PO Process

This document outlines what you need to know to create a purchase order to pay your vendors. It will be updated regularly, so please check before creating a new request.

PO Process Presentation to the Office (November 16, 2021)

When to create a PO

Invoice is greater than $5,000
Total expected payments to a vendor will be more than $10,000 during the fiscal year (July 1 - June 30), or at the department’s discretion. For example, we may require a PO for suppliers who have a relationship with a member of the office.

If you know that your supplier is used by other members of the office, please let Rhonda know. If the total payments to one supplier from our office as a whole will exceed $10,000, a PO is necessary.
A PO must be created for each project that is using a different budget. For example, if a writer is being used the generate content for the Yale Medicine website and also Medicine@Yale newsletter, a separate PO must be created for each project using charging instructions for the different budgets.

1. Create a supplier

The follow two documents should be completed by your vendor and submitted to Rhonda via the Communications Financial Operations portal. Documents must be returned PDF format.

To request a new supplier:

Login to https://ysmweb.atlassian.net/projects/FINANCE/
Create a new ticket by clicking the blue “Create” button at the top of the page
Select “New Supplier” as the Issue Type
Provide the pertinent information, including the completed attachments below.

1. W-9

2. ACH/EFT payment form

Vendor will need to include a voided bank check or a bank statement with the bank’s logo.

2. Gather necessary documents

1. Agreement (>$10,000)

There are two versions: One for freelancers and one for all other suppliers. Read below to choose the correct contract.

2. Statement of Work

3. Insurance

Most suppliers need liability insurance. The university will waive the requirement for freelancers who don’t come to campus.

4. How Chosen? (>$10,000)

Choose from either the competitive bidding form or sole source.

Option 1

Freelancers: Professional Services Agreement for Freelance Individual Contributors

If the supplier is a creative freelancer, such as a photographer, illustrator, or writer, they can use this agreement.

A few notes:

The deliverables will need to be specifically described in the Statement of Work in order to be covered by the work for hire/copyright ownership provision.
Risk Management advised that insurance is not required for freelancer engagements under $10,000 for these categories of services when: (a) the freelancer will be performing the services remotely (e.g., not requiring physical presence at a university-organized event, on campus, or in Yale facilities) and not covering confidential, proprietary or other sensitive subject matter; and (b) the agreement contains sufficient representations and warranties and indemnification obligations. For these engagements, we can waive the insurance clause.
For engagements that require physical presence at a university-organized event, on campus, or in Yale facilities in order to perform the services, they advised that we can “live with a lower limit.” These seem likely to be determined on a case-by-case basis.

Statement of Work

The SOW should contain the project deliverable, hourly cost, overall cost, and how you will verify that a vendor has produced the contracted product. Ask your vendor to use the form below.

Certificate of Insurance (COI)

The university generally requires $2M of liability insurance coverage. The form below is an example of what the supplier should get from their insurance company (note that Yale is the insured).

Competitive Bidding Form

If you can get three bids for a particular product or service, use this form. You must complete and sign it in the Requester Signature section.

Option 2

Professional Services and Consulting Agreement (PSCA)

This contract is required for all other s suppliers. If the supplier does not agree to some provisions, they can suggest edits (mark through or comment). In addition, Yale will generally approve shorter payment terms (i.e. 15 days vs 45 days).

Insurance Waiver

If the supplier is not producing something that could harm the university if done incorrectly, the university will issue an insurance waiver. It is your responsibility to complete this form. Do not ask the supplier to complete it. A sample is below as well as a blank form to use.

Sole Source

If you are using the supplier because they are the only one who can do the job because of either skill, timeline, or cost, and you do not have competitive bids, use the Sole Source form. Below is an example and a blank form.

3. Additional documentation

Based on the type of project, software, or supplier, you may need to complete additional paperwork. Purchasing is specifically focusing on accessibility, privacy, and data security. You can either ask Rhonda or, once the purchase requisition is submitted, Purchasing may ask for any one of the following:

Business Associate Agreement (BAA)
Software Addendum
VAPT

4. Submit a ticket with Rhonda to create a purchase requisition

We are moving away from email and to a ticketing system (similar to the Help Desk) to keep better track of questions, documents, and progress. Once you are ready to begin, please complete the intake form by:

To start a purchase order request:

Login to https://ysmweb.atlassian.net/projects/FINANCE/
Create a new ticket by clicking the blue “Create” button at the top of the page
Select “Purchase Order” as the Issue Type
Provide the pertinent information. If you don’t have all of the documentation yet, you can go back and amend the ticket as you receive the information.

More information from Yale Procurement is available at https://your.yale.edu/work-yale/financial-management/procurement/procurement-tools