Purchase Order Cancellation - Procedure 013

1. PURPOSE

   To establish purchase order cancellation procedures.

    

2. SCOPE:

   Applies to all purchase order cancellations.

3. PROCEDURE:

   It shall be the responsibility of the requesting department/division to follow up on all over-due or back ordered purchases and for the Procurement Division to follow up on outstanding purchase orders.

    

   1. When the requesting department determines that an order should be canceled, it is necessary for the department to complete the Change Order Request Form as soon as possible. The earlier the notification of cancellation to the vendor, the less likely the City will encounter unnecessary charges, such as restocking fees.

       

   2. The City may have to accept such costs as the vendor may incur as a result of this cancellation if:

       

      1. The vendor has begun production of a custom-made part or product.

          

      2. The vendor has secured delivery to the City of an article that the vendor is not likely to sell within the vendor’s normal scope of business.

          

      3. The vendor has incurred costs in preparation for special or custom production

          

   3. The Procurement Division will be responsible for notifying the vendor of the cancellation of all purchase orders.

       

   4. The receiving copy (pink) of the purchase order shall be returned to the Procurement Division with the Change Order Request Form.