Payments to Accompany Order

When the University commits to a purchase from a supplier, the supplier is expected to have adequate resources or working capital in order to provide the needed goods or services. An advance payment to the supplier incurs additional costs for the University, presents risk of loss of the funds advanced in case of supplier bankruptcy, and reduces the University’s ability to negotiate in a dispute.

Accordingly, the University does not make full or partial advance payment to suppliers except as allowed by this procedural statement or its stated exceptions. In all cases, the supplier must be registered to do business with UGA, as outlined in the Vendor Creation and Maintenance Policy.

In general, the University does not remit payment to a vendor until goods have been received or services have been provided. Advance payments are generally not allowed except when it is mandatory in order to obtain the goods or services and no alternatives are available. If advanced payment is required under the terms of the purchase, the UGAmart requisition must be accompanied by either an invoice, an order form from the vendor, or other price supporting documentation. When prepayment is required, the end user should indicate this requirement in the UGAmart internal notes area, and the resulting purchase order will include the pre-payment instruction.

Depending on the nature of the procurement, UGA Procurement Office may contact the end user department to ensure they understand the business risks associated with the prepayment and ask for written confirmation that the department is willing to assume these risks. Additionally, if a restricted or sponsored account is involved, Sponsored Programs Post Award Accounting must approve the advance payment.