PURCHASING CARDPURCHASING CARD - Arizona State University · Dollar amount per month: $10 000Dollar...
Transcript of PURCHASING CARDPURCHASING CARD - Arizona State University · Dollar amount per month: $10 000Dollar...
PURCHASING CARDPURCHASING CARD
OverviewMarch 2009
What is a Purchasing Card?
A delegation of purchasing and payment authority.yA way to spend money directly from your budgetbudget.A corporate liability card.
C dit d t liCredit card to a supplierDebit card to a user.
More Interesting Uses
$20,000 in Spanish language CD’s. $65 000 to start Courier Service$65,000 to start Courier Service.Vehicle parts for Fleet Services.M Ob tMars Observer parts.Canon program payments.Air and registrations for employee travel.
More Interesting Uses
ProQuest Information payments.Athletic team travelAthletic team travel.Staples payments.U d d t Ad i i i t tiUndergraduate Admissions orientations.Conferences we host.Food expenses.
Purchasing Card Limits?
Dollar amount per transaction: $5,000. Dollar amount per month: $10 000Dollar amount per month: $10,000.Number of transactions per day: 10.N b f t ti th 75Number of transactions per month: 75. Merchant Category Code restrictions.Some have higher limits, many have lower.
How Does the Card Work?
Cardholder orders and pays with Card. Cardholder retains transaction recordsCardholder retains transaction records.Supplier processes as a credit card.S li M h t B k tifi ViSupplier Merchant Bank notifies Visa.Visa provides daily data to Chase. Chase sends daily data to ASU.
How Does the Card Work?
PaymentNet users can change Suborg, Object, and Subobject for five days.If not changed, Advantage interface reads data:
Determines Obj/Subobj from Merchant Code. Posts transactions to respective Agency/Org.
Financial Services verifies all transactions are posted.
How Does the Card Work?
Financial Services makes central payment. p yData also posted to PaymentNet.PaymentNet users Purchasing andPaymentNet users, Purchasing, and Financial Services can review data, and create reportscreate reports.
How Does the Card Work?
Cardholder gets independent second party review on Reconciliation Worksheet.Department matches Monthly Memo Statement to AdvantageStatement to Advantage.Negative Receiver system- no problem, no action requiredaction required. Financial Services pays twice per month.
Advantage Interface
Maps Merchant Category Code to Obj/Subobject: j j
Buy from office supply firm, maps to 7320 01, Office Supplies.ppBuy from computer store, maps to 7320 57, Computer Supplies.
PaymentNet
Data
Nov 1996 through Feb 2009:
$205,137,830.42667 175 t ti667,175 transactionsAverage transaction of $307.47
Top 20 Suppliers – Jul 08-Feb 09$1,497,406 - Staples$1 372 187 - Dell$1,372,187 Dell$ 948,110 - US Airways$ 531 484 S th t Ai li$ 531,484 - Southwest Airlines$ 320,685 - ASU Computer Store
Top 20 Suppliers
$ 287,063 - Apple On-Line Store$ 260 178 - Canon Business Solutions$ 260,178 Canon Business Solutions$ 212,540 - Pride Printing$ 189 105 A t ft$ 189,105 - Artcraft$ 182,188 - Charles River Lab
Top 20 Suppliers
$ 198,917 - Target Commercial$ 148 763 - United Airlines$ 148,763 United Airlines$ 146,812 - Amazon.com$ 137 458 D lt Ai li$ 137,458 - Delta Airlines$ 128,853 - Aramark
Top 20 Suppliers
$ 124,853 - Hilton Hotels$ 124 593 - O’Neil Printing$ 124,593 O Neil Printing$ 101,623 - American Five Star Trans$ 98 637 C ti t l Ai li$ 98,637 - Continental Airlines$ 95,104 - Enterprise Rent-a-Car
Innovations
SunMart (Feb 15, 2003).Can pay for employee air travel (Jun 11Can pay for employee air travel (Jun 11, 2003) Can buy food on regular cards instead ofCan buy food on regular cards, instead of Food Only Cards (Oct 1, 2003)C P tN t t dj t tiCan use PaymentNet to adjust accounting codes (Sep 1, 2004)
Issues and Opportunities
Use PaymentNet to change Agency Org.Reconciliation concerns.Reconciliation concerns.Audit concerns.
Department CardsDepartment Cards.Costco and Sam’s Club.
Issues and Opportunities
Eliminating alternate purchasing methods.Employee reimbursements (Already specialEmployee reimbursements (Already special approvals over $500).Petty cash (Likely).y ( y)Limited Value Purchase Orders (Unlikely).Small dollar requisitions (Likely).Small dollar requisitions (Likely).Payment vouchers (Likely).
Issues and Opportunities
Buyer and Payer Cards.Added effort required.Added effort required.Hard for departments to track.Suppliers invoicing anywaySuppliers invoicing anyway.
AP Trac underwayAP Trac underway.
More Information?
http://uabf.asu.edu/buying_payment
More Information?