Contract Payment/Leases

Contract Payment Purchase Orders: These purchase orders are issued by the Purchasing Department for a specific vendor and are used to expedite timely fixed payments made on a monthly or quarterly basis. A purchase requisition is required to originate the Contract Payment Purchase Order. The Contract Payment P.O. is used for such things as leased or rented goods, or maintenance contracts, where the fixed charges do not vary. An invoice is not necessary for processing payments to a vendor.

The ordering department indicates the total amount to be paid, the amount of each individual payment, the date of the first payment, and the frequency of payment. The information is processed by Purchasing and forwarded to A/P for further processing in the A/P system. Payments are automatically produced and mailed on the specified payment date.

For leased and rented equipment, the Purchase Requisition for Contract Payment Purchase Order would be submitted one time to cover the fixed payments for the length of the contract. Each line on the Purchase Order would represent a separate fiscal year.

Please contact the Purchasing Department or Accounts Payable to discuss your potential applications for Contract Payments and to obtain proper forms.