Procurement Services 201: Limited Purchase Orders
To enable employees to use the Limited Purchase Order method for small dollar purchases
University of Alaska Procurement Manual (not available online) Board of Regents Regulation 05.06.400
Limited Purchase Orders: Limited Purchase Orders (LPO's) are a purchasing method consisting of a four part form that can be used like a blank check. They may be taken to a local business and filled out to purchase items totaling up to $2,500. LPO's should be treated as a blank check and kept in a secure place.
PolicyWhere You Can Use LPO's
You can use an LPO at any local business that agrees to accept a Limited Purchase Order from the University of Alaska Anchorage. Many businesses are familiar with this method and will readily accept an LPO.
What You Can Purchase With LPO’s
LPO's are designed as a convenient method for University employees to “shop” for non-repetitive use, in-stock items or same-day services not exceeding $2,500. LPO's may only be used at businesses located within the State of Alaska. Think of them as a “cash and carry” tool, meaning that you spend your LPO and pick up your merchandise at the same time. For example, a university employee performing field research or traveling on university business within the state may use an LPO for items required for his or her university business as long as the purchase is made on the “same day” and within Alaska. Although competition is not required, it is expected that the best possible price be obtained and that no favoritism be shown in selecting suppliers.
What Food Purchases May Be Made With LPO’s
LPO’s may be used for food purchases that qualify for the use of the 3008, 4008, or 8115 object codes. Nonrepresentational purchases are carefully monitored and must be documented by a blanket authorization letter or a representational/non-representational form.
What Cannot Be Purchased With LPO’s
Advantages of LPO’s
Disadvantages of LPO’s
How to Get LPO’s
Prepare a brief memo in the following format. Fax it to Procurement Services at 786-6519. Call 786-6500 with questions about LPO's.
TO: Procurement Services FAX: x 6519
FROM: You and your Dept
Please prepare (how many--up to a limit of ten) LPO's. No specific dollar value is required. Then list:
How to Spend LPO’s
The employee making the purchase is given the four-part LPO. Take the LPO to the business. Make your purchase of in-stock items and present the LPO as payment. Fill in the vendor name and address. Fill in the items purchased—be as specific as space allows. Verify that the amount charged on the LPO is correct. Sign at the bottom at “Signature of Purchaser”. The clerk will process it and give you a receipt. The business should get the top, white, original LPO copy. The UAA employee keeps all other copies and the receipt to submit for final processing.
Click here for Banner Finance Documentation instructions for LPO's.