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Finance & Accounting

The policies on this webpage have been streamlined and reformatted, and are now available on the University Policies webpage. We ask that you use this new resource, as future changes, additions to or eliminations of these policies will only be made to the University Policies webpage, and policy manuals you may have used in the past will no longer be updated. Note: On March 31, 2018, this resource will no longer be available. Please update your bookmarks to the University Policies webpage.

BPM-207 Sales of Products & Services

Revised February 16, 2005


No service shall be established or conducted solely for the purpose of profiting from the public sale of products or services. In situations where sales of products or services are made to the general public, such products or services shall be secondary and incidental to the primary functions of the University.

Approval Required

No service involving sales to the general public shall be inaugurated without prior written approval by the Chancellor (President for UM System) or a designee.

Establishing or Conducting a Service

Service must satisfy one or more of the following conditions:

  • The service is peculiar to the nature of the department or the University and is necessary to the conduct of its educational, research or service programs.
  • The provision of the service by the University will contribute primarily to the convenience, comfort, health, academic, social or recreational life of its students and staff or others participating in educational, research or service programs at the University.
  • The inclusion of the service will improve the efficiency and economy of operations.
  • The service is not otherwise available in the quantity or quality required or not conveniently available geographically.

Cash/Charge Sales

All sales of University products and/or services shall be made on a cash basis unless otherwise specifically authorized by the Chancellor (President for UM System) or a designee.

NOTE: Any staff member extending credit without proper authorization will be held responsible for all accounts so incurred.



Sales to other departments of the University are charge sales.

REFERENCE: See BPM 305 Inter-departmental Purchases for information on handling such purchases.