3.4 Internal Providers


Internal Providers (including Facilities and Mail Services)

General Description:

An internal provider is an MIT entity that provides goods or services to other MIT Departments, Labs or Centers. Internal Providers include Facilities, MIT Food Services, Mail Services, Audiovisual, Copy Tech, Cryogenics, and CAES.

Purchasing from these internal providers can be done with a regular SAP requisition or through SAPweb. The requisition is the final order -- no Purchase Order is created. Internal Providers bill MIT customers using the SI (internal provider journal voucher) transaction.

SAP Document Types: SI (Internal Provider Billing)

Central MIT Controls:

  1. The vendor is an MIT entity. No obligations to external vendors are created, and no cash payments are made to entities outside MIT.
  2. If purchase is made with an SAP requisition, then only authorized users can create and approve requisitions in the system.
  3. If purchase is made with a paper requisition, the internal provider is required to look up the authorizations in the Roles Database.
  4. For Mail Services, risk is reduced when mail is processed using a bar coded "swipe" card, minimizing the risk of keying errors in the Mail Services area.

Level of Risk: Medium

Although keying errors can occur and amount billed is not controlled by a PO, funds do not leave MIT when billed by an internal provider.

Documentation to Retain:

Packing slips or other evidence of receipt, if applicable (current FY plus 4 additional FYs)

DLC Tasks:

Ongoing:

  1. Retain and file packing slips or other evidence of receipt.
  2. Ask that staff, faculty, and students inform reviewers of orders not received or problems with an order or the provider.
  3. Encourage the use of the bar coded "swipe" card for processing mail. Make sure the mail, packaged with the "swipe" card, is stored in a secure area.

Statement-related: Review charges from internal provider, paying careful attention to the amounts billed, as internal providers can bill more than the original requisition amount.

Contact for Questions: Contact the internal provider with questions or concerns.

Updated 5/22/12