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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Prompt Payment – Reference
Prompt Payment Reminders

  • Agencies are solely responsible for correctly entering computed payment due dates into USAS.
  • An agency must accurately document the date that it first receives an invoice. This is true regardless of any mailing instructions given to the vendor through a purchasing agreement or any other means.
  • Whenever a transaction is governed by the prompt payment law, the agency is solely responsible to ensure that its interest control flag is properly set.
  • Whenever an agency uses an interest control flag of R to refuse interest, the agency must keep specific documentation in its files that can be associated with the voucher to support using these codes.
  • Whenever a payment’s timeliness is governed by the prompt payment law, an agency may not pay late fees, penalties, finance charges or any other compensation.
  • Vendors may not waive their right to automated prompt payment interest. Vendors who do not wish to receive automated prompt payment interest may return the interest to the paying agency or may credit the agency with the interest.
  • Agencies should remember that payments due on weekends or state holidays need to be submitted into USAS two business days before the weekend or the holiday so that distribution will be on time. Do not alter any due dates.

Note: See Tools in the feature box to the right for links to the payment calculators from any page in eXpendit.

Definitions

Payment
Money owed to a vendor.
Prompt payment law
Chapter 2251, Government Code.
State agency
  • A board, commission, department, office or other agency in the executive branch of state government created by the constitution or a statute of this state, including an institution of higher education as defined by Texas Education Code Section 61.003.
  • The Legislature or a legislative agency.
  • The Supreme Court, the Court of Criminal Appeals, a court of appeals, a state judicial agency or the State Bar of Texas.
Vendor
A person who supplies goods or a service to a state agency or another person directed by the agency. The term does not include a state agency, except for Texas Correctional Industries. The term includes an officer or employee of a state agency when acting in a private capacity to supply goods or a service.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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