Business Manual logo


Material & Disbursement Services (MSD)


Effective Date:  07/01/1996

Last Modified Date:  11/18/2003

General Considerations

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.

Department Contact

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:

This procedure should not be used for any of the following:

Additional Information

See also: MSD Procedure 9, Delayed Receiving/Payment for Special Acceptance Considerations

Return toMaterial & Disbursement Services Section Contents

Return to Business Manual Table of Contents