What You Should Know
Princeton University offers suppliers several payment options for approved invoices. The University’s standard payment terms are Net 45 days via paper check. Suppliers selecting this payment option will have a check for the full invoice amount mailed to them 45 days after the invoice has been received by accounts payable.
To assist suppliers in managing their outstanding invoices, the University offers and encourages suppliers to consider accelerated payment methods which allow for faster payment with reduced risk.
An accelerated payment means that Princeton University will deduct a percentage of the total invoice amount if payment is made earlier than the Net terms. For example, if a supplier selects “2/10 Net 30” as their payment option, Princeton University will either pay the invoice in full 30 days after receipt of the invoice (Net 30), or pay the invoice 10 days after receipt of the invoice and deduct 2% of the invoice amount.
Two accelerated payment methods are available to suppliers:
- Immediate Payment via Virtual Payables: Suppliers receive a unique credit card number which they use to settle approved invoices. Payment terms are “Net Receipt” which means the full amount is paid upon receipt and approval. This is Princeton University’s preferred payment method and more information on the Virtual Payables program can be found here.
- Expedited Payment via Electronic Funds Transfer (EFT): Suppliers receive electronic funds transfers directly into a specified bank account. Suppliers may choose from the following terms:
- 4/3 Net 30 - 4% discount if paid within 3 days, otherwise paid within 30 days
- 3/5 Net 30 - 3% discount if paid within 5 days, otherwise paid within 30 days
- 2/10 Net 30 - 2% discount if paid within 10 days, otherwise paid within 30 days
- 1/20 Net 30 - 1% discount if paid within 20 days, otherwise paid within 30 days
- Net 30 – Full amount paid within 30 days
Why Consider Electronic Payment?
Payments made by check have an increased risk of fraud and loss. Electronic payment methods provide multiple layers of security, which translates to less risk for both Princeton and the supplier, and streamlines the receivables and payables process. Electronic payment recipients also receive a remittance advice via email that provides greater detail about the invoices included in the payment.
Payment Date Calculation
Payments to Individuals
Non-supplier payments such as honoraria and travel reimbursements to individuals are paid on an immediate basis.
Help Minimize the Risk of Payment Delays
Princeton University strives to ensure timely and accurate payment for the goods and services our suppliers provide. To help minimize the risk of a payment delay, please consider the following when submitting an invoice for payment:
- Review payment terms and method of calculation – To forecast when a payment will be received, review the payment method selected. For faster payment, consider one of the accelerated payment options.
- Make sure your invoice is complete and accurate – Invoices should include the University issued Purchase Order Number, be legible (no handwritten copies), and prices/quantities should match the prices/quantities specified on the purchase order.
- Send invoices to accounts payable – Supplier invoices should be emailed directly to firstname.lastname@example.org. Using this address is the fastest submission method and payment terms are calculated from the date an invoice is received by accounts payable, not the date listed on the invoice.
If you have questions, contact the Princeton University Financial Service Center, (609) 258-3080 or email@example.com, for assistance.