Introduction to AFEs

1
Introduction to AFEs REQs

• Purchasing Goods Services at CSU
• Methods of Purchasing Goods Services
• Approvals
• Common CIS Information
• AFE Exercise
• Requisition/REQ Exercise
• CIS Document Inquiry

2
Purchase of Goods Services by Colorado State
University

• Colorado State University derives its purchasing
  authority from the State of Colorado.
• All purchases must be made in accordance with the
  State of Colorado Procurement Code. This code
  can be accessed from http//www.purchasing.colost
  ate.edu/pages/manuals.asp
• The State delegates purchasing authority to the
  Purchasing Department.
• The Purchasing Department delegates to
  departments the authority to make small purchases
  with the procurement card (ACARD) and the
  Authorization for Expenditure (AFE).

3
Methods of Purchasing Goods Services

• ACARD - Acquisition Card
• Department users are issued a MasterCard to make
  small non-recurring purchases under 3,000 (for
  questions on non-recurring purchases contact
  Purchasing)
• The card limit can be increased to 5,000 with
  appropriate justification (contact Purchasing)
• Preferred method for purchasing goods/services
  from on/off campus vendors that accept ACARD
• Not used for Travel or Travel Related Expenses
• Default Account/Reallocation
• Departments are not authorized to sign vendor
  agreements
• Contact Purchasing 491-5752 for training
  information

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Methods of Purchasing Goods Services

• IMO - Intramural Order
• Preferred method for purchasing
  goods/services/materials/labor from campus
  service centers that do not accept ACARD or for
  purchases that exceed the ACARD limit
• Contact Jen Garvey - 491-0273 or Connie
  MacNaughton 491-2099 for training information

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Methods of Purchasing Goods Services

• Purchase Order prepared from Purchase Requisition
• No minimum dollar amount but must be used for
  orders exceeding ACARD or AFE limits and for
  orders for controlled drugs and radioactive
  materials
• The Purchasing Department is responsible for
  source selection and for issuing a purchase order
  to the vendor.

6
Methods of Purchasing Goods Services

• Purchase Orders and Contracts
• Purchase Order Document issued by the Purchasing
  Department to the vendor which states the goods
  or services ordered and which states the terms
  and conditions of the order. No minimum dollar
  amount but must be used for orders exceeding
  ACARD or AFE limits and for orders for controlled
  drugs and radioactive materials.
• Contract Signed written agreement which states
  all the terms and conditions of the procurement
  must also have a PO but PO serves as a payment
  document only

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Methods of Purchasing Goods Services

• AFE Authorization for Expenditure
• Authorizes the payment of an invoice to a vendor
  or reimbursement to a University employee for
  official University business
• NOT a Purchase Order
• For Use With Non-ACARD Vendors
• Up To 3,000 For Goods And Services
• Do Not Use Consecutively To Circumvent Limit
• Departments are not authorized to sign vendor
  agreements
• Please Note reimbursements to individuals are
  not to exceed 1,000. See Reimbursements handout
  for more detail

8
Approvals for AFEs and REQs

• Departmental Approvals
• To approve documents the approver must have
  filled out a Signature Authorization Application
• The approver must have approver access in CIS
  fill out a Financial Records System Access
  Application and check the approver box
• Both applications can be found at
• http//busfin.colostate.edu/forms.aspx

9
Approvals for AFEs and REQs

• Official Functions (Hospitality) and Recruitment
• Any document using an Official Function subcode
  4820 or Recruitment subcode, 4430, or 4440 will
  require approval of an official function
  authorized signer.
• Be sure to use subcode 4820 when making an
  official function purchase.

10
Approvals for AFEs and REQs

• Official Functions (Hospitality) and Recruitment
• If official function items are not coded
  correctly Accounts Payable is forced to cancel
  the document and request a new document is
  created with the correct subcode to ensure the
  proper approval is in place.
• In addition, a Documentation for Expenses Related
  to Official Functions, Training and Recruiting
  must be completed and can be found at
• http//busfin.colostate.edu/forms.aspx

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Approvals for AFEs and REQs

• Central Office Approvals
• After your document has been approved within your
  department it may then go to a central office for
  approval (depending on the accts/subcodes used)
• 21(recharge centers) 22(general) funds and
• 8xxx subcodes (equipment over 5,000)
  Self Funded Acctg
• All Funds and 3900 subcode (radioactive
  materials) Enviro Health Svcs
• All Funds and 8xxx subcodes (equipment over
  5,000) Property Mngmt
• 15(ag expr stn) funds and 8xxx subcodes
  Ag Expr Station
• All AFEs over 1000 Accounts Payable
• Please Note Any AFE for personal reimbursement
  that exceeds 1,000 will be denied and an email
  will be sent to the department. See
  Reimbursements handout for more detail.

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Common CIS Information

• Turn to the Common CIS Information
• handout

13
AFE Exercise

• LOGON TO CIS Training Module
• username train1
• password student
• database training
• Please note you are welcome to use the CIS
  training module back at your office

14
AFEs in CIS and FRS

• Is created in CIS (Campus Information System)
• Is approved in CIS
• Approvals are by authorized persons

• Transfers from CIS to FRS (Financial Records
  System) overnight
• When the AFE hits FRS this authorizes A/P to pay
  invoice

15
AFE Exercise

• Turn to the AFE Exercise handout

16
Purchase Requisition

• Definition
• Dollar Thresholds
• Flow from CIS to FRS
• Creating a REQ in CIS

17
RequisitionDefinition

• Purchase Requisition
• An internal formal request from the department to
  Purchasing to write a purchase order for goods or
  services and to authorize a specific account to
  be charged for the purchase
• The Purchasing Department is responsible for
  source selection and for issuing a purchase order
  to the vendor.

18
Requisition Dollar Thresholds

• For The Purchase Of Goods
• 3,000 - 5,000
• Purchasing Agent Discretion
• PA Must Ensure Maximum Value
• PA Can Issue IFB, RFP Or Documented Quotation
• 5,000 - 50,000
• Competition Required (Valid Sole Source
  Justification Acceptable)
• Documented Quotation Via BIDS System
• PA Can Formally Bid Using IFB Or RFP
• 50,000
• Competition Required (Valid Sole Source
  Justification Acceptable)
• Formal Bidding (IFB or RFP) Via BIDS System

19
Requisition Dollar Thresholds

• For The Purchase Of Services
• 3,000 - 25,000
• Purchasing Agent Discretion
• PA Must Ensure Maximum Value
• PA Can Issue IFB, RFP Or Documented Quotation
• 25,000 - 50,000
• Competition Required (Valid Sole Source
  Justification Acceptable)
• Documented Quotation Via BIDS System
• PA Can Formally Bid Using IFB Or RFP
• 50,000
• Competition Required (Valid Sole Source
  Justification Acceptable)
• Formal Bidding (IFB or RFP) Via BIDS System

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Requisition in CIS and FRS

• Is created in CIS (Campus Information System)
• Is approved in CIS
• Approvals are by authorized persons

• Transfers from CIS to FRS (Financial Records
  System) overnight
• From FRS prints in Purchasing and is distributed
  to a purchasing agent according to commodity

21
Requisition in CIS and FRS

• Once a requisition has transferred to FRS,
  departments cannot change the requisition. If
  any change is needed, contact the purchasing
  agent
• Any change by the purchasing agent to a
  requisition is in FRS only, changes do not appear
  in CIS

• An order is created in FRS when the agent
  approves the requisition
• Only purchasing agents have the authority to
  authorize changes to a purchase order
• Invoices and receiving are entered into FRS
• Payment is made in FRS

22
Creating a Requisition

• LOGON TO CIS Training Module
• username train1
• password student
• database training
• Determine the type of requisition you wish to
  create
• REQ Line Funding
• REQ Header Funding
• REQ Telecommunication
• depending on the type of purchase and the number
  of account numbers.

23
Header Funding

• goods that will be delivered directly to the
  department or Central Receiving
• EXCEPTION if more than 6 funds use line item
  funding
• Header funding cannot be changed once invoicing
  has been entered.

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Line Funding

• open purchase orders
• agreements (maintenance, rental, lease,
  lease/purchase, licensing, service, consulting)
• honorariums
• construction projects
• A/E services
• EXCEPTION if services are complete and there
  are fewer than 7 funds may use header funding
• Line item funding can be changed after invoicing
  has been entered. If there is any chance that
  you would want to change funding, use line item
  funding.

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Header Line Funding

• Header funding
• Specify a dollar amount OR percent for each
  account number.
• If you specify dollar amounts, one account must
  be entered at 100 or a combination to total 100
• Use up to 6 account-subcode combinations

• Line funding
• 99 lines
• Enter an account number for each line
• Shift/F5 duplicates the field above
• Shift/F6 duplicates the whole line above

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A requisition has 3 major sections

• 1. Order and delivery information
• 2. Line items
• 3. Comments

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Ordered by information

• The ordered by name should be the person the
  purchasing agent would contact with questions on
  the order.
• The ordered by name prints on the requisition.

• The ordered by name, department, and phone will
  default (as you TAB past them) to your name,
  department, and phone
• To change a field TAB, SHIFT-TAB or mouse click
  to the field

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Prepared by information

• The prepared by name defaults to the CIS login.
  It does not appear on the requisition.

29
Deliver to information

• Ship to address is address to which the vendor
  will ship.
• This address appears on the purchase order.
• The default is Central Receiving.

• Change the default only for off campus locations
  or when the vendor will directly deliver or
  install equipment or furniture in the department.
  
• To change the default address click on Override
  ship to address and enter the alternate ship to
  address.
• The name in the deliver to field should
  correspond to the alternate address.

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Deliver to information

• Deliver to address is the department address to
  which Central Receiving will deliver. Accuracy
  is very important, as Purchasing and Central
  Receiving have only the information provided.
  Use comments if necessary.

• The deliver to name, department, and address will
  default (as you TAB past them) to your name,
  department and address
• To change a field TAB, SHIFT-TAB, or mouse click
  to the field and change

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Vendor information

• If known, use the correct Order to address.
  Accounts Payable will send payment to the Remit
  to address on invoices.

• Always use the list key to choose the vendor.
• In the Enter Reduction Criteria box input 1-4
  letters to search for the vendor. DO NOT LEAVE
  THIS BOX BLANK or your search will take forever.

32
Vendor information

• If the vendor cannot be found from the vendor
  search, type in the vendor name and address
  fields
• If the vendor is in the vendor listing but the
  address is incorrect, select the vendor and TAB
  to the field you need to change
• Only a vendor name is required, the address is
  optional. For the vendor name you may input as
  applicable Dont Know or Out to bid.

33
Line Items

• Pre-plan the entry of line items. The more
  complete, accurate, and logical the entries, the
  less editing will need to be done when the order
  is created in FRS.
• Line items describe the goods or services you
  wish to order.
• Use line items for information going to the
  vendor. Line items print on the purchase order.

• Complete descriptions minimize the need for
  clarification and save time.
• Use the formats on the CSU Purchasing website for
  open purchase orders and agreement orders
  (http//www.purchasing.colostate.edu/pages/powrksh
  t.asp)

34
Line Items

• Do NOT use the first line item to define the type
  of purchase order (e.g. open, maintenance).
  Purchasing enters the type of order into FRS the
  type is printed on the order automatically just
  before the 1st line item.
• Keep lines in order and use every line do not
  skip (leave blank) lines.
• Enter a credit as the last line of the
  requisition as text only. If the credit is for a
  trade in, identify the trade in by description,
  model, serial number and decal number.
• Use comments for information internal to CSU not
  line items. Internal information is deleted when
  the order is generated and is lost.

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Quantity (QTY)

• The quantity is the number of items you are
  ordering. Quantities up to 9,999,999.99 are
  valid.

36
Unit of Measure (UOM)

• The list key can be used to search for valid
  units of measure.
• T can be used to input as a unit of measure to
  input text information.

37
Description of Ordered Items

• Be as descriptive as possible. The more
  information the purchasing agent has, the better
  the agent is able to understand your need.
• You MUST click on the Enter Desc button to
  input the description. CIS allows 10 lines of 40
  characters per line.
• Text does NOT wrap.

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Unit Price Extension

• Enter the unit price of each individual line
  item. Unit prices up to 9,999,99.9999 are valid.
• CIS will calculate the extension field by
  multiplying the quantity by the unit price.

39
User Field

• This is an optional field to further describe
  your order, such as an inventory system number.
  It does not appear on the purchase order.

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Comments

• Comments are internal. They appear on the
  printed requisition and in FRS. They do not
  appear on the purchase order.

• Examples Please call when order is ready
  department will fax to vendor.
• Quotation faxed to Purchasing.

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Comments/Sole Source Justification

• Required for goods over 5,000
• Required for services over 25,000
• Click Enter Comments (Save first using the disk
  icon).
• Sole source guidelines are on Purchasings
  website http//www.purchasing.colostate.edu/pages/
  solesource.asp

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Comments/Sole Source Justification

• In addition to the explanation of why this is a
  sole source, the justification must include an
  explanation of why the vendors quoted price is
  fair and reasonable
• The justification must include a statement
  regarding actual or potential conflict of
  interest
• If the justification is in hard copy, not on the
  requisition, it must be signed and send as backup
  for the requisition.

43
Canceling a Requisition

• If you cancel a requisition in CIS notify
  Purchasing. Purchasing keeps track of all
  requisitions.

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Backup

• Backup is needed for any order over 1,500.00 and
  for all computer orders.
• If the backup is an agreement or invoice send the
  original document via campus mail.

• Backup sent via fax
• If you fax dont mail
• Write the requisition number in a readable
  position (not too close to top or side of sheet)

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Purchasing Resources

• Purchasing Department Home Page
• http//www.purchasing.colostate.edu
• Purchasing Training upon request. Contact Frank
  Krappes, 491-6204.
• Worksheets for the following types of orders
  cellular airtime, copier maintenance, open,
  maintenance, rental, lease http//www.purchasing.
  colostate.edu/pages/powrksht.asp
• Contacts for CIS/Requisition questions
• Frank Krappes 491-6204
• frank.krappes_at_purchasing.colostate.edu
• Linda Meserve 491-6611
• Linda.Meserve_at_purchasing.colostate.edu

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The End
Thank you for coming to our presentation!