A pre-paid transaction is one in which a vendor requires payment prior to the actual delivery of the goods or services. It is the University’s policy not to make prepayments, however certain transactions by their very nature require prepayment and these are discussed below. Once a prepayment is made, the burden for insuring delivery of goods and services rests solely on the ordering department.

Vendors requiring prepayment

Occasionally, a vendor will require payment with an order. The department’s first response to this situation should be an attempt to find another suitable vendor for the needed item or service. If no other appropriate vendor can be found, the department should prepare the Purchase Requisition for the transaction. A request for prepayment approval should be included in the Note to Purchasing section of the LoboMart PR.

Documentation from the vendor should be forwarded to the Purchasing department verifying the price and the requirement for prepayment. If the Purchase Requisition is approved and the prepayment is also approved, Accounts Payable will generate a check and it will be sent with the vendor’s copy of the Purchase Order.

If the requirement for prepayment is discovered after the Purchase Order has been sent to the vendor, contact the buyer listed on the Banner Purchase Order for instructions.

Membership Dues, Subscriptions, Publications and Registration Fees

As a rule, these payments are made in advance. Payment is usually made using Chrome River Invoice or by PCard.

Deposits to Hotels for Meals & Lodging

Often, a hotel will require a deposit when reserving its facilities (banquet or lodging) for a large group. Payment by PCard is preferred, after the approval of a special exception request. If the department does not have a PCard and wants to request a deposit payment, the department should prepare the Purchase Requisition and include the deposit requirement in the Note to Purchasing section of the LoboMart PR. Written documentation from the hotel indicating a deposit is required should be forwarded to the Purchasing department.

Deposits for employee lodgings are allowed. Employees traveling on University business may have payment of lodging made by PCard.