BEN Pays Payment System

University supplier payment terms are established by Purchasing Services when adding a new supplier to the BEN Buys Approved Supplier Database. The Payment Terms in BEN Buys dictate when payments to purchase order suppliers will be made. Generally, the University employs a "Net 30" payment term, meaning that the payment will be issued 30 days from the date of the suppliers invoice. Purchase orders sent to the supplier reflect these terms and conditions and they apply to all invoices received by the University. Payment terms other than "Net 30" can only be negotiated by Purchasing Services.

The Payment Process

Within the BEN Financials system, payment terms are established for each supplier. Invoices processed by Accounts Payable will reflect those terms and the payment due date will automatically be calculated by the system. Accounts Payable does not designate a payment date as this is entirely system driven. For example, a supplier invoice dated July 1, 2006 is received by Accounts Payable on July 9 and is entered into BEN Financials on July 10. Since our standard payment terms are "Net 30", the system will automatically calculated a payment due date of August 4, 2006. Checks are printed and usually mailed out the same day.

All supplier invoices are be sent electronically, mailed or faxed to the University's Accounts Payable department. All invoices are then image enabled and are automatically matched to the purchase order, and then encumbrances can be automatically relieved. Invoices are available via the Internet to the requisitioner, purchaser and/or buyer to view, process or reconcile any disputes. In the case where the invoice can not be matched within tolerance to the purchase order and processed, the end user is sent an electronic email alert and is able to view the invoice, (again via the Internet) and instruct Accounts Payable or post an action regarding the invoice. This automatic routing and processing of the invoice is enabled via 170 Systems MarkView software, which uses a workflow action to route and queue the invoice for appropriate processing.

Supplier Discounts

Accounts Payable makes every effort to take advantage of beneficial discount terms. Keep in mind that not all discounts offered by suppliers for prompt payment are advantageous to the University. Purchasing Services, in conjunction with the Office of the Comptroller, is responsible for determining when such supplier discounts are beneficial and recommends when they should be taken.

Supplier Pre-Payments

Generally, the University issues payments upon completion of the service or delivery of the product. Requests by suppliers for pre-payment can only be approved by Purchasing Services who will ensure that the pre-payment terms are beneficial to the University and that proper controls have been established to protect the University's business interests.

Process Performance

Process exceptions and rework in the supplier payment process increase administrative costs and negatively impact supplier relations and the ability of Purchasing Services to negotiate most favorable pricing terms with potential University contract suppliers. Payment performance metrics have been created to track process efficiency, administrative rework, and exceptions by School and Center, department and specific BEN Buys user. Specific supplier related payment performance issues will be addressed with the appropriate School and Center senior business officer.

In order to ensure timely payment of supplier invoices, University faculty and staff are not permitted to:

1. Place an order with an external supplier for products or services without the prior issuance of an official University purchase order or use of a MasterCard Purchasing Card by the authorized cardholder.
2. Use an unapproved purchase order number to verbally place an order with an external supplier.
3. Instruct a supplier to ship a product to a location other than the designated delivery location listed on the official University purchase order.
4. Instruct a supplier to send an invoice or invoices to a person or location other than the University's Accounts Payable department.
5. Delay payment of a legitimate supplier invoice by not responding to an Oracle Invoice Hold Alert in a timely manner.

Payment Questions

Please direct all questions related to the purchase order supplier invoice payment process to Accounts Payable.

Related Links

• Supplier Payments
• BEN Financial Advisories
• 170 Systems/Penn Customer Profile