3 Replies Latest reply on Aug 26, 2010 3:06 PM by Pete Shelley

    PO, Non-PO, or P-Card?

    Amy Wagman Journeyman

      I recently hosted a lively webinar on Strategies for PO and Non-PO Invoicing with Sush Koka, research director at PayStream Advisors, and Don Holm, senior solution consultant at Ariba, and question came up that I thought was very interesting:

       

      "Is there a good rule of thumb by dollar amount which should be on a PO vs Non-PO or Purchasing card?"

       

      Sush responded that she has seen some of her clients have under a $1000 on a Purchasing Card, $3000 to $5000 threshold for Non-PO.

       

      What is your company's rule of thumb when to mandate a PO and when to use a P-Card?   Is it similar to the amounts Sush has seen with her clients?  Or do you have more strict or lenient policies?

        • Re: PO, Non-PO, or P-Card?
          marc ensign Journeyman

          We have no such rule and push for significant use of the pcard within our purchasing system.  We have developed controls around pcard that allow us to feel comfortable with their use at high dollar threshholds.  

            • Re: PO, Non-PO, or P-Card?
              Joanne Ries Novice

              Marc,

               

              Would you mind elaborating on what controls you have instituted to feel comfortable using pcards for high dollar thresholds?  My company routinely revisits our use of pcards internally, and the controls we have in place to ensure pcard purchases are being properly approved.  I think your experience could add insight or talking points to our next internal discussion.

            • Re: PO, Non-PO, or P-Card?
              Pete Shelley Novice

              My company's P-Card policy allows for purchases up to $5,000 per transaction, up to 12 transaction per day and up to $50,000 aggregate spending per month.  Certain purchases are ineligible for P-Card including chemicals and other hazardous materials, computer hardware, software or related maintenance, IT consulting services or contract labor, IT training courses or publications when further obligation is required such as purchase of software or services, telecommunications equipment including telephones, cellular phones, palm pilots and pagers.  Policy also prohibits the use of third party vendors such as PayPal or any personal use.

               

              Certain expense types do not require a PO and may be paid from a check request.  Examples of these expenses include but are not limited to freight bills, customs payments, utilities payments, travel advances, legal or insurance payments, postage donations, etc...

               

              All purchases are subject to approvals based on dollar limits.

               

              I hope this helps ;o)