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Software Payment Guide

This guide provides general information about the process used to pay for pre-written and custom-written computer software licenses. It also provides guidance related to the payment of software maintenance contracts.

Many common desktop software applications may be procured through Information Technology Systems (ITS) pre-negotiated supplier agreements using the campus Purchas​ing Card. Other computer software licenses are procured through a CruzBuy Purchase Order. Information on how to do this is available from Procurement Services. ​​​​​​

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  • Before you start

    This guide will describe multiple available methods by which software can be purchased, including but not limited to CruzBuy and OneCard.

    Before any purchase involving information technology complete the required vendor risk assessment prior to completing the purchase. Purchases that skip this review are considered a policy violation. For more information review the Information Technology Purchase Standards within the OneCard guide.

    • Special conditions: Be aware of the following special conditions applying to this type of transaction.
      • Information Technology Services makes available pre-negotiated supplier agreements for use in purchasing commonly-used software for UCSC business purposes
      • Prewritten computer software license types include the following:
        • Software purchased “as-is” without modification
        • Proprietary software developed by an external organization, for which the license for use is offered for sale or lease to UCSC
      • Custom-written computer software license types include the following:
        • Software developed to the specifications of the campus customer
        • Pre-written software modified by the vendor to meet campus customer specifications
    • 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

    Important information to know:

    • A license involving custom-written software is usually procured through a UCSC business contract executed with the vendor. Contact: buy4me@ucsc.edu
    • A software application procured through a pre-negotiated supplier agreement may be procured using the campus OneCard.
    • All other types of software, and software maintenance contracts, are procured through CruzBuy.

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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 purchased or leased computer software licenses and to software maintenance contracts:

    Type of Transaction CA Sales Tax? Notes
    Pre-written or custom-programmed computer software; or software maintenance contract updates received electronically, such as through the internet. Campus customer does not receive the software on a CD, DVD, tape or any other physical media. No  
    Pre-written or custom-programmed software; or software maintenance contract updates received on a CD, DVD, tape or other physical media. Yes  
    Custom-programmed computer software in which the UC Regents holds ownership rights No  
    Site licensing and end-user fees for prewritten computer software owned by the vendor Yes  
    Site licensing fees and end-user fees for custom-written computer software owned by the vendor No  
    Web page design, domain name, internet access & monthly service fees No  
    Training or consulting services included in purchase and/or maintenance contract price Yes  
    Training or consulting services purchased as a separate item. Maybe 1
    Troubleshooting and repair fees billed separately or as a separate line item on bill. No  

    Note: Training materials, such as books, CDs, DVDs, if charged separately, are 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

    For more information, see UC Procedure Reference D-371-36 Disbursements: Invoice Processing in Response to Purchase Authorizations.


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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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