Changes to Low Value Purchase Order (LVPO)
In an effort to simplify the procure-to-pay process for low value purchases made via LVPO, please note that the following changes will take place in regards to the LVPO effective May 4, 2015:
- LVPO forms in PDF format will replace the current 3 color carbonless copy paper form. The PDF form will be available for employees to download from the Purchasing Services website https://www.uoguelph.ca/finance/departments-services/procurement-and-payables/low-value-purchase-order starting May 4, 2015. University single sign on is required.
- The new LVPO form contains an area for receiving and the receiver’s signature, eliminating the current green receiving copy.
- It will be mandatory to enter receiving information on the new LVPO form in order to process the invoice for payment. If the receiving section is not filled in and signed, the invoice cannot be paid against the new LVPO.
- There is no need to forward the LVPO to Payment Services prior to receiving the order. You can simply email a copy of the completed LVPO to Payment Services after the order is received and it’s okay to pay the invoice.
- Invoices received by Payment Services that match the receiving information on the new LVPOs will be paid even when the invoices are not signed. Departments will be contacted for authorization only when there is a discrepancy among the LVPO, the receiving information and the invoice.
As a result of the above changes, the LVPO paper form will no longer be distributed by Purchasing Services starting May 4, 2015. While the existing paper form is still valid to use, we strongly encourage all departments to switch to the online PDF form immediately.
To learn more about these changes, please read our FAQs on these changes. If you have any questions, please contact Purchasing Services at Ext.56412 or email email@example.com.
Frequently Asked Questions
What is the Procure-to-Pay process for LVPO’s? What are the changes to the process?
The following chart shows the general process for LVPO’s with the new PDF form:
The main changes are:
Users make requests to Purchasing to get paper forms
Users go to Purchasing website to download PDF forms
Users send green copy of LVPO to receiving team, yellow copy to Payment Services after the LVPO is sent to supplier (prior to shipping).
No more color coded copies. The same LVPO form is used by everyone involved in the process.
There is no need to send the LVPO to Payment Services prior to receiving shipments.
Users send green receiving copy to Payment Services for invoice payment through inter-campus mail.
Green receiving copy is not mandatory right now.
Payment Services will send invoice to users for signature.
Users email LVPO with receiving record to Payment Services (firstname.lastname@example.org) for invoice payment.
Receiving information on LVPO is mandatory.
Payment Services will match the invoice to the receiving record and pay invoice if everything matches. Department will be notified when there is any discrepancy.
I normally send a copy of the LVPO to the University’s customs officer if my order is shipped from a foreign country. Do I still need to do that?
Yes. Email a scanned copy of the LVPO to email@example.com prior to shipping if the LVPO is an international order and the shipment will physically cross the border. This will ensure the customs clearance is arranged in a timely manner.
Can I use the same PDF form repeatedly?
No. Each form is generated with a unique LVPO number. When paying invoices, the LVPO number will be entered into the University’s financial system. Each LVPO number must only be used once. If it is discovered that the LVPO number has already been used in the system, the second LVPO with the same number will be rejected by Payment Services.
Can I save my LVPO in the website where I download the form?
The website only serves to generate blank LVPO forms. You can’t save any specific LVPO order information on the website. The PDF form is fillable. If you fill out a form online, you need to print a hard copy of the completed LVPO.
How many PDF forms can I download at a time?
The maximum number of LVPO PDF forms you can download at one time is 10. If you need more, you can repeat the process while you are still logged in to the site.
Do I need to download some extra forms just in case I need them in the future?
The website is accessible to all University employees 24/7. You do not need to download extra forms for future use. We suggest you only download the number of forms you need to use right away. If you download them in advance, please keep track which form has been used and which hasn’t so you don’t use the same form more than once.
I still have some LVPO paper forms left. Can I continue to use them? What if I don’t use them anymore?
You can still use up the LVPO paper forms you have. However, we encourage you to switch over to the online PDF forms as soon as possible. Please return any old paper forms you no longer need to Purchasing Services by inter-campus mail. We document the distribution of the paper forms by department and will update our records when you return them.
The new form has fields for three signatures. Do they have to be from different persons?
The new LVPO form requires signatures from the person who places the order, the person who authorizes the order and the person who receives the order. The signatures don’t have to be from different persons. Depending on the role of the person in the procure-to-pay process, they can be from the same person.
If I order services on the LVPO, and the section of Qty Received doesn’t apply to the order, how do I document the receiving?
Write on the item detail section of the LVPO that you’ve received the services as per your requirement, sign and date in the Received By field.
What should I do if I only received partial shipment of my LVPO?
If you would like to pay the supplier for the partial shipment you received, document in the Qty Received column the quantity of items you’ve received, and email a scanned copy of the LVPO to Payment Services. Payment Services will match the invoice to the receiving record and only pay the invoice for the items you received. If you would like to wait until you receive the full order to pay the supplier, hold on to the partially received LVPO. Once you receive the full order, document the 2nd part of receiving and email the LVPO with both receiving records to Payment Services. Payment Services will match invoices to both receiving records to process payment.
Only forward the LVPO with receiving record to Payment Services when you’re ready to pay the supplier.
We have asked suppliers to forward LVPO invoices to us, not to Payment Services. Can we continue to do so?
Yes you can continue to do so. Forward the invoices together with the LVPO with receiving record to Payment Services for invoice payment.
As an alternative, you can also ask the supplier to forward their invoices to Payment Services directly. Payment Services will only pay them once they receive your LVPO completed with receiving records and when the invoice matches the receiving record on the LVPO. If there is any discrepancy, you will be notified and requested to provide further instructions.
How will Payment Services know an invoice is for a particular LVPO?
Instructions have been added to the new LVPO form that all LVPO suppliers shall include the LVPO number in their invoices. To differentiate the LVPO number from the HVPO number, the year has been placed at the end of the LVPO number. If in doubt, Payment Services will contact departments to verify.