Vendor Payment Options
To generate cost savings and increase efficiencies, the University is implementing payment method strategies that will shift away from the primary payment method of issuing checks to vendors to electronic payment methods that involve payments by credit cards (ePayable) and electronic payments directly to the vendor’s bank account (ACH). While making payment to vendors by check remains the dominant payment method today, the University is contacting our vendors to solicit their agreement to accept payment by electronic methods and will offer vendors more favorable payment terms as an incentive to accept electronic payments.
In general, the University will standardize on the following payment methods and the standard payment terms that are assigned based on the payment method. Only the System Accounts Payable office will be able to change the payment method.
|Payment Method||IRIS Code||Default Payment Terms|
|ePayable||E||Net (Payable Immediately)|
|ACH||A||N30 (Payable in 30 Days)|
|AP General Checks||C||N40 (Payable in 40 Days)|
Effective October 2013, the payment term field on the entry screens will no longer be changeable at the time of invoice entry. Certain vendors such as electric companies, utilities, postmaster, Department of Homeland Security, insurance companies, etc will have payment terms as NET. If there is a need to have a payment term changed on a document, an email should be sent to AP_Terms@tennessee.edu asking for the change and giving an explanation as to why the change is needed. For vendors receiving checks, you may also contact your campus/unit business office to request this change. This change can be made prior to marking the document complete or after the document has posted but before it is paid.
You can still add a discount amount at the time of invoice entry by putting the amount of the discount in the “Discount” field on the ‘Payment’ tab.
If a vendor wishes to change their payment option, they will need to log into PaymentWorks to provide the update.
Please contact Gayle Stetler at firstname.lastname@example.org if you have any questions.