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Purchasing Card Manual

Part I - General Information – What You Need to Know

Introduction

Benefits of Using the Card

Approved Uses of the Card

Prohibited Uses of the Card

Internet Ordering

Card Controls and Cycle Limits

Card Configurations and Card Types

Card Security

Expectations of Purchasing Card Management

 

Part II – General Cardholder/Business Office Instructions – What You Need to Do

Obtaining a Card

Expectation for Use of the MasterCard Purchasing Card

Changing Cycle Limits

Cancelling a Card

Lost or Stolen Card

Fraudulent Charges, Erroneous Charges, and Disputed Items

Cardholder Employment Termination

Change of Department for the Cardholder

Card Renewal

Documentation and Reconciliation

 

Part III – Appendices and Contact Information

Cardholder Application - Appendix A

Department Card Sign-Out Sheet - Appendix D-1

Account Changes Form - Appendix I

Internal Control Self-Assessment - Appendix M

Best Practices for Cardholders - Appendix S

Contact List

General Information – What You Need to Know

Introduction

Purdue University has contracted with JP Morgan Chase to offer an efficient, cost-effective method of purchasing and paying for goods and services within established procurement guidelines.  Cards are primarily used by Business Office staff, and are available to other staff with approval from the appropriate Dean, Director, or Department Head.  The card is a privilege granted by the University and responsible use of the card is expected.  Cardholders must follow all University policies when using the card as a procurement/payment mechanism. 

The Purchasing Card is NOT intended to avoid or circumvent the appropriate procurement or payment procedures, to be used as a travel card, or for personal use. 

The Purchasing Card is a University liability MasterCard, issued through and supported by JP Morgan Chase Bank. 

Purchasing Card Operations, a unit of Procurement Services – Accounts Payable, administers the program and may be reached via e-mail at pco@purdue.edu 

Benefits of Using the Card
  • Convenience
  • Expedites and simplifies the purchase of non-restricted items
  • Reduces administrative costs associated with processing supplier invoices and payments
  • Complements the University’s eProcurement system – Ariba
  • Enhances cash flow for the University 
Approved Uses of the Card

The Procurement Card may be used for a variety of expenditures incurred for the purpose of conducting University business.  Typical purchases on the card include:

  • General merchandise not available through Ariba
  • Services not available through Ariba
  • Hospitality (for those staff approved for that purpose)
    • Restaurants
    • Catering
    • Conference Planning
  • Study Abroad*
    • Group airfare
    • Group tours
    • Group meals
  • Airfare and Registrations for undergrads and non-employees (Anyone without a Concur profile)
  • Memberships (according to Membership Policy found here: https://www.purdue.edu/business/account/BPM/Membership_Listing/dirpymt.html)
  • Approved online purchases, as described below

*For cards that will be used internationally, it is strongly recommended that the cardholder notify JP Morgan Chase, BEFORE the trip, of the countries where the card will be used.  The appropriate phone numbers can be found on the back of any Pcard.  If this is not done, the card may be suspended or declined due to the Bank’s security procedures. 

Prohibited Uses of the Card
  • Alcoholic beverages
  • Capital equipment (Any tangible item costing $5,000 or more with expected useful life more than one year)
  • Controlled substances/items
  • Cylinder gases
  • Personal or non-business purchases
  • Computers and computer equipment of any kind (including iPads)
  • Copiers, printers, scanners, faxes, multi-function (MFP) devices
  • Lodging
  • Car rental
  • Fuel
  • Meals (unless under Hospitality policy)
  • Splitting large transactions into smaller transactions to circumvent the approved transaction limit

NOTE:

Poor management of the card may result in revocation of cardholder privileges.

Fraudulent or intentional misuse of the card will result in revocation of the card, and may result in restitution, criminal charges, and/or termination of employment. 

Approved Online Purchases

Internet ordering is allowable via the Purchasing Card.

All current restrictions to Purchasing Card use also apply to the use of the card for Internet transactions. On-line purchases must be made with suppliers using a Secure Sockets Layer (SSL) browser session. All SSL capable browsers have a symbol to indicate secure mode, but the secure mode may not appear until going further into the web site.  Specifically, look for the HTTPS in the URL and a lock icon in your browser. 

  • Customers must use the same care and common sense in supplier selection as they would with any other purchasing method. The objective should be to balance quality and service with price. Check Ariba to determine availability through negotiated contract pricing before ordering from another internet supplier.
  • Receipt documentation must be maintained to support the internet order.
  • Receipt documentation includes:
    • An on-line receipt, reflecting the billing amount and a company logo or name will serve as proper documentation. Simply print the on-screen document.
    • A printout of the screen that reflects the item being purchased and the amount. Then ensure that the transaction date, supplier and other pertinent information is recorded on the printed documentation.
    • Purchasing new or used merchandise from on-line auctions is allowable for small dollar items.  Be aware that many on-line auction items are sold AS-IS and the University assumes all risks.  Typically, there is no recourse for faulty items purchased in this manner. 
Card Controls and Cycle Limits

One of the benefits of a corporate card program is that restrictions may be placed on any card.  A “billing cycle” (referred to simply as ‘cycle’) is approximately 30 calendar days, and will begin on approximately the 6th of each month and end on approximately the 6th of the next month.  Dollar limits can be set by transaction or by cycle and the number of transactions can be limited by day or by cycle. 

In addition, purchases from certain types of suppliers may be excluded from card use.  For example:  Motorcycle dealers, snowmobile dealers and jewelry stores (and many others) have been excluded from use on the Purchasing Card.  If the card is presented to any of these merchants, the transaction will be declined.  If there is a question when a transaction has been declined, contact the JP Morgan Chase Bank’s customer service at the number indicated on the card.   Transaction and cycle limits will be determined based on the type of card (named or departmental) and the needs of the department. 

Cycle limits may be lowered in order to further protect the card from fraud, or may be increased to accommodate a large purchase.  Increases may be requested on a permanent or temporary basis.   Business Offices will have access to the bank’s PaymentNet system to view transactions, balances, and cycle limits in order to assist in the management of the card.  For instructions on changing cycle limits, see “Changing Cycle Limits” below. 

Card Configurations and Card Types

There are four configurations available for business use:

  1. General Purchasing Cards - General Purchasing cards allow charges for general merchants such as Walmart, Lowes and airfare charges. This card will exclude Vehicle Rental, Hotels, Restaurants and other Hospitality-like charges. This type of card can be issued as a named card or a department card.
  2. Hospitality Card - Hospitality Cards can be used at hospitality merchants, such as restaurants, miscellaneous food stores, hotels (pre-booking & conferences), florist, grocery stores, etc. This type of card can be issued as a named card or a department card.
  3. Combination of General and Hospitality – For staff with the need for both a general purchase card and a hospitality card, this card combines both configurations.
  4. Study Abroad Card - Purchasing cards may be issued specifically for Study Abroad, and used internationally for group expenses.  Cards should be issued in the name of the faculty or staff member escorting the Study Abroad group. The cards may be used for group airfare, tours, meals, etc.   Study Abroad cards offer the option of cash advances.  Issuance of Study Abroad cards requires a copy of the approved Rate Request (signature page only).

There are two types of cards available for business use:

  1. Individual Card - A card is issued in the name of an individual. The JP Morgan Chase/Purdue Purchasing Card will in no way affect personal credit history. Monthly charges will be paid directly by the University. The individual card provides the University with full dispute rights and limits our liability. The standard transaction amount is up to $2,500 for individual cards. Individual Cards must not be used by anyone other than the person who is issued the card.
  2. Department Card - This card will bear the department’s name instead of an individual’s.  This can be a valuable instrument to the department for incidental purchases, but it is important to note that most rights for dispute of transactions are forfeited when an individual person’s name does not appear on the card. If the card is compromised, the department will be responsible for charges that are not reimbursed by JP Morgan Chase Bank. Disputes should always be filed for department card charges that are not resolved with the merchant. The card can be set-up with tight restrictions (such as: $100/transaction and a low cycle limit, $1,000.00).  The maximum cycle on Department Cards is limit is $3,000.  
Card Security

The individual whose name appears on the card bears the responsibility for purchases charged to the card, and the card must only be used by the cardholder. 

Each department/division/business office needs to determine how to secure the cards. In some areas it is more appropriate for individuals to carry the cards. If not, the cards must be stored in a secure place, such as a locked cabinet or locked in the business office. 

For a department card, a sign-out procedure must be established within the department; see Appendix D.

It is imperative to secure and protect the Purdue University MasterCard Purchasing Card at all times.   See Appendix S – Best Practices for Cardholders – JPMorgan Tips to Keep Your Card and Account Secure 

Expectations of Purchasing Card Management

To ensure success of the Purchasing Card program, the Department/Business Office will play a key role and needs to provide:

  • Appropriate internal control structure and staffing to monitor use of the cards.
  • Appropriate staffing and/or organization to accommodate accounting allocation and to deal with occasional supplier or card provider problems which may result through using the cards.
  • Assignment of a Reconciler and Responsible Person within the cardholder’s Business Office.
  • Responsibility for timely use of Bank’s electronic process, PaymentNet, to reconcile and transmit the accounting allocation data to posting to the General Ledger.
  • Commitment to assuring that the card will be used exclusively for allowable transactions and that records and transactions will be maintained in the prescribed manner.
  • Assurance that cardholder and other business/department office personnel are properly trained in Purchasing Card processes and procedures.
  • The staff in Purchasing Card Operations must order replacement cards when appropriate, such as a worn magnetic strip.
  • Initially and periodically complete the Internal Control Self-Assessment questionnaire, See Appendix M. 

General Cardholder Instructions – What You Need to Do 

Obtaining a Card

Cards are issued at the recommendation of the Dean, Director or Department Head.   

  • Complete and sign the Purdue University Purchasing Card Agreement/Application (Appendix A).
    • The agreement form requires the signature of the Cardholder, Department Business Manager and the respective Dean, Director or Department Head. The approvers will establish dollar limits and transaction limits for the card.
    • Forward original signed application forms to PCO (Purchasing Card Operations), Freehafer Hall (FREH).
    • PCO will order the card from the Bank, and notify the cardholder or Business Office when it is available to be picked up, usually about 7 days after the request is received.  For an additional fee, cards may be “RUSHED” and received in 2 business days.
    • The cardholder and business office personnel who support the cardholder should then arrange to participate in training.
    • The new card can be picked up by the cardholder or a designated person. Purdue ID will be required for pick up. 
Expectations for Use of the Purchasing Card MasterCard
  • All current purchasing policies and regulations apply to the use of purchasing cards. The card is simply a tool to be used to order small dollar transactions and purchase incidental items.
  • Cardholders and Business Office staff are responsible for ensuring that all charges on the card comply with University policy, and are properly itemized, supported by a business purpose, and reconciled via the JP Morgan Chase PaymentNet system.
  • Proper approvals must be obtained, where necessary, before purchases are made and paid for by the card.
  • The billing cycle ends on approximately the 6th day of each month.  Payment to the bank will be made once per month.  To ensure timely payment to the Bank for your charges, charges should be reconciled in PaymentNet within 5 days of the purchase (or less, if close to the end of the cycle).
  • Cards that will be used internationally (generally study abroad specific cards), it is strongly recommended that the cardholder notify JP Morgan Chase, BEFORE the trip, of the countries where the card will be used.  The appropriate phone numbers can be found on the back of any Purchasing Card.  If this is not done, the card may be suspended or declined due to the Bank’s security procedures. 
Changing Cycle Limits

Cycle limits may be lowered in order to further protect the card from fraud, or may be increased to accommodate a purchase above the usual card limits.  Increases may be requested on a permanent or temporary basis. 

To temporarily change a cycle limit on a Purchasing Card, use the online form at http://www.purdue.edu/business/procurement/acctpay/Purchasing_Card/tempIncreasePCard.html 

For a permanent cycle limit change, complete an Appendix I and forward to Purchasing Card Operations. 

Cycles changes will be made within 24 hours of the request. 

Canceling a Card

For immediate cancellation, call JP Morgan Chase at the phone number on the back of the card. In addition, send an email to Pcard@purdue.edu to notify Purchasing Card Operations of the request. 

To cancel a card permanently, complete an Appendix I form and send to PCO (Purchasing Card Operations), shred and dispose of card.  The original Cardholder Agreement Form (on file in FREH) will be signed by PCO staff to record proof of the card return. 

Lost or Stolen Card

If a Purchasing Card is lost or stolen, immediately notify:

  • JP Morgan Chase (800-316-6056).  This number can be used 24 hours/day,      365 days/year.  A replacement card      can be ordered at this time.
  • Notify PCO staff via email at PCO@purdue.edu.       Advise if you will need a replacement card, or if one has already      been ordered.
  • PCO will notify appropriate authorities, if      required.
  • Card replacement will take 5-7 business days      if requested directly from JP Morgan Chase. 
Fraudulent Charges, Erroneous Charges, and Disputed Items

If erroneous charges appear on your card, contact the merchant first, and as soon as possible.  Most erroneous charges are resolved directly with the merchant.  If unable to reach an agreement with the merchant, the charges should be disputed directly in PaymentNet:   If you need assistance from JP Morgan Chase, they can be reached at (800-316-6056.  This number can be used 24 hours/day, 365 days/year. 

In the event of suspected fraud, notify JP Morgan Chase immediately at (800)316-6056.  JP Morgan Chase will block and reissue the card.  In addition, notify Pcard@purdue.edu as soon as possible.  Once the new card is available, PCO will notify the cardholder and the Business Office. 

Documentation for credits, returns, or exchanges should be retained with the monthly billing. 

All disputed charges must be reconciled in PaymentNet. 

Cardholder Employment Termination

Upon termination of employment of a cardholder, the Department Business Manager must make sure that Purchasing Card Operations is notified of the termination for card cancellation. Complete an Appendix I and send to Purchasing Card Operations in FREH. The Purchasing Card must then be cut up or destroyed; this can be done by the department requesting the cancellation.

Change of Department for the Cardholder

In the event a cardholder moves to another University Department, a Business Manager must notify Purchasing Card Operations.   An Appendix I should be completed to make changes to department, address,  and reconciler information.

Card Renewal

A renewal card will automatically be mailed to Purchasing Card Operations during the expiration month.  Notification will be sent to the Business Managers, Responsible Person, or Reconcilers when the renewal cards are ready for pickup. 

Documentation and Reconciliation

Documentation

Proper documentation for any purchase on the card must include a record of what is being purchased signed by the requesting individual and co-signed by the business office representative with comptroller authority.  The record should note that an individual has placed the order.

Proper evidence of receipt must be kept to complete the record for all purchases. Examples of receipt includes cash register receipt, packing list, printed receipt from the web site or a signed notation on the documentation that the requestor has been contacted and agreed to receipt of goods. To facilitate the reconciliation and payment process, the cardholder who does not work in a business office is responsible for forwarding all credit card slips, cash register receipts, packing slips or other documentation, to the business office.

The cardholder, and /or department/business office must maintain a transaction log/summary to expedite reconciliation and distribution of charges, see Appendix D-1. This log is used for department Purchasing Cards that are taken off-campus.

Checks and Balances

Separation of duties should be followed at all times with the Purchasing Card (as with any other financial transaction). The person placing the order should not be the person reconciling the account. In circumstances where one person handles all phases of a transaction, a Business Manager should receive and review the reconciliation of the Cycle Statements. For a department card, the responsible person should not be the reconciler. An Internal Control Self-Assessment questionnaire has been developed to help users assess the adequacy of the control environment; see Appendix M. 

Reconciliation and Approval Process

All transactions must be distributed to proper accounts replacing the Purchasing Card Operations default account within PaymentNet by a date set by Purchasing Card Operations for each cycle. A message will be displayed on the greeting page of PaymentNet with the deadline for that cycle month.

  • Business Office is required to handle account distribution via PaymentNet reconciliation processes.
  • Transaction detail is received from the Bank on a daily basis in electronic format and placed into PaymentNet under the Cardholder’s Account number. Cardholder activity reports can be generated by the reconciler at any time during the month.
  • The closing date for the monthly cycle will be approximately the 6th day of the month.
  • Unallocated charges need to be reconciled by the 15th of the current month. Charges will be uploaded into SAP by the 20th of the current month. The charges will then post to the allocated accounts.   
    • The transactions will be identified in SAP as a document type PC, with Purchasing Card name and last four digits of card number in the text field.
    • This entry will be a debit to the account number specified in the reconciliation process in PaymentNet.
  • Business office staff is required to reconcile their default account general ledger report monthly to assure that transactions posted.
  • Review all transaction documentation to determine that Indiana State Sales and Use Tax or Federal Excise Tax has not been charged. Where inappropriate Sales and Use Tax or Federal Excise Tax has been charged, the Business Office must work with the supplier to recover the tax.
  • If an inappropriate purchase appears, justification should be required of the originator. Insufficient justification may result in the loss of card privileges or other appropriate disciplinary action.
  • To obtain a copy of a charge or credit slip, call the Bank’s Customer Service Department at (800)316-6056. There is a $5.00 charge for each copy which will be billed to the card.
  • The Business Office is required to keep the original documentation for seven years after the end of the fiscal year in which the transaction occurred.

Auditing a Purchasing Card Transaction

  • Review all transaction documentation to determine that Indiana State Sales and Use Tax or Federal Excise Tax has not been charged. Where inappropriate Sales and Use Tax or Federal Excise Tax has been charged, the Business Office must work with the supplier to recover the tax.
  • If an inappropriate purchase appears, justification should be required of the originator. Insufficient justification may result in the loss of card privileges or other appropriate disciplinary action.
  • To obtain a copy of a charge or credit slip, call the Bank’s Customer Service Department at (800)316-6056. There is a $5.00 charge for each copy which will be billed to the card.
  • The Business Office is required to keep the original documentation for seven years after the end of the fiscal year in which the transaction occurred. 

Apendices and Contact Information 

 APPENDIX A: Cardholder Application

Please print off all three pages of the Appendix A and send to Purchasing Card Operations. 

 APPENDIX D-1:  Department Card Sign-Out Sheet

For a department card, you must maintain a sign-out sheet. This will allow you to keep a record of whom has used the card and when. This is especially important for charges that are disputed. A sample log sheet can be found below.    The important items to record on this log are 

  • Date
  • Time Out
  • Card Name
  • Staff/Faculty Name
  • Supplier
  • Estimated Amount
  • Date Returned
  • Time In
  • Business Office Initials 

 APPENDIX I: Account Changes Form 

 APPENDIX M:  Internal Control Self-Assessment 

This document is designed to help assess the adequacy of the control environment.

Print and complete.  Evaluate the adequacy for any question answered “No”.  Keep in file with Pcard reconciliation. 

 APPENDIX S: Best Practices for Cardholders 

CONTACT LIST

Errors, Disputes, Returns, Credits

JP Morgan Chase Purchasing Card Customer Service Department

Phone: 800-316-6056

Fax: 847-931-8861

7:00am to 7:00pm CST

 

Copy of Charge/Credit Slip

Customer Service Dept.

Phone: 800-316-6056

($5.00 charge)

 

To report Lost or Stolen Cards

1. JP Morgan Chase, Phone (800)316-6056 - 24hrs/day

2. E-mail: PCard@Purdue.edu

 

Card Management Changes or Questions

E-mail: PCard@Purdue.edu

Purchasing Card Operations Administrator, PCO/ FREH

Voice: (765) 494-7378

Fax: (765) 496-1392

Purchasing Card Operations Account Clerk, PCO/ FREH

Voice: (765) 494-7367

Fax: (765) 496-1392

Housing and Food Service Contacts

Bobbi Gibson or Doug Smith

Residence Halls and HFS Director’s Office

Ext. 42183