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California State University, Long BeachCalifornia State University, Long Beach

Cost Recovery Processes

Purchase of Goods

Process Overview

Cost recovery activities for purchasing of goods encompass transactions made by the University to be reimbursed by Auxiliary or 3rd Party organizations. These purchases are accomplished using one of the following methods: Purchase Orders, Office Max, Procurement Card, and Direct Expense.

Process Details

  1. The method of initiating the purchase process for each type of transaction. Each method requires appropriate approval and chart fields. The department purchasing goods or services on behalf of an external customer will provide the Fund, Department ID, Account, and the customer specific program code (beginning with “R” or “E”). Auxiliary project number must be documented on the forms below.
    1. Purchase Orders – complete an online requisition or purchase order using correct expense account that best matches the type of transaction. Example: for contractual services, account 613001 should be used. The department is required to list the Auxiliary project number in the header comment section on the on-line PO/requisition form.
    2. Office Max – The expense account to use is the A/R clearing account 660987. Supporting documentation is the Auxiliary and/or 3rd Party organization project number provided on the file.
    3. Procurement Card – University procurement card purchases to be reimbursed by Auxiliary or 3rd Party organizations. Supporting documentation will be provided by Purchasing Dept. The expense account to use is the A/R clearing account 660987. The department is required to list the Auxiliary project number in the header field using the comment tab in the Banks software, Access Online.
    4. Direct Expense – University direct expense purchase of goods to be reimbursed by Auxiliary or 3rd Party organizations. Supporting documentation will be provided by Accounts Payable. The expense account to use is the A/R clearing account 660987. The department is required to list the Auxiliary project number in the billing number box on the Direct Expense form.
  2. General Accounting generates invoice and attaches backup documentation provided by Accounts Payable and Purchasing. General Accounting verifies that the backup documentation ties to the invoice before sending to customer. When necessary, General Accounting will conduct follow up.
  1. On receipt of the invoice from General Accounting, Auxiliary and/or 3rd Party organizations are expected to pay the full amount. Any disputes will need to be resolved between the appropriate account holder and the Auxiliary and/or 3rd Party organization. General Accounting will follow up with Auxiliary and/or 3rd Party organizations to ensure payment.

Process Flow

Process flow for Purchase of Goods
Figure 2: Process Flow summary for Purchase of Goods. Details describing the process can be found in the Process Details section above.