Many of these purchases come from the same vendor. The business manager has tried to reduce the problem by having each of these department heads estimate monthly purchases at the beginning of the month and reviewing the budget only once. However, the paper requisition is filled out each time a purchase is made. One way to simplify purchasing is to use procurement cards. Procurement cards are credit cards issued by the district to employees.
Districts can set spending limits for each card on the types of purchases.
Procurement card expenditures are paid monthly to the issuing bank in one lump-sum payment. Cardholder payments can be reviewed daily, weekly or monthly by both the cardholder and Accounts Payable staff. Using procurement cards can significantly reduce the number of purchase orders and payments processed annually. These cards have produced savings by reducing the number of purchase orders and payments, and by obtaining lower prices from their suppliers because they are paid quicker. Implement procurement cards for purchases from selected local vendors.