Each purchasing card transaction must be documented appropriately to ensure the allowability of the expense. This documentation includes business purpose statements. A good explanation of the reason for the purchase is crucial in determining whether an expense is allowable, depending on the funding source. A good business purpose explanation will answer the following questions:
- Why was the purchase necessary?
- How does the purchase benefit the mission and goals of the University and the department?
The Expenditure Matrix on the Procurement website is a good resource to determine if a business purpose statement is required; however, if you anticipate any questions regarding the allowability of your purchases, it is always a good idea to include a business purpose. Good business purpose statements on your reports will ensure faster processing and fewer reports sent back to users.