Accounting Policies (APPL04)
Accounting Policies
POLICY TITLE: | Vendor Discounts | POLICY NUMBER: | APPL 04 |
DATE ISSUED: | July 1, 1993 | DATE REVISED: |
|
Some vendors doing business with Creighton University offer discounts to encourage early payment of their invoices. By paying these invoices early, the University is sometimes able to save more in the discount than could have been earned as interest income if the full invoice amount had been invested for the additional time between the discount period and the normal invoice due date (typically 30 days from the invoice date).
The Controller's Office will regularly contact the Treasury Department to obtain their recommendation on the types of discounts that are "financially prudent" to take based upon the University's prevailing interest rates for investments and borrowing. Based upon this input, the Controller's Office will take all discounts that fit the recommended guidelines (provided that the documentation submitted for processing is received on a timely basis prior to the discount date).
