The Purchase Agreement (PA) document is used to create new purchasing agreements and to modify existing agreements in KFS.
If you are trying to purchase against an existing agreement, see the information on Processing Purchases and Payments Against a Purchase Agreement.
- Restricted Access
- Agreement Information Section
- Vendor Section
- Stipulations Section
- Organization Code Restriction Section
- Agreement Details Section
- Commodity Code Restriction Section
- Additional Institutional Information Section
- Accounting Lines Section
- Notes and Attachments Section
- Purchasing Services
- Printing Purchase Agreement Documents
- Renewing an Agreement
- Locating Campus and UC Systemwide Agreements
- Travel Expenses For a Vendor Providing Services
- Amendment Instructions
KFS Purchasing Training is required before creation access is granted to the Purchase Agreement document. The document will NOT appear in KFS until completion of your training has been recorded. Online training is available in the UC Learning Center (search on "KFS Purchasing Online" to locate and complete the training). Once you complete the training, access will be available to you the next business day.
It is important to choose the correct type of agreement, using the drop-down list in the Agreement Type field.
Please note: a Blanket Agreement is the ONLY type for which a Requisition document can be created, resulting in a Purchase Order; payments can then be issued against the PO on a Payment Request document.
- Blanket Agreement: Generally created for the establishment of an on-going product or service expense need exceeding $10K per year (e.g., departmental need to have lab cleaned on a biweekly basis)
- Revenue Agreement: Created for an agreement that will generate revenue for the department/university; this is not a purchasing transaction
The No Cost Agreements listed below are used to facilitate the transmission of the specified vendor contract/agreement types for review and signature by a Procurement & Contracting Services buyer. Remember, departments are not authorized to sign vendor agreements on behalf of the university. A buyer in Procurement and Contracting Services is authorized to do so on behalf of the university.
Payment for No Cost Agreements is generally made on a document other than a Purchasing one, such as the Travel Visa card or a Disbursement Voucher with Payment Reason Code of Travel Expense Voucher or Entertainment Expense Voucher.
- No Cost Agreement-Other: Generally processed when a vendor requires the signing of an agreement committing the university to specific terms and conditions (should ONLY be used if a more "specific" type (listed below) is not applicable for the chosen agreement)
- No Cost: Catering, Lodging Event Agreement: Used when you have a travel or entertainment transaction that needs a signature or an agreement for the vendor in advance, and will be paid after the fact through normal travel and entertainment methods (e.g., AggieExpense or Travel Card)
- No Cost: Facility Use Agreement: Use of facilities NOT related to travel and entertainment (e.g., when the athletics department uses outside sports facilities for training); there is a type for 30 days and under, and one for agreements lasting longer than 30 days
- No Cost: Online Subscription Agreement: Used when you need terms and conditions from an online service reviewed by Procurement & Contracting Services prior to using that service.
- No Cost: Non-disclosure Agreements: Used with non-disclosure/confidentiality agreements.
The Agreement Description and Agreement Short Description fields do NOT appear on the print-out of the Purchase Agreement (PA) document, but can be used for doing a document search for PA documents. Entering the type of commodity and department in these fields can be very helpful; for example: "Gel Filtration Kits for Chemistry Department."
In the Agreement Availability field, department users should always select the Organization option. Any agreements being created specifically for a department fall under this category.
The Not to Exceed Amount field is used to identify the maximum dollar amount expected to be spent on the agreement. You may want to review past spending history of the specific commodity/vendor in FIS Decision Support (DS) to determine a "realistic" amount to indicate for this field.
The APO Limit field is used to identify the dollar limit for which a Requisition entered against the agreement will not need to route to Purchasing, and an Automatic Purchase Order (APO) will be created.
- For example, if you enter an APO Limit of $20,000, a Requisition created for $15,000 against the agreement will create an Automatic Purchase Order (APO), while a Requisition created for $25,000 would route to Procurement & Contracting Services since the APO Limit was exceeded. The APO Limit field should NOT have a dollar amount greater than what is indicated in the Not to Exceed Amount field.
The Previous Agreement and Requisition # fields are generally not used by departments and can be left blank.
The Price Source field is used to identify where the quoted price came from.
3. Vendor Section
Need help locating a vendor? Or need to add a new vendor or update a vendor address? Refer to the Vendor resources on the Procurement & Contracting Services page on the Supply Chain Management website.
For Revenue Agreements, the Suggested Vendor field is used to identify the entity with which the university is setting up the agreement, in other words, the entity that will be paying the university for services rendered by the university.
4. Stipulations Section
This section is not used by departments and should be left BLANK.
5. Organization Code Restriction Section
This section is used to identify the specific organization(s) that can use the agreement. In general, you should enter the highest-level organization for which the agreement should be used (such as the organization code for your Dean or Vice-Chancellor Office), and the agreement will then be available to each of the organizations that report to it. Organizations NOT listed in this section will NOT be able to use the Purchase Agreement. After entering each organization code, be sure to click the Add button.
6. Agreement Details Section
This section is used to identify the commodity code(s) you wish to use for the agreement. Enter the specific details in the Line Desc field (manufacturer, model number, catalog number, etc.). The Line Desc field is expandable by pulling with your cursor on the dotted, gray, right lower corner of the box. The information in the Line Desc field will appear on the printed copy of the Purchase Agreement document.
There are five commodity codes for use on revenue agreements:
- REV00001, Revenue for services provided by UC Davis - testing/analytical
- REV00002, Revenue for services provided by UC Davis - miscellaneous
- REV00003, Revenue for salary and benefit reimbursement
- REV00004, Revenue from sponsorships received
- REV00005, Revenue from commissions or royalties paid to UC Davis
If you have questions on the appropriate use of these codes, please contact the Business & Revenue Contracts team. Don't forget to click the Add button after entering each commodity code line.
7. Commodity Code Restriction Section
This section should be used to enter the same commodity code(s) you entered in the Agreement Details tab
8. Additional Institutional Information Section
The name and contact information for the person creating the document automatically displays in this section, but can be changed as necessary. Technical contact name and phone/email is required for Blanket and No Cost agreements.
9. Accounting Lines Section
An accounting line is required for routing purposes for the Purchase Agreement document. When processing a Requisition against the agreement, you can use any active and valid account; you are not required to use the account specified on the Purchase Agreement document. In general, most departments will use the same account on the Requisition that they entered on the Purchase Agreement document. Don't forget to click the + button after entering each accounting line.
NOTE: If you are processing a No Cost Type of agreement (processing payment against the approved agreement on a Procurement Card or Travel Card), the Amount field on the accounting line should be left at 0.00 (no dollar amount should be indicated).
Special Note on Revenue Agreements: Accounting line must indicate an INCOME object code, and the account must be appropriate for income, such as an account assigned to Sub Fund Group Code of SSEDAC - SALES AND SERVICE OF ED ACTIVITY.
10. Notes and Attachments Section
Any supporting notes and attachments (price quotes, blueprints, etc.) should be uploaded directly to the document in the Notes and Attachments section. PDF versions are recommended. If processing a revenue agreement, attach the rate sheet/approval letter, along with a complete scope of work, the number of hours, and the exact rate for which you are charging services. Don't forget to click the Add button after entering a note or attachment.
11. Purchasing Services
Purchasing services can be a very different process from purchasing goods. There are usually different requirements for supporting documentation and other information needed by Procurement & Contracting Services.
12. Printing Purchase Agreement Documents
Procurement & Procurement & Contracting Services will print the original of the Purchase Agreement document. Departmental staff with a KFS Purchasing User role can print a copy of an agreement, if desired, after Procurement & Contracting Services prints the original. The user who wishes to print the PA document needs to be in the routing log of the original document in order to have the re-print button appear.
13. Renewing an Agreement
- Search for the original Purchase Agreement.
- After locating the agreement, click on the Amend button at the bottom of the document to make any necessary changes to the agreement, including extending the end date.
- The amended agreement will route to the same persons as did the original Purchase Agreement.
14. Locating Campus and UC System Agreements
There are a couple of different ways to locate UC system-wide agreements. One way is to go to the Agreement Number Lookup, in the UCOP/System-wide Agreement # field, enter * to retrieve a list of many of the Strategic Sourcing agreements available to all departments. Another way to locate these agreements is listed below:
- In KFS, click the Doc Search button on the left menu, enter the Document Type of PA, and the Application Document Status field to OPEN, so you will only return active and open agreements for which Requisition documents can be created.
- In the End Date From field, enter the current date in the following format with the "greater than" symbol: >xx/xx/xxxx . This will ensure that you only retrieve agreements that are still active for processing Requisition documents.
- In the Agreement Availability drop-down field, select System-wide if you want to see UC agreements available to all UC campuses, including UC Davis; select Campus if you want to see agreements available for UC Davis departments. If you don't select an option in the Agreement Availability field, you will receive more results than can be displayed by KFS.
Note: If you want to see agreements set up specifically for your organization, enter your organization code in the Organization Restriction field, and you will return agreements set up specifically for your organization.
15. Travel Expenses for a Vendor Providing Services
Do you have an independent contractor, consultant, or other vendor providing services who will be billing a component for travel expenses? The proper way to handle this is to add a line to your Requisition (REQS) or Purchase Agreement (PA), using the same commodity code you are using for the service itself, and enter a description indicating that the line item is for travel expenses. This will ensure that all expenses associated with that service get reported appropriately as part of that service.
AggieExpense is generally used for employee reimbursements for travel and entertainment, and the TEV or EEV payment reason code on the Disbursement Voucher (DV) can be used for similar expenses paid directly to a vendor (e.g., paying a hotel directly for a conference fee, rather than reimbursing an employee). But, when paying a vendor for general services which includes some component of travel, it is best done on a Requisition (REQS) and paid through on the Payment Request (PREQ) document.