Understanding Supply Chain Management Amendments & Change Orders
This guide provides an overview of supply chain management changes and amendments, detailing the process for implementing changes to purchase orders, agreements, and maintaining purchase order documentation. It covers the roles involved, types of changes, required documents, and steps for processing changes effectively.
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SUPPLY CHAIN MANAGEMENT Amendments & Change Orders User Guide
Overview What is a Change Order A change to the original Purchase Order (PO) that involves the dollar amount, services dates, services to be performed, or updated chartstrings. What is an Amendment An Amendment is any modification to an agreement that will also require a change order to the PO that was sent to the Supplier as a payment mechanism. Who can process a Change Order The Bear Buy user must have the role of Buyer or Change Order Preparer to modify a Purchase Order. Orders $4999 and they do not include a Buyer s name in the PO Enter a comment in the PO addressed to CSS Change Order Staff using the following email bnfscsshelp@berkeley.edu(link sends e-mail) in the "add email recipient" link. Orders $5000 or the PO has a Buyer s name populated - your assigned SCM Buyer will process the Amendment / Change order request. 3
Changes to a PO include Any changes to the statement of work deliverables, or quantities. Add a line to a PO Any dollar change to a PO Cancel a Line (unvouchered) Any extension to the term dates Cancel a PO (unvouchered) Changes to chartstrings Close a PO Change Orders required documents The End User must enter a comment in the existing PO to serve as evidence documenting the request for Procurement to make a change to the PO and include back up documentation for audits if there is an increase to the dollar value. If there is an agreement with the Supplier changes to term dates, the statement of work deliverables, quantities or pricing, will require an amendment to the Agreement as well as a change order for the PO. 4
Changes to an Agreement include Any changes to the statement of work deliverables, or quantities. Any dollar change to a PO Any extension to the term dates Amendments Required Documents Use the amendment form to document the changes to the Agreement for your assigned Buyer to execute it with the Supplier. The department should document the business reason for the changes by filling out the Source Justification & Price Reasonableness form as shown in the Required PO documents webpage. Include any new service end dates. What services have changed to the existing statement of work; key tasks, activities, impact to deliverables and completion time-frame, changes in individuals with coordination responsibilities, etc. Suppliers updated proposal that shows the amended pricing, compensation, expenses and payment terms. Itemize as appropriate. Are there additional payment fees: Time & Material, Fixed Rate, or based on Milestone. What was the original Contract amount? Supplier's most up-to-date insurance certificate if the original certificate is expired. 5
Maintaining POs The Purchase Order (PO) is used as a payment mechanism to a Supplier. Managing changes to the Purchase Order requires a Change Order to modify the dollar amount, service dates, or update the chartstrings. PO s should be for one fiscal year unless it was awarded a multi-year competitive bid conducted by Supply Chain Management. A new PO may need to be created depending on the circumstances (i.e. the new Goods and/or Services fall outside the original SOW). Change Orders Tips Campus end users must initiate the change to the Purchase Order prior to the Supplier performing the services. The best practice is to use one line item when only one chartstring is being used on the PO to prevent invoicing errors. When the payment is tied to a deliverable/milestone, one line item should be used to track one deliverable resulting in multiple line items if there are multiple deliverables. Prior to making updates, Buyer should check the invoicing tab to ensure pending invoices are charged to the correct line and there are enough funds to cover the amount due. All changes should be dispatched to the Supplier to ensure they are invoicing on the correct lines items and know the total dollar amount. 6
Step 6: Buyer / Change Order Preparer Receives change request documentation, and performs revision, PO is dispatched. Step 7: Dispatch PO created and transmitted to Vendor; funds encumbered; BFS updated. Step 8: Vendor Fulfills Order Fulfills order and issues invoice Vendor Change orders do not have an approval workflow. Orders will approve regardless if the dollar amount is above your delegation and must be reviewed and approved prior to processing by the next level up in delegation. Once a change order is finalized it exports to BFS. Changes export to BFS every half hour PO revisions must be sent to the Supplier if there is a change to the deliverables, pricing or term dates. Changes to chartstrings or to fix BFS errors don t need to be sent. The Buyer or Change Order Preparer will need to select the appropriate checkbox. 2 available checkbox s: Send to Supplier and Export to BFS Select send to Supplier (if appropriate) Always select Export to BFS to update the BFS financial system. 7
How to prevent PO errors Cannot Cancel a PO if: PO is partially or fully matched PO distribution/schedule/line as an active voucher exist After a change order has occurred Invalid information may appear as Invalid Chartfields Invalid Distribution/line Merchandise Amount ($0 lines), place holder lines should use &0.01 Change orders do not clear Match Exceptions Always finalize your revision Make sure to validate Chart of Account information (COA) before performing a COA change. Use the BFS COA Validation Lookup tool. If new value (Fund, CF1, etc) has an active date newer than PO Date, PO will need to updated by Solutions team manually When performing a Split by Amount on a PO with multiple lines, perform the split at the line level not at the accounting codes header. Splitting by Amount at the header on a multiple line PO will result in an error Header total applies to each individual line You cannot change the chartstring values for the vouchered amount. To change the coding for the vouchered amount you will have to perform a financial journal entry. 8
Buyers & Change Order Preparers The following guidance is for Employees with the Buyer or Change Order Preparer Roles. Campus end users should contact their Procurement for support. How to research and resolve PO errors from bfs1@berkeley.edu Email subject line: Sciquest PO Validation Error (BFSPROD) If you assistance is needed please submit a ticket to the BearBuy Help Desk. Vouchers will not pay if your PO revision does not export to BFS successfully Bfs1 Error Troubleshooting example: BB00887601: Amount vouchered against this PO Line > PO Line amt. Line Amt=14982.5, Vouchered=15437.5 (25000,173) STEP 1: Open the PO in BearBuy review 1. Status Tab indicates the PO is over invoiced 2. Navigate to the Invoices/Vouchers Tab to get details 9
Buyers & Change Order Preparers continued Step 2: Open the PO in BFS to compare and review. 1. Line 3 is not in BFS 2. Lines 1 & 2 amounts are LESS than the vouchered amount; this error is preventing line 3 from exporting properly to BFS
Buyers & Change Order Preparers continued Step 3: Confirm the vouchered amounts are the same in BFS: 1. BFS>Add/Update Express PO allows you to see the Distributions on the same screen. To see exact amount that is vouchered 2. To Resolve: Increase $ in BearBuy to match and re-finalize Line 1 vchrd/pd $15,437.50 over by $455.00 Line 2 vchrd/pd $5,606.25 over by $601.25
Change Order Common Mistakes It is important to verify that change orders are done correctly. If incorrect, the PO won t be sent to the Supplier and there will export error message from bfs1@berkeley.edu. Error Email Received What it Means? How to RESOLVe PO Line cannot be cancelled as it has been vouchered. PO id/Line nbr/Vouchered Amt (25000,168) Cancelling PO when PO has been partially vouchered Uncancel PO, reduce amount/quantity on lines that no longer need to have an open balance. OR Close PO PO Change order initiated but existing lines have been over vouchered/paid via (generally throught) Match Exception. Cannot modify any portion of the COA on a line that has been partially or fully vouchered/paid against. Update the line amount that contains a match exception so it matches what was vouchered against it. Once completed finalize revisions. Update PO (by performing a chartstring split) to only move remaining balance on PO/PO line, not the whole dollar value. Amount vouchered against this PO Line > PO Line amt. Line Amt=8250, Vouchered=8772.93 (25000,173) A Distribution was changed (chartfields) but has been vouchered. PO/Line. Cannot be updated. (25000,190) Cannot reduce PO amount below vouchered amount (- 139542.82) on line 2, sched 1. (10200,426) Cannot reduce PO Quantity below Vouchered Quantity (16) on line 1, sched 1. (10200,563) Error changing value: {UC_PO_EXPRESS_CI.PO_LINE(1).PO_LINE_SHIP(1).PO_ LINE_DISTRIB(2).CHARTFIELD1} (91,34) The Amt-only flag has changed for PO/Line = PO#/Line#. Please do this change manually. (25000,231) Correct ChartFields Combination on Line Number: 2 Schedule Number: 1 Distribution Line Number: 1 for Chartfields: FUND_CODE/ ACCOUNT/ PROJECT_ID in Group: REQ_CG_PC1. (10208,66) Cannot modify an amount or qty below what has already been vouchered/paid against Increase Amount or Qty to match the vouchered amount PO COA changed with invalid active date. Acct, Dept ID, Fund, CF1 or CF2 has an effective date that is newer than the PO date. REQUIRES BearBuy Help Desk Ticket. Tier 2 Analyst must manually correct error. REQUIRES BearBuy help desk ticket. Tier 2 Analyst must manually correct error. Mixed amount and quantity based forms on PO Update PO using a valid chartstring combination BEST PRACTICE to use COA validation tool prior to updating PO Validate COA/SpeedType Link Chartstring combination invalid (1): Quantity or Amount is required. (10200,207) Zero Amount or Zero Qty PO s are not allowed in BearBuy or BFS Enter Qty 1 or recommended $1.00 to use as place holders once the PO is closed any encumbrance will fall off Amount vouchered against Distrib line > the PO Distrib Merch amt. (25000,174) Split calculation performed incorrectly Correct split calculation 12
Resources The Supply Chain Management website is the source for the most up to date training content. Amendments & Change Orders Required PO Documents BearBuy Training Change Order Support Orders $4,999.99 and/or doesn t contain a Buyer's name. You will need to enter a comment in the PO addressed to CSS Change Order Staff using the following email bnfscsshelp@berkeley.edu(link sends e-mail) in the "add email recipient" link. Orders $5,000.00PO s or that list a Buyer's name. Enter a comment in the existing PO addressed to your department's assigned Buyer. Contact your Buyer for assistance. BearBuy help desk: (510) 664-9000 Option 1, Option 2 or Email BearBuy Help (bearbuyhelp@berkeley.edu) Line Item or PO Closure Schedule Line closure posts immediately in BFS Changes post approximately every half hour and if subsequent changes are needed, wait at least 30 minutes PO Close performed on a weekly basis in the system Monday - Friday: PO closure entered Saturday - Closure is applied Monday - BFS updated 13
