6.3.1. Purchase Order

A purchase order or POPurchase Order is a contract between the state entity and the supplier. The purchase order is used for financial purposes to encumber funds. In addition, the purchase order may also be used to establish minimum contract terms. The terms, conditions, and specifications of the solicitation document and the award document will be incorporated into any contract between the state entity and the supplier as a result of the solicitation.

The State Accounting Office (SAO) maintains the Statewide Purchase Order Policy, which offers guidance to state entities on when a purchase order is expected in the procurement of goods and services. All state entity contracts, statewide contracts, and interagency agreements should also be procured consistent with this Statewide Purchase Order Policy.

Purchase orders must contain an authorized signature, correct payment and delivery terms, and the appropriate "purchase type" codes and commodity codes as further described below. In addition, all POPurchase Order line descriptions must clearly identify what is being purchased (using invoice, manufacturer, or item number alone are not acceptable).

For Team Georgia Marketplace™ users, Purchase Orders should be executed in the system and contain all of the above listed criteria. When utilizing a statewide contract or state entity contract for a purchase, each purchase order must reference the contract number whether the purchase is sourced from a catalog or not.

For non-Team Georgia Marketplace™ users, Purchase Orders should reflect the contract number in the POPurchase Order reference field. SPD-AP011 Purchase Order (Non-PeopleSoft) is a sample purchase order that may be used by certain state entities as appropriate.

Following these specific instructions on Purchase Orders will ensure accurate data is captured in entity procurement spend reports.