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Change Order Policy


Policy Statement

Changes in a previously dispatched Purchase Order (PO) in
ARC are to be completed through the use of a Change Order. 


Reasons for the Policy

Payment amounts should ultimately match Purchase Order amounts, within a tolerance indicated in this policy. Above this tolerance a Change Order is required.


Who Is Governed By This Policy

This policy applies to everyone working at the University, or working on behalf of the University, who manages any aspect of purchasing activity with University funds'


Who Should Know This Policy

Administrators in schools and departments who have primary responsibility for purchasing have a particular obligation to be familiar with the requirements outlined in this policy


Policy Text

Change Orders are the proper method for requesting the following changes to a Purchase Order:

  • Increase/Decrease the value of a PO
  • Modify Open Commitment of a PO
  • Distribution of funds between chartfields associated with a PO and establishment of new chartfields associated with a PO
  • Close a Purchase Order
  • Reconcile PO value to payment
  • Change contract dates
  • Change Ship to/Bill to information

There is an allowable tolerance for the total payment amount to be greater than the total purchase order amount.This variance allows for items such as shipping charges and small incidental fees that may not have been anticipated when the purchase order was originally created.Above these thresholds, however, a change order is required to increase the value of the original Purchase Order. ARC maintains a table of these tolerances. When entering a payment, the system will indicate if the payment is within tolerance and processing can continue. If the payment is not within tolerance, ARC will not allow payment processing to continue.


Read  Full Policy Text





For related information, please see the Purchase Requisition and Purchase Order Policy.