Information For:

Payments for Purchase Orders

Create Receipt
A Receipt must be created for Purchase Orders over $3,000 in order for an invoice to be paid.  A Receipt is the department’s way of indicating to Accounts Payable that the Purchase Order is approved for payment because:

  • Product has been received
  • Service has been provided

Invoices for Purchase Orders
Suppliers are instructed to send invoices, referencing the Purchase Order number,  directly to Accounts Payable or to the email provided on the purchase order for proper processing.  

Payment Terms
The University's standard for payment of Supplier Invoices is within thirty (30) days after the invoice is received in Brown Accounts Payable.  This is referred to as payment terms of ‘NET 30.’

For Suppliers providing goods or services to the University, Brown offers Suppliers a choice of three payment terms to select from when they register as a Supplier:

  • Net 30 - Paper Check paid within 30 business days of receipt of the invoice in Brown Accounts Payable (default if no payment term is selected)
  • Net 15 with a 2% discount
  • ACH/EFT  electronic payment to be made within 5 days of receipt of invoice in Accounts Payable

Prepaid and Partial Payment Purchase Orders
Occasionally a Supplier refuses to accept a University Purchase Order without full or partial payment in advance.  In order for a pre-payment to be considered, contact [email protected] and ensure the following:

  • The Requisition must be accompanied by documentation explaining the reason for pre-payment.  
  • Documentation must include evidence of the Supplier's demand for pre-payment.  
  • The dollar amounts must be correct and include any handling or shipping charges.  
  • Documentation verifying the prices, such as a quotation from the Supplier, price list, Supplier order form, or pro-forma invoice. 
  • The amount of the desired pre-payment will need to be receipted in Workday and the invoice must be provided to Accounts Payable. 
  •  The Supplier must also be registered in the Supplier Registration System.

Payments in advance of receipt of goods places the department and the University at risk of loss if these goods are not received as ordered, or in unsatisfactory condition.

Incorrect or Damaged Shipments
If a shipment is received with incorrect or damaged goods, the packing material, packing slip, and/or shipping ticket should be saved.  These may be needed if the items have to be returned or exchanged with the Supplier. 

To handle incorrect shipments:

  • The Supplier's process should be followed to obtain proper authorization and shipping instructions.
  • The department must notify the Supplier immediately in writing so that appropriate action may be taken such as issuing credit or providing a replacement.
  • If the order has to be shipped back to the Supplier, it should be packed in the original cartons.
  • The department should also appropriately record this activity (i.e. number of items received, number of items returned, comments, etc.) in Workday if the order was related to a Purchase Order.
  • Strategic Purchasing, Contracts & Insurance may be contacted to help settle any disputes or to negotiate a settlement.

Credits
Credits occur due to the receipt of defective merchandise, returned goods, discounts, or incorrect invoice payments. 

All credit memos should be submitted in Workday for processing. Be sure to reference the Purchase Order number and line numbers, or include the worktags. Please contact [email protected] with questions.