346 |
US Homeland Security, VISA and other Federal HR type expenses |
Use for H1B Visa related expenses. |
7321 |
Student Org Payments |
Use to pay a Clemson University related student organization. Do not use it to pay other school organizations or suppliers on behalf of student organizations. |
4757, 7357 |
Postal Services (Stamps, Postage, Passport) |
Use to pay the USPS or other carrier directly. Most inbound freight should be handled through the current contract with VPL. |
7006, 7207, 7777 |
Library Database Subscriptions |
Actual contracts for these purchases must still be reviewed and entered into by Procurement and Business Services. |
8106, 8107 |
Return of Sales Proceeds |
Primarily used for bull testing payouts/PSA. |
7351 |
Pass through to State Agencies |
This account will be used as a “passthrough” for payments to other SC state agencies. |
7048 |
Attorney Fees |
Fees for Legal Representation of the University. Fees for Non-Legal Representation of the University. |
7001, 7054, 7777 |
Guest/Visitor Travel & Reimbursement |
Reimbursement for non-employees or non-students, such as speakers or consultants. |
7039, 7053 |
Frequently Asked Questions
-
What is No PO, No Pay, and why is it a financial control measure?
No PO, No Pay is one of Clemson University’s key financial control measures to ensure that payments are made only to suppliers and contractors with a supplied invoice (paper or electronic) containing a valid official purchase order (PO) number.
No PO, No Pay ensures that the University only pays for goods and services adequately ordered and authorized. It also ensures invoices received by University Accounts Payable representatives/departments will be processed efficiently to minimize or eliminate payment delays to suppliers and contractors. Invoices received by Clemson without a valid PO number will be discarded and not paid unless they are considered a Direct Expenditure that does not require a PO.
-
How does No PO, No Pay work?
No PO, No Pay requires that Clemson issue POs for all goods and services PRIOR to goods being ordered or services performed. Invoices submitted by suppliers and contractors will then have a PO to reference and an official PO number to include on each invoice. In all instances requiring a PO, the supplier will need to be registered in the University purchasing/AP system and will receive a PO generated from the University eProcurement system. The PO will contain a Clemson PO number that begins with either CU or FAC, followed by eight numbers.
-
What is the difference between a Direct Expenditure and a Procurement Exemption?
Procurement exemptions (previously referred to as DPV Exemptions) still exist and are often referred to as “exemption # X” where X is a number between 1-49. These are instances where a specified type of purchase/payment does NOT need to adhere to State procurement requirements for bidding. This list differs from the list of Direct Expenditures, which specifies types of purchases that do not require a PO. There are many instances where the two lists overlap, but because something is on one list does not mean it is on the other list. There are plenty of instances where something is Exempt from procurement requirements, but we still want to issue a PO to the supplier.
-
What happens if I receive an Invoice without a PO # included?
First, consider whether the invoice is for a Direct Expenditure. If it is, process accordingly. If the invoice is for goods/services, you may search buyWays to see if there is a PO that the invoice could match up to. If there is a PO (i.e., the supplier just failed to include the PO # on the invoice), you may ask them to resubmit the invoice correctly with the PO # included. Alternatively, you may simply disregard the invoice and let the supplier know that you cannot process the invoice without a PO # included. If there was never a PO issued, you will have to create a PO using the Unauthorized Expenditure form in buyWays and have the supplier re-invoice after they receive this confirming PO. The new Unauthorized Commitment PO process will take place after the fact, but it will require additional approvals from your Business Office. This option is NOT how we want to conduct business and is only used when the required process is not followed.
-
What if I receive an invoice for a supplier not registered in buyWays?
Whether the invoice is for goods/services or a Direct Expenditure, the department will need to submit a Request to invite a new supplier. That supplier will need to register with the University before issuing a PO or processing a Direct Expenditure.
-
Can I issue POs for purchases on the Direct Expenditure list?
YES! You can always issue a PO to any supplier and are encouraged whenever possible. The worst thing that can happen when you issue a PO is that the supplier ignores or questions the PO. However, most suppliers are used to receiving POs from their customers since many schools and businesses have no PO or no Pay policies. Issuing a PO is a way to ensure your approvals to spend money are met, that money is encumbered, and that budgets are better managed – all positive things. If you only want to issue a PO to create an encumbrance and have a reason you don’t want to send it to the supplier, you can select on the requisition not to have the PO sent to a supplier. It will still create a PO but won’t be sent to the supplier. It is not recommended because it doesn’t convey our T&Cs to the supplier, but this is an option.