Material & Disbursement Services (MSD)
Effective Date: 03/01/1998
Last Modified Date: 11/21/2003
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 for which final receiving and approval for payment (i.e., "contractual acceptance") is contingent upon satisfactory delivery and installation by the vendor.
- When preparing a Purchase Requistion for an item for which delayed payment is anticipated, state the following clearly on the requisition:
- the need for a "withhold payment" flag to be placed on the resulting Purchase Order;
- the criteria for contractual acceptance of the order and removal of the flag; and
- the name of the contact person in the requesting department.
- The purchasing agent creates a Purchase Order as usual and places a "withhold payment" flag on the order in the FRS system.
- After the vendor provides the goods or services per the instructions on the PO and forwards all invoices to Disbursement Services, the requesting department's contact person
- evaluates the vendor's activities for adherence to purchase order criteria for acceptance; and
- notifies the purchasing agent, by written Change Request, to remove the withhold payment flag.
- After the purchasing agent removes the flag, Disbursement Services will issue a check for final payment.
See alsoMSD Policy 35, Delayed Receiving/Payment for Special Acceptance Considerations
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