The Purchase Agreement (PA) document is used to create new purchasing agreements and to modify existing agreements in KFS.NOTE: Before creating a KFS Purchase Agreement, check first to see if the requested item(s) are available in AggieBuy, the UC Davis e-procurement system. If so, the transaction should be processed through AggieBuy and NOT on the KFS Purchase Agreement. Show
NOTE: Right click on the images below to see a larger option. If you are trying to purchase against an existing agreement, see the information on Processing Purchases and Payments Against a Purchase Agreement. Contents:
1. Restricted AccessKFS Purchasing Training is required before creation access is granted to the Purchase Agreement document. The document will NOT appear in KFS until completion of your training has been recorded. Online training is available in the UC Learning Center (search on "KFS Purchasing Online" to locate and complete the training). Once you complete the training, access will be available to you the next business day. 2. Agreement Information SectionIt is important to choose the correct type of agreement, using the drop-down list in the Agreement Type field. Please note: a Blanket Agreement is the ONLY type for which a Requisition document can be created, resulting in a Purchase Order; payments can then be issued against the PO on a Payment Request document.
The No Cost Agreements listed below are used to facilitate the transmission of the specified vendor contract/agreement types for review and signature by a Procurement & Contracting Services buyer. Remember, departments are not authorized to sign vendor agreements on behalf of the university. A buyer in Procurement and Contracting Services is authorized to do so on behalf of the university. Payment for No Cost Agreements is generally made on a document other than a Purchasing one, such as the Travel Visa card or a Disbursement Voucher with Payment Reason Code of Travel Expense Voucher or Entertainment Expense Voucher.
In the Agreement Availability field, department users should always select the Organization option. Any agreements being created specifically for a department fall under this category. The Not to Exceed Amount field is used to identify the maximum dollar amount expected to be spent on the agreement. You may want to review past spending history of the specific commodity/vendor in FIS Decision Support (DS) to determine a "realistic" amount to indicate for this field. The APO Limit field is used to identify the dollar limit for which a Requisition entered against the agreement will not need to route to Purchasing, and an Automatic Purchase Order (APO) will be created.
The Previous Agreement and Requisition # fields are generally not used by departments and can be left blank. The Price Source field is used to identify where the quoted price came from. 3. Vendor Section
For Revenue Agreements, the Suggested Vendor field is used to identify the entity with which the university is setting up the agreement, in other words, the entity that will be paying the university for services rendered by the university. 4. Stipulations Section
5. Organization Code Restriction Section
6. Agreement Details Section
There are five commodity codes for use on revenue agreements:
If you have questions on the appropriate use of these codes, please contact the Business & Revenue Contracts team. Don't forget to click the Add button after entering each commodity code line. 7. Commodity Code Restriction Section
8. Additional Institutional Information Section
9. Accounting Lines Section
NOTE: If you are processing a No Cost Type of agreement (processing payment against the approved agreement on a Procurement Card or Travel Card), the Amount field on the accounting line should be left at 0.00 (no dollar amount should be indicated). Special Note on Revenue Agreements: Accounting line must indicate an INCOME object code, and the account must be appropriate for income, such as an account assigned to Sub Fund Group Code of SSEDAC - SALES AND SERVICE OF ED ACTIVITY. 10. Notes and Attachments Section
11. Purchasing ServicesPurchasing services can be a very different process from purchasing goods. There are usually different requirements for supporting documentation and other information needed by Procurement & Contracting Services. 12. Printing Purchase Agreement DocumentsProcurement & Procurement & Contracting Services will print the original of the Purchase Agreement document. Departmental staff with a KFS Purchasing User role can print a copy of an agreement, if desired, after Procurement & Contracting Services prints the original. The user who wishes to print the PA document needs to be in the routing log of the original document in order to have the re-print button appear. 13. Renewing an Agreement
14. Locating Campus and UC System AgreementsThere are a couple of different ways to locate UC system-wide agreements. One way is to go to the Agreement Number Lookup, in the UCOP/System-wide Agreement # field, enter * to retrieve a list of many of the Strategic Sourcing agreements available to all departments. Another way to locate these agreements is listed below:
Note: If you want to see agreements set up specifically for your organization, enter your organization code in the Organization Restriction field, and you will return agreements set up specifically for your organization. 15. Travel Expenses for a Vendor Providing ServicesDo you have an independent contractor, consultant, or other vendor providing services who will be billing a component for travel expenses? The proper way to handle this is to add a line to your Requisition (REQS) or Purchase Agreement (PA), using the same commodity code you are using for the service itself, and enter a description indicating that the line item is for travel expenses. This will ensure that all expenses associated with that service get reported appropriately as part of that service. AggieExpense is generally used for employee reimbursements for travel and entertainment, and the TEV or EEV payment reason code on the Disbursement Voucher (DV) can be used for similar expenses paid directly to a vendor (e.g., paying a hotel directly for a conference fee, rather than reimbursing an employee). But, when paying a vendor for general services which includes some component of travel, it is best done on a Requisition (REQS) and paid through on the Payment Request (PREQ) document. |