Indiana University Institutional Policy - Prepayment of Orders

SUBJECT: Prepayment of Orders

SOURCE: University Purchasing Department

POLICY NO: P - 7.0

DATE ISSUED: February 18, 1992

RATIONALE:

To assure satisfactory value is received prior to payment.

POLICY:

Payment for goods or services shall not be made unless satisfactorily received prior to payment.

Exceptions:

  1. Payments to local, State, and Federal government entities.
  2. Any procurement of goods or services where the source provides an instrument of security.
  3. Where the funding agency has authorized prepayment.
  4. Service and maintenance contracts where necessary.
  5. Small orders (under $2,500.00) where the account manager approves prepayment.
  6. Approval by the University Director of Purchasing or campus director/Vice Chancellor.

DEFINITIONS:

PROCEDURE REFERENCE:

Prepaid orders shall be submitted to Financial Management Services for inclusion of check with order. Invoices for partial shipments will be accepted.

CROSS REFERENCE:

RESPONSIBLE ORGANIZATION:

University Purchasing Department

Last Reviewed: March 1, 2000