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What is the price tolerance from Requisition to Purchase Order?

April 26, 2017price purchase Requisition tolerance

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What is the price tolerance from Requisition to Purchase Order?

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The purchasing buying staff has the functionality to proceed in awarding a purchase order as long as the finalized price from the respective vendor does not exceed the following formula: 500%, BUT NOT TO EXCEED $300.00 OF THE ORIGINAL REQUISITION PRICING. If the actual dollar cost for the requested goods and/or service does exceed this formula, then the requisition must be disapproved, returned electronically to the requester with the correct cost so that the budget check and pre encumbrance process is implemented again for the departmental approvers review/approval.