Zero-Dollar Contracts

A zero-dollar contract is common if your department is offered free software or equipment trials. These free trials involve an agreement with terms and conditions that must be reviewed by Purchasing. Additionally, a purchase order (PO) is created to track the agreement even though no purchase is made.

This is a supplemental guide to the Submit a PO Purchasing Contract Request Form and Place a Non-Catalog Order pages which demonstrate the full processes.

Complete a Contract Request Form

This section covers contract request form (CRF) fields that are entered differently for zero-dollar contracts. Review the Submit a PO Purchasing Contract Request Form guide for a full walkthrough of that CRF process.

In the Questions – Purchasing page of the form, click No on the question Is the supplier requesting a payment in advance upon execution of the agreement, then click Next.

Continue filling out the CRF as described in the full guide until you finish the Questions – Purchasing section. The last page of the form will change based on the Type of Agreement you choose. Each of these pages include payment term questions which need to be completed to indicate no payment is associated with the contract.

Click the option below that corresponds to the Type of Agreement you selected to review those instructions.

In the Questions – Professional Services section, enter the following information:

Consultation Fee (Including Deposit amount): Enter “0.00”
Payment Terms: Select “Other”
If Payment Terms is ‘Other’ please explain: Write an explanation into this field that this is a zero-dollar contract and no payment will be made to the supplier.

In the Questions – Goods section, enter the following information:

Cost of Goods: Enter “0.00”
Payment Terms: Select “Other”
If Payment Terms is ‘Other’ please explain_G: In this field, explain that this is a zero-dollar contract and that no payment will be made to the supplier.

In the Questions – Performers/Speakers/Performing Artists section, enter the “0.00” in the Total Cost field.

Follow the rest of the Submit a PO Purchasing Contract Request Form guide, submit the CRF, then create a requisition.

Submit a Zero-Dollar Requisition

A zero-dollar requisition must be submitted so Purchasing knows they need to review the contract request form (CRF) associated with the free trial. Follow the steps on the Place a Non-Catalog Order page. In this situation, adding non-catalog items to your cart is slightly different.

When adding items to your order in the Add Non-Catalog Item screen, enter the following:

Select Supplier: Enter your supplier information in this field and select the correct Fulfillment Address.
Product Description: Describe the software or equipment you will receive from the supplier as part of the free trial.
Quantity: Enter the appropriate quantity. Usually this will be 1.
Price Estimate: Enter “0.00” in this field.

Select Save to continue.

Continue following the Place a Non-Catalog Order guide to learn how to submit the requisition.

Financial Training & Communications

Zero-Dollar Contracts

Complete a Contract Request Form

Submit a Zero-Dollar Requisition

Additional links and resources