7.5.11 Prepayments

7.5.11

Prepayments

Last Update Approved: November 6, 2013

Edited/Revised: July 8, 2015

Revised Effective: August 7, 2015

Policy

 In accordance with state law, a payment will not be remitted prior to the receipt of materials, goods, supplies, or services except when it is mandatory that the payment accompany the Purchase Order.

General Guidelines

Advance payment of purchases can be authorized only in limited situations.

Prepayments are normally required for subscriptions or in the case of a custom order. Most manufacturers will not proceed with a custom order unless a deposit is paid at the time the order is placed.

In general for prepayments, the items must not be available from any other source, the supplier must state on its order form that Purchase Orders are not acceptable, and the exact cost of each item plus any shipping must be shown on its order form.

Procedures

The requestor must enter a comment when entering the ePro Requisition advising Purchasing that a deposit or prepayment is required. This will alert Purchasing to ensure the PO is set up correctly to allow partial payment. Send all supporting documentation to Purchasing with the ePro Requisition number noted. (invoice, order form , etc.)

Purchasing will forward invoice to Accounts Payable after the Purchase order has been generated and signed. In most situations, it is in the best interest of the College to submit a Purchase Order to the supplier. The supplier should then return the Purchase Order with the current prices noted and a notation that prepayment is a requirement.