Beginning July 1, 2010, Boston University’s standard payment terms will be Net 60. Boston University suppliers will also have the option to enroll in Boston University’s accelerated payment program at www.bu.edu/supplier. Optional early payment choices include:
- 0.5% 40 Days, Net 50
- 1% 30 Days, Net 50
- 2% 10 Days, Net 30
- 3% 5 Days, Net 30
What does Net 60 mean?
- Payment will be made 60 days after the date on the invoice.
Why is Boston University changing its payment terms?
- Boston University recently compared its vendor payment practices to industry and higher education standards and noticed that it had not been receiving equitable consideration for payments made earlier than 40 days.
What is an accelerated payment?
- This means that Boston University will deduct a percentage of the total invoice amount if payment is made earlier than Net terms. For example, if a supplier selects 2% 10 Days, Net 30 as a payment option, Boston University will either pay the invoice 30 days after the invoice date (Net 30), or pay the invoice 10 days after the invoice date and deduct 2% of the invoice amount.
How can I change my terms to the new accelerated payment program?
- Please make sure that your company is registered as a supplier with Boston University at www.bu.edu/supplier. Only registered suppliers can receive payment from Boston University. Once you have verified your supplier status, contact email@example.com.
What if my company has a contract or an open purchase order with Boston University with different payment terms?
- Boston University will honor its past contractual commitments. Invoices against new purchase orders or contracts issued after July 1, 2010 will be paid per the new payment term program. Products or services delivered to Boston University without a purchase order or contract will be subject to payment under the University’s new payment term program. Invoices must reference an authorized Boston University purchase order number in order to guarantee timely and proper payment
How do I know that Boston University will honor its payment term commitments?
- Boston University will make every effort to pay an invoice within agreed upon contract terms. Suppliers interested in receiving timely electronic payments from Boston University must use either Bank of America’s Paymode EFT payment program or Bank of America’s ePayables credit card payment program. Please contact Accounts Payable for further information on how to sign up for Paymode or ePayables.
I still have questions about the new payment terms. Who can I talk to?
- You can send an email to firstname.lastname@example.org and a member of the Sourcing & Procurement department will contact you.