Material & Disbursement Services (MSD)
Effective Date: 07/01/1996
Last Modified Date: 11/18/2003
It is occasionally in the best interest of the University and the State to delay payment of outstanding invoices. These situations typically involve large dollar amount procurements where final receiving and approval for payment (i.e., "contractual acceptance") is contingent upon satisfactory delivery and installation by the vendor.
Authorization by Department
Final approval and acceptance of these orders will be authorized by the requesting department using criteria that have been predetermined and agreed to by the vendor, the end user, and Purchasing Services.
Once criteria have been established, the requesting department must designate a contact person who is responsible for the final acceptance of the order. This person must request that Purchasing place a "withhold payment flag" on the purchase order when it is issued and remove the flag once all receiving criteria have been met. The flag will prevent final payment of invoices posted against the order until the department contact requests removal.
Examples of Use
Here are two representative examples of procurements in which special acceptance may be useful:
- Specialized or customized scientific equipment such as lasers or electron microscopes that require extensive installation, setup, and calibration, which must often be performed by factory-trained and authorized representatives to protect warranty considerations.
- Modification to facilities or renovation projects, such as new carpet installation.
This procedure should not be used for any of the following:
- Term contract items
- Standing or maintenance orders
- Catalog, stock, or off-the-shelf items
- Any purchase less than $5,000
See also: MSD Procedure 9, Delayed Receiving/Payment for Special Acceptance Considerations
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