Chapter 2251, Government Code (the Prompt Payment Law) makes a state university liable for interest accruing on any overdue payment. The Comptroller’s Office is required to automatically pay that interest at the same time the principal is paid.
The following are some examples of exempt payments:
If a payment is subject to interest, it will be calculated as follows:
A default university account will be assessed the interest expenses when the principal is paid. A quarterly interest payment report will be routed to executive management for review.
The invoice received date will depend on where the invoice was received:
|Received By:||Invoice Received Date:|
|Accts Payable P.O. Box 747||Accts Payable date stamp|
|Accts Payable 601 University Drive||Accts Payable date stamp|
|Department other than Accts Payable||Department stamp date|
|Department and no date stamp||Vendor's invoice date|
For goods, the goods receipt date in SAP. For services, the final date the services were completed.
The service date is the date when installation, inspection or testing is completed and the equipment is found to meet specifications. The purchase order must clearly state that an installation, inspection or testing is required and any timeframe requirements (i.e. 30 day testing period.) Otherwise, the day the equipment was received will be the service date.
If you request that interest be refused from calculating, you must clearly document all the facts to substantiate your request. We cannot refuse interest if you do not provide adequate documentation, unless it is an already exempt purchase.
No, the vendor cannot waive their rights. The vendor may return the interest to Texas State. Mail checks to the Accounts Payable Office for deposit against the interest expense.
Payments should be scheduled to be paid as close to the 30-day limit as possible. Early payments may be made if a discount is available or if there is a contractual agreement to pay sooner.