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Equipment (Purchased) Payment Guide

This guide provides general information about the process used to pay for equipment.

Equipment costing $5,000 or more must be procured through a UCSC purchase order.  Equipment costing less than $5,000 may be procured through either a purchase order or the UCSC Purchasing Card, subject to cardholder purchasing limitations.  Information on how to do this is available from Procurement Services. ​​​

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  • Before you start

    Important information to know:

    1. Special conditions. Be aware of the following special conditions applying to this type of transaction.
      • The costs of accessories and components purchased in conjunction with the equipment are combined with the cost of a piece or pieces of equipment to arrive at the cost of equipment for the purposes of this guide.
        • The cost of accessories and components purchased separately are added to the cost of the piece or pieces of equipment.
      • Equipment costing $5,000 or more, including taxes and delivery charges, must be procured using a purchase order to ensure that it is recorded as a capital asset in the campus general ledger.
      • Equipment purchased with federal funds is owned by the federal government unless otherwise explicitly specified in the sponsored award agreement.
    2. Assembly and installation costs. Refer to the Equipment Assembly and Installation Payment Guide for more information.
    3. Avoid conflicts of interest. Refer to the appendices for information covering employee-vendor conflict of interest issues.
    4. Tax information. Payments may only be made to recipients with a Social Security Number or an Individual Taxpayer Identification Number (ITIN). Use IRS Form W-7 Application for IRS Individual Taxpayer Identification Number to apply for an ITIN number.
    5. Payment. If this is the first time the recipient will be receiving a UCSC non-payroll payment, complete a Payee Setup 204 form.

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  • Ways to pay

    Equipment may be is procured in the following ways:

    • A purchase order must be used to procure equipment costing more than $5,000.
    • A purchase order or the Campus Purchasing Card (subject to cardholder purchasing limitations) may be used to procure equipment that costs less than $5,000, including taxes and delivery charges.

    The following procurement methods are not allowed:

    • A direct payment cannot be made to the vendor for this good.
    • Out-of-pocket payment for this type of good will not be reimbursed

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  • Receipt and documentation requirements

    The original vendor invoice must be submitted in order for a payment to be made to the vendor.

    • Email the Accounts Payable Office authorizing payment when the original purchase order amount is exceeded by $100 to $499.99.
    • Submit a change order request through CruzBuy for payments of $500 or more over the original purchase order amount.

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  • Authorization and approval

    The following types of payments require the vendor’s invoice to be reviewed and signed by an authorized departmental or divisional employee prior to submission to the Financial Administrative Services and Transaction Office (FAST/AP) for payment:

    • Consultant payment
    • Contract and grant subaward payment
    • Common goods and services payment
    • Personal and Professional services payment
    • Independent contractor payment, if the purchase order was coded with a “UCSC42” in the commodity description field
    • Other types of payments designated by your division or department as requiring invoice review and approval

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  • Basic sales and use tax

    Generally, all purchases of tangible goods are subject to the assessment of sales or use tax.

    • If the full amount of sales tax is not collected by the vendor, the remaining amount of tax due will be charged to the department making the purchase.
    • A product, such as software, supplied in electronic form through e-mail attachment, internet, or facsimile is not subject to the payment of sales and use tax; the same product supplied on a magnetic disk, CD, or DVD is subject to sales and use tax.

    See: Sales and Use Tax appendix for additional information on this topic.

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  • Common oversights

    Speed up getting a payment processed by avoiding these common oversights.

    • Forgetting to provide the recipient’s social security number or individual taxpayer identification number.
    • Forgetting to request a change order from the Purchasing Office when the amount to be paid will exceed the amount allowed on the Purchase Order.
    • Forgetting to submit a Payee Setup 204 form for a first-time reimbursement or payment recipient.

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  • Policy reference

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  • Where to get help

    More assistance is available:

    • Purchase order, change order, and Employee-Vendor Conflict of Interest Evaluation Form-related questions, email:
    • For all other questions, please contact the FAST/AP Help line at 459-4488 with questions or locate your representative directly.

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  • Relevent Appendices

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