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 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.