Recurring Payment Process is a method to annually approve and process payments to qualifying vendors who are paid a consistent periodic amount from the same funding source. The benefits of this process is that the account manager approves the payments once, the funds are committed for the remainder of the year, and the payments are processed without routine data entry for each payment.

Examples of possible payments eligible for a recurring payment are:

Payment for monthly lease or rental of office space

Payment for service contracts

Payment for maintenance agreements

Criteria for a Recurring Payment

• Vendor is paid a consistent, standard dollar amount.
• Vendor is paid on a consistent payment schedule (monthly, quarterly, etc.).
• Payment is applied to the same funding source(s) every time for the entire fiscal year.
• There are at least four payments within a fiscal year.

Vendor payments who do not meet all four criteria items above must be processed using a framework limit purchase order in SAP.

Requirements

Departments must provide the following two documents in order to create a recurring payment:

1. A copy of a University approved, executed contract, lease or service agreement detailing the payment amount, payment terms, contract term dates and authorized signatures
2. A completed, signed "Request for Recurring Payment" Form

Deadlines

Submit all documents to the Purchasing Office immediately upon execution of your contractual agreement, but no later 7 working days prior to the first payment of the contract.

For the annual renewal of the recurring payments, submit the a new "Request for Recurring Payment" Form with the new funding information by the deadline set in the Year End Closing Schedule.

Note:  Once a recurring payment has been created, funding sources cannot be changed during the year. 

Benefits of a Recurring Payment

• Account managers approve the multiple payments once via the Request for Recurring Payment Form.
• Payments will be processed in a timely and automatic fashion.

Questions

For questions regarding this process, please contact the Accounts Payable Office or the Purchasing Office.