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Programme and Operations Policies and Procedures



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POPP>Financial Resources Management>Expense Management>Purchase Orders (Commitments, Maintenance and Closure)
Purchase Orders (Commitments, Maintenance and Closure)

1.0 Relevant Regulations and Rules
UNDP Financial Regulations and Rules (2012)
Financial Rule 118.08 a - c

2.0 Policies
Main Policy
Purchase Orders (Commitments, Maintenance and Closure)

 Related Policies
Atlas Financial Closure Instructions
3.0 Procedures
Main Procedures

Purchase Orders and Commitments

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Regular Maintenance and Closure of Purchase Orders (POs)

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Language English | Español | Français
Page Properties
Key Words
None
Focal Point
Helen Hall
Effective Date
Planned Review Date
01/06/2019
Summary of Changes/Comments
March 27, 2020 - The International Commercial Terms (INCOTERMS) 2020 has been linked in steps two and eight of the Purchase Order (Commitments, Maintenance and Closure) procedure table.

Differences between Incoterms 2010 and 2020: The Incoterms FCA (Free Carrier) now provides the additional option to make an on-board notation on the Bill of Lading prior loading of the goods on a vessel. • The costs now appear centralized in A9/B9 of each Incoterms rule. • CIP now requires at least an insurance with the minimum cover of the Institute Cargo Clause (A) (All risk, subject to itemized exclusions). • CIF requires at least an insurance with the minimum cover of the Institute Cargo Clause (C) (Number of listed risks, subject to itemized exclusions). • The Incoterms rules Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account that the goods may be carried without any third-party carrier being engaged, namely by using its own means of transportation. • The rule Delivered at Terminal (DAT) has been changed to Delivered at Place Unloaded (DPU) to clarify that the place of destination could be any place and not only a “terminal”. • The Incoterms 2020 now explicitly shifts the responsibility of security-related requirements and ancillary costs to the seller."

March 13, 2020 - The Purchase Orders (Commitments, Maintenance and Closure) policy is now available in Spanish. To access the document, click on the Spanish language tab.

February 05, 2020 - UNDP has changed its asset capitalization threshold from US $1,500 to US $5,000. This policy change will significantly reduce the volume (i.e. quantity) of assets in the asset register, thereby allowing UNDP to focus attention on higher value items. The change in policy should also result in a more effective verification and certification process. Clause 17 of the policy has been updated to reflect the new asset capitalization threshold.

October 31, 2018 - Approval limits have been updated as per approved ICF ones.

October 24, 2018 - The threshold for the use of E-requisitions where a PO is also not required was increased from USD 2,500, to USD 5,000 in section 17 of the Purchase Orders policy, as well as step 1 of the Purchase Orders procedures. For all travel related transactions see POPP Duty Travel.

As per UN Board of Auditor’s recommendation, the use of multi-year POs is reflected for projects for greater efficiency and better track of activities with a supplier (this update was made in November 2016). Content reviewed and edited (without changing substance) in December 2015.

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