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Maintenance Contracts and Warranties Payment Guide

This guide provides general information about the process used to pay for equipment maintenance contracts and warranties.

Equipment maintenance contracts and warranties are usually purchased along with equipment using a UCSC purchase order. Information about the equipment purchasing process is available from Procurement Services. This guide does not cover payments related to software maintenance contracts. For information on this topic, refer to the Software Payment Guide.

  
  
Payee_Setup_204.pdfPayee_Setup_204
Payee_Setup_Instructions.pdfPayee_Setup_Instructions
Vendor_Electronic_Funds_Authorization.pdfVendor_Electronic_Funds_Authorization
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  • Before you start

    Important information to know:

    • Special conditions: Be aware of the following special conditions applying to this type of transaction.
      • The sales tax treatment of maintenance contracts and warranties differs depending on whether or not the contract or warranty is mandatory:
        • Mandatory: As a condition of the sale of equipment, the campus is required to purchase a maintenance contract from the vendor
        • Optional:The campus is not required to purchase a maintenance contract from the vendor.
    • Avoid conflicts of interest: Refer to the appendices for information covering employee-vendor conflict of interest issues.
    • 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.
    • 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

    A Pro-Card may only be used to purchase printing services from UCSC Printing Services. Purchases from any other vendor must be procured through CruzBuy. For more information about CruzBuy and the purchase order process, see Procurement Resources.

    • A direct payment cannot be made to the vendor.
    • Out-of-pocket payment for this type of good or service 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 FAST/AP Office at aphelp@ucsc.edu 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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  • Applicable sales and use tax

    The chart below summarizes important sales tax information related to equipment maintenance contracts and warranties:

    Type of Transaction CA Sales Tax? Notes
    Maintenance contract or warranty must be purchased from vendor as a condition of sale (“mandatory” contract or warranty) Yes  
    Campus has the option to purchase maintenance contract or warranty from vendor (“optional” contract or warranty) No  
    Cost of parts and materials provided by the maintenance contract or warranty repair vendor under a mandatory contract or warranty Yes  
    Cost of parts and materials provided by the maintenance contract or warranty repair vendor under a voluntary contract or warranty Maybe 1

    Note: If the cost of parts is itemized on the invoice, then the cost is subject to sales tax.


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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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  • UC Procedure Reference

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  • Where to get help

    Assistance is available for the following topics:


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  • Relevant Appendices

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