XII.5.F
Selecting the Appropriate Payment Terms


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

 


Process and Transaction Preparation:

Agencies must ensure the payment terms on the voucher are appropriate based on the following:

 

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.

 


Online Agencies

 

Contract Payments

 

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.

Non-Contract Payments

 

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

 

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


REV. 01/22/2018