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XII.5.F
Selecting the Appropriate Payment Term and Scheduled Date


SECTION OVERVIEW AND POLICIES

This section provides guidance to Business Units about selecting the appropriate payment terms and scheduled payment date on a voucher.

 

In the Statewide Financial System (SFS), the MIR Date and Pay Terms fields work in conjunction with each other to calculate and auto-populate the Scheduled Due field. These fields capture the following information:

 

Business Units must select the appropriate payment terms to ensure New York State avoids unnecessary prompt payment interest charges and receives cash discounts available from vendors.


Process and Transaction Preparation:

Business Units 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. Business Units should contact the SFS Help Desk at HelpDesk@sfs.ny.gov to request a new payment term to be added to the SFS.

 

 

Payment Term ID Payment Term from Payments Tab Drop Down Box Payment Term Description
0.515 .5/15 Net30 0.5% Disc in 15 days, Net 30
00 Due Now Due immediately
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
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
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
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
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 Business Units

 

Contract Payments

 

Business Units can establish payment terms at the contract level. Business Units can use the PO Defaults page on the contract to update the Payment 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. Similarly, a voucher that references the purchase order will inherit the payment terms on the purchase order and contract.

Non-Contract Payments

 

The Pay Terms field on the voucher will default to Net 30. This means the payment will be made on the Office of the State Comptroller’s approved date or 30 days after the MIR date (whichever is later).

 

Bulkload Business Units

 

Bulkload Business Units 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 Business Units enter the proper payment terms on the voucher to receive cash discounts available from vendors.

 

 

Guide to Financial Operations


REV. 01/09/2015