110A: Prepayments for Goods and Services

The following processes are followed for procurements that pertain to prepaids which occur when the vendor will not accept payment subsequent to the goods or services being received and Purchasing has authorized the prepayment.

Prepaids are only issued to vendors.

1. Requisition is prepared, reserved, and approved.

2. Purchase Order (PO) or Limited Purchase Order (LPO) is prepared, reserved, and approved.(See 105; Purchasing Documents)

3. Copy of the PO/LPO with the original (or copy) of supporting documentation is forwarded to AP and stamped "Received" with the date. Supporting documentation includes an invoice or a form indicating what the procurement pertains to, when it will occur, for whom, and the amount (as applicable). Submission of supporting documentation with the PO is required.

4. Amount to be paid is input into the system, matching to the PO/LPO, creating an invoice.

5. The PO/LPO is stamped "Keyed" with the date.

6. Invoice is paid in the next check run and the PO/LPO stamped "Paid" with the date.

7. Check is mailed to the vendor unless special instructions are indicated on the PO.

8. Prepayment PO's/LPO's, with supporting documentation attached, are filed in the Business Services file room.

7/7/98