This article serves as a policy reminder that employees and designated contracting officer representatives (CORs) must, in a timely manner, review and reject supplier invoices that do not meet submission requirements, and must pay invoices in accordance with contract payment terms.
The Postal Service™ is subject to the Prompt Payment Act (PPA), which requires timely payment of invoices (subject to contract payment terms) after the receipt of goods and services. To comply with the PPA, the Postal Service must pay a properly submitted invoice no later than 30 days after receipt (14 days for progress payments on facility construction contracts) unless the contract specifies an actual payment date.
Most purchasing contracts require suppliers to submit a proper invoice to an individual or office specified in the contract or order when goods and services are delivered and accepted by the Postal Service. The supplier’s submission of a proper invoice to the Postal Service for payment is a certification of the following:
n That services being billed for have been performed in accordance with the contract requirements.
n That supplies for which the Postal Service is being billed have been shipped or delivered, and that the supplies are in the quantity and of the quality designated in the contract.
Per Postal Service policy (see the resources listed at the end of this article), CORs or designated individuals indicated within the contract must process invoices in accordance with the contract terms. This includes, but is not limited to, invoice receipt, review of the invoice to ensure it is proper, inspection and acceptance of the goods or services, certification of the invoice, and making payment.
To ensure prompt payment, an original invoice must meet the submission requirements (e.g., contract number, point of delivery, payment terms) as described in Supplying Principles and Practices (see the resources listed at the end of this article). In addition, the Postal Service considers an invoice that is submitted to anyone other than the designated individual specified in the contract or order to be not properly submitted, as is an invoice that does not contain the relevant and necessary data. The COR or the designated individual must return such an invoice to the supplier.
Upon invoice receipt and review, the designated COR or individual must certify the invoice within 7 days of receipt. The designated COR or individual must exercise due diligence to verify accuracy or reject invoices that do not meet submission requirements and contract payment terms. The designated COR or individual must notify the supplier of the reason(s) for invoices rejected or improper within 7 days of receipt. The Postal Service allows notification by phone, memorandum, or letter, and also allows return of the invoice with appropriate annotation.
Failing to make payment, or making late payment, can have harmful effects, including damaged supplier relations, delays, and the accrual of additional interest penalties pursuant to the PPA.
For detailed information, see the following resources:
n Supplying Principles and Practices:
n Clause 4-1, General Terms and Conditions (g) Invoices (about.usps.com/manuals/spp/html/spp10.htm#ep1067514).
n Clause B-20, Invoices (about.usps.com/manuals/spp/html/spp10.htm#ep975517).
n Process Step 5-11, Invoices and Other Billing Information (about.usps.com/manuals/spp/html/spp5_077.htm#ep749589).
n Process Step 5-12, Make Payment (about.usps.com/manuals/spp/html/spp5_086.htm).
n Management Instruction FM-610-2013-4, Compliance With the Prompt Payment Act (blue.usps.gov/cpim/ftp/manage/fm610134/welcome.htm).
— Supply Management Infrastructure,
Supply Management, 11-18-21
