|Note:||At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.|
PUR 602–04: Prepayment of Purchase Orders and Contracts
To establish guidelines for prepayment of purchase orders and contracts
Prepayment of purchase orders and contracts should not occur unless it is standard industry practice or unusual/extenuating circumstances exist. Prepayment may be acceptable, however, for:
A prepayment authorization form can be downloaded from Financial Services.
|Note:||Performance bonds or other guarantees may be required if prepayment is approved.|
If the supplier fails to provide the services or goods after any prepayment, the paying department will incur the loss.
In some cases, suppliers who request prepayment will negotiate the receipt of progressive payments as services and/or product deliveries are made to ASU instead of a single lump sum prepayment.
For information on performance bonds, see PUR 501–03, “Bid Security and Performance and Payment Bonds.”