Policy FIN-PURCH-06: Prepayment of Orders states that receipt of goods or performance of a service is required prior to payment.
Paying in advance to receive goods or services creates risk for the University. As good fiscal stewards, we need to ensure the goods or services provided satisfactorily meet the University’s needs and requirements prior to payment.
However, there are situations where a prepayment is unavoidable. These are outlined in the policy. Some examples include custom orders, reserving space for an event, or securing a large order. When prepayment is appropriate, the requisition requires a specific set up to ensure prepayment is generated. These requirements are outlined in SOP-PURCH-09: Deposits and Prepayments.
Prepayment is considered an exception to policy. Purchasing must review the situation and determine that prepayment is appropriate prior to the department committing to the supplier. This can be done by initiating contact with Purchasing at the beginning of the buying process. Submit a Support Form and select the options “Requisitions” and “Something else.” and a category manager will review your request and advise with next steps.