Processing Prepayments

Prepayments may be processed to pay for the purchase of goods or services when payment is required by a vendor before delivery of the goods or receipt of the services. Advance payments are subject to a maximum prepayment of 90 days. Advance payments cannot be made to vendors on the Comptroller's Debt Setoff (CDS) list.

  • In May and June of each fiscal year - routine prepayment invoices that are allowable prepayments according to the CAPP Manual and that are PAID prior to June 30 will be paid in the current fiscal year.
  • Prepayments are handled by your Accounts Payable Travel Team.
  • Refer to the list of allowable miscellaneous advance payments to determine if advance payment is allowed.
  • If there is a payment deadline, include the date the prepayment must be received by the vendor.
  • If payment documentation is not clearly noted as "prepayment," payment will be processed as a net-30 payment.
  • Departments are responsible for ensuring that all supporting documentation is forwarded to Accounts Payable.
    • Failure to provide all required supporting documentation can delay the prepayment process (refer to Procedure 6-813 for a list of required documentation)
    • If you are processing a prepayment via eVA, be sure to send a copy of the purchasing documentation (clearly marked VENDOR COPY) and all applicable back-up documentation to Accounts Payable.
  • Prepayment requests that are submitted to Accounts Payable Travel Processors that are accurate and complete will be processed within 5 business days.
  • Follow-up - Departments should review Banner to ensure the prepayment has been posted. If the prepayment does not show up in Banner, please follow up with Accounts Payable to ensure the request was received and it can be processed as a prepayment.

Please ensure that you can request payment via memo. Please include the following information when submitting memos to request payment:

  • Budget Unit Director's original signature
  • Purpose of Prepayment (description)
  • Vendor Name, Number and Address
  • Amount to be paid
  • Budget code/sub-object
  • Special handling instructions (mail check, deposit or mark for pick up)

Allowable miscellaneous advance payments are subject to a maximum prepayment period of 90 days.

  • Organization Memberships: Includes employee or agency annual membership dues for professional organizations. As stated above, agencies are not allowed to make annual membership prepayments more than 90 days prior to the expiration of the previous year's membership. If payment is not done via eVA purchase order, the original signature of the President or Vice President is required. (Refer to University Policy #1060, Institutional and Individual Memberships in Professional Organizations and Social Clubs).
  • Publication Subscriptions: Includes initial and renewal annual subscriptions for technical and professional publications. As stated above, agencies are not allowed to make subscription prepayments more than 90 days prior to the expiration of the previous year's subscription.
  • Convention and Educational Services: Limited to advance registration fees for conventions, conferences, seminars, and employee workshops. Agencies and institutions must be reasonably sure that travel will occur as planned. Excludes other travel expenditures except for public carriers. Include the registration form and a copy of the Pre-Approval Request (international travel) if applicable.
  • Travel Public Carriers: Limited to prepayments for individual travel by aircraft, train, and bus. Excludes rental vehicle expenditures. List of participants names, titles and UIN, if applicable.
  • Human Subject Payments: Includes expenses for advance payments to individuals (human subjects) for experimental research, engineering projects, and medical projects.
  • U. S. Postal Service Purchases: Limited to postage purchased from the U.S. Postal Service. Excludes courier service and freight expenditures.
  • Hotel/Motel Deposits: Limited to one night deposit for direct bill payments on hotel/motel rooms for employees who travel on behalf of the Commonwealth - no matter what ledger is used. Use of the State sponsored Corporate Travel Card is encouraged to secure room confirmations. Actual advance payments using the Corporate Travel Card program will not be reimbursed prior to the trip. Be sure to include the purpose of the trip and the traveler's name. Attach a copy of the approved Pre-Approval Request (international travel) if applicable. Provide a list of participant names, titles and UINs if applicable.
  • Film Acquisitions or Rentals: Limited to payments for the acquisition or rental of educational or training and development films.
  • Advertising Expenses: Limited to prepayments for newspaper, magazine, journal, and periodical advertisements. Prepayment is recommended. When submitting advertisements for payment, a copy of the tear sheet of the advertisement is required.
  • Insurance Premiums - Invoice.
  • Licensing Agreements - Invoice or licensing agreement.