RIDER 104. INVOICING, PAYMENT AND TAXES
Supplier shall create a standard single invoice for each order in either paper or electronic formats (through Sciquest or
GHX services). Additionally, Supplier shall summarize multiple occurrences of individual stock items included in an
order to a single line item on both printed and electronic format invoices. Supplier will review requested format by
UTMB for laser-printed invoices and will use reasonable efforts to provide the requested format.
Section 1.
1.1
INVOICE ROUTING; FORMAT; TIMELINESS
Invoice Submission Location
UTMB cannot retrieve invoices through Supplier’s website and can only accept invoices through the following format
(listed in descending order of preference):
Submittal Format
XML-Sciquest, EDI GHX
E-mail (one invoice per e-mail in PDF
form if applicable)
United States Postal Service (If
applicable)
Carrier (UPS, FedEx, etc.)
Submittal Address
Qualifying Suppliers contact: Supply Customer
Service at 409-747-7800
utmb.payables@utmb.edu
UTMB Accounts Payable
301 University Blvd. MS 0907
Galveston, Texas 77555-0907
UTMB Accounts Payable
301 University Blvd. MS 0907
Galveston, Texas 77555-0907
1.2 Electronic Invoice/Credit memorandum submission
Invoices:
Supplier shall provide an electronic invoice in a secure, non-alterable electronic format (Adobe *.pdf is acceptable) emailed directly to utmb.payables@utmb.edu with the Supplier’s name, UTMB Purchase Order Number, and Invoice
Number in the e-mail subject line if applicable and accepted. Do not send invoices directly to or copy the UTMB
Accounts Payable representative unless specifically requested to do so during a payment inquiry process.
UTMB will accept only one invoice per e-mail and all invoices must include a 16-digit UTMB Purchase Order Number.
Invoices without a Purchase Order Number or an incorrect Purchase Order Number will be returned unpaid to the
Supplier, at which point the Supplier should obtain a valid Purchase Order Number from the UTMB personnel who
placed the original order (see section 2.1 below).
Invoices submitted to UTMB in any fashion other than mentioned in section 1.1 above (ie. to departmental personnel
other than Accounts Payable), may experience payment delays and will not be subject to the Prompt Payment rules
mentioned below.
Credit Memoranda:
UTMB’s preference is to receive refund payments via US Postal Service to the address listed above. Additional
requirements are detailed in section 2.3 below.
Should Credit memoranda be issued in lieu of refund payment, the memoranda should be sent to UTMB in an electronic
format similar to invoice submissions.
Only one credit memoranda should be included per email to
utmb.payables@utmb.edu, with the Supplier’s name, UTMB Purchase Order Number, Supplier Invoice number and the
word “credit memo” listed in the email subject line.
Rider 104. Invoicing, Payment and Taxes
Rev: May 2016
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RIDER 104. INVOICING, PAYMENT AND TAXES
1.3
Effective Invoice Period
Supplier will submit invoices within sixty (60) calendar days after delivery of the goods or complete performance of the
services invoiced.
1.4
Third Party Invoicing
UTMB does not accept invoicing from third parties acting on behalf of the Supplier with the exception of those suppliers
enrolled in UTMB’s third party freight program.
Section 2.
2.1
ACCURATE BILLING
Invoice Requirements
Each invoice must include:
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Billing related to only one valid 16-digit UTMB Purchase Order Number.
o UTMB’s 16-digit Purchase Order contains a 5-character Business Unit, followed by a dash, followed
by a 10-digit number containing either four or five leading zeros.
A valid UTMB Purchase Order Number clearly stated on the face of the invoice.
The Supplier’s legal name, “remit to” address, telephone, email address, and fax number.
A uniquely assigned invoice number.
An invoice date.
The UTMB “bill-to” address referenced on the UTMB Purchase Order.
The UTMB “ship-to” address.
The correct invoice amount matching the UTMB Purchase Order (invoices that contain an incorrect amount or
a disputed amount will need to be revised and resubmitted by the Supplier).
o Line items must match UTMB Purchase Order line items (invoice line prices must exactly match, or
be less than, UTMB Purchase Order line items).
o Supplier should not ship goods or provide services if proposed invoice price/quantity does not match
exactly with UTMB’s Purchase Order. Pricing discrepancies should be resolved between the
Supplier and UTMB Ordering department prior to shipping goods or providing services.
For goods, the manufacturer's part number, item description, quantity shipped, and unit price.
For services, a clear description of exact services rendered
A separate line item for all freight, shipping and handling costs related to the invoice (not billed separately).
With the exception of e-invoices submitted via XML or EDI, each invoice must be a standard typed original invoice on
Supplier letterhead. UTMB will not make payments based on statements, quotations, service contracts, shipping/packing
slips, calculator tapes, work orders, pro-forma statements, Letters of Intent, Memoranda of Understanding, or other noninvoice documents.
Invoices submitted to UTMB that do not conform to the above requirements will be considered invalid by UTMB and
consequently not subject to Prompt Payment guidelines mentioned below. Invoices submitted that do not conform to
the above requirements risk potential delays in payment.
2.2
Deductions
UTMB may reduce payment to Supplier for the following reasons:
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Sales Tax, if the Supplier acknowledges receipt of a valid exemption certificate (for more information, refer to
Section 6.1 of this Rider 104).
Negotiated price is less than invoice price.
Rider 104. Invoicing, Payment and Taxes
Rev: May 2016
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RIDER 104. INVOICING, PAYMENT AND TAXES
2.3
Credit Memoranda
Credit memoranda submitted to UTMB must include the Invoice Requirements set out in Section 3.1 of this Rider 104,
as well as the following:
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2.4
UTMB’s preference is to receive refund payments rather than credit memoranda.
o Refund payments must reference the original UTMB Purchase Order Number, Invoice Number, and
description of goods
Written credit memoranda will be processed as follows:
o The phrase “Credit Memo” must appear in clear and apparent text.
o A uniquely assigned Credit Memo number must be shown on the face of the document
o The original invoice number and description of the goods or services credited, and the original valid
Purchase Order number must be shown on the credit memo.
Validating Purchase Orders
UTMB Purchase Orders are 16-digits as described in section 2.1 above. Suppliers should validate the order if provided
with any format other than this 16-digit format because subsequent invoices submitted by the supplier that do not
reference this 16-digit format will be considered invalid.
Invalid Purchase Orders may be researched by contacting the “Buyer” listed in the header of the UTMB Purchase Order.
If the Buyer is unknown, Supplier may contact the UTMB Logistics Department at 713-745-8300 for GHX Orders and
UTMB Purchasing Helpdesk for PeopleSoft Purchase Orders at 281-338-8056.
Section 3.
3.1
ACH PAYMENT DISBURSEMENT METHOD
Preferred Payment Method
Single Use Account (Visa): UTMB can offer expedited payment via this payment method. Suppliers interested can
enroll in this program which offers payment via the Visa Network. Advantages include expedited payment and no paper
checks send via US Postal service. For more information and/or to enroll, please complete the form located at:
https://ispace.utmb.edu/departments/Finance/Accounts Payable/webfiles/APForms/SUA Announcement
Letter-Enrolment form.pdf
Automated Clearing House (ACH): UTMB’s preferred process for settling financial obligations is to utilize the
National Automated Clearing House Association (NACHA) standard Cash Concentration and Disbursement (CCD) or
Corporate Trade Exchange (CTX) formats. These industry standard processes are widely utilized and recognized by
payees as the most efficient, safe and timely way to transfer funds. UTMB’s goal is that every payment by UTMB be
made via electronic funds transfers, unless legally prohibited. This service may be set up by completing the following
Direct Deposit form and returning it to UTMB per instructions at the bottom of the form:
http://www.utmb.edu/supplychain/vendor/forms/UTMB ACH Direct Deposit Form.pdf
Alternatively, the Supplier Management team at UTMB can assist via email (supplier.mgmt@utmb.edu) or by telephone
at 281-338-8056.
Upon payment initiation, Supplier will receive a direct deposit of funds to their designated bank account and an email
containing the associated remittance details.
Rider 104. Invoicing, Payment and Taxes
Rev: May 2016
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RIDER 104. INVOICING, PAYMENT AND TAXES
3.2
Payment Disbursement
UTMB initiates electronic payment disbursements on Wednesdays and Fridays, with typical funds availability the
following business day.
3.3
Accounts Payable Invoice Approval Process
Goods: UTMB requires a 3-way match for payment on Purchase Orders for goods. The 3-way match includes a UTMB
Purchase Order, a UTMB Materials Management Receipt, and a Supplier Invoice. All items must match with respect to
quantity, price, and receipt in order for a payment to successfully remit to a Supplier. Invoices submitted by suppliers
with prices higher than referenced on the associated Purchase Order will cause payment delays. Suppliers can avoid
such delays by settling the pricing discrepancy at the time of Purchase Order issuance/acknowledgement. Suppliers
should contact the buyer named on the Purchase Order to initiate such price discrepancy discussions.
Services: UTMB requires a 2-way match for payment on Purchase Orders for services. The 2-way match includes a
UTMB Purchase Order and a Supplier Invoice. In addition, complete performance of services must be verified by an
appropriate UTMB representative before an invoice for such services will be paid unless otherwise stated in the
Agreement. All items must match with respect to quantity, price, and verified acceptable performance of services in
order for a payment to successfully remit to a Supplier. Accounts Payable staff will release payment to the supplier only
upon written approval from the ordering department.
Section 4.
4.1
SUPPLIER INQUIRY OPTIONS
Payment Inquiry
Supplier may research invoice status by contacting the UTMB Accounts Payable Department through the following
methods (a UTMB Purchase Order Number and/or Supplier Invoice Number is required):
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4.2
Email (questions only): payables.status@utmb.edu
o Subject line should contain the UTMB Purchase Order number, invoice number and supplier name
as well as the phrase “Payment Status”.
o Do not include attachments if the invoices has previously been submitted to Accounts Payable.
Telephone: 409-747-7259
Reconciliation of Payment
UTMB notifies Supplier that invoices have been paid by payment stub (for standard check payments) and/or via e-mail
(for ACH direct deposit or SUA payments).
4.3
Credit Hold
Supplier shall not suspend shipments of goods or performance of services unless Supplier complies with Subchapter D,
Chapter 2251, Texas Government Code. Supplier must provide UTMB at least ten (10) days prior written notice of its
intent to suspend performance (the “Suspension Notice”). Notwithstanding any other requirements for notices given by
Supplier under the Contract, if Supplier intends to deliver a Suspension Notice to UTMB pursuant to Texas Government
Code Section 2251.054, Supplier must send such written notice to UTMB to the following address:
The University of Texas Medical Branch at Galveston
Supply Chain – Accounts Payable
301 University Blvd (campus mail route 0907)
Galveston, Texas 77555-0907
Notice must contain specific information regarding the suspension. Applicable Purchase Order Numbers and invoice
numbers must be referenced in the Suspension Notice.
Rider 104. Invoicing, Payment and Taxes
Rev: May 2016
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RIDER 104. INVOICING, PAYMENT AND TAXES
Section 5.
5.1
MATERIALS MANAGEMENT
Freight
UTMB does not accept Collect on Delivery (C.O.D.) shipping.
5.2
Receiving
All deliveries must reference a valid UTMB Purchase Order Number or risk being turned away. Purchase Orders for
goods not delivered to a UTMB shipping location as indicated on the Purchase Order risk payment delays, unless
otherwise stated in the Agreement.
Section 6.
6.1
GOVERNING LAWS
Taxes
UTMB is a tax-exempt agency of the State of Texas and an institution of higher education. Notwithstanding its exemption
from certain state taxes, UTMB will be responsible for any taxes (except corporate income taxes, franchise taxes, and
taxes on Supplier’s personnel, including but not limited to personal income tax and social security taxes) from which
UTMB is not exempt. Supplier will provide reasonable cooperation and assistance to UTMB in obtaining any tax
exemptions to which UTMB is entitled. UTMB will provide Supplier applicable exemption certificates upon request.
6.2
W-9
UTMB requires Supplier to have a valid W-9 on file with UTMB prior to all disbursements. Supplier may download a
W-9 form from UTMB’s Supply Chain Management website at:
http://www.utmb.edu/supplychain/purchasing/forms/UTMB Vendor Application.pdf
6.3
Prompt Payment Act
UTMB will pay Supplier in accordance with the Texas Prompt Payment Act, Chapter 2251, Texas Government Code.
Interest on overdue payments will be paid as authorized by the Prompt Payment Act.
6.4
Discounts
All discounts offered by Supplier and earned by UTMB will be accepted and processed to the extent permitted by law.
Rider 104. Invoicing, Payment and Taxes
Rev: May 2016
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