OSU PaCS 306-02: Pre-Payment

Purpose

To provide all OSU staff with information regarding prepayment to outside entities for goods or services.

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Applicability

All employees responsible for making payments.

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Background Information

Payment and Prepayment to outside entities are OSU Business Affairs Policies located in the Fiscal Operations Manual (FIS).

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Policy

Any payment to an outside entity, prior to the receipt of goods or services (prepayment) must meet one of the following conditions:

1. the entity must require prepayment as a condition of doing business, or
2. the payment must be fully refundable if the goods or services are not rendered in a timely and suitable fashion, or
3. there is no other viable means or entity to procure the goods or services from.

Suitable documentation to accompany a prepayment request is:

• Vendor invoice
• Purchase Order
• Registration Form
• Vendor Quote
• Customer Order form
• Contract
• OSU Order Request Form, or
• Detailed Memorandum

Any exception to the above list must be made by the Accounts Payable Manager or Director of Business Affairs.

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Cross Reference

See FIS 406-08: Prepayments (Cash with Order).

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