Payment Methods

  • New Software Purchase:
    • Purchase Order: The default payment method for a software purchase made by The University of Texas at Austin is a purchase order. A software purchase must always be paid via purchase order unless the vendor requires signature on a document.
    • Business Contract (VP2): A *DEFINE VP2 payment voucher must be used for a software purchase when the vendor requires university signature on a license, contract, agreement, or other document. When a quote is requested from the vendor, the university department must ask whether a university signature is required on any document. If the vendor states that signature on a document is required, the university department must submit a Software Acquisition Review Form (SARF). When the vendor and the Business Contracts Office sign the document, the document becomes a “business contract” and is assigned a control number. The business contract and control number are used to complete the *DEFINE VP2 payment voucher.

See the New Software Purchase flowchart for additional information.

A renewal purchase will generally be made the same way the original purchase was made unless the vendor has changed its processes or requirements.

  • Renewal or Ongoing Maintenance and Support Purchase:
    • Purchase Order: If the original purchase was made via purchase order, the renewal payment method will depend on the type of document the vendor sends the university. If the vendor sends a quote, order form, or other ordering document, the renewal must be paid via purchase order. If the vendor sends an invoice, the renewal must be paid via VP2 by referencing the original purchase order. If the vendor requires signature on a new document, the purchase must be submitted to the Business Contracts Office via the Software Acquisition Review Form (SARF). The Business Contracts Office will utilize the document requiring signature to create a business contract.
    • Business Contract (VP2): If the original purchase was made on a business contract and paid via a *DEFINE VP2 payment voucher, the renewal must be paid in the same manner. To pay a renewal via *DEFINE VP2 payment voucher, the Business Contracts Office and the vendor must first create and sign an amendment that states the extended term length and the renewal cost. The business contract and amendment are then used to complete the *DEFINE VP2 payment voucher.
      • Sometimes an original business contract states that the business contract will last a certain amount of years at a specific cost. If the business contract specifically enumerates the term length and price, then an amendment is not required to make payment via a *DEFINE VP2 payment voucher. However, this example does not apply if the business contract renews indefinitely or automatically. If the business contract renews indefinitely or automatically, a signed amendment is needed before a *DEFINE VP2 payment voucher can be created for payment.
      • Example: The university signs a three-year business contract with an annual cost of $10,000, for a total cost of $30,000. Each of the three annual payments of $10,000 could be paid via a *DEFINE VP2 payment voucher without amendment. The business contract specifically identifies each year and its cost. However, when this hypothetical business contract enters year four, a signed amendment is required before payment can be made via a *DEFINE VP2 payment voucher. The amendment must state that the university and vendor are extending the business contract for a certain length of time and for a certain cost.

See the Renewal Software Purchase flowchart for additional information.

 

Refer to the Purpose and University Standard Terms and Conditions page for more information regarding purchase order versus business contract (VP2).