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Obtaining a Purchasing Card
Upon approval from your department manager, a confidential
data application will be sent to you. Based on the information
you complete on this form, an application will be submitted to the
bank to obtain a card for you. The payments
lead is the Seattle Pacific University purchasing card administrator
and can be reached at x2527 if you have any questions about this
application process.
The Bank of America MasterCard purchasing card will be sent to
the administrator, who will schedule training for you on using the
purchasing card system. Once you have completed the training and
signed the SPU purchasing card user
agreement, the card will be given to you. Then you can purchase
items for your department within the guidelines set forth in this
Purchasing Card Policies and Procedures Manual.
Guidelines for Card User
The purchasing card may be used at any qualified merchant that accepts
MasterCard.
DO NOT use your purchasing card in place of other established purchase
systems, such as company letterhead and forms available through
our designated supplier.
The purchasing card is intended for low-value, approved expense
purchases that benefit SPU. Examples of the types of purchases your
card can be used for are small equipment, parts, office supplies,
subscriptions, memberships, books and, generally, any approved purchase
under $2000.
The following uses are strictly prohibited: personal purchases, cash advances or cash refunds.
Consequences for Non-Compliance to Problem
Guidelines
Because the purchasing card is a tool to aid in the purchasing process
that has credit implications to SPU, strict program compliance is
required. Non-compliance in excess of 30 days after the monthly
statement date will produce the following consequences:
- Permanent revocation of purchasing card privileges
- Assignment of wages for repayment of discrepancies
- Notification to Security and the controller to investigate
the matter further
- Disciplinary measures that may include termination and legal
action
General Instructions (Cardholder Responsibilities)
NOTE: The cardholder is responsible for ensuring that all required steps are completed when placing an order.
- Determine if the transaction value of what you want to purchase
is $2000.00 or less (including taxes,
freight, shipping and handling). If NO, process the transaction
via a purchase order.
- If YES, obtain approval (if required) from your immediate supervisor
or department manager, PRIOR to making the purchase. When you
need to obtain approval, include any supporting documentation
(e.g., list of parts, copy of catalog page, subscription order
form, or requisition form, etc.).
- Contact the supplier of your choice and place the approved
order.
Provide the supplier with the Bank of America MasterCard purchasing
card number and expiration date. Have the supplier ship, according
to terms, and give the supplier your company name, your name,
telephone number and street address. Make sure this information
is included on the shipping label, if items are to be shipped.
In those cases where the supplier requests your “Customer
Code” or “Transaction Code,” leave it blank.
We are not using this functionality at this time, SO THERE ISN’T
ONE AVAILABLE.
Request the supplier to enclose a copy of the credit card
receipt and a copy of the sales slip with each shipment to confirm
pricing, applicable taxes, etc.
- Log the order on the log
sheet to maintain a record of the purchase.
- Before you finish with the supplier, check one last time to
make sure that all information needed on the log sheet has been
completed.
- Keep a copy of the charge slip, sales receipt, or any other
information related to the purchase(s) on the applicable log sheet,
and file them in the envelope supplied.
- The bill will be paid automatically! The statement you will
receive once a month is for reconciliation and audit purposes
only.
- Compare the log and your file information with your purchasing
card statement. Be sure you have only been charged for items and
amounts shown on your log. These transactions will also appear
in your “General Ledger Detail Transactions” report.
Any items that do not appear should be left open, transferred
to a new log sheet and compared with the next statement. Have
your supervisor sign off on the log sheet, confirming review and
approval.
- Forward all reconciled documentation to the payments department
for review within 15 days of receiving the statements. All documentation
will be maintained in the payments department for a period of
seven years.
NOTE:
-
The preceding general instructions are for orders placed by phone.
- KNOW YOUR VENDOR.
- When orders must be picked up at the supplier’s place
of business, make sure you present your card for imprint, sign
the charge slip, and obtain a copy of the charge slip and the
cash register receipt, or hand-written receipt, for your files.
What If the Supplier Does Not Accept Credit
Cards?
The Bank of America MasterCard purchasing card concept is relatively
new in terms of corporate use. You may find suppliers that do not
accept credit cards when you first call them. If this happens, you
have several options:
- Ask the supplier if they are interested in obtaining the ability
to accept credit cards. If the answer is yes, have them contact
the Bank of America Merchant Sales Department at 1-800-952-4451.
They will answer any questions and will assist them in being set
up as an authorized MasterCard merchant.
- Refer the supplier to the purchasing card administrator for
assistance.
- As a last resort, complete a request
for payment or use the purchase order system.
Sales and Use Taxes
Cardholders should make sure vendors include sales or use taxes
on all receipts, as we do not have a way to accrue taxes. If
you purchase materials or services from out-of-state on the card
and the supplier will not charge the sales tax, please note on the
log. If you have any questions on taxes, call the purchasing card
program administrator. This is critical for the payments department.
WA state department of Revenue requires all purchases (regardless
of location or means of payment) to have sales or use taxes paid.
They enforce this regulation by auditing the buyer—SPU. It
is the PD’s job to verify that all purchases meet these regulations.
Your assistance in this area will make that function easier.
Credit Card Security
Keep your MasterCard purchasing card in a secure location and safeguard
the MasterCard account number. You, as the cardholder, or your approved
designee should be the only one(s) using the card. It should be
accessible ONLY to you. DO NOT
post your card number at your desk, or any other place easily accessible
to others.
DO NOT share the use of your card with anyone
except those approved by your manager or the purchasing card administrator.
Lost or Stolen Cards
Like your personal credit cards, if your purchasing card is lost
or stolen, you must contact the bank immediately by
phone. You must also phone the purchasing card administrator
at x2527.
The cardholder’s department is responsible for any charges made on the card prior to the card being reported as lost or stolen. Keeping track of the card and immediate notification will mitigate any potential loss.
Once you have reported your card as lost or stolen, the card will
be closed and a new card will be issued and sent to the purchasing
card administrator within one work week. If the old card is located
at a later date, destroy it by cutting it in half and disposing
of it. Do not attempt to use the old card.
What If the Cardholder Leaves the Company?
When a cardholder leaves the company, the cardholder must return
the Purchasing Card to the purchasing card administrator.
The Bank of America MasterCard purchasing card can be canceled
by calling B of A at 1-800-305-7735.
For Whom Can a Cardholder Purchase?
The cardholder whose name appears on the purchasing card may make
purchases for any employee that reports to the same cost center,
department, etc. as the cardholder.
What If There Is an Error on the Statement
or Other Problems?
In case of discrepancies or disputed charges, the supplier should
be contacted first. Most exceptions or issues can generally be resolved
between the cardholder and the supplier/merchant by way of an adjustment
that would appear on the next statement. If agreement cannot be
reached with supplier, the next step is to contact the bank at their
customer service center: 1-800-305-7735. Their staff is experienced
in dealing with these problems and should be able to help. If you
are unable to obtain an acceptable resolution, contact the purchasing
card administrator for assistance.
Returns / Credits / Disputed Items
If a purchased item needs to be returned for any reason, make arrangements with the supplier/merchant to have the item shipped/delivered to the supplier’s place of business or warehouse. Keep a copy of any shipping documents used for this purpose and have the transportation company sign for receipt of any items being returned. Attach these documents to your log sheet for future reference.
The supplier/merchant should issue credit for any item that has been discussed and agreed to for return. Review subsequent statements to assure that this credit has been processed and posted to your account.
Some disputed items, because of their complexity, may have to be
submitted in writing. Please contact the purchasing card administrator
for necessary forms that would be required. All written communications
must be submitted within 60 days of the date the item first
appeared on your statement.
Returns, credits or disputed items are the responsibility of the
cardholder. The purchasing card administrator is available for assistance
if needed.
Control Mechanisms within the Bank of America
MasterCard Purchasing Card
The Bank of America MasterCard purchasing card is a special type
of charge card. For most cardholders, limitations have been hard-coded
in the card to control its use in the following ways:
| Maximum dollar amount per transaction |
$2,000 |
| Total spending limit per month per cardholder |
$5,000 |
| The type of supplier/merchant, as defined by Merchant Category Code (MCC) |
(As an example, all transactions will be declined on cards used at hotels, car rental agencies, airlines, and other establishments typically not supplying business-related goods and services.) Please refer to Attachment E for a list of the Merchant Category Codes where you can use your card.
For specific cardholder information, please contact the purchasing
card administrator.
Bank of America also generates extensive usage reports to help
manage the purchase transactions and to provide assistance in understanding
how SPU is using the cards.
Charges Are Systematically Allocated by Department
/ Cost Center / Account, Etc.
purchasing card software is designed to allocate costs to the correct
department, cost center account, etc. The center number is hard-coded
in the individual credit card. The software will interface with
Seattle Pacific University’s financial systems, and costs
will appear on the “General Ledger Detail Transactions Report”
each month.
Audits
To ensure the continued success of the purchasing card program,
and in order to meet SPU’s audit requirements, periodic audits
of the cardholders’ transaction files will occur. The main
purposes of the audit are to ensure that correct information is
being captured and that the purchasing card program policies and
procedures are being followed. Additionally, the bank will send
a periodic report of all transaction activity to the purchasing
card administrator and that information will be reviewed and made
available to management.
Impact on Cardholders' Personal Credit Rating
The Bank of America MasterCard purchasing card is a corporate liability
card, not a personal liability card. Therefore, only the company’s
credit rating will be affected by use of this product. Please remember,
before you receive a purchasing card you will be required to sign
a purchasing card user
agreement and, as such, you will be responsible for any abuse
or misuse of the card that has been issued to you.
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