Prompt Payment Discounts

Some vendors offer Prompt Payment Discount Terms. The terms are generally stated on the invoices in a format that looks like "2/10, Net 30." This means that we can realize a 2% discount if we pay within 10 days of the invoice date, but the net amount of the invoice is due in 30 days. Other discounts may require payment by a certain date of the month in order to take the discount.

CFS automatically applies the discounts based on the invoice date and the payment date. When we qualify to take a discount, you will note that the invoice amount shows the total of the invoice, but the payment reflects the amount actually paid (invoice amount less the discount.) While the Purchase Order does not reflect the discount, the amount is credited to the General Ledger account used on the Purchase Order.

With our ability to accept emailed invoices from the vendors, invoice approval workflow, and electronic payments, we are in a position to capitalize on the capture of most discount opportunities.

The list of vendors who offer discounts changes often. Click here to see the current list.

 

Please note: When registering new vendors, please only use the current Vendor Registration Form found on the Purchasing website. Some older versions of this form do not ask if the vendors offer Early Payment Discounts.

 

 

Prompt payments depend on prompt approval of invoices.