Spend Categories – What are they and how do I know which one to use?
Spend Categories are used to identify or describe what is being purchased, not what the item will be used for. Using Spend Categories correctly is important so that we, as a university, are accurately recording what is being purchased which in turn allows to track spending and compile data on purchases.
Spend Category Data can be used to determine if a University Wide Contract should be negotiated, if the purchase qualifies as an asset, and whether or not the item needs to be tagged by inventory control. It is also helpful when attempting to negotiate contracts, when analyzing expenses, and when creating and monitoring budgets.
So how do you know which Spend Category to use to identify what you are purchasing? Procurement Services has created a Spend Categories by Commodity Area Webpage which contains not only the commodity area and the Spend Category, but the Spend Category Name and a description of the Spend Category as well. We hope that this webpage will assist you in determining the correct Spend Category to appropriately identify your purchase.
Please note that Spend Categories are being added and changed, so bookmarking and referencing the Spend Categories by Commodity Area Webpage when determining which Spend Category to use is one way to assure that you always have, and are using, the most current and updated information.