Supplier Invoices and Payments
Procedure Number: 5.4.19-P
Current Effective Date: 08/01/2017
Original Effective Date: 07/01/2013
Revision Dates: 07/01/2013, 01/01/2015, 05/30/2017
Revision Number: 3
Revision Summary: Prior Business Procedure 4.22
Responsible Official: Director of Procurement to Payment
To address the processing of Purchase Order invoices in a timely manner.
This procedure applies to all KCTCS employees.
KCTCS must comply with the Kentucky Revised Statues (KRS) 45.451 to 45.458 in reference to the following practices:
- Consistent purchasing practices and procedures across KCTCS.
- Provide public confidence in all procurement practices.
- Ensure fair and equitable treatment of all persons that transact with KCTCS.
- Foster effective competition.
- Ensure integrity with procurement.
4. Time Limit
Time limits for processing invoices per KRS:
- Payment required within 30 working days of receipt of a supplier’s invoice (and receipt of goods or services in good condition).
- Exception may be made when payment is delayed because the originating business unit or KCTCS Office of Procurement to Payment Services has contacted the supplier or supplier’s subcontractors with disapproval of improper performance or improper invoicing. See Business Procedure 5.4.6-P (Price Contracts).
5. Late Payment Penalty
Per Kentucky law, a late payment penalty of one (1%) percent per month may be added to any invoice not paid within the 30 working days.
- Payment can be paid to the supplier by adding the penalty to the invoice.
- Late penalty payments will be paid by the originating business unit.
6. Invoices and Receiving Receipt
Accounts Payable accepts original invoices via US Postal Services or scanned invoices via email at firstname.lastname@example.org from suppliers against valid KCTCS purchase orders.
Business units must process receipts for goods/services in PeopleSoft that have been received and ordered via a purchase order.