Body
Introduction
Purpose
The University's electronic purchasing system cannot track an order unless there is a purchase order number assigned to it. Zero-dollar purchase orders allow an item to be tracked, even when it is acquired at no cost to the University.
Scope of Applicability
This policy applies to all University employees.
Policy
Policy Statement
All equipment obtained by the University must have a purchase order associated with it. The University may obtain equipment for evaluation or demonstration without the expenditure of funds by creating a Purchase Order for zero dollars documenting the contractual agreement and shipping details with the vendor.
Even though no expenses are anticipated with a zero-dollar purchase, a valid chartfield string must be provided on the requisition and the requisition must be accompanied by a signed equipment evaluation agreement, if applicable, that meets the requirements of Finance Policy 1278 - Departmental Evaluation of Equipment.
Purchasing Services is prohibited from entering into any purchase agreements for employees' private benefit, including zero-dollar purchase orders. All materials purchased by the University remain the property of the State until consumed or disposed of by public sale through appropriate Surplus Property procedures.
Exceptions
None.
Additional Information
Special Situations
None.
Frequently Asked Questions
Q: Do I really need a requisition to evaluate some equipment or software I am not going to purchase at this time?
A: Yes. A zero-dollar requisition is required for all evaluation equipment or software. Purchasing Services will issue a zero-dollar purchase order along with an evaluation agreement. This must be done prior to receiving any equipment or software for evaluation.
Q: If my department has equipment under warranty that needs to be returned for repair or replacement, do we need to create a zero-dollar purchase order since there is no cost associated with the repair?
A: Yes. Having a zero-dollar purchase order allows you the ability to track any potential or unforeseen charge that may occur subsequent to the order being processed. It is important that you work with Purchasing Services to ensure proper documentation of the equipment return.
Q: My department needs to have equipment repaired under warranty and the vendor requires a purchase order. Why is a purchase order necessary if there won't be any charge?
A: When equipment is being returned for warranty repair or replacement, some vendors may require a zero-dollar purchase order as an authorization from the University. In fact, it is a University-wide requirement.
Related Requirements
External Regulations and Consequences
None.
University Policies, Standards, and Procedures
- Finance Policy 1278 - University of North Carolina at Chapel Hill Policy on Departmental Evaluation of Equipment
- Finance Policy 711 - University of North Carolina at Chapel Hill Policy on Return of Merchandise to Vendors
- Finance Procedure 711.1 - University of North Carolina at Chapel Hill Procedure for Returning Merchandise to Vendors
Contact Information
Policy Contact
| Subject |
Contact |
Telephone |
Fax |
E-Mail |
| Zero-dollar Purchase Orders |
Purchasing Services - Goods |
919-962-3774 |
919-962-6271 |
purchasing_team@unc.edu |
History
Revised:
- October 1, 2014: Revised naming of requisition and chartfield string components.
- July 27, 2010
- November 20, 2003