University of Saskatchewan

Financial Services Division (FSD)

Purchasing Definitions

Agreement on Internal Trade (AIT)
An agreement between the federal, provincial, and territorial governments to reduce and eliminate barriers to the free movement of persons, goods, services, and investment within Canada and to establish an open, efficient, and stable domestic market.  Annex 502.4 covers the procurement of goods and services and is applicable to municipalities, academic institutions, school boards and healthcare.

Administrative Monetary Penalty System (AMPS)
A federal government penalty system used to enforce compliance with Customs legislation.

Bill of Lading
Describes the contents of a shipment and is a receipt from the carrier of the goods (the freight or courier company).  It provides proof that a shipment was made and is evidence of ownership.

Commodity
Goods or services.

Competitive Bid Process
A process that enables companies to provide solutions and/or required commodities or services within a competition.  The process may be a Request for Information (RFI), Request for Proposal (RFP), Request for Tender (RFT) or Request for Quotation (RFQ).  The process is used to determine sources, options, and specifications of the commodity, as well as to select a supplier or service provider, and the terms and conditions of the procurement. 

Contract
A legal document that defines the terms and conditions governing the procurement of goods and/or services.

Customs
Legislation that governs the flow of persons and goods, including animals and plants, to and from Canada.  The Canada Border Services Agency (CBSA) is the federal government agency responsible for assessing, collecting duties, taxes and fees on imported goods and services.

Customs Brokerage
A service provided by a licensed company who is assigned power of attorney to clear customs shipments, prepare customs documentation, and pay all duties and taxes for imports and exports of goods and/or services, on behalf of the university.

Duty
A federal tax levied on some imported goods and services.

Expediting or Follow-up
The follow-up with suppliers to ensure that delivery timelines or schedules are met.  Also used to handle problems associated with purchase order reconciliation.

Exports
Goods and/or services shipped to destinations outside Canada.

Free Domicile
A delivery term that means the shipper pays all taxes and duty.

Imports
Goods and/or services shipped into Canada.

Incoterms
A set of international rules for the interpretation of the most commonly used trade terms in foreign trade of tangible goods.  The rules determine who owns the goods in transit and who is responsible for clearing the goods for export or import e.g.FCA, FOB, CIF, etc.

Life Cycle Costs
The costs incurred throughout a product's life cycle ("cradle to grave") including development, resource extraction, manufacturing, transportation, distribution, operations, maintenance, energy requirements, emissions, recycling and waste disposal.

North American Free Trade Agreement (NAFTA)
An agreement whereby Canada, the United States and Mexico agreed to provide suppliers with equal opportunity to compete for contracts involving specified classes of goods and services.

Packing Slip
Information prepared by the supplier about the contents of a shipment.

Procurement Card (PCard)
A corporate credit card used for small dollar purchases.

Purchase Order (PO)
A simplified form of a contract between the supplier and the University of Saskatchewan.

Purchase Order Acknowledgement
Confirmation from the supplier of receipt of a purchase order and the goods and/or services described on the purchase order.

Purchase Requisition (PR)
An on-line document UniFi (the university's financial system), which provides an authorized requisitioner to request a competitive bid process or procurement goods and services.

Receiving Report
An on-line document in UniFi (the university's financial system), which enables the requisitioner to confirm the receipt of the goods and/or services ordered.

Returned Material Authorization (RMA) or Returned Goods Authorization (RGA)
The number provided by the supplier to authorize the return of goods.

Supplier or Vendor
A company who supplies goods and/or services to the university.

Terms and/or Conditions
The legalities that govern the procurement of a good and/or service.

Total Cost of Ownership
The purchase price plus costs of operation, maintenance and recycling/disposal.

UniFi or Banner

The university's financial system.