SECTION OVERVIEW AND POLICIES
This section provides guidance to agencies about selecting the appropriate payment term to ensure payments for goods and services are made at the most advantageous time for the State.
In the Statewide Financial System (SFS), the Invoice Date and Pay Term fields work in conjunction to calculate and auto-populate the Scheduled Due field and, where applicable, the Discount Due field. The following information is represented in each of these fields, respectively:
Regardless of when a voucher is entered into the SFS, the system will automatically determine the most advantageous payment date for the State based on the payment term and the invoice date.
Overriding Payment Terms
For circumstances such as year-end, federally-funded and emergency payments, agencies should adjust the scheduled due date rather than the payment term to enable the SFS to pay the voucher at the appropriate time. For assistance, please contact the Bureau of State Expenditures’ Customer Service Help Desk at (518) 474-4868, or by email at firstname.lastname@example.org.
Process and Transaction Preparation:
Agencies must ensure the payment terms on the voucher are appropriate based on the following:
The payment terms should reflect cash discounts offered by the vendor where applicable. Agencies should refer to Section 6.T – Applying Cash Discounts of this Chapter, for more information about cash discounts.
The table below indicates the payment terms available in the SFS. If the vendor offers multiple payment terms on a single payment, agencies should enter the appropriate payment term based on the date the agency anticipates to make the payment.
Agencies should contact the SFS Help Desk at HelpDesk@sfs.ny.gov to request a new payment term to be added to the SFS. Payment terms are generally based on a 30 day “net” period, however for payments to qualified small business vendors, the SFS will automatically map the existing payment terms to 15 day terms. Agencies should not override these terms.
|Payment Term ID||Payment Term from Payments Tab Drop Down Box||Payment Term Description|
|.0130||.01/30 Net30||0.01% Disc in 30 days, Net 30|
|.0315||.03/15 Net30||0.03% Disc in 15 days, Net 30|
|.1D15||.1/15 Net30||0.1% Disc in 15 days, Net 30|
|.2515||.25/15 Net30||0.25% Disc in 15 days, Net 30|
|.2520||.25/20 Net30||0.25% Disc in 20 days, Net 30|
|.2530||.25/30 Net30||0.25% Disc in 30 days, Net 30|
|.5D10||.5/10 Net30||0.5% Disc in 10 days, Net 30|
|.5D20||.5/20 Net30||0.5% Disc in 20 days, Net 30|
|.5D30||.5/30 Net30||0.5% Disc in 30 days, Net 30|
|.6530||.65/30, Net30||0.65% Disc in 30 days, Net 30|
|.7515||.75/15 Net30||0.75% Disc in 15 days, Net 30|
|0.515||.5/15 Net30||0.5% Disc in 15 days, Net 30|
|00||Due Now||Due immediately|
|1.510||1.5/10 Net30||1.5% Disc in 10 days, Net 30|
|1.515||1.5/15 Net30||1.5% Disc in 15 days, Net 30|
|1.530||1.5/30 Net30||1.5% Disc in 30 days, Net 30|
|10D15||10/15 Net30||10% Disc in 15 days, Net 30|
|10N||10N||10th day of next month|
|11030||1/10 Net30||1% Disc in 10 days, Net 30|
|123EM||30/60/90EM||30/60/90 days end of month 1/3|
|123M||30/60/90||30/60/90 days 1/3|
|12SP||12 x Split||12 x Split Due EOM/EOM+1|
|17530||1.75/30 Net30||1.75% Disc in 30 days, Net 30|
|1D15||1/15 Net30||1% Disc in 15 days, Net 30|
|1D20||1/20 Net30||1% Disc in 20 days, Net 30|
|1D30||1/30 Net30||1% Disc in 30 days, Net 30|
|1D5||1/5 Net30||1% Disc in 5 days, Net 30|
|1N||1N||1st Day of Next Month|
|2.515||2.5/15 Net30||2.5% Disc in 15 days, Net 30|
|2.530||2.5/30 Net30||2.5% Disc in 30 days, Net 30|
|27515||2.75/15 Net30||2.75% Disc in 15 days, Net 30|
|2D||2/10 Net30||2% Disc in 10 days, Net 30|
|2D15||2/15 Net30||2% Disc in 15 days, Net 30|
|2D20||2/20 Net30||2% Disc in 20 days, Net 30|
|2D30||2/30 Net30||2% Disc in 30 days, Net 30|
|30||Net30 *||Net 30|
|31530||3/15 Net30||3% Disc in 15 days, Net 30|
|3D20||3/20 Net30||3% Disc in 20 days, Net 30|
|3D30||3/30 Net30||3% Disc in 30 days, Net 30|
|3X433||40-30-30%||3 x Net30, 40-30-30% split|
|4D15||4/15 Net30||4% Disc in 15 days, Net 30|
|5D15||5/15 Net30||5% Disc in 15 days, Net 30|
|5D20||5/20 Net30||5% Disc in 20 days, Net 30|
|5D30||5/30 Net30||5% Disc in 30 days, Net 30|
|7N||7N||7th day of next month|
|EM||EOM||Due at the end of this month|
|EM1||End Nxt Mt||End of next month|
|NXTM||Next Month||Next month|
|REB2%||REB2%||Maximum rebate percent 2%|
|REB5%||REB5%||Maximum rebate percent 5%|
|SP||Split||1-15 due EOM, 16-31 due EOM+1|
* The SFS default payment term.
Agencies can establish payment terms at the contract level. Agencies can use the PO Defaults page on the contract to update the Pay Terms ID field with the payment terms agreed to in the contract. A purchase order that is released from or associated to the contract will inherit the contract payment terms. A voucher that references the purchase order will inherit the payment terms from the purchase order.
Similar to contract payments, a voucher that references a purchase order will inherit the payment terms from the purchase order. If no purchase order is associated to the voucher, the Pay Terms field on the voucher will default from the vendor’s location. For more information on vendor location, please refer to Section 5.D - Selecting the Appropriate Payment Location of this Chapter. Where the vendor has not indicated a payment term on their record, the system default is set to Net 30 (15 days for self-certified small business). This means the payment will be made on the later of the OSC's approved date or the Scheduled Due Date.
Bulkload agencies must enter the appropriate payment terms on the voucher. The payment terms entered on the voucher will override the payment terms on the contract in the SFS, so it is important that bulkload agencies enter the proper payment terms on the voucher to receive cash discounts available from vendors.
Guide to Financial Operations