Policy Number: 5.4.16-P
Current Effective Date: 08/01/2017
Original Effective Date: 09/15/2009
Revision Dates: 09/15/2009, 05/25/2017
Revision Number: 2
Revision Summary: Prior Business Procedure 4.19
Responsible Official: Director of Procurement to Payment
To define and address protocol for deferred purchases at fiscal year-end.
This procedure applies to all KCTCS employees.
- A deferred purchase is a procurement transaction in which a business unit requests
a purchase order to be issued in the current fiscal year using fund 01 or fund 11
for the next fiscal year.
- Permitted due to the delivery date requirements, lead times, or other extenuating circumstances.
- Cannot be used with ALLPER fund groups (fund 61 or fund 12).
- Permitted only during a specified time frame established by the KCTCS System Director of Business Services in the KCTCS Year-End Closing Schedule.
- Cannot be used in place of normal purchasing procedures for purchases that can be delivered under normal time constraints not crossing fiscal years.
- The business unit requesting a deferred purchase should confirm that funds are available
in the next fiscal year to support the purchase.
- KCTCS Office of Financial Services will establish a predetermined amount of budget authority at the appropriation level to charge all deferred purchases for each business unit.
- Following the close of the current fiscal year, the budget authority (appropriation level) of the business unit requesting the deferred purchase will be adjusted in the “new” fiscal year to reflect the advanced amount for deferred purchases.
4. Deferred Purchasing Requirements
Business units should notify KCTCS Office of Procurement to Payment Services via email with information justifying the need for a deferred purchase.
- KCTCS Office of Procurement to Payment Services will determine approval for a deferred purchase.
Upon approval, the business unit should notify KCTCS Office of Procurement to Payment Services of the requisition number in association with the deferred purchase.
5. Deferred Purchase Requisition Information
Information required on the deferred purchase requisition:
- “Deferred Purchase” must be entered as the first text in the description of all line
items on the requisition.
- Deferred purchases cannot be combined on the same requisition with items that are not deferred purchases.
- A date of July 1 of the appropriate calendar year must be entered.
Deferred purchase orders created from requisitions will be put into a hold status that prevents further processing until after July 1.
- No receipts or payment vouchers against deferred purchases are to be processed in PeopleSoft until after July 1.
6. Deferred Purchase Deliveries
Deliveries for deferred purchases must not be accepted before July 1.
- This statement will be reflected in the purchase order comments to the supplier.
KCTCS Office of Procurement to Payment Services should be notified immediately via email by the business unit if a supplier delivers against a deferred purchase order before July 1.