PART II - Preaudit Steps
- Institutions may set their own standards for taking discounts. Such standards should be based on cost/benefit factors.
- Institutions should adhere to the specific discount terms stated on the invoice unless the vendor is invoicing under a contract, in which case the contracted discount terms take precedence. All cash discounts for items under a state contract or written price quotation are to be handled as being applicable if paid within 30 days from receipt of invoice, provided this interpretation is so stated in the request for bid. (Refer to State Procurement Manual PRO-E-4).
- For discount eligibility purposes, the clock generally starts on the invoice date or the date the goods/services are received, whichever is later. Vendors who predate or hold invoices making it difficult to comply with discount terms should be contacted to rectify the problem or to obtain approval to use the invoice-received date to start the discount clock.
- Payment is considered complete on the date the check is issued.