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Figure 6-2.—Computation of annual percentrages for discounts.
activities must make every feasible effort to expedite
paying office is charged with the responsibility for any
the processing of all invoices offering discounts.
Unfortunately, however, discounts are sometimes
lost. Whenever a discount is lost, whether intentionally
or unintentionally, the paying officer should pay the bill
in the normal manner when paying other bills not
offering discounts. Each DO is required to maintain a
record of discounts that were required to be taken but
were lost because the disbursing office failed to process
the bill within the allowed time frame. The record
should contain all mandatory discounts that were lost,
regardless of whether the purchase or service contracts
called for the discounts. The record will identify each
invoice and the activity responsible for losing the
discount on that invoice.
Since the discount period begins with the
contractor’s invoice date, the Navy will be unable to
take a discount in some instances because of
circumstances beyond its control. An example of this
would be a discounted invoice that was received after
the discount period had already expired. A record of
this type of lost discount will also be maintained.
Except for paying offices and those instances
mentioned in the previous paragraph, the activity in
possession of the dealer’s bill on the date the discount
expires is considered responsible for the loss. The
lost discounts from dealers’ bills in its possession on the
date the discounts expired under the following
conditions:
The dealer’s bill offers a discount greater than
$15 but less than $500 and was received at least
3 working days before the expiration of the
discount period.
The dealer’s bill offers a discount greater than
$500 but less than $1,000 and was received 2
working days before the expiration of the
discount period.
The dealer’s bill offers a discount of $1,000 or
more and was received 1 working day before the
expiration of the discount period.
Any activity that receives a dealer’s bill offering a
discount and fails to process the bill for payment within
one-third of the discount period is charged with
responsibility for the loss of the discount. The only
exceptions are when the paying office can prove the
following circumstances:
1. The dealer’s bill was not delivered in time for
the paying office to meet the payment
requirements previously described.
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