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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. 6-5

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