Fiscal Operations Manual
Section 400: Expenditures
Effective: 01/01/2003
Revised: 08/26/2010

Discount terms are usually counted from the date the invoice or the merchandise is received, whichever is later.  Check each invoice and purchase order for discount terms and take the larger discount if there is a difference.  Take the discount only on items purchased, not on shipping or handling charges.  Discounted invoices should be given priority processing. 

If a vendor disallows a discount already taken, verify with the original documents and BANNER system information.  Create a BANNER invoice for the disallowed amount.  Use the original vendor invoice number with a suffix DD.  Explain in text the reason for the payment.