Why Use Your P-Card for Purchases?

Campus partners are encouraged to use their P-Card whenever accepted by vendors for all allowable purchases in compliance with Procurement Services policies.  Please note that P-Cards should not be used for payment of professional services.  See common questions / comments below related to using P-Cards and clarifications from Procurement for each.

  1. I prefer to issue a PO, it’s easier for me.
  • While it may seem easier for you, it is a much more time-consuming process for the University as a whole. Per National Association of Purchasing Card Professionals research, when the payment method is switched from the traditional process (e.g. purchase order) to a P-Card process, efficiency savings range from 55% to 80% of the traditional process cost.  The primary efficiency is time saved – It takes far less time to make a P-Card payment, reconcile the transaction and audit the transaction than the purchase order issuance, receipt, payment and closeout process.
  1. The charge exceeds my single purchase limit.
  • Temporary increases to the single purchase limit outside of the University’s e-procurement system, may be granted on a case by case basis. The Supervisory or Budgetary Approver may request a temporary increase by emailing P-Card Services with an explanation of the circumstances and a copy of the itemized invoice/quote.
  1. The charge will push me over my monthly P-Card limit.
  • Monthly limits are based on department need and set by the Budgetary Approvers when the initial request for a p-card is made, but these limits can be increased on a temporary or permanent basis. All that is needed to process a monthly limit increase is the amount to increase to, the length of the increase if temporary and approval from the Supervisory or Budgetary Approver.
  1. The charge is for property costing $5,000 or more which requires tagging by Property Management.
  • P-Card can be used for the purchase of property that requires tagging by Property Management. Property Management receives reports that provide all information needed from all payment method types (p-card, purchase orders and Concur Invoice).  See Equipment Purchases and Your Departmental Responsibilities for associated information.

So, maybe the real question should be – Why Not Use Your P-Card for Purchases?

Please contact Purchasing with any questions regarding the appropriate method of payment at 348-5230 or uapurchasing@fa.ua.edu, or P-Card Services at pcard@fa.ua.edu to discuss monthly and single purchase limits.