Purchase Order Supplier Payment Terms

University purchase order 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.

Supplier Responsibilities

In accordance with the agreed upon University Purchase Order Terms and Conditions, all BEN Buys approved suppliers are required to:

1. Not accept any order for products and services without prior receipt of an official University of Pennsylvania purchase order or a MasterCard Purchasing Card credit card number and cardholder name.
2. Provide timely invoicing for all purchases of products and services.
3. Clearly reference the purchase order number and invoice date on the invoice.
4. Ensure that the invoice submitted to the University includes an invoice number, invoice date, and correct remit-to information.
5. Mail all purchase order invoices directly to University's Accounts Payable department as noted on the purchase order.

System 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.

Discounts

Accounts Payable will make 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.

Pre-Payments

Generally, the University issues payments upon completion of the service or delivery of the product. Requests by suppliers for pre-payments 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.

Payment Questions

All questions related to the purchase order supplier invoice payment process should be directed to Accounts Payable.