Banner Orders

All Universities

There are three types of purchase orders in Banner: regular purchase orders, standing purchase orders, and blanket orders. All Banner orders must use the new commodity codes. See the new commodity code description procedures for requisitions/purchase orders. For assistance with the codes, refer to the major classes that include equipment and the detailed commodity code listing.

Regular Purchase Orders may be issued:

• If you have a quantity and a unit price (even though multiple payments may occur).

• For purchases involving specific multiple-year agreements, and either a single FOAPAL or limited FOAPALS with a consistent distribution (for the entire contract period).

• For leases whether they are for a single year or multiple-years and whether they provide for scheduled payments or individually invoiced payments.

• If you want to receive items in Banner before the invoice is paid.

To identify purchase order transactions that require submission of receiving reports in order to complete processing payment to the vendor, see the Receipts Required Report - updated each Monday.

Standing Purchase Orders

Standing Purchase Orders may be issued for purchases that require no quantity or unit price (e.g. lab supplies as required). The Standing Order has a commodity description and expenditure total, but no quantity.

The Standing Order will permit departments to place releases for commodities or services on an as needed basis via phone or other mechanism without having to submit additional requisitions through the Purchasing Division. Since quantities are not used and the encumbrance is based on total dollar amount, departments will not have the option to request receipt against Standing Orders. Invoices received against Standing Orders will be imaged and payment made according to the payment terms of the order. Departments will be able to access the imaged invoice after the fact for reconciliation.

Departments will not have the ability to assign different FOAPAL(s) for each invoice received.

Limitations to a Standing Order:

• Since a Standing Order has no quantity, departments will not have the option to request receiving for these orders.

• You cannot purchase Fixed Assets on a Standing Order.

Year-end Process:

If you have questions regarding how to reduce encumbrances on Standing Purchase Orders (SPOs) to reflect a more realistic dollar amount for departmental budgetary purposes, see the Process to Reduce Standing Purchase Order Encumbrances for a step-by-step guide. Access to the guide is limited to University of Illinois System personnel. If you are using a non-system service provider, you may not be able to reach the guide online.

Blanket Purchase Orders

A blanket order is a master document that permits tracking of multiple transactions related to a specific vendor and/or agreement. A blanket order may be used to record a multiple-year agreement or contract. A blanket order requires no FOAPAL and therefore does not encumber funds. Because there is no FOAPAL, invoices are not paid against a blanket order. A regular purchase order must be issued against the blanket order and referencing the blanket order to identify the FOAPAL, establish an encumbrance, and make payments. Blanket orders will be used as an internal tool to manage multiple year agreements such as leases. Blanket order numbers will not be given to the vendors, as they cannot pay against them.

Multiple Year Agreements

Regular Order

If a Regular Order is created, the terms of the contract will be outlined in the body of the purchase order, but the order will be issued for the current year dollar amount (expenditure). This allows the funds for the current year to be encumbered.

At the beginning of subsequent fiscal years, the department will submit a requisition so a new purchase order can be issued referencing the purchase order number from the last fiscal year. This can be done by copying the current years PO into a new requisition and changing the dollar amounts and the transaction date to encumber the funds for the upcoming FY.

Standing Order

If you issue a Standing Order for a multiple-year purchase, you still need to follow the same process outlined for regular purchase orders. Outline the terms of the contract in the body of the order, but issue the original standing order for the current year dollar amount (expenditure). This allows the funds for the current year to be encumbered.

Each fiscal year, the department will need to submit a requisition and the buyer will create a new standing order to encumber the next fiscal year's expenditures.

Change Orders

The purchase order change form allows specific field changes, additions, and deletions on completed, approved, and posted regular and standing orders. Blanket orders use this same form and changes can be made to them at any time until they are closed or cancelled. Only Purchasing buyers can process a change order. Departments that wish to make a change to an order should contact the appropriate buyer and arrange to provide them with the necessary information.

The system allows changes of the following:

• Header information

• Commodity

• Vendor address code and sequence number

• Monetary amounts distributed to existing FOAPALS

• Or add new FOAPALS

The system does not allow changes of the following:

• Vendor Name or Code

• Currency code

• Document accounting level

• Document type

Other Info

• The state and Federal Fund code numbers will change every fiscal year.

• The federal accounts on a different FY will be exempt from June FY end roll.

• UFAS commitments = Banner reservations; UFAS obligations = Banner encumbrances

• With leases or the purchase of fixed assets, commodity accounting distribution must be used.

Summary

• Regular and standing orders encumber funds, and blanket orders do not.

• Purchases that involve multiple-year agreements, and either a single FOAPAL or limited FOAPALS with a consistent distribution require a regular purchase order.

• If a department wishes to receive against the items ordered, a regular order must be used and the buyer will need to know quantities and unit prices in order to issue a regular order that allows receipt against individual order items.

• The standing order is based on a dollar total and has a commodity code and description but no quantity. Purchases that require no quantity or unit price (e.g. graphic design services) can either use a regular purchase order or a standing order. The requisition process is the same and the buyer will determine the type of purchase order to be created depending on the nature of the purchase:

BANNER	Requisition	Regular	Standing	Blanket
Reserves Funds	YES	N/A	N/A	N/A (No reservation created)
Liquidates Reserve	N/A	YES	YES	N/A (No reservation created)
Encumbers Funds	N/A	YES	YES	NO
Invoice Liquidates Encumbrance	N/A	YES	YES	N/A (No encumbrance created)
Order Shows Line Item Quantity	YES	YES	NO	YES
Used to Purchase Fixed Asset (Capital Lease)	YES	YES	NO (fixed asset commodity codes restricted)	YES
PO Classification Code	N/A	YES	YES	YES
FOAPAL Required	YES	YES	YES	NO
Termination Date	NO	NO	NO	YES
Document Closes	When converted to a PO OR Manually cancelled by running FPARDEL	When the Banner invoice document indicates final payment OR Manually closed by running FPAEOCD	When the Banner invoice document indicates final payment OR Manually closed by running FPAEOCD	When the termination date is changed.

Last Updated: July 24, 2018