Inter-Departmental Sales and Services

Policy No: 
5.2.4
Type of Policy: 
Administrative
Effective Date: 
June 2016
Last Revised: 
June 2016
Review Date: 
June 2018
Contact Name: 
Ajay Patel
Contact Title: 
Director of Purchasing
Contact Email: 
ajay.patel@business.gatech.edu
Procedures: 
  1. Each unit that is able to provide services and collect revenue by expensing and Institute project account is required to adhere to the policy herein. Purchases between or within departments of the Institute must be executed using one of the following Institute approved purchasing methods:
    • Interdepartmental Sales and Services Authorization form
    • Email
    • Telephone
    • Internet

    An approved Interdepartmental Sales and Services Authorization From is the accepted Institute standards for walk up business.
  2. For transactions, the service provider will always require a departmental Document ID number and PeopleSoft Project number. If this information is not available, the requester will be advised that he/she must obtain this information from his/her unit business officer prior to any provision of service. In addition to the purchases made in person at the seller’s location, departments are permitted to order by telephone, email or the Internet. To utilize these latter purchasing methods, the buyer must provide an authorized departmental Document ID number and the PeopleSoft Project Account number to the seller in addition to the goods or services desired.
  3. Departmental Operations
    • Individual departments are to establish departmental operating procedures and practices, however, the requester of goods or services must secure departmental approval before placing any order. A department Document ID number will be provided to the requester after approval from the respective business officer has been granted. The Document ID number shall be ten digits, the first three digits will denote the unit. This number, along with the Project Account number will be the order number as well as the tracking mechanism for each individual business unit for all interdepartmental transactions. Departmental procedures should address document preparation, approval, retention and the receiving of goods or services.
  4. Recording of Expenditures
    • Interdepartmental purchases will not be encumbered as the transaction will be posted as a journal entry. The journal entry is to be processed by the service provider, as soon as possible following the rendering of the service, but is required to be processed within thirty (30) days. The journal entry must include the department Document ID number as this order number will be reported on the ledger statements. The services provider is to retain documentation to support the journal entry. All communications regarding the journal entry are to be between the service provider and buying unit personnel.
  5. Description of the Interdepartmental Sales and Services Authorization Form
    • The Interdepartmental Sales and Services Authorization Form is used to detail all purchases between or within departments of the Institute. Each number below refers to the corresponding area depicted on the example figure. The form is available on the Business Services form bank.
  6. Completion of the Interdepartmental Sales and Services Authorization Form

Section A-Authorizing Department Use
To be completed by the Authorizing Department, REQUIRED

Section B – Requester to Complete
To be completed by the individual in the unit that is requesting the purchase, REQUIRED

  1. Date - The calendar date that coincides with the date that the form is completed
  2. Unit – The requester’s employing unit.
  3. Doc ID # - A ten digit number that will be given to the requester by his/her business officer once the approval for the purchase has been given.
  4. PeopleSoft project # - Financial project number.
  5. Account # - Financial account (object) code.
  6. Estimated amount – Total estimated cost for the transaction
  7. Departmental Approval – Signature of the business officer approving the purchase
  8. Name/Ext – Printed name and telephone extension of the business officer approving the transaction
    1. Requester – Printed First and Last name of employee requesting the purchase
    2. Phone # - Campus phone number of requester
    3. Project # - - Financial project number
    4. Service Provider – Institute unit that will provide the products or services
      Product Description/Work Requester – Description of the goods or services requested.
    5. Quantity – The exact number of products/services being requested
    6. Unit Price – The price per individual unit of each product or service being requested.
    7. Extension – The total dollar amount for the products or services being requested
    8. Supervisor Approval – The supervisor of the requester must sign in this area, if required by the business officer. Each department/unit will have the authority to determine when a supervisor signature is required.
    9. Estimated cost – The total estimated cost of the products/services being requested. This will be the sum of all extension amounts in Section B.
    10. Section C – Service Provider User This section is optional if other receiving documentation is provided by the service provider

    11. Service Provider Name or Item Name – The actual unit on campus that will provide the service ( i.e. Bookstore, PCS, Facilities) or the name of the specific service or time being requested (i.e. 2000 copies of a manual printed by PCS)
    12. Qty (hrs/ea) – The exact number of hours it will take to perform the service being requested
    13. Rate/Unit Price – Cost per unit of the service or product being provided.
    14. Extension – The total dollar amount for the service for each service/product being provided
    15. Description of Services – Brief description of services/products being provided
    16. Internal Ref # - A unique internal department number. Optional.
    17. Actual Cost – The total actual cost for all services/products being provided. This is the total of all the extension amounts in Section C.
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