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State of Louisiana DIVISION OF ADMINISTRATION Office of Statewide Reporting and Accounting Policy

M. J. "Mike" Foster, Jr. Governor

Mark C. Drennen Commisioner of Administration

May 3, 2000


TO:  Fiscal Officers
All ISIS Agencies
FROM:  F. Howard Karlton CPA,

Vendor Prompt Payment Discounts

As stated in SA Memorandum 00-27, beginning 5/8/00 the ISIS checks will be printed and mailed on Mondays, Wednesdays and Fridays instead of five days per week. The running of Automated Disbursements will also change to three days per week (Tues Thurs Fri). To prevent the loss of vendor discounts we have submitted a change request for the AGPS OPAY screen to default the current date on any payments with discount terms. Previously, if not entered by the agency, AGPS defaulted the day one day before the end of the discount period for the scheduled payment date. From this point forward you should allow AGPS to default the scheduled payment date if a discount is involved to ensure that the State takes advantage of vendor discounts when available. Do not change the defaulted date. If you later decide that the payment should not be issued, cancel the OPAY record and reenter it when needed. You must always use the correct invoice, invoice receipt date and receipt date on OINV to ensure the proper issuance of payments and the deduction of discounts. Do not falsify these dates for any reason.

If discount terms were present, AGPS also sent the discount terms to AFS regardless of whether the agency was due a discount. This resulted in AFS taking a discount when none was due since AFS recalculates the validity of the discount using the transaction date and check date. We have requested a change to AGPS so the discount terms are only sent to AFS if the payment is being made within the discount period. Again, for this to work properly, you MUST enter the correct invoice, invoice receipt and receipt dates on the AGPS OINV screen. If you fail to do so, the vendor should be reimbursed for any discount amount taken in error.

If discount terms need to be added to the AFS DISC table, please contact the OSRAP Help desk at the number below for assistance. Due to the limited number of entries available, we will no longer add discount terms when the agency is issuing an order. We will only add discount terms when the agency is at the point of payment. Several discounts on the table have never been used because the agencies never completed the order or issued a payment.

If you have any questions, please contact the OSRAP Help desk at (225) 342-1097.

FHK: rtj


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