As a Texas state agency, the University of North Texas System's standard payment terms are Net 30, with payment issued following receipt and acceptance of the goods or services and receipt of a valid invoice, in accordance with applicable state law and University policy.
Advance payments and prepayments are generally not permitted. Exceptions are limited to circumstances in which advance payment is customary within the industry, required by the supplier to fulfill the University's business need, or otherwise authorized by applicable law or University policy. Examples of situations that may warrant consideration include, but are not limited to:
- Custom-manufactured or specialty equipment requiring the vendor to procure non-returnable materials or begin production prior to delivery.
- Special-order goods that are not maintained in inventory.
- Deposits required to reserve conference, meeting, event, or lodging facilities.
- Conference registration fees, professional development programs, and training requiring payment in advance.
- Membership dues.
- Subscriptions, including software licenses and cloud-based (SaaS) services requiring payment prior to activation.
- Insurance premiums or similar services that require payment before coverage or service begins.
- Other circumstances where advance payment is determined to be necessary to meet a legitimate University business need and is permitted by applicable law and University policy.
The examples above do not constitute automatic approval for prepayment. Each request will be evaluated based on business necessity, applicable law, and the University's financial and contractual requirements.
University departments requesting a permitted advance payment or prepayment must identify the requirement in the requisition comments and provide an appropriate business justification. This information enables Procurement to evaluate the request during the procurement process and, when approved, incorporate the appropriate payment terms into the resulting purchase order or contract. Failure to identify a prepayment requirement at the time the requisition is submitted may delay processing and could require renegotiation of the agreement.
Vendors requesting payment terms other than the University’s standard Net 30 terms are responsible for disclosing those requirements during the solicitation or contract negotiation process and ensuring they are incorporated into the final executed agreement. Likewise, University departments are responsible for identifying any anticipated prepayment requirement when submitting the requisition. Requests for advance payment terms after a purchase order has been issued or an agreement has been executed may not be considered.
Any exception to the University's standard payment terms is subject to negotiation, must be expressly incorporated into the executed contract or purchase order, and may require review by Procurement and the Office of General Counsel. The University reserves the right to reject any request for advance payment or prepayment that is not determined to be in its best interest.