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August 2021 |
| Policies & Procedures |
Invoice Discrepancies
If the accuracy or pricing of a purchase are in question, the department should first reach out to the supplier immediately upon receipt of the invoice to resolve the issue. Procurement Services will work with both the department and supplier to expedite a resolution only after both parties have exhausted all means of reconciliation.
In accordance with RS 39:1695, if the University fails, without reasonable cause, to make prompt payment, the University shall pay in addition to the payment, interest on the amount due. Therefore, invoices should not be held for long periods of time by a department due to incorrect pricing or other inaccuracies. Departments are encouraged to address invoice discrepancies immediately, as a resolution may not be timely. Any late payment penalties shall be the responsibility of the department.
Delivery & Receipt of Goods
All deliveries should be very carefully inspected for damages. Whether the delivery is small or large in size, supplies, or equipment, it is critical that the box/packing container the item was received in is checked to confirm no damages occurred in transit. If for some reason damages to a package are discovered after receipt, the department must contact the supplier as soon as possible to notify damages occurred while the package was in transit. Based on the terms and conditions that govern the purchase, if the supplier is not notified that damages occurred, it is possible the department will not be able to return the item that incurred the damages.
In addition to inspecting the exterior box/packing container, it is also critical that deliveries are opened timely to verify items inside a box/packing container were not damaged. Once a delivery has been made, the box/packing container should not sit for any extended period of time without being opened for inspection. It is the responsibility of the department to verify this information as the department is the receiving party.
Captioning Services
Procurement Services has negotiated and entered into a contract with VITAC Corporation as a supplier of remote real-time English live captioning for webinars and other events for all university departments on an “as requested” basis. Departments must follow procedures as outlined at the link below to schedule these services in ADVANCE of the University event. Failure to obtain a university purchase order prior to services rendered may be deemed procurement noncompliance and require payment with private funds.
Early Payment Discounts
An early payment discount (EPD), also known as a prompt payment discount, is a discount received in exchange for paying invoices early. It’s typically calculated as a percentage of the value of the goods and/or services purchased. For the university, early payment discounts mean a lower purchase costs and can help to strengthen supplier relationships.
A common early payment discount is expressed as “2/10, Net 30 Days.” This means that the invoice needs to be paid within 30 days; but the buyer will receive a 2% discount on their purchase if the invoice is paid within 10 days. For example: normally, a $1,000 invoice would be paid in 30 days. However, if paid within 10 days only $980 would be due, thereby achieving a $20 discount. The discount (hard dollar savings) will then be returned to your budget to be used for other purchases/expenses.
In the short window of time EPDs were implemented in FY 2021 (April 15th – June 30th), university departments were able to save a combined total of $9,164. So far this fiscal year, the university has already saved approximately $33,866 (July 1 - August 17, 2021).
Suppliers with Early Payment Discounts:
- Cintas - 2% 15, Net 30
- Grainger - 2% 10, Net 30
- Irwin Seating - 1% 10, Net 30
- Medline - 1% 10, Net 45
- Pharmacal Research Labs* - 4% 20, Net 30
- Trane US* - 0.5% 10, Net 30
*Newly Added Suppliers
Procurement Services continues to assess contracts in which prompt payment terms can be utilized. As more suppliers are added departments will be notified.
Mainframe Decommissioning
The University is well underway decommissioning the mainframe system and other legacy systems such as (PRO, HRM, APS and ERI) tied to it. Access to the PRO system has been removed and all stored data/attachments have been relocated to Reporting Tools and Financial Management System (FMS) respectively. Access to the relocated documents is limited at this time. Should you need data/documents from PRO departments should email Procurement Services for these documents at [email protected].
Procurement Roundtable
Missed the meeting? Need a refresh on what was discussed? All presentations, recordings and resources are posted to the Procurement Services website and are accessible at the link below.
| Roundtable Meetings |
Next Meeting
The next Roundtable will be September 28, 2021 at 2:00p.m.
| Register To Attend |
| Submit Meeting Topic |
Punch-Out (Supplier Catalog) Order Processing
Departments are reminded that orders placed through the supplier catalogs in Workday are not officially placed until a purchase order is issued. While the supplier may be able to see the pending order in their system (i.e. AmeriPrint or America To Go) they cannot take action on the order until the Workday requisition/purchase order process is fully completed, including obtaining department approvals. The suppliers try to hold the catalog pricing while the requisition (i.e. pending order) is obtaining approvals (typically 3-5 days), but they cannot hold pricing over weeks/months when approvals are not granted in a timely manner.
Additionally, the supplier’s delivery deadlines do not start until after the supplier receives the issued purchase order. Prior to contacting the supplier to inquire about an order, the requester should check the status of the submitted requisition which should have a status of “Successfully Completed.” If not, navigate to the process history to determine what approval is needed to continue processing of the order. If the requisition has a status of “Successfully Completed” and the purchase order has a status of “Issued”, the supplier should be processing your order. Most supplier catalogs have the ability to track your order within their Workday catalog by using the LSU purchase order number.
Master Contract Updates
Herman Miller – Available in Workday early September ‘21
Herman Miller, a West Michigan businessman who helped his son-in-law, D.J. De Pree, buy the Michigan Star Furniture Company in 1923. De Pree had been working at the company, which opened in 1905, since he was hired in 1909 as a clerk. De Pree knew his father-in-law was a man of integrity, so he decided to rename the company after him. Today, in addition to their classic pieces and new designs for the home, Herman Miller is a recognized innovator in contemporary interior furnishings, solutions for healthcare environments, and related technologies and services. They operate through several focused businesses, brands, and distribution channels, including Herman Miller, Herman Miller Healthcare, Nemschoff, Geiger International, and independently owned dealerships. All of them work to design and build a better world around you.
MWI Animal Health – Available now in Workday
The name MWI comes from the initials of Millard Wallace Ickes, a DVM and accomplished equestrian, affectionately known as Doc. In the mid 1970’s, he recognized - based on a decade of running his mixed animal veterinary hospital in Idaho - that veterinarians in the northwest region were simply too isolated from manufacturers to receive quality service and too small to qualify for large discounted purchases. He converted cages in the back of his veterinary clinic into storage units, and a distribution company was born. The MWI business we know today operates in the same way Doc’s did. They recognize challenges in the animal health industry, and they develop practical solutions to remedy them.
Supplier Catalog Representatives
Many representatives for the punch-outs (supplier catalogs) have changed in recent months. To assist with contacting punch-out suppliers regarding orders see the Workday Supplier Catalog Contacts list.
Spotlight on Diverse Suppliers
The Supplier Diversity Program website will soon be rebranded and we are seeking notable, successful diverse suppliers to highlight. Help us shine a light on the diverse suppliers your department has used. Submit suggestions to [email protected].
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