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 Review 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 Review Request Form guide for a full walkthrough of that CRF process.

In the Questions – Contract Work page of the form, select the following options:

1. Will there be a payment to the supplier associated with this Agreement? Select “No”. Two additional fields will dynamically appear, “Sponsored Research Projects?” and “Student Interns?”
2. Sponsored Research Projects? Select “Yes” if the IU account that will be used on the requisition is funded by an external organization such as a private, state, or federal agency.
3. Student Interns? If there are student interns associated with the contract, select “Yes.”

Continue completing the CRF as described in the full guide until you get to the Questions – Purchasing page of the form.

On this page, select “No” on the question Is the supplier requesting a payment in advance upon execution of agreement?

Continue filling out the CRF. 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.

Follow the rest of the Submit a PO Purchasing Contract Review 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:

1. Select Supplier: Enter your supplier information in this field and select the correct Fulfillment Address.
2. Product Description: Describe the software or equipment you will receive from the supplier as part of the free trial.
3. Quantity: Enter the appropriate quantity. Usually this will be 1.
4. 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.