Installment Payment Policy (105.011)

Installment Payment Policy (105.011) - Policies, Administrative, UWMF, UWMF-wide, Finance


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UWMF Installment Payment Policy

I. Purpose
To establish guidelines and requirements for the processing of University of Wisconsin Medical
Foundation (UWMF) requisitions requiring installment payments to the vendor as well as establishing
a workflow between UWMF Supply Chain Management (SCM) and Accounts Payable (AP)
departments on the processing of these payments.
Installment Payments include (but are not limited to) pre-payments and down-payments.

II. Policy
The AP department will process installment payment requests on requisitions of $10,000 or more. An
invoice from the vendor is required for each installment payment, including the final balance due.

When a vendor requires an installment payment under $10,000, the SCM Purchasing Agent must
contact AP in advance of placing the requisition. The AP department will first provide credit history
information to the requesting vendor to replace requirement of smaller installment payment. If credit
history information is not acceptable to the vendor for eliminating need for installment payment, AP
will review for exception to the policy.

III. Procedure
Purchase Order
The SCM Purchasing Agent will create a receiving-required Purchase Order (PO) for this requisition
within the PeopleSoft (PS) FSCM software.
 The SCM Purchasing Agent will set-up the PO as one line for each item (multiple quantities on
individual lines are okay).
 The PO will not be received until final installation, set-up and testing are approved by the
AP will confirm approval from the SCM Purchasing Agent for each installment payment, except for the
final balance due, prior to processing the invoice.
 The SCM Purchasing Agent will work with the vendor to ensure that the final installment
invoice set-up matches the PO set-up.
 AP will process the final installment payment by confirming receipt within PS and completing
the three-way Voucher to PO Matching process.

Revision History
Review Date Next Review
April 2012 March 2013