Chapter 22. Purchasing
Section 22.3. Types of Orders

22.3.2. Change Orders

Change Order: A change to, which becomes a permanent part of, a purchase order. A purchase order change may be required by the vendor or requested by the requisitioner or the Purchasing Department.

In addition to the purchase order number, change orders have a change sequence number. Example: P0024444 Change #1.

The following are some examples of changes:

1. The item(s) may no longer be available, and a substitute may or may not be offered.



2. The price(s), terms, or FOB may not be correct.



3. More information may be needed.



4. The item(s) may no longer be needed and cancellation may be desired.



5. Item(s) may be added or deleted.



6. The quantities may be changed.



7. The vendor may have a minimum order policy.



8. A change in specifications.

These changes, as well as others, necessitate further action before the purchase order can be filled satisfactorily.

In some cases, the Purchasing Department will consult with the department prior to issuance of a change order, but the Purchasing Department may approve changes up to $500 without departmental approval. Furthermore, other changes involving invoicing terms, FOB changes, etc., may be processed by the Purchasing Department without departmental approval.

Significant changes, such as addition of items, requires the completion of a paper (not Banner) purchase requisition, as Banner does not allow an electronic requisition to be transformed into a change order. Other changes requested by the requisitioner may be communicated to the Purchasing Department by memo, e-mail, or (in some cases) verbally. Also, any changes adding value to an order should be preaudited by the fund accountant prior to creating a Banner change order.

To request a change order, do the following:

1. Communicate the change to the Purchasing Department by memo or e-mail to purchasing@mtu.edu. Describe the change; or



2. Prepare a Purchase Requisition stating the purchase order (PO) number and “Advice of Change #1”. Refer to section 22.2.4. Purchase Requisitions for procedures to complete a purchase requisition.



3. If the change to the order increases the total amount, have the requisition appropriately approved.



4. Deliver to the Purchasing Department, located in room 228 of the Administration Building.

To electronically view a change order in the Banner Finance System:

1. Sign on to the Banner Finance System and go to the Purchase Order Query Form (FPIPURR).



2. Enter the purchase order number and change sequence number. For additional information on this form, refer to the End User chapter in the Banner Finance System manual entitled, Displaying Purchase Order Information.