702 - Policy on Cash Discounts for Vendor Payments


The University of North Carolina at Chapel Hill Finance Policy 702 - Policy on Cash Discounts for Vendor Payments



The Office of State Controller's cash management policy requires that each agency of the state operate within a fiscally responsible cash management policy. Discount terms offered by suppliers for prompt payment are considered when awarding purchase orders because such terms can result in substantial savings for the University.


Policy Statement

The University accepts all discounts offered by suppliers for prompt payment.



Additional Information

Frequently Asked Questions

Q: How can we ensure that the department receives credit for prompt payment discounts on a purchase order?
A: If on a PO, on the day the item arrives or the service is complete, enter the receipt of the item or service into the Purchasing module in ConnectCarolina. The system will not permit payment until the receipt of the goods or services has been recorded. Once receiving is complete, immediately submit the invoice through visp for processing and highlight the discount payment terms. The discount terms noted on the invoice will then be applied in the voucher creation process.

Q: How do we ensure a discount is taken through the voucher process?
A: Any discount offered will be deducted, provided the Campus Voucher is submitted in a timely manner. If the discount is noted through invoice payment terms, the document creator should create the voucher for the full amount of the invoice and note in the comments that payment terms must be changed to reflect the discount pay terms. If the discount is simply a lump sum discount, you may simply adjust the total of the voucher to match the invoice total. If the discount is contingent on prompt payment, please make a note in the comments.

Related Requirements

External Regulations and Consequences

Contact Information

Policy Contact
Subject Contact Telephone Fax E-Mail
Cash Discounts Accounts Payable and Vendor Services 919-843-5098 919-962-2356 accountspayable@unc.edu


Article ID: 131533
Thu 4/8/21 9:11 PM
Mon 1/24/22 1:14 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
09/15/2021 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director, Accounts Payable and Vendor Services
Last Review
Date on which the most recent document review was completed.
09/15/2021 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
10/14/2019 12:00 AM
Next Review
Date on which the next document review is due.
09/15/2023 12:00 AM
Date on which the original version of this document was first made official.
02/01/1994 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget