3013.2 Purchasing Card Use and Account Management Procedure

Procedure #3013.2; Rev.: 2 (Effective July 1, 2025)
Related Policy: UW-3013 Purchasing Card Policy
Functional Owner: Accounting Services, Division of Business Services
Contact: Card Program Manager: (608) 262-3300, meghann.grove@wisc.edu

Procedure statement
Who is affected by this procedure
Procedure
Contact roles and responsibilities
Definitions
Related references
Revisions

I. Procedure statement

The UW–Madison purchasing card is for UW–Madison business purchases only. There are specific procedures that govern its use, including those for working with vendors, obtaining appropriate supporting documentation, handling returns, reviewing transactions, and generally managing the purchasing card account.

II. Who is affected by this procedure

Employees who are assigned a purchasing card; Divisional Business Office staff; the Division of Business Services Credit Card Administrators; Purchasing Services staff.

III. Procedure

Things to consider before using a purchasing card – In many cases, the purchasing card may not be the best or most appropriate method of payment. The cardholder should consider the following before making a purchase with the card:
1. Card limits: Know the limits for the card. The cycle credit limit and single purchase limit can be obtained from the Company Property section of the cardholder’s Workday profile. Do not exceed the single purchase limit by splitting purchasing transactions.
2. Best-judgment purchase limit: The purchasing card program operates on a 2-week billing period. Cycle credit limits automatically reset at the beginning of each 2-week billing period regardless of previous transaction reconciliation status. Cardholders should review the Biweekly billing cycle calendar to be aware of cycle beginning and end dates.
3. Best-judgment purchase limit: The best-judgment purchase limit at UW-Madison is $5,000. Purchases exceeding the best-judgment purchase limit must be coordinated through UW–Madison Purchasing Services. The purchasing card may not be used to make purchases that exceed this limit.
4. Contracted vendors: Purchasing Services manages and maintains many contracts for the purchase of products and goods. These contracts have already gone through a formal bidding process and do not require additional work prior to purchasing the needed products and/or goods. Contracts may be limited in scope so not all items available through a vendor are necessarily included in the scope of the contract. Contracts can be reviewed in the Contracts+ module in ShopUW+.
5. ShopUW+: ShopUW+ provides catalogs from suppliers with University or State contracts. Ordering catalog items is an efficient way to make business purchases, and these catalogs include commonly used items such as lab supplies, office supplies, computer hardware, and Maintenance, Repair and Operations (MRO) supplies. ShopUW+ is a university resource that saves time and money. Cardholders are expected to check the ShopUW+ supplier catalogues for the item(s) needed prior to using the purchasing card to buy the items from a non-contract vendor. More information can be found at ShopUW+ Essentials.
6. Vendor’s eligibility to do business with UW–Madison: A vendor’s eligibility to do business with UW–Madison is contingent upon its compliance with state statutes. Several vendors have been deemed ineligible by the State of Wisconsin because they are not compliant with our state tax laws or affirmative action employment requirements. The cardholder must not conduct business with vendors on either of the ineligible vendor lists.
7. Alternate methods of making internal purchases: While many internal vendors (e.g., campus catering, campus libraries, campus conference organizers) accept payments by credit card, the purchasing card should not be used for purchases between campus units or UW Institutions. Vendors pay a transaction fee for all purchases made with a credit card. Departments instead should use the Internal Service Delivery functionality in Workday to bill other departments or campuses for internal services or products greater than $100. Internal payments of $100 or less made on the purchasing card will not be identified as non-compliance but are still subject to other program policies.
8. Purchases that require special approval or special handling: Some products and services require special approval or special handling and may not be purchased without adhering to requirements found in UW-3043 Exceptions/Approvals/Special Handling Policy.
9. Frequently questioned purchases: For additional information on items or services allowed to be purchased with the purchasing card, refer to the list of Frequently Questioned Purchases. Some of the items on this list are allowable and some are not. Read the whole explanation before determining if the card can be used.
Making a purchase:
1. Determine the appropriate vendor for the materials or services needed. See section A, 3-5.
2. Provide the purchasing card information to the vendor (e.g., account number, expiration date, Card Verification Value [CVV] number).
3. For the “Bill to” address, provide the vendor with the address currently on file with U.S. Bank (typically, as submitted on the Purchasing Card Request form). Do not use the Card Program office address (21 N. Park Street).
4. For the “Ship to” address (if the purchase requires a shipment of materials), provide a campus address. If the purchase must be shipped off campus (e.g., shipping to a remote work location), the cardholder must provide a reasonable justification in the supporting documentation.
5. Provide the vendor with the appropriate tax-exempt information. (Note: UW–Madison is exempt from state sales and use tax for purchases made from vendors in Wisconsin and in other states with which we have tax treaties.) If sales tax is paid in error in an amount greater than $20, contact the vendor to obtain a refund. Document the date and action taken on the supporting documentation for the charge.
6. Ask whether the vendor offers educational or governmental rates or discounts.
7. Obtain required vendor documentation or receipts for all transactions regardless of the dollar amount. Required vendor documentation includes at least one of the following:
  1. Invoice
  2. Confirmation screenshot or email
  3. Itemized cash register receipt
  4. Registration form with pricing detail
  5. Service agreement with pricing detail
  Note: If supporting documentation has been lost or destroyed, contact the vendor for a copy. If a copy cannot be obtained from the vendor, complete the Missing Receipt questionnaire in Workday. The questionnaire will appear after submitting an expense report with at least one expense line that requires a receipt and no attachment was provided.
  
  TIP: If the cardholder has the relevant receipt and simply forgot to attach it, close the questionnaire without completing it and navigate to Menu > Expenses Hub > Expense reports. Locate the relevant expense report and click on the Actions drop-down menu. Select Change Expense Report. Click OK to continue. Add the missing receipt and click Submit.
8. Obtain other supporting documentation, when required:
  1. For documentation requirements for travel: see the travel section of the Business Services policies and procedures list.
  2. For documentation requirements for business meals and events: see UW-3039 Business Meals Policy.
  3. For documentation requirements for gift cards: see UW-3027 Gift Card Policy.
9. Ensure appropriate receipt of materials and services and follow up with vendors to resolve any discrepancies.
Returning or requesting a refund for goods or services: When returning an item or requesting a credit for services bought with the purchasing card, the cardholder should request the credit be issued to the card used for the purchase. Cardholders may not accept a refund in cash or in-store credit to be used for another purchase. Since no new authorization is required, credits may be posted to closed purchasing card accounts.
1. Note: If the original purchase was coded to a capital equipment trackable spend category, contact property@bussvc.wisc.edu and the Department Property Administrator (DPA).
Transaction reconciliation: Purchasing card transactions are reconciled in Workday. Transactions are loaded into Workday daily and can be reconciled daily. Transactions must be reconciled within 60 days of the Credit Card Transaction Load Date (date the transaction is loaded into Workday). See below for a summary of the purchasing card transaction reconciliation process. For thorough instructions, see Procedure 3024.1 – Creating and Submitting an Expense Report.
1. Transactions are loaded to a cardholder’s Workday Expenses Hub. Cardholders receive a notification in their Workday Tasks inbox. Cardholders will also receive a weekly email notification when they have unreconciled credit card transactions.
2. Cardholders are required to reconcile the transactions on an Expense Report by:
  1. Assigning an Expense Item to each transaction.
  2. Providing a Business Purpose for each transaction.
  3. Attaching required supporting documentation for each transaction.
  4. Allocating each transaction to the appropriate Driver Worktag (Gift, Grant, Project or Program). BEST PRACTICE: Include like-funded transactions on one expense report to limit the number of approvals required for each report.
  5. Submitting the Expense Report for review and approval.
3. The Expense Report routes automatically to the following approval roles:
  1. Expense Partner: Central Division of Business Services team responsible for policy compliance review.
  2. Driver Worktag Manager: Divisional/Departmental approval role responsible for budgetary review.
  3. Note: All expense reports route to the two approval roles above. Depending on the funding used, expense reports may also route for additional approvals (e.g., Athletics Approver, Expense Foundation Specialist).
Unique considerations during transaction reconciliation: Some transactions require additional information/supporting documentation to adhere to policy.
1. UW Foundation funded transactions: The purchasing card may be used to incur costs that are intended to be allocated to UW Foundation funding. During the transaction reconciliation process, cardholders and Expense Data Entry Specialists will assign UW Foundation expenses to the appropriate Expense Item for the transaction [e.g., Meals-Hosted/Event Food and Drink Overage (Foundation), Alcohol (Foundation)]. Users will then be required to enter a UW Foundation Account Number and Foundation Account Name. Find more details in Procedure 3024.8 – Using UW Foundation Funding in Workday Expenses.
2. Capital equipment fabrication materials: Purchases of materials for capital equipment fabrications must be reported to UW Madison Property Control. These expenses must be allocated to Spend Category SC00406 and coded to a Project Driver Worktag. Contact the Department Property Administrator (DPA) or property@bussvc.wisc.edu if you have questions.
Assistance from an Expense Data Entry Specialist: Purchasing cardholders may enlist the services of an Expense Data Entry Specialist (EDES) to facilitate the transaction reconciliation process. An EDES may create expense reports and reconcile credit card transactions on behalf of a cardholder. Upon submission of an expense report created by an EDES, the expense report will automatically route to the cardholder for review and approval before continuing through the standard workflow. An EDES is assigned at the Company level, so it is not necessary to assign them to individual cardholders.
Timeliness of Purchasing Card transaction reconciliation: Cardholders are required to reconcile transactions within 60 days of the Credit Card Transaction Load Date. After 60 days, a cardholder with unreconciled transactions will be issued a notice of non-compliance and face credit reductions until compliance is achieved.
Following up on unrecognizable transactions: It is the cardholder’s responsibility to follow up on any unrecognizable transactions that post to their account. To do this, the cardholder must first determine if business has been conducted with the vendor in the past:
1. If yes, the cardholder should contact the vendor to see if they are able to explain the charge or clear up any discrepancies. If the vendor is unwilling or unable to rectify the situation, the cardholder must file a dispute through U.S. Bank by contacting U.S. Bank Customer Service at (800) 344-5696. Transactions must be disputed within 90 days of the transaction date. The disputed amount(s) will be credited back to the cardholder’s account via a subsequent transaction. Disputed transactions and subsequent credits must be reconciled on an expense report:
  1. Expense Item: Select the most appropriate Expense Item from the drop-down menu.
  2. Memo: Use the Memo field to describe the situation and action taken to dispute the transaction via U.S. Bank.
  3. Funding: Ensure the original disputed amount and the subsequent credit are allocated to the same funding source. In addition, on the original transaction only (not the subsequent credit), include the Additional Worktags of Expenses Reporting: UW Card Transaction Pending Vendor Review/Action.
  4. Supporting Documentation: Attach any relevant supporting documentation.
2. If no, the cardholder must contact the U.S. Bank Fraud Investigation Unit at (800) 523-9078. Fraud must be reported within 60 days of the transaction date. The bank will initiate a fraud claim and send a fraud form to be completed by the cardholder. The fraudulent amount(s) will be credited back to the cardholder’s account, the account will be closed, a new account will be opened, and a new card will be sent directly to the cardholder. Fraudulent transactions and subsequent credits must be reconciled. If possible, it is recommended to reconcile them on the same expense report.
  1. Expense Item: Select the UW Credit Card Fraud Expense Item.
  2. Memo: Use the Memo field to describe action taken to report the fraud to U.S. Bank.
  3. Funding: Enter Program PG000023979.
  4. Supporting Documentation: Attach any relevant supporting documentation or simply create an attachment acknowledging the fraudulent transaction and any actions taken.
Updating account information: To update account information (e.g., demographic information, credit limits), the cardholder must complete the Purchasing Card Request Change Form in Workday.
1. Login to Workday.
2. In the Workday Search bar, enter “Create Request”. Click on the resulting task.
3. In the Request Type field, enter “Purchasing Card” then hit the Enter key.
4. Select Purchasing Card Change Request from the resulting list and click OK.
5. Complete the request form and click Submit. The form will route automatically for required approvals from the cardholder’s HR Manager and Cost Center Manager and the Credit Card Administrator.
  Note: Single purchase limit increases greater than $5,000 are also routed to the Procurement Operations Lead (Director of Purchasing Services) and the UW Shared Services Credit Card Administrator.
6. The Credit Card Administrator completes the account maintenance request.
7. The cardholder receives a Workday notification and confirmation email when their request is approved.
Renewing a purchasing card: Purchasing cards automatically renew every four years provided the cardholder has successfully completed required refresher training. Renewed cards are mailed directly to the cardholder at the address on file at U.S. Bank, at the end of the month prior to expiration. Cards remain active until the end of the month in which they expire.
Warning and card revocation: If, because of audit or monitoring, a transaction is found to violate UW-Madison Purchasing Card Policy or Procedures, the Credit Card Administrator will issue a compliance warning or revocation memo. Audit findings result in 1-3 points. A cardholder is allowed up to three points. A fourth point will result in a revocation. Points are expunged one year after issuance.
1. If a cardholder has less than four total active points, the cardholder will receive a written warning from the Credit Card Administrator. A copy of the written warning will also be sent to the cardholder’s HR Manager and their Expense Operations Lead. The written warning will remain on file in the Purchasing Card Program Office for one year. One year from the date of the communication, the warning and any related points will be expunged.
2. If the cardholder has four or more active points, all purchasing cards issued to the cardholder will be revoked. After one year, the employee may reapply for a purchasing card. If the request is approved, the employee will be required to complete purchasing card training.

IV. Contact roles and responsibilities

Athletics Approver: UW-Madison Intercollegiate Athletics Division employee responsible for reviewing Athletics’ transactions.
Cardholder: Employee assigned a UW-Madison purchasing card responsible for complying with purchasing card policy and procedures and managing the purchasing card account.
Credit Card Administrator: Division of Business Services employee responsible for overseeing the Purchasing Card Program, providing training and resources for cardholders, and collaborating with campus leadership and other stakeholders to continuously review and improve the program.
Department Property Administrator (DPA): an individual in a department or division who serves as the liaison between that department or division and Property Control for all matters regarding capital equipment.
Expense Data Entry Specialist: UW employee authorized to create and submit expense reports on behalf of others.
Expense Foundation Specialist: Central audit team responsible for reviewing card activity allocated to the Wisconsin Foundation and Alumni Association.
Expense Partner: Central audit team responsible for reviewing card activity for policy compliance.
Driver Worktag Manager: Divisional/Departmental staff responsible for reviewing card activity for appropriateness of funding.
Procurement Operations Lead: UW-Madison Director of Purchasing Services responsible for approving single purchase limit increases greater than $5,000.
UW Shared Services Credit Card Administrator: Responsible for obtaining approval from the State of Wisconsin Department of Administration for single purchase limit increases greater than $5,000.

V. Definitions

Best-Judgment Purchase Limit: Dollar threshold at which a purchasing cardholder is allowed to use their best-judgment to select an appropriate vendor for their purchasing needs without demonstrating other procurement authority (e.g., simplified bid). The best-judgment purchase limit at the Universities of Wisconsin is $5,000.
Cycle Credit Limit: Dollar limit assigned to a purchasing card account that may be spent during a billing period.
Ineligible Vendor List: List of vendors deemed ineligible for business by the State of Wisconsin due to non-compliance with state tax laws and/or affirmative action employment requirements.
ShopUW+: a ShopUW+ is an efficient way to make business purchases and carries commonly used items such as lab supplies, office supplies, computer hardware, and Maintenance, Repair and Operations (MRO) supplies.
Single Purchase Limit: Dollar limit not to exceed the best-judgment purchase limit that is assigned to a purchasing card account and is the maximum that can be spent on an individual transaction.
Workday: the cloud-based software used by the Universities of Wisconsin to manage finance and human resources.

VI. Related References

UW-3013 Purchasing Card Policy

VII. Revisions

Procedure Number	3013.2
Date Approved	May 8, 2017
Revision Dates	July 13, 2018 – Updated deadlines for filing disputes and claiming fraud August 14, 2019 – Updated links due to Business Services web redesign. August 15, 2019 – Added procedure for requesting sales tax refund (previously noted in Procedure 300.5). September 20, 2019 – Updated Warning/Revocation section to include ineligibility for use of Department Card and site manager role if purchasing card is revoked July 9, 2020 – Increased tax tolerance level from $5 to $25; decreased warning life from two years to one year January 19, 2021 – Updated Procedure Number to 3013.2 from 300.2 December 11, 2021 – Update procedure to reflect SFS – Purchasing Card Module implement September 8, 2022 – General review and updates March 8, 2023 – Additional clarification added re: alternate methods of making internal purchases July 7, 2025 – Updated due to implementation of Workday.

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