STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 97-11

March 21, 1997

TO THE HEADS OF ALL STATE AGENCIES

An analysis of payments made to vendors offering prompt payment discounts indicates that many State agencies eligible to take advantage of this cost saving measure are not doing so. Paperless processing agencies are expected to process invoices expeditiously to meet both the State's general and special terms for payment. Whenever feasible, paper processing agencies should also attempt to meet these special conditions as well.

Agency Procedures:

• Prioritize payments for vendors that offer discounts regularly (i.e. Corporate Express, Arrow Paper, Bristol-Myers Squib, etc.).
• The Billing Identification area of the Vendor Invoice (CO-17) should specify the vendor invoice number(s), account number(s) and all other pertinent detail to assist the vendor in reconciling the payment. This area cannot exceed 52 characters. If more comprehensive payment information is required, the agency should indicate "tracer sent" in the Billing Identification area and issue a separate Remittance Advice (CO-894) directly to the vendor.
• Failure to provide vendors with critical payment information (i.e. invoice combining, partial payment notification, etc.) may result in complications with account reconciliations.
• Paperless processing agencies should not use Special Code 14 since this will delay the payment process and may extend beyond the discount period.

Compliance with these procedures will reduce the overall cost of goods and services to the State and resolve vendor reconciliation problems.

Questions

Questions may be directed to the Office of the State Comptroller as follows:

NANCY WYMAN
STATE COMPTROLLER

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