5.2-2 PRICE VARIANCES COMPARED WITH THE AMOUNT STATED ON PURCHASE ORDERS

Purpose

The price variance policy establishes guidelines for reviewing price or quantity variances related to University purchase orders and subsequent vendor invoices.

Guidelines

  1. Under any of the conditions below, Accounts Payable shall send an invoice to Purchasing for payment authorization.
    • The invoice total is either ten percent or $100 over the purchase order total.
    • The invoice is over the bid amount indicated on the purchase order.
    • The quantity invoiced exceeds the quantity ordered, except for printing, on which a ten percent overage is allowed.
  2. Purchasing may contact the account manager for approval in the above situations.
  3. Freight bills are to be submitted to Purchasing for approval unless the purchase order indicates that freight is prepaid and should be added to the invoice.
  4. Policy Exceptions: The Director of Purchasing is authorized to communicate exceptions to this policy in writing to the Controller.

 

 

Adopted 5/05/89 BC