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  3. What constitutes a detailed description of a business purpose?

What constitutes a detailed description of a business purpose?

The business purpose is a statement that adequately describes the expense as a necessary, reasonable and appropriate business expense for the university.  All expenses support or advance the goals, objectives and mission of the university.

The business purpose should include the five “Ws” for the purchase:

  • Who
  • What
  • Where
  • When
  • Why

In addition, a detailed business purpose aids in the proper classification of expenses. A good or service can be allocated to multiple expense accounts codes depending upon the business purpose. 

For example, a pencil would be used as an Office Supply-52600 in most departments. However, if a researcher in the Chemistry department uses pencils to test lead levels, the appropriate expense account code would be Educational Supplies-52300.

Updated on September 30, 2021

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