Purchase Order (PO) compliance is enforced for payment processing. A purchase order is distributed in PDF format via email or the Ariba Network.
PO format for iProcurement
POs from iProcurement are sent by email in PDF format, so you must have PDF-reading software to view the purchase orders.
PO format for Smart Buy
POs from Smart Buy are sent via the Ariba Network. Learn more about Cisco Smart Buy and the Ariba Network.
Purchase order exceptions
Purchase order exceptions are now consistent globally, across the Asia Pacific, Greater China, Japan, Emerging Markets, Europe, Latin America, U.S., and Canada. Refer to the following purchase order exceptions guidelines for all theaters and localities:
- Legal services, specifically, outside counsel, investigations, and litigation
- Philanthropy and charitable donations
- Accrued commissions or rebate accruals
- Purchases including corporate fees, dues, memberships, event/conference registration attendance fees, and sponsorships
- Intercompany expenses that are transactions that involve the sale or cost of goods built by Cisco Systems, Inc.
- Expenses related to royalties payments made to an author or inventor for each copy of a work sold under a copyright or patent
- Spending authorized by Cisco’s Board of Directors and its committees for strategic development and corporate governance, as included in their approved annual budgets/operating plans.
- Investment portfolio costs and fees; mergers, acquisitions, and divestitures
- Banking fees and related expenses deemed non-negotiable
- Corporate insurance fees and related expenses deemed non-negotiable
- Corporate taxes and related expenses deemed non-negotiable
- Fees related to customs, duties, and associated services deemed non-negotiable provided they are in accordance with the U.S. Foreign Corrupt Practices Act
- Rent/lease payments and associated expenses which are covered under a long-term lease agreement or similar document which has been duly authorized and executed by Cisco Legal or Cisco Procurement contracts negotiators
- Telecommunications expenses with which regulated costs are incurred and the ability to negotiate competitive contracts may not exist. Telecommunications expenses for corporate paid mobile plans may include associated hardware when ordered by authorized personnel, and in accordance with the smartphone and tablet policy.
- Utilities and associated taxes and fees deemed non-negotiable
- Non-negotiable fringe benefits regulated by governmental agencies (foreign or domestic). Please note that costs of service for fringe benefit providers are non-exempt.
- Postage/freight expense deemed non-negotiable due to local regulations; freight and shipment expenses that are managed and negotiated by the direct procurement teams in the Cisco Supply Chain organization which support the production and distribution channels for Cisco products. Costs of services related to freight providers in support of indirect expenses is not exempt.
- Any expense related to travel is exempt, such as car rentals, entertainment, cost of meals provided to clients, ground travel, or lodging. Reference the Cisco Global Expense Policy for guidance specific to this category of expenses.
- Any expense related to approved charges made to corporate credit cards is exempt. Reference the Cisco Global Expense Policy for guidance specific to this category of expenses.
- Any payment made to an employee for reimbursement for approved goods or services provided is exempt as governed by the Cisco Global Expense Policy
- Any expense related to meals or food catering for a Cisco on-site team/organizational activity is exempt
- Additional categories of exempt expenses may be identified in the future based on an analysis to determine the following items:
- Materiality of total spend
- Fees, taxes, or expenses regulated by local legislation where opportunity for negotiation is not present
- Where the cost of the effort required to negotiate is far greater than the anticipated cost savings achieved through negotiations
- Some exceptions may apply in geographic locations where Cisco Smart Buy has not been fully implemented. Business function spend owners are required to engage Cisco Procurement prior to engaging with suppliers in any buying decisions that commit Cisco to buying terms and conditions.