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Time of Payment
The payment of a properly approved invoice will
be made as close as possible to, but not later than, the
due date specified in the contract. When a due date is
not specified in the contract, the due date is determined
by the specific guidelines set forth in the Prompt
Payment Act of 1982 (Public Law 97-177). Each
dealer’s bill requires a separate determination for a due
date based upon these guidelines. Be aware that these
guidelines will vary with the type of materials or
services provided. The time can be from as little as 7
days from the date of delivery for such items as meat,
poultry, and egg products. But the time can be as much
as 30 days after the receipt of the invoice, acceptance
of the goods or services, or the execution of a valid
contractual agreement.
Method of Payment
Within the United States and its possessions, PVs
covering dealers’ bills will be paid by U.S. Treasury
checks or electronic funds transfer. Other types of PVs
will normally be paid in the same manner.
All
remittances by mail must be made by check. In cases
where a number of PVs are to the same payee, a single
Treasury check can be used to fulfill payment
obligations.
The only exceptions to the payment of PVs by
Treasury check or electronic funds transfer are activities
that regularly maintain cash funds for payrolls. When
cash is available and desired, PVs may be paid in cash.
Dealers’ bills stated in foreign currency received by
ships or shore activities located in the United States will
be paid by the DO serving the shore activity billed. The
DO will pay by U.S. Treasury check, except when the
purchase document requires the payment to be in
foreign currency or when the bill is in an excess or near
excess currency as listed by the Office of Management
and Budget. In these cases, the bill will be forwarded
for payment to a DO who holds the foreign currency.
When the payment is made in U.S. dollars, the amount
will be computed at the rate of exchange current at the
time of payment, unless otherwise prescribed in the
purchase document.
Payments to vendors in a foreign country will be
made in a currency authorized by local foreign currency
control laws or regulations. Department of State
officials in the area will be contacted for guidance and
information on the currency controls in effect. If no
Department of State official is in the area, the DO must
learn and fully comply with the local foreign currency
controls.
Payment to a vendor in a foreign country will be
made by U.S. Treasury check or U.S currency under the
following conditions:
Payment in U.S. currency is required by the
purchase document.
The foreign currency billed is not available to the
DO serving the activity billed or to another
overseas military DO, unless the foreign
currency is listed as excess or near excess.
When the bill is stated in foreign currency and
payment is made with U.S currency or by a U.S
Treasury check, the rate of exchange current at the time
of payment will be used. If the foreign currency is listed
as excess or near excess but the currency is not available
to the DO serving the shore activity billed, the bill will
be forwarded for payment to a U.S. DO who has access
to this currency.
Discounts
In every case, when contracts or any other written
purchase agreements contain a provision for a discount
for prompt payment, the discount will be deducted if
accepted and earned. All offers of discounts appearing
on dealers’ bills, whether printed, typed, written, rubber
stamped, and so on, regardless of the type of purchase,
will be considered as authorizing the deduction of
discount if earned. If the discount terms of the contract
are not in agreement with the discount terms offered on
the dealer’s bill, the discount most advantageous to the
government will be taken.
DETERMINATION OF DISCOUNT
PERIOD.— The discount period begins on the date
placed on the invoice by the contractor. If no date has
been placed on the invoice by the contractor, the invoice
is improper and should be returned to the contractor.
When no discount provision is included in the purchase
agreement and a discount is offered on the dealer’s bill,
the discount will be considered in strict accordance with
the terms of the offer. In such instances, if the offer on
the invoice fixes a date for the beginning or end of the
discount period, the date fixed will apply. Payment is
deemed to be made for the purpose of earning the
discount on the date of the government check, which
will be as close as possible, but not later than, the
discount date. If a discount period expires on a
Saturday, Sunday, or holiday, the discount is earned if
payment is made on the next business day.
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