Contract and procurement fraud
Simplified Acquisition Procedures
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- Charge Accounts
- Purchase Cards (P-Cards)
- Purchase Orders
| Simplified Acquisition Procedures
Simplified acquisition procedures are generally used to acquire small items or services. These methods are designed to speed up the procurement process by minimising applicable rules. Typically, simplified application procedures apply to purchases for goods or services valued at an amount that falls below predetermined monetary thresholds. For example, an organisation’s purchasing guidelines might provide: An employee may purchase needed work-related or administrative items from any vendor they wish if the purchase does not exceed $100. Simplified acquisition procedures offer a number of advantages over other methods of procurement, including simplicity, a reduced decision cycle, and lower administrative costs. In general, simplified acquisition procedures might include any of the following contracting mechanisms: Charge accounts Purchase cards Purchase orders Petty cash funds Charge Accounts Charge accounts are a simplified way for organisations to meet anticipated, repetitive needs for services and products from trusted suppliers. A charge account is a pre-arranged agreement with an organisation that is signed before any business is conducted. Charge accounts allow organisations to order and pay for supplies and services that they purchase from approved vendors several times a year. Therefore, these agreements simplify the purchasing process. Purchase Cards (P-Cards) A purchasing card (p-card, PCard, or corporate credit card) is a company charge card that allows goods and services to be purchased without using a traditional purchasing process. Entities use p-cards to streamline their purchasing process, helping to reduce cost. Typically, p-cards will have guidelines and spending limits for employees who use them. Purchase Orders A purchase order (PO) is a commercial document, which a buyer issues to a seller, that represents the formal and final approval of a purchasing transaction between the purchaser and vendor. A PO identifies: The vendor The goods or service the vendor will provide to the buyer The types, quantities, and agreed upon prices for the goods or services The delivery date and terms of delivery The terms of payment Sending a purchase order to a seller constitutes a legal offer to buy products or services, and a purchase order becomes a binding contract when accepted by the seller. Download 0.62 Mb. Share with your friends:
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