Accepting a PO
A Purchase Order (PO) is required for any work performed by a Supplier for Union Pacific.
- Just because a contract is in place does not give a Supplier the right to perform work without a PO.
- Suppliers are unable to invoice UP without a Purchase Order to invoice against, NO EXCEPTIONS.
- Best Practice is to ensure a PO has been received and accepted by the Supplier prior to work being performed.
- Some exceptions (emergencies, etc.) exist where PO may be issued shortly after work has begun. In these cases, Suppliers cannot invoice UP until a PO has been issued.
POs for services are issued to Suppliers electronically through the UP SourceHub system. Additionally, Suppliers will also receive an email notification when any new POs are issued.
- A PO is a legally binding contract. All applicable terms & conditions will apply. By accepting a PO, Suppliers are agreeing to the terms & conditions of that PO.
- POs can be viewed and accepted/rejected in the “Accept PO” tile on the UP SourceHub Launchpad. Click here to learn more about how to Accept/Reject POs.
Supplier Best Practices
Ensure all data in the PO is accurate and acceptable.
- Key fields to confirm:
- Due Date: Date work is expected to start.
- Work Description: Describes the scope of work being requested.
- Maximum Amount: This is the value of the PO. Invoicing will not be accepted above this amount without prior authorization for an increase.
- Contract: Confirm PO was issued against correct contract.
- Attachments: Any supporting attachments (drawings, photos, specifications, etc.) will be provided by UP and can be viewed/downloaded from the PO.
- Change Version: If any changes have been made to a PO, they will be logged in the change history. A Change Version of 1 means it is the first version and no changes have been made. Any number greater than one indicates a change has been made.
- If all data is accurate and acceptable, Supplier should Accept the PO and begin work.
- If any data needs revision, Supplier should contact their UP Requester to request a change to the PO. Do not accept or reject PO until change is made.
- If a Supplier is unable to perform the work requested, the Supplier should Reject the PO and UP will secure alternate sourcing.
Ensure a PO is issued for any requests you may receive from UP.
- Often a UP representative will reach out to Suppliers to discuss or request work to be performed. It is OK to have these discussions, however work cannot begin without a PO being issued through UP SourceHub.
- Suppliers are encouraged to request a formal PO from the UP representative in order to proceed with performing the service.
- It is the responsibility of the Supplier to ensure a PO is issued before they perform any work.
Maximum Amount of the PO is inclusive of any contingency amounts. Contingency values will be visible to the Supplier but cannot be used without prior approval of the PO Requester.
- If project scope changes resulting in a project cost greater than the Maximum Amount, Suppliers should be proactive in communicating with their UP Requester to agree upon an increased PO value.
- Any increases to the PO amount will require a change request to be submitted by the UP Requester and processed by the UP Supply Chain Department.
If a project scope changes resulting in the use of a different contract, Supplier should request a new PO from the UP Requester for the additional work under the alternate contract.