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Prompt Payment Regulations

The Prompt Payment Law of the State of Texas requires state agencies to make payments to vendors for goods and services within 30 days. The law also stipulates that payments made after 30 days are subject to interest, which is calculated from the 31st day through the payment date.

In order to comply with the law, Accounts Payable schedules payments so that they are released on the last check run prior to an invoice becoming past due. A recent change in the law allows invoices less than $5,000.00 to be paid within 20 days. Payments in excess of $5000.00 can be made prior to 30 days only if there is a written agreement with the vendor that stipulates an earlier due date, if the vendor offers a cash discount for earlier payment, or, in the case of a small sole proprietorship, has submitted a hardship letter requesting earlier payment.

The state mandated due date is 30 days from the later of:

  1. the date the governmental agency receives the goods
  2. the date the service is completed
  3. the date the governmental agency receives an invoice for the goods or services.

Vendors are instructed to send invoices to the accounts payable department. If an invoice is received by the department, it is important to date stamp the original invoice and send it immediately to Accounts Payable. The date that the invoice is received by the department (governmental agency) is the date used to calculate the due date. If payment cannot be made within 30 days as required by law due to a delay caused by the department, the department is responsible for any interest payment due the vendor.

For additional information refer to the University Policies and Procedures C-25.1 and F-6.
Additional questions can be directed to Virginia Walker at extension 2432 or by e-mail: vwalker@sfasu.edu

Contact Information
accountspayable@sfasu.edu • office: (936) 468-2303 • fax: (936) 468-2207

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